Posts tagged as: central

Ugandan Bank Fails to Sell All Shares in Mixed Trade

By Bernard Busuulwa

DFCU Bank Ltd’s rights issue was undersubscribed by 4.79 per cent, raising Ush190.67 billion ($52 million) against a target of Ush200 billion ($54.6 million) in a transaction characterised by strong institutional investor appetite and low uptake from retail investors.

The bank’s share price fell shortly after listing of the new shares.

Latest data compiled by Crested Capital, a Ugandan stock brokerage and investment advisory firm, shows that the DFCU rights issue recorded a subscription rate of 95.21 per cent as 250.88 million shares, priced at Ush760 ($0.21) per share, were absorbed.

Some 263,157,895 new shares were on offer, with an allocation ratio of 0.53 to one rights share issued. Abandoned new shares were 12.63 million, valued at Ush9.6 billion ($2.6 million), the data shows.

The rights issue was concluded on September 25 and the new shares floated on the Uganda Securities Exchange on October 10, 2017. The total number of listed shares on DFCU’s counter rose from 497,201,822 shares to 748,082,989 while its market capitalisation grew to Ush561.06 billion ($153 million).

Whereas most institutional investors took up their rights shares, we could not point out specific reasons for the high uptake within this segment.

Arise B.V., DFCU’s largest shareholder increased its stake from 55.08 per cent to 58.71 per cent while the National Social Security Fund increased their interest from 6.28 per cent to 7.69 per cent.

The Kimberlite Frontier Africa Naster Fund L.P-RCKM increased its stake from 5.93 per cent to 6.15 per cent while SSB-Conrad N Hilton Foundation-00FG raised its stake from 0.97 per cent to 0.98 per cent.

Vanderbilt University increased its stake from 0.8 per cent to 0.87 per cent while the Bank of Uganda Staff Retirement Benefits Scheme managed by Stanlib Uganda slightly expanded its stake from 0.58 per cent to 0.59 per cent.

In contrast, SCB Mauritius a/c CDC Group saw its shareholding drop from 15 per cent to 9.97 per cent, a change partly attributed to the company’s desire to exit the business after a 50-year relationship with DFCU while Banque Pictet and Cie sa a/c Blankeney L.P saw its shareholding fall from 0.95 per cent to 0.63 per cent, the data revealed.

DFCU Bank Ltd boasts of 10 institutional investors on its shareholder list that currently hold 88.81 per cent shares, a factor that leaves its fate in the hands of large, deep-pocketed investors.

However, the overall shareholding pegged to retail investors dropped from 12.96 per cent to 11.19 per cent, suggesting low appetite towards the transaction among individual investors.

While some institutional investors were apparently motivated by hopes of a smooth integration of DFCU Bank’s operations with those of the former Crane Bank that it acquired in January, stronger demand for credit, backed by steady declines in the benchmark policy rate and projected economic recovery, retail investors appeared discouraged by insufficient information on the acquisition, The EastAfrican has learnt.

A higher rights issue offer price of Ush760($0.21) compared to a previous trading price of Ush758 ($0.207) also put off many retail investors, with most of them preferring to buy new shares at the USE instead of taking up allocated rights shares.

The Bank of Uganda cut its Central Bank Rate by 0.5 per cent to a record low of 9.5 per cent this month, signalling a further decline in interest rates that’s badly needed to accelerate credit demand and economic growth that grossed just 3.9 per cent at the end of 2016/17.

Nairobi Cricket League Now Two-Horse Race

By Richard Mwangi

The race for the 10-team Nairobi Provincial Cricket Association’s Super League title now remains a two-horse race between champions Stray Lions and Kanbis.

Both teams were triumphant in their respective outings on Sunday in the 10th round of matches. The Lions overwhelmed Swamibapa dismissing them for a mere 101 runs, thereby denying them an opportunity to get a batting point.

The Lions garnered 18 points from their win to increase their tally to 186, five behind league leaders Kanbis (191).

Swamibapa are a distant third with 154 points. Kanbis hosted Sir Ali Muslim Club whom they beat by eight wickets.

