Author: The Exchange

The Problem 

The population of Zimbabwe has been exploding and a growing population means that there is a growing need for housing and infrastructure.  

Without citing any statistics to confirm this, a person only needs to look at the number of informal settlements sprouting in and around Harare as well as major towns and cities of Zimbabwe. This, coupled with the fact that the older housing settlements and infrastructure are in a serious state of disrepair, it is not uncommon to find overcrowding in areas like Mbare and Makokoba.

There is also the emergence of settlements in areas that are either poorly serviced or not serviced at all. All these phenomena are symptomatic of one primary thing: little to no supply of housing units over a very long period firstly, and supply that is insufficient when compared to levels and rates of population growth, secondly.

Read: Equity Bank tops as …

The forex market is an increasingly diverse investment space, especially in terms of the type of traders who target currencies and the strategies used to achieve a viable profit.

Of course, this has helped to see the market deliver daily trading volumes in excess of $6.6 trillion, while also introducing concepts such as “high” and “low” frequency trading.

But what exactly do these terms mean, and which option is right for you as an investor? Let’s find out!

Defining High and Low-Frequency Trading

 The term “high-frequency trading” (HFT) refers to a largely automated investment vehicle that utilizes powerful computers to transact a large number of orders at incredibly high speeds.

Typically embraced by large investment banks, hedge funds and institutional investors, HFT is popular amongst scalpers and day-traders as it enables users to capitalize on real-time volatility and price fluctuation in the forex (and similar) markets.

By executing millions …

The release of first quarter results (1Q21) in the banking sector has been pertinent in the bourse in this review period. The spotlight was on KCB and Equity Group which received different investor reactions that saw foreigners exiting KCB and accumulating Equity.  

Equity Group reported an impressive 63.8% y/y rise in Earnings per Share (EPS) to KES 2.3. This performance was on the back of substantial decrease in loan loss provisions (-59.3% y/y) coupled with 28.4% y/y rise in Net Interest Income (NII). Interest expense on customer deposits however, weighed down on NII, rising 63.5% y/y to KES 4.2Bn. Non-Interest Revenue (NIR) grew 30.7% y/y to KES 10.9Bn. Borrowed funds went up 68.2% y/y to KES 88.4Bn on acquisition of development finance institution (DFI) funding to boost liquidity that stands at 60.6%. The Group’s subsidiaries in Rwanda and Uganda now deliver above the cost of capital returns giving a positive …

Harrowing tales of men, women and children drowning in the Mediterranean, after taking treacherous journeys by foot, car and boat; crossing borders in search of safer pastures has hitherto proven to be a truth stranger than fiction. However, the deadly voyages are just a tip of the iceberg of the plight suffered by refugees and migrants, who flee their native countries seeking safer havens in foreign lands. Instead, to the few who make it to the other side, they face an uncertain future. For most, this hope is extinguished upon setting foot on foreign soil, where they are met with unspeakable violence, endure untold horrors and experience extreme human rights violations such as assault, detainment and even sexual defilement.  

Consequently, psychological trauma plagues this lot, which in most cases leads to dysfunctional behaviors that impair their ability to cope with social or family life. Heretofore, more than 20,000 migrants and …

The young and the restless are befitting words to vividly depict the status quo of the countless educated but unemployed African youth; a ticking time bomb threatening the future of the continent.  

Is it the lack of proper skill sets or the intermittent nature of opportunities that has resulted in the shrinking job market? This remains a puzzle yet to be unraveled. Upon graduation from tertiary institutions, the almost assured optimism by young people of landing top jobs on the basis of their qualifications is swiftly replaced with the icy glare of disillusionment. As desperation creeps in hope for a bright future slowly seeps out for many young people; moving from office to office wielding briefcases filled with job applications, whilst others frequent internet cafés to fill out a dozen more steadfast in their quest for jobs. Pushed to the brink, it is not a rarity to find young people …

Covid-19 is pushing SubSaharan Africa’s leading economies back into poverty, according to the results of GeoPoll’s six-nation survey on the financial and social impact of the pandemic across the continent.

The poll of 2,400 respondents in South Africa, Nigeria, Ivory Coast, Democratic Republic of Congo, Mozambique and Kenya found rising unemployment, further falls in incomes, drastic cuts in spending on essential and non-essential items, and mounting concern over meeting  bills in the three months ahead.

“The picture that emerges is of a further sharp deterioration in the financial position of many individual Africans in the first quarter of 2021,” said Scott Lansell, GeoPoll’s VP – International Development.

The poll, which was conducted from March 24^th to April 12^th, found two-thirds of respondents, at 66 per cent, reporting that their income had fallen since January 2021, with 42 per cent saying it had fallen by a lot. This …

By Emmanuel Macron, Paul Kagame, Cyril Ramaphosa, and Macky Sall

PARIS – The COVID-19 pandemic has taught us that we can no longer treat seemingly faraway crises as distant problems. What happens anywhere can affect people everywhere. That is why addressing the impact and legacy of the pandemic in Africa is so important.

Although Africa has suffered fewer COVID-19 cases and deaths than other areas of the world, the pandemic’s impact on the continent could be more sustained, deep-rooted, and destabilizing for the entire planet. In one year, the pandemic has halted a quarter-century of steady economic growth, disrupted value chains, and caused an unprecedented increase in inequality and poverty.

But it is not only Africa that is at risk of losing its opportunity to emerge fully from COVID-19. The global economy could lose one of its future drivers of growth.

Africa has everything required to overcome the pandemic crisis …

The ceremony was attended by local and regional dignitaries – heads of states, ministers, heads of diplomatic missions and international organizational heads. H.E. Museveni in his speech gave highlights and assurance to the business community around the East African region, Africa and the world at large,  stating that the National Resistance Movement (NRM), – the ruling party, stands for Pan-Africanism which translates into economic and political integration. Economic integration in this case refers to having a common market for products and freely doing business within the borders of the neighbours. This is an assurance that the Ugandan market specifically, is open for interested economies and individual business owners and investors. …

Kenya is one of the most diversified and fastest growing economies in Africa, with an average growth rate of 5.7%, inching closer by the day to its ambitious vision of becoming a middle-income country in the next decade. Central to this robust growth has been the invaluable contribution made by co-operatives, popularly known as Savings and Credit Co-operative Societies (SACCOS); which not only play a pivotal role towards the country’s Gross Domestic Product (GDP), but also leave an ineffaceable mark in the lives of millions of members, so much so that the country was recently selected in a series of country studies by the renowned international co-operative research group, the U.S Overseas Co-operative Development Council (OCDC).  …

KCB Group Plc reported a 22.2% y/y decrease in EPS to KES6.11. The turn in profitability was mainly due to a slight doubling in Loan Loss Provision (LLP) to KES27.5Bn. Net Interest Income (NII) recorded a solid growth of 21.0% y/y to KES67.9Bn. The balance sheet grew 9.9% y/y to KES987.8Bn, propelled by growth in both deposits (driven by precautionary instincts due to COVID-19 shock) and loan book. During the period, the company rallied from KES38.75 at the beginning of the month and closed at KES41.3 accounting for a significant investor participation in the sector. 

Equity Group reported an 11.6% y/y decrease in EPS to KES5.24. The drop in profitability was as a result of a quadrupling in LLP to KES26.6Bn. Its balance sheet grew by half its previous level to KES1,015.1Bn. Equity group benefited from its digital transformation that accounted for 63% of the total transactions being generated outside …