African Business Portal Coming Soon...

Checking the numbers yesterday, I was suprised to see that more than 600 people read this blog last month. I thought there were just 4 of us reading it. Seeing that number obviously made me realize that I'd better publish more regularly to keep you coming back. Well the exact opposite is going to happen.

We're getting ready to launch a new portal under the Diaspora Interactive Media umbrella, and it wouldn't make sense for me to stretch myself thin, so I've decided to come back at least once a month and post to this blog, but for the most part, you can catch me at the new spot.

I'll publish a post as soon as we launch and who knows maybe even give readers of this blog a sneak preview before we launch.

In the meantime if you're interested in contributing to the new site or would like to be profiled feel free to send me a note to info@dimcorporation.com or if you just want to be notified when we launch, give us your information at http://www.africabusinesswire.com/

Investors lose N343bn on NSE

I'm shamelessly reposting the latest update on the NSE from Vanguard. That is the Nigerian Stock Exchange and not the Nairobi Stock Exchange. Things seem to still be in free fall in that market. Time to sell the kids Ferrari's and Bentley's. Buy them new ones when the price of oil goes back up. Just a little humor, hope no one takes offense. Heres an update from the Vanguard newspaper in Nigeria on recent trading.

The bearish trend in the capital market continued last week, as investors lost N343.36 billion on the Nigerian Stock Exchange (NSE) due to decline in the prices of quoted securities

Particularly, investors’ woes were heightened by massive losses on the share prices of majority of the listed equities, which deflated the market capitalisation by 4.49 per cent. The capitalisation which opened the week at N7.645 trillion dropped by N343.36 billion to close at N7.305 trillion.

Another market indicator, the All-Share Index, also dropped by 4.72 per cent to close at 33,025.75 points from 34,660.65 points at which it opened the week.

Oando Plc recorded the highest share price loss, in the week under review, dropping by N17.96 to close at N78.99 per share, Total Nigeria Plc followed with a loss of N15.87 to close at N225.69 per share and Flour Mills Nigeria Plc dipped by N4.20 to close at N42.75 per share.

Other share price losers include: Nigerian Bottling Company Plc, N3.88; PZ Cussons Nigeria Plc, N3.85; Benue Cement Company Plc, N3.70; Zenith Bank Plc, N3.27; Ashaka Cement Plc, N2.74; Afribank Nigeria Plc, N2.71; Northern Nigeria Flour Mills Plc, N2.59 among others.

On the contrary, Costain (West Africa) Plc recorded the highest share price gain, rising by N1.68 to close at N15.68 per share, Lafarge Cement WAPCO Plc followed with a gain of N0.86 to close at N26.00 per share and First Inland Bank Plc recorded N0.83 to close at N5.96 per share.

Other share price gainers include: Glaxo SmithKline Consumer Plc, N0.83; United Bank for Africa Plc, N0.76; Oceanic Bank International Plc, N0.66; Stanbic IBTC Bank Plc, N0.55; May & Baker Nigeria Plc, N0.45; Guinness Nigeria Plc, N0.07; GTBank Plc, N0.37, among others.

Equity trading, in the week under review, depreciated by 25.31 per cent as a turnover of 1.8 billion shares valued at N13.56 billion was recorded 44,762 deals in contrast to penultimate week’s turnover of 2.41 billion shares valued at N21 billion in 51,198 deals.

The Banking sub-sector dominated the other sub-sectors, accounting for 62.22 per cent of the market turnover with 1.12 billion shares valued at N10.47 billion in 27,393 deals.

Spring Bank Plc recorded the highest patronage in the sub-sector, trading 192.1 million shares valued at N1.07 billion in 463 deals, followed by First City Monument Bank Plc with the exchange of 149.38 million shares valued at N856.95 million in 945 deals and Diamond Bank Plc recorded 127.45 million shares valued at N1.01 billion in 640 deals.

The Insurance sub-sector followed on the sectorial analysis, accounting for 19.44 per cent of the market turnover with 347 million shares valued at N545.83 million in 3,988 deals.

Investment and Allied Assurance Plc recorded the highest patronage in the sub-sector, trading 133.37 million shares valued at N66.68 million in 321 deals, followed by Equity Assurance Plc with a turnover of 35.34 million shares valued at N178.8 million in 32 deals and Mutual Benefits Assurance Plc recorded 31.34 million shares valued at N55.9 million in 268 deals.

Original post at: Vanguard

Kenya's BPO Leaders Sprinting to the Finish

I have several posts on here about the Kenya BPO industry and have even spoken to some of the individuals profiled in this video. I have to say there is a degree of pride that comes from watching this video and seeing evidence of the efforts that are being made to ensure Kenya is a leading BPO industry leader. There is talk of a 10 year tax moratorium, cheap access to broadband, improved connectivity and infrastructure and a trained labor force that could put Kenya over the top. God speed to the team managing these efforts on behalf of the Government of Kenya.