Sir Ali scored 199 for 9 and Kanbis reached the target, 202 for the loss of two wickets. Kanbis dominated NPCA League for many years before they were dethroned by the Lions’ last season.

The Lions’ dependable batsman, Collins Obuya is in top form and the same can be said of Kanbis’ Rakep Patel, who is also the Kenya skipper.

Kenya

Ban on Anti-Polls Body Demos in City Centres Lifted

The High Court has temporarily lifted government ban on anti-IEBC demos in the central business districts of Nairobi,… Read more »

Africa:What 115 Years of Data Tells Us About Africa’s Battle With Malaria Past and Present

Photo: The Citizen

(file photo).

analysisBy Bob Snow, University of Oxford

It’s difficult to accurately measure the number of people who get malaria each year. This is because the malaria symptoms are shared with many other diseases that lead to death or illness, especially among young children.

However, there is a measure of malaria that is precise. Testing for the malaria parasite among large numbers of people provides a Parasite Rate, a useful measure of the quantity of malaria in any given area.

Surveys are done on a known number of people by malaria control programmes, non governmental organisations and researchers. Although they don’t tell us how many people are sick, the number of infected people in an area is indicated.

We spent the last 21 years tracking down malaria survey reports done across Africa. The greatest challenge was that they were mostly hidden in old government archives or curated by the World Health Organisation.

Most of the records were either poorly stored, burnt or were missing. In some countries like Kenya, Senegal, Tanzania, South Africa, Botswana, Namibia and Burkina Faso the surveys dated back 1950s. Conversely, recent surveys have been easier to locate through more modern web based searches.

To obtain village or school level data published in most journals or reports, scientists and government officials provided the raw data. This is a testament to a new era of data sharing where over 800 people have contributed finer resolution data.

The final report covers over 50,000 surveys dating back 115 years. This is the largest repository containing information on over 7.8 million blood tests for malaria. We analysed malaria infection prevalence for each of 520 administrative units across countries south of the Sahara and Madagascar for 16 time periods.

The study suggests that the prevalence of malaria infection in sub-Saharan Africa today is at the lowest point since 1900.

Declining malaria cases

Overall, there was a decline in the number of children infected with malaria at 24% between 2010 and 2015 compared to 40% between 1900 and 1929.

The biggest historical reduction in malaria coincided with the introduction of new tools to fight malaria. After the Second World War, the discovery of DDT for indoor spraying and chloroquine drugs made a difference in treating malaria.

Investment in malaria control in Africa has been sporadic in the past. The world has seen a reduction in malaria over the last 15 years, based largely on the use of treated bed nets and antimalarial drugs. If we take our eye off the ball then rising drug resistance and falling control will lead to the sorts of increases we saw in the 90s.

Again, in 2005 the rolling out of insecticide treated bed nets and new anti antimalarial drugs, led to a further drop of malaria cases.

The lowest periods of malaria prevalence were evident when the international community abandoned specific malaria control investment in Africa, during the late 1960s, through the 1970s and early 1980s. As a result, every fever was treated with chloroquine, an amazingly effective drug. There was a prolonged drought across the Sahel. This was the perfect lull.

However, from the late 1980s chloroquine resistance expanded across Africa. It was made worse in the 1990s when unprecedented rainfall led to flooding causing major malaria epidemics. Governments in Africa were unprepared because they did not have significant mosquito prevention and management strategies in place. Malaria cases increased and the prevalence was similar to those described before the Second World War. The perfect storm.

It took over five years for the international community to appropriately respond by providing free, and effective malaria treatments to vulnerable persons in the affected countries. They ensured access to effective malaria prevention tools which a decade earlier had reduced the malaria risk by half.

The Global Fund’s financial boost and the revisions of the 2005 world malaria report led to one of the largest drops in malaria infection prevalence witnessed.

More effective strategies needed

The gains made after 2005 have stalled since 2010. Declining malaria funding, insecticide and drug resistance are the obvious threats to the elimination of malaria in Africa.

Despite an impressive overall decline in malaria prevalence since 1900, Africa has the highest infection risks globally. Large parts of West through to Central Africa and down to Mozambique continue to have intense malaria transmission.

