Author: Opinion

Opinions by contributors are views of respected thought leaders in the respective industries they operate in. The Exchange is a close partner with each of the various opinion contributors.

digital money 440

A few weeks ago, I was positively surprised to see a sign in a sports shop in Karen, stating that they no longer accepted cash, only cards and mobile money.  Until that time, “no-cash” policies in shops was something I had only seen in the Scandinavian countries, and even there, it is still rare. Since the start of the pandemic, however, digital-only payment policies have proliferated in Kenya, and are starting to become commonplace.

Cash as a payment method has been in a slow, terminal decline in Kenya for many years, but it has managed to survive, until now.

Kenya has long been a forerunner in terms of digital payments in Africa. Even as far back as in the Moi era, many shops and supermarkets, most upscale restaurants, and virtually every hotel accepted Visa and Mastercard.  This was at a time when Ethiopia had one single bank branch in the …

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Crude oil's continued recovery challenged by quota-cheating

Brent crude oil’s return to a $40/b handle has so far proved to be short-lived. During the past week the oil market has continued to move higher in the belief that the OPEC+ group of producers would extend a deal to curb production. Thereby continuing their support for the market while demand slowly recover.

Saudi Arabia and Russia, the leaders of the group, have preliminary agreed on a one-month extension of existing OPEC+ cuts. The problem, however, is once again what to do with countries that fail to deliver the promised cuts. Moscow, usually a laggard in previous deals, has almost reached its target of 8.5 million barrels/day. That has left the group in a stronger position to demand compliance from others.

 

Once again the focus has returned to Iraq and Nigeria, OPEC’s notorious cheaters, who for years now have failed to deliver fully on any of the previous …

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Kenya has a mobile phone penetration of over 90 percent and a penetration of over 60 percent of smartphones.

By Dr. Olajide Ademola (UNFPA) and Dr. Benjamin Djoudalbaye (Africa CDC)

The COVID -19 pandemic has drastically challenged and strained health systems worldwide. All components of the health delivery architecture – from human resources to physical infrastructure – have been severely tested as morbidity and mortality caseloads, unfortunately, gallop. Globally, over four million people have been infected, with about 282 244 lives lost and over one million recoveries between December 2019 and May 2020. As the pandemic continues to evolve and the numbers trickle in, we are not just learning about the fatalities and survival, but also about redefining our healthcare systems.

Western societies are experiencing the heaviest of the unprecedented effects yet they host advanced health care amenities and have established economies. A report released early March called on leaders in Africa to prepare for worse but on the contrary, the continent appears to be gradually reaping benefits of …

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In Somalia, the challenge to contain COVID-19 is staggering. The country’s health infrastructure has been gutted by decades of conflict and instability.

A large part of the population lives in close quarters, while millions reside in decrepit settlements for internally displaced people without money to buy soap or access to regular running water. At the same time, staying at home is not a practical option for most informal workers who need to leave their homes daily to earn money and put food on the table.

Somalia’s capacity to manage the Covid-19 public health threat is a cause for concern. More needs to be done to ensure we curb the spread of the virus.

Grounds for hope still exist that Somalia may escape the type of outbreak that has overwhelmed some Western health systems.

Somalia finds itself in good standing with international financial institutions for the first time in 30 years. …

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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

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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

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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

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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
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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

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The grasp of the Coronavirus has been unrelenting; like the grim reaper, it continues its deadly march around the economies of the world, sucking the soul of one sector after another, leaving a trail of death and destruction.  

The flower industry has not been left unscathed, being one of the hardest hit sectors. Plummeting revenues have been the plight of flower farmers, who have been disposing of blooms meant for export that have been wilting by the day. Covid-19 has upended the flower industry and crushed consumer demand in the international market, incurring a net-loss of well over Ksh.8 billion (US$74.7 million) in just a month, with daily losses reported to be amounting to Ksh.20 million (US$187.0 thousand). Direct sale orders have plunged to below 35%, placing the livelihoods of both the 150,000 direct dependents and across the value chain, to the over four million, who indirectly

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