Trade and Financial Services Round-Up

  • 9 Oct 2023
  • 3 Mins Read
  • 〜 by Naisiae Simiren

Kenya

Emirati company gets majority stake in Telkom on Helios exit

A United Arab Emirates (UAE)-based firm will take up a majority stake in Telkom Kenya from London’s Helios Investment Partners, marking the latest twist in the deal room of the loss-making telco.

The Treasury said on Wednesday it had settled on Infrastructure Corporation of Africa LLC (ICA) of the UAE to be the new majority shareholder in Telkom Kenya following a competitive process that started in January 2023.

This came hours after the Cabinet rescinded the decision in July last year that saw Helios pay Sh6.09 billion to exit the telco, directing the London-based private equity fund to refund the government the amount.

The Treasury withdrew Sh6.09 billion on August 5, 2022, and paid Jamhuri Holdings Ltd, a Mauritius-based subsidiary of Helios, in a transaction that did not get parliamentary approval.

The latest development means Helios will have to refund the Kenyan government Sh6.09 billion and then directly sell its 60 percent stake to the UAE firm, allowing the government to avoid the technicalities of selling Telkom as a parastatal.

(Source: Business Daily)

Tanzania

TRA hits record revenue collection in first quarter

The Tanzania Revenue Authority (TRA) exceeded its revenue collection targets in the first quarter of the 2023/24 fiscal year, collecting a staggering Sh6.58 trillion, or 97.53 percent of the set target of Sh6.75 trillion.

This represents an 11.05 percent increase over the Sh5.92 trillion collected during the same period in the previous fiscal year, 2022/23.

In September alone, TRA collected a total of Sh2.42 trillion, a 15.49 percent increase when compared to the Sh2.27 trillion collected in the same month of the previous fiscal year, 2022/23.

(Source: The Citizen)

Uganda

Banks reduce lending to real estate, construction

A Bank of Uganda report has indicated that banks have tightened lending to a number of sectors, which might signal rising exposure and a high risk of default.

In details contained in the Bank Lending Survey Report for the fourth quarter to June, the Central Bank noted that during the period, banks had reported “to have tightened credit standards to entities involved in building, mortgage, construction and real estate.

Other sectors included mining and quarrying, transport and communication, but eased lending for the remaining sectors of the economy. 

(Source: The Monitor)

Rwanda

Rwanda Business Alliance launched in the UK

The Rwanda Business Alliance was last week launched in the UK with an aim to bring the Rwandan and UK business communities closer together, according to a statement from the Rwanda High Commission in this European country.

The alliance’s inaugural event, which was held at the Rwandan High Commission in London, aimed at connecting investors to investment opportunities, as well as connecting buyers to suppliers of goods and services.

As per the statement, the Rwanda Business Alliance falls under the umbrella of the British African Business Alliance. The network aims to build connections between African businesses and professionals with Africa-friendly investors in the UK.

(Source: The New Times)

Ethiopia

Ethiopia and Morocco Agree to host business forum in Ethiopia

Ethiopian Investment Commission Commissioner, Lelise Neme and Morocco’s Ambassador to Ethiopia, Nesha Aloui had a productive discussion on boosting investment opportunities across diverse sectors in Ethiopia.

During the occasion, the two sides reached an agreement to host a Morocco-Ethiopia business forum in Ethiopia in 2024, according to the Ethiopian Investment Commission.

The bilateral relationship between the two countries is rooted by virtue of the fact that both countries are among the founders of the African Union (AU).

It is indicated that currently, the relationship between Morocco and Ethiopia has been shifting from political relations to economic partnership in several areas of investment and social issues.

(ENA)