Unfortunately DDT, new insecticides, chloroquine and new combination treatments and insecticide treated bed nets have not been effective enough to shrink this high malaria burden. We need new tools.

What next?

There is an urgent need to focus on the high burden countries in Africa, they should not be left behind in a new global agenda for malaria elimination.

It is complex and predicting a future malaria landscape based on climate or economic development alone would be foolhardy. It needs a more integrated approach.

What we can say however is that the malaria map in Africa might shrink a bit at the margins but that middle belt isn’t going anywhere in our lifetimes with what we have at our disposal now – bed nets and drugs.

When insecticide and drug resistance becomes established, unless we have new classes of both drugs and insecticides or a natural period of drought, malaria will revert in large parts of Africa to what it was in the 1990s, another perfect storm.

Disclosure statement

Bob Snow receives funding from The Wellcome Trust as a Principal Fellowship (# 103602) and acknowledges the support of the Wellcome Trust for the Kenya Major Overseas Programme (# 203077), he also receives support from the Department for International Development (UK) – Strengthening the Use of Data for Malaria Decision Making in Africa (DFID Programme Code # 203155)

Hotel Operators Appeal for Lower Interest Rates

Photo: The New Times

Marriott Hotel in Kigali.

By Eddie Nsabimana

Banks’ high interest rate on loans is fast becoming a threat to tourism sector operators, industry players have said.

With local commercial banks charging between 17 per cent and 24 per cent in interest on the loans provided to operators in the sector, hoteliers say that it is too high given the returns in the industry.

Odette Nyiramongi, from Paradise Hotel in Rubavu District, said that the costs are quite high and pay back period short.

“The banks are demanding too much interest on the loans offered to hotel business operators and are not willing to provide it on long-term basis while this business takes long,” she explained.

The concerns by the private sector operators were raised during a CEOs Forum held in Kigali Friday.

It came at a time when the sector is setting out towards achieving revenue targets of $800 by 2024.

Rwanda Development Board’s chief executive Clare Akamanzi assured operators that the government will continue to improve operating conditions in the sector.

Akamanzi promised sector players that discussions will be held on the possibility of lower interest rates.

“We want the tourism sector to become more attractive and need to understand key areas where we need to put more efforts,” she said.

She added that if local commercial banks are not willing to provide long-term loans, the government could look into the possibility of connecting them to foreign banks which can give them long-term loans.

Confusions on loan charges?

Monique Nsanzabaganwa, the central bank vice governor, said that some charges are exercised in compliance with some clauses in loan application forms, cautioning business operators to be careful with such contracts.

“Some clauses are ignored and misunderstood due to language used or the loan applicant’s lack of attention. But it is the client’s right to ask for a loan application form in a language they understand to avoid such misunderstandings,” Nsanzabaganwa said.

The CEOs Forum is organised every year since 2016, and brings together different private business operators to discuss with the government how the business sector can progress to the level of significantly benefiting the sector players and the country at large.

Rwanda

Rwigaras Bail Hearing Finally Begins

The Nyarugenge Intermediate Court on Monday begun pre-trial hearings for three members of the Rwigara family. Read more »

Rwanda:Hotel Operators Appeal for Lower Interest Rates

Photo: The New Times

Marriott Hotel in Kigali.

By Eddie Nsabimana

Banks’ high interest rate on loans is fast becoming a threat to tourism sector operators, industry players have said.

With local commercial banks charging between 17 per cent and 24 per cent in interest on the loans provided to operators in the sector, hoteliers say that it is too high given the returns in the industry.

Odette Nyiramongi, from Paradise Hotel in Rubavu District, said that the costs are quite high and pay back period short.

“The banks are demanding too much interest on the loans offered to hotel business operators and are not willing to provide it on long-term basis while this business takes long,” she explained.

The concerns by the private sector operators were raised during a CEOs Forum held in Kigali Friday.

It came at a time when the sector is setting out towards achieving revenue targets of $800 by 2024.

Rwanda Development Board’s chief executive Clare Akamanzi assured operators that the government will continue to improve operating conditions in the sector.

Akamanzi promised sector players that discussions will be held on the possibility of lower interest rates.

