Browsing: Capital Markets Authority

• Despite increased market volatility compared to the previous quarter, the outflows remained relatively low, under one percent.
• To address liquidity challenges, the Capital Markets Authority plans to collaborate with key market stakeholders.
• Increase in interest returns from Government securities continues to shift investments away from the domestic equities market.

Foreign investors in Kenya cut their equity outflows in the capital markets by $87 million in the three months to June as the market showed signs of gradual recovery from the impact of high interest rates and global shocks.

In the quarter, foreign investors withdrew $10.5 million, a significant decrease compared to the $98 million net outflow seen in the first quarter. Despite increased market volatility compared to the previous quarter, the outflows remained relatively low, remaining below one percent.

In Kenya, there are still some risks associated with foreign investors’ flight, said Luke Ombara, the Director for Policy & Market …

Ethiopia hosted the first of a kind annual banking forum aimed at providing a platform for the financial services industry professionals and leaders.

The event held on May 21, 2022, at the Economic Commission for Africa conference centre was organized by Kehali Strategic Advisory Services PLC following the announcement that the Ethiopian banking sector opening up to foreign banks is imminent.

In addition, the National Bank of Ethiopia has also recently mandated that all banks, insurance companies, and microfinance institutions fully digitize their operations.

Bank executives, industry experts along with other stakeholders discussed the future of the banking sector, business fundamentals, regulatory framework and competitive environment, the strategic implications/options for foreign banks seeking to enter the Ethiopian market, the partnership/competitive opportunities possible between local and foreign banks as well as the benefits to the full range of consumers of banking products/services among others.

The financial sector liberalization is expected to …

• Stanbic Bank majority shareholder Standard Africa Holdings Limited (SAHL) has received regulatory approval from the Capital Markets Authority to further extend the exemption from making a complete takeover
• Under the exemption, SAHL aims to acquire a maximum of 10.6 million ordinary shares in Stanbic to bring its total shareholding to up to 75.0 per cent of Stanbic Holdings’ ordinary shares
• SAHL first announced the intention to purchase shares from willing shareholders in March 2018 to acquire 59.0 million ordinary shares at a price of KSh 95.0 per share

Standard Africa Holdings Limited (SAHL) has received regulatory approval from Kenya’s Capital Markets Authority (CMA) to acquire a bigger stake in Stanbic holdings.

Standard Africa Holdings Limited (SAHL), which is the majority shareholder in Stanbic Holdings, said it received regulatory approval from the CMA to further extend the exemption from making a complete takeover.

Under the exemption, Johannesburg Stock Exchange (JSE) listed …

Cashlet has been developed by Sycamore Capital Ltd, and it works in partnership with regulated fund managers in Kenya, to allow users to invest in unit trust products in simple, fully digital, and modern way.

The initial partner fund managers include ICEA Lion Asset Management, Old Mutual, and Genghis Capital.

The app seeks to pioneer saving and investing flexibility, life goals creation and tracking, market interest rates, financial visibility, and expert support.…

• Data by the World Bank reveals that at least a quarter of the African population has internet access, a nearly fifty-fold increase in internet usage since 2000. 
• The rapid spread of the internet across the African continent has been lauded as a key driver of prosperity and a sign of the continent’s technological coming of age. 

Over the past few years, the wealth management industry has seen a significant amount of diversification, from traditionally having products geared towards institutional investors and high net worth individuals to offering more accessible products to low and middle-income earners. 

While WealthTech is not a new concept in Africa, there is room for market players to leverage consumer demand for wealth management products that are more digitally accessible and easy to use. 

WealthTech or wealth management technology is the combining of technology such as AI, big data, SaaS, with financial assets, such as savings, investments, …

The focus over this period, undoubtedly, is on a number of listed corporates reporting their earnings. Taking a step back, Centum, BAT Kenya and East African Breweries Limited (EABL) started this round of earnings’ campaign with release in July.  

Centum reported financials for the year ending 31st March 2021 a drastic decline in its earnings per share to a loss of KES0.90 per share. The company’s profit after tax improved albeit in the negative territory while operating profits declined 75% y/y to KES 245Mn on a 59% y/y drop in investment income to KES1.5Bn. The company’s comprehensive income declined 10% y/y to KES4.8Bn on account of a 334% y/y rise in unrealized gains from the sale of rental units that are only recognized upon registering and transfer of ownership to the respective buyers.

The bulk of the Group’s KES2.3Bn loss was driven by the full consolidation of the Two …

The licensed foreign currency trading platform has more than 1000 accounts already opened…