Month: June 2020

Last year Africa spent more money servicing debts than on the health issues of its public.   According to World Bank, Africa is home to the world’s highest number of heavily indebted poor countries owing a total of US$493.6 billion in long term debts. 

As the World Bank and IMF issue funding aid to help support Africa respond to the effects of COVID-19, countries including Tanzania and Rwanda have asked that the international community focus more on debt relief. 

The IMF issued a statement listing certain countries as being eligible for debt relief and asked others to state their case—to explain why they deserve debt relief. 

The Institute for International Finance, a club of some 450 banks and financial investment firms from across the globe, say they are working on temporarily suspending debt financing by the poorest countries, most of which are in Africa. 

 Also Read: Why high

The Tanzania Horticultural Association (Taha) is reporting an increase in revenue from the export of avocados which until now were not considered key export cash crop. 

However growing demand in the US and Europe has seen the sub-sector increase revenue to US$23 million annually. 

Tanzania is the second largest producer of avocado fruit in Africa second only to Kenya. Over the past five years, avocado exports have leap-frogged from 1,877 tonnes in 2014 to 9,000 tonnes in 2019 and were it not for the COVID-19 outbreak, this figure was expected to go higher. 

Also Read: COVID-19 response must target African agriculture and the rural poor

Kenya is already doing much better with its estimated annual output of about 190,000 tonnes as the country exports an average of 10,000 metric tonnes annually. 

In Tanzania, there are about 10,000 farmers of the crop who …

It is common knowledge that for an economy to fully develop its insurance industry must be robust and dynamic to meet all the challenges in that economy. This includes but is not limited to developing products suited for the particular economy, and developing products fast. The industry must think on its feet. 

Other factors also come into play and all these complement one another so as to achieve the overall growth target of the industry. One of the most important drivers of insurance penetration is the intermediaries comprising of agents and brokers. They are the vital link that connects the consumers of insurance products and the sellers of the same. Suffice to say that without this vital link in the industry the penetration of insurance would be minimal or negligible and the two point four three percent we boast about and the ranking of Kenya as among the top six …

Twiga Cement (TPCC on the Dar es Salaam Stock Exchange) on Friday, May 22, 2020, released its Annual Report and audited accounts for the year ended 2019. Revenues grew 6% and net profits rose 5% in 2019 from the year earlier. Dividends were steady at TZS 290 per share for the third year running.  

Twiga is the dominant cement company in Tanzania. It is the 19th-biggest company overall in East Africa by market value and the fifth-biggest in Tanzania, according to the latest African Business rankings. 

The company is a subsidiary of German multinational Heidelberg Cement, which owns 69.3%. The other 30.7% trades on the DSE and is owned by thousands of small shareholders and investment funds.  

Twiga has a huge competitive advantage over the other cement industry players in Tanzania, because its production facilities are on the outskirts of Dar es Salaam. Cement is heavy and expensive …

Africa has so far escaped the worst health consequences of the COVID-19 pandemic. However, the continent looks like it could be the worst hit from the economic fallout of the crisis: 80 million Africans could be pushed into extreme poverty if action is not taken. And disruptions in food systems raise the prospect of more Africans falling into hunger. Rural people, many of whom work on small-scale farms, are particularly vulnerable to the impacts of the crisis. It is therefore vital that the COVID-19 response address food security and target the rural poor.

At this time, the international development agenda is prioritizing health, economies and infrastructure. But there must also be a focus on food security, agribusiness and rural development. This is especially important on the African continent.

Agriculture contributes 65 per cent of Africa’s employment and 75 per cent of its domestic trade. However, the rich potential of agriculture …

By Caroline K. 

There is something very … approachable about Mary; she gives off a welcoming presence. As the owner of a successful public relations company, she is a pioneer in her own right. Having started the business at the age of 23, she has come a long way to becoming the person she is now. She shares on what has made her journey a successful one this far. 

1. In your opinion, what does it take to run a successful PR company? 

To be honest, I wouldn’t want to make it sound like there is a one-size fits all formulae for success but I will share what has worked for me. One: discovering myself, what my strengths are and what I am truly wired for. Two: my relationship with God; this has moulded me into a patient individual and has taught me how to perseverant.  

1. How have things changed

The dream of a world without hunger seemed achievable three years ago. However, with increasing challenges such as those recorded recently like the locust invasion and the novel Corona Virus (COVID-19) that is still wrecking lives across the globe, the future looks bleak. 

Africa accounts for the highest number of people suffering acute food insecurity due to conflicts and tensions between communities.  

According to the 2020 Global Report on Food Crisis (GRFC 2020): “In East Africa, armed conflicts, intercommunal violence and other localized tensions continued to affect peace and security.” 

Moreover, “the upheaval that has been set in motion by the COVID-19 pandemic may push even more families and communities into deeper distress, António Guterres, Secretary-General of the United Nations, added in the Forward of the report.  

Also Read: Crop insurance to ensure food security and poverty reduction

The global food policy report published April …

Kenya’s five top banks released stable Quarter 1, 2020 financial results with pessimism of their future earnings heavily affected by the Covid-19 pandemic that continues to cause havoc on the economy.

The banks that include KCB Group, Co-operative Bank, Diamond Trust Bank, Equity Group and NCBA recorded higher growth in deposits, loan book, interest income and non–funded income, but cautioned of reduced earnings in the future under the prevailing circumstances.

Deposits for the five grew by 17.7%faster than the 11% growth recorded in Q1’2019while average loan growth went up by 12.7% compared to 7.7% over the same period last year.

Analysts at Cytonn Investment attribute the growth in loans being accelerated following the repeal of the interest rate cap in November 2019, coupled with increased demand in funding as businesses demand working capital to operate in the current tough operating environment.Government securities recorded a growth of 25.9% year-on-year, which was …

It feels very appropriate to talk about investing in disruptive innovation at a time when all of our lives have been so seriously disrupted by Covid-19.  

Many investors are drawn to the “retail” investments peddled by banks and insurers. Huge amounts of money are given to East African governments in the form of Treasury Bonds and Bills that pay between 9% and 15% per annum before withholding taxes are applied. And post-Covid what will your KES, UGX, ZAR, TZS or RFR actually be worth? And how safe do you think East African government debt will actually be? The default investment for many East Africans has traditionally been property but in a damaged economy property looks like the most illiquid of assets – and a likely victim of a global correction in prices.   

Of course there is a place for retail investments – low risk, short and fixed terms, average …

Most of Africa is highly food insecure despite all the food that goes to waste.…