“We want the tourism sector to become more attractive and need to understand key areas where we need to put more efforts,” she said.

She added that if local commercial banks are not willing to provide long-term loans, the government could look into the possibility of connecting them to foreign banks which can give them long-term loans.

Confusions on loan charges?

Monique Nsanzabaganwa, the central bank vice governor, said that some charges are exercised in compliance with some clauses in loan application forms, cautioning business operators to be careful with such contracts.

“Some clauses are ignored and misunderstood due to language used or the loan applicant’s lack of attention. But it is the client’s right to ask for a loan application form in a language they understand to avoid such misunderstandings,” Nsanzabaganwa said.

The CEOs Forum is organised every year since 2016, and brings together different private business operators to discuss with the government how the business sector can progress to the level of significantly benefiting the sector players and the country at large.

Rwanda

Rwigaras Bail Hearing Finally Begins

The Nyarugenge Intermediate Court on Monday begun pre-trial hearings for three members of the Rwigara family. Read more »

Nigeria:Nigeria Confirms Three Cases of Monkeypox

By Ayodamola Owoseye

The Nigerian government says three suspected samples of the deadly Monkeypox virus sent to Senegal for testing, have been confirmed.

The Minister of Health, Isaac Adewole, announced this Monday.

The samples were sent to the World Health Orgaisation, WHO’s laboratory in Dakar, the Senegalese capital.

The federal government sent the samples for analysis at the World Health Organisation’s laboratory in Dakar, the Senegalese capital, after about 31 suspected cases were reported ‎in seven states with Bayelsa having the highest number.

Mr. Adewole had announced on October 11 that the Centre for Disease Control had taken samples for laboratory analysis at the Redeemed University in Ede, Osun State, and in Senegal.

The minister urged Nigerians not to panic, saying even if the cases turned out to be monkeypox, there are two types of the disease; Central African and West African.

Mr. Adewole said the West African one is not deadly.

PREMIUM TIMES reported how suspected cases have been recorded in Bayelsa, Rivers, Ekiti, Akwa Ibom, Lagos, Ogun and Cross River states.

Nigeria

Girls Kidnapped By Boko Haram Share Their Stories At UN

Only the slight buzz of translation through diplomats’ headphones could be heard as Joy Bishara, now 21, described the… Read more »

Norman Magaya Sues Fred Matiang’i Over Nasa Protest Ban

By Maureen Kakah

National Super Alliance’s (Nasa) head of Secretariat Norman Magaya has moved to court seeking to stop his arrest over ongoing protests.

Through lawyer Jackson Awele, he has sued the Inspector General of Police, the Director of Public Prosecutions and acting Interior Cabinet Secretary Dr Fred Matiang’i.

RESPONSIBLE

He faulted the police for engaging in discriminatory killings in areas considered to be Nasa strongholds.

Mr Magaya argued that protestors have the right to demonstrate. He said the decision to hold him responsible for damages caused during protests against the Independent Electoral and Boundaries Commission (IEBC) was discriminatory.

Mr Magaya wants the court to suspend the directive on his arrest over anti-IEBC demos and the ban on holding demonstrations in Central Business Districts of Nairobi, Kisumu and Mombasa.

Last week, Dr Matiang’i said Mr Magaya would be arrested and held responsible for damages caused during demonstrations called for by Nasa.

Kenya

Donors Ask Odinga to Rescind Decision to Boycott Poll

Western donors want National Super Alliance leader, Raila Odinga, to rescind his withdrawal from the upcoming repeat… Read more »

Milk Supply Up Marginally After Short Rains Start

By Gerald Andae

Milk production has remained depressed even after the onset of short rains with Kenya Dairy Board (KDB) indicating the supply fell 29 per cent in the eight months to August compared with the similar period last year.

KDB says the drought cut milk intake to 346 million litres in August this year from 442.8 million litres.

The data indicates last June was the worst hit with production dropping by 42 per cent to 42 million litres from 66 million litres last year.

Livestock Principal Secretary Andrew Tuimur says the dairy sector has only realised an increase of 15 per cent in production since the rains started.