Africa Entrepreneurship Platform New York Event

The Africa platform works to create partnerships between the US and Africa to explore Ideas between entrepreneurs and investors. The focus seems to be on South Africa, but its a start for all of Africa. Enjoy the excerpts from African and US business leaders who spoke at the event. My favorite is filmaker Carol Pineaus comment that, 'if you really want to make money, go where noone else is looking." While that's not entirely true, it makes simple sense for investors looking for the next big thing.

Check out the video....and log on to YouTube to see the complete versions of each participants speech. Also a special congratulations to Mr. Naidoo...You're doing an amazing job showcasing Africa's potential to people who can really invest capitol in the continent.

Investing in Gorongosa

60 Minutes, A very popular American Investigative news show, just profiled Greg Carr, a former IT entrepreneur that was largely responsible for the creation of voicemail. Howeverm, the 60 mintues piece was solely about the work that Greg Carr is doing in Mozambique using $40 million dollars of his own money.

Carr has made one of the largest individual commitments in the history of conservation in Africa. He's going to restore Gorongosa National Park, which is a National Park in Mozambique that was once reknowned as one of the most beautiful game parks in Africa. He has pledged as much as $40 million over 30 years, an almost unheard-of time frame in a field where most donors—governments and nonprofit organizations alike—make grants for four or five years at most.

He also is spearheading one of the largest animal reintroduction efforts on the continent and hopes to answer one of the most debated questions in conservation today: how to boost development without destroying the environment.

This is a noble, yet risky undertaking. His efforts could transform the lives of people living in that region of Mozambique and help boost the countries revenues from tourism. It doesnt hurt that his story is getting around and should be the recipient of at the very least curious tourists and other philantropic contribution.

I imagine the tourism industry in Southern Africa is paying keen attention to this project as are conservationists around the world.

Trading blocs seek agreement on ways to harmonise rules

By Samson Ntale in Uganda

Three Sub-Saharan trading blocs have agreed on a memorandum of understanding spelling out their terms of cooperation and integration.

The East African Community (EAC), Southern African Development Community (SADC) and Common Market for East and Southern Africa (Comesa) announced the bold step, when they took the first major step to institutionalise their new-found unity.

A closed ministerial meeting of the trio: that ended late on Monday, agreed that the MoU would be signed by the Chief Executives of the three regional economic blocs within a period of six months.

implementation

In the agreement, the three blocs will commit themselves to the creation of a free trade area, with a combined population of over 527 million people and a GDP of $624 billion.

"Our belief is that greater rapport and understanding between and amongst the three blocs is a more assured way towards realising the Abuja vision," said EAC Deputy Secretary General, Ambassador Julius Onen.

"It means we have agreed to pursue the development of common programmes and projects which enables us to effectively and efficiently utilise the available resources to alleviate poverty and improve the quality of life of people in the Eastern and Southern Africa region," Onen added.A Tripartite Taskforce was then formed to spearhead the process of harmonisation. The first meeting took place in Kigali, Rwanda in 2005. The taskforce has since met severaltimes.

A milestone in the making, the MoU defines in very clear terms the roadmap for harmonisation of trade and investment regimes, infrastructure programmes, and cooperation in facilitating free movement of persons. It also sets out the process for dispute resolution. The 26 countries that are members of SADC, Comesa and EAC make up half of the African Union in terms of membership, and just over 58 per cent in terms of contribution to GDP.

The tripartite arrangement between the blocs was established out of the realisation that the three trading blocs were implementing similar programmes in the areas of trade, customs and infrastructure development. "The MoU also has provisions for consultation and exchange of information and expertise, mobilisation of financial resources and sharing of experiences," he added. Consequently, a need arose to harmonise and coordinate these projects and programmes in terms of joint planning and implementation, exchange mechanism that is also set for introduction.

Since the first meeting of the three blocs in Kigali, Rwanda, in 2005, other meetings have been held bi-annually in different countries.

Africa should be included in discussions on the current Financial Crisis

No region has been immune to the effects of the global economic crisis and credit crunch. Yet, you rarely here American or European ministers mention Africa or include African governments in their search for a comprehensive solution.

It's good to know that African governments and IFI's are not standing by leaving the African continent's economic fate to the West. I was happy to get a wire that African Finance Ministers and Central bank's governors will be gathering in Tunis, on November 12th, 2008, to discuss the international financial crisis and its potential impacts on African economies.

Organized by the African Development Bank in close cooperation with the Commission of the African Union, the Conference aims to mobilize Africans to bring an answer to the Global Financial Crisis.

"Although Africa is relatively protected from the initial impacts on the financial markets, the continent could be seriously affected by the weakening of global economic growth and a decline in demand for products. Budgetary pressures caused by the bailout plans carried out by rich countries might reduce the volume of official development assistance. This situation, coupled with the negative impacts of the recent escalation of food and oil prices, could undermine the gains of its economic growth over the past several years" said Dr Donald Kaberuka. He also pointed out that some middle income countries, and others aspiring to attain this status, recently raised funds on capital markets. The current crisis will increase the cost of borrowing on capital markets, and make access to the markets more difficult.

At a time when discussions on Bretton Woods institutions are going on, AfDB President, Donald Kaberuka and African Union Commission Chairman, Jean Ping wish to ensure that the continent voice is heard.