“The growth has not been significant and processors have only registered an increase of 15 per cent since May,” said Dr Tuimur.

KDB notes the impact varied from region to region with Rift Valley emerging the worst-hit due to reliance on free-range system.

“Greatest decline was observed in Rift Valley and this was attributed to free-range grazing system which is predominant in the region. While the least decline was observed in Central and upper Eastern due to intensive rearing systems,” says the regulator in a report.

Central Kenya practises zero-grazing while Rift Valley relies on rain-fed forage.

Farmers who practise zero-grazing preserve fodder that sustains livestock the whole year.

Kenya has faced a shortage of milk since January following a dry spell that hit the country late last year, prompting the government to open a duty-free window for importation of powdered milk in May to ease shortage.

Milk prices had shot to an all-time high following a prolonged drought that lasted from December 2016 to May 2017, one of the longest dry periods recorded in the recent past. Processors reduced the price in May following a marginal increase in production.

The drop saw the price of a half-litre packet of fesh milk: Ilara to Sh55 from Sh65, Tuzo to Sh52 from Sh62 and Molo (Sh50 from Sh60) while KCC at Sh50 down from Sh60 at major retail outlets.

Kenya

Police Killed Over 33 During Demo – Report

Kenya police killed at least 33 people in Nairobi during demos sparked off by August 8 presidential poll results,… Read more »

Kenya:Milk Supply Up Marginally After Short Rains Start

By Gerald Andae

Milk production has remained depressed even after the onset of short rains with Kenya Dairy Board (KDB) indicating the supply fell 29 per cent in the eight months to August compared with the similar period last year.

KDB says the drought cut milk intake to 346 million litres in August this year from 442.8 million litres.

The data indicates last June was the worst hit with production dropping by 42 per cent to 42 million litres from 66 million litres last year.

Livestock Principal Secretary Andrew Tuimur says the dairy sector has only realised an increase of 15 per cent in production since the rains started.

“The growth has not been significant and processors have only registered an increase of 15 per cent since May,” said Dr Tuimur.

KDB notes the impact varied from region to region with Rift Valley emerging the worst-hit due to reliance on free-range system.

“Greatest decline was observed in Rift Valley and this was attributed to free-range grazing system which is predominant in the region. While the least decline was observed in Central and upper Eastern due to intensive rearing systems,” says the regulator in a report.

Central Kenya practises zero-grazing while Rift Valley relies on rain-fed forage.

Farmers who practise zero-grazing preserve fodder that sustains livestock the whole year.

Kenya has faced a shortage of milk since January following a dry spell that hit the country late last year, prompting the government to open a duty-free window for importation of powdered milk in May to ease shortage.

Milk prices had shot to an all-time high following a prolonged drought that lasted from December 2016 to May 2017, one of the longest dry periods recorded in the recent past. Processors reduced the price in May following a marginal increase in production.

The drop saw the price of a half-litre packet of fesh milk: Ilara to Sh55 from Sh65, Tuzo to Sh52 from Sh62 and Molo (Sh50 from Sh60) while KCC at Sh50 down from Sh60 at major retail outlets.

Kenya

Police Killed Over 33 During Demo – Report

Kenya police killed at least 33 people in Nairobi during demos sparked off by August 8 presidential poll results,… Read more »

Sudan:Islamic Development Bank Stresses Continuation in Providing Funds for Sudan Development Projects

Washington — The Islamic Development Bank Group has affirmed its continuity in support to Sudan and provision of funding for Sudan development projects.

This came during the meeting of the Minister of Finance and Economic Planning, the Governor of the Central Bank of Sudan and the accompanying delegation with the President of the Islamic Development Bank Group.

The delegation also met with the Director General of the Arab Fund for Development, who expressed the bank’s readiness to intensify efforts to support and strengthen the Sudan economy.

The Finance Minister and the accompanying delegation also reviewed with the British World Bank’s Executive Director his country’s role in leading efforts to relief debt on Sudan.

Sudan

Finance Minister Meets in Washington With Assistant U.S. Treasury Secretary

The Minister of Finance and Economic Planning Dr. Mohamed Othman Al-Rikabi and the Sudan delegation participating in the… Read more »

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