Norwegian firm eyes Kenya oil contracts

Published on Thursday, 28 September 2017 10:03

A Norwegian marine-focused engineering firm Kongsberg Maritime has struck a deal with South Africa’s subsea and offshore firm Unique Group (UG), with an eye on offshore oil and gas service contracts in Kenya.

As part of the agreement, Unique Group’s Cape Town office will offer KM’s underwater mapping and navigation solutions to customers in Nigeria and Kenya.

The deal will see the duo offer engineering solutions to companies across the oil and gas supply chain.
“We’re pleased to appoint Unique Group’s South Africa office as a market representative of our underwater mapping and navigation solutions in Nigeria and Kenya,” said Konrad Mech, director subsea channel management at Kongsberg Maritime AS.
Kenya is seeking the United Nations’ (UN) authority and expertise to map out Kenya’s territorial waters to enable the country exploit huge oil, natural gas and mineral reserves believed to be underneath the Indian Ocean sea bed.

Kenya has already licensed several companies to prospect for oil in the disputed patch of the ocean as part of its ambitious plan to search for oil and gas both on- and off-shore. Kenya has mapped out 44 oil and gas exploration blocks, licensed to 23 international oil companies and one to the National Oil Corporation of Kenya. They include Total, Eni, Anadarko, BG Group, Apache Corporation, Origin Energy and Pancontinental of Australia.

Source: Business Daily

SBM of Mauritius Eyes Kenyan Banks, Plans Nigerian Expansion

Published on Thursday, 28 September 2017 09:59

SBM Holdings Ltd., Mauritius’s second-largest lender, plans more acquisitions in Kenya as it seeks to become one of the country’s top 10 banks within the next three years before expanding into West Africa.

The bank, which obtained a license to begin operating SBM Kenya Ltd. in May, expects to have its systems and staff in place by December, Advisor to the Board of Directors & Group Lead Executive Moses Harding said. It will then expand by establishing brokerage, micro-finance and asset management units as well as other services, he said.

“We can’t move to tier one in an organic way, so I will look at inorganic options,” Harding said in an interview Monday in the capital, Nairobi. “This is the right time to get close to if not the best value,” he said.

On a pro-rata basis, when its population is taken into account, Kenya has more banks than South Africa and Nigeria, the continent’s two largest economies. Consolidation in the industry is being spurred by a government-imposed cap on interest rates that’s squeezed the ability of smaller lenders to offer loans.

There have been seven acquisitions in the industry since 2015, according to Nairobi-based Cytonn Investments Management Ltd., and more purchases are expected after the central bank in March lifted a two-year moratorium on licensing new banks. Acquisitions of Kenyan banks are being done at cheaper valuations because of declining net interest income and growing non-performing loans, Cytonn said in its Sept. 18 report.

Regional Expansion

SBM, which is owned by the Mauritian government, is targeting growing profit by 30 percent this year to at least 3 billion rupees ($89.2 million) as it expands in the region, Chairman Kee Chong Li Kwong Wing said in April. It’s opened more branches in the Indian Ocean island nation of Madagascar and plans to grow its operations in Seychelles.

The bank’s shares have gained 20 percent so far this year, compared with a 23-percent advance for the benchmark SEMDEX Index.

In May, SBM acquired Nairobi-based Fidelity Commercial Bank Ltd. The Mauritian lender has also been shortlisted by the central bank, along with Paris-based Societe Generale SA, to bid for Chase Bank Kenya Ltd., Business Daily, a Nairobi-based newspaper, reported in June.

SBM had targeted Chase to acquire a license in Kenya, but that objective has now been achieved with the purchase of Fidelity, Harding said. The bank no longer sees value in buying Chase “lock, stock and barrel,” he said.

“We will be looking at portfolio acquisitions both on the asset sides and the liability sides,” he said. “There’s a lot on the table, I just need to pick and choose.”

SBM Holdings plans to double its 147 billion rupees of assets in the next three years by entering into more markets in East Africa and venturing into the West African markets of Nigeria and Ghana from 2020.

“Nigeria will emerge bigger than South Africa in the next 20 to 24 years,” Harding said. “We will create a hub with either Nigeria or Ghana as the hub into West Africa.”

Source: www.bloomberg.com

Kenya launches bid to host 2022 World Chamber Congres

Published on Monday, 25 September 2017 10:01

Kenya has stepped up its bid to host the 2021 World Chamber Congress. The event brings together global trade bodies, chambers, businesses and high profile government officials to share best practices, develop networks and learn new areas of innovation.

The congress is held on a rotational basis every two years.
A delegation of private sector players last week, led by Kenya National Chamber of Commerce and Industry (KNCCI) leader Kiprono Kittony, spearheaded the lobbying at this year’s congress in Sydney, Australia.

Kenya’s bid received a boost after Africa chamber leaders attending the meeting agreed to settle on only one bidder from the continent.
“At the close of the forum, Kenyan Chamber delegates held bilateral talks with Ethiopia and resolved to settle on one bidder from Africa once an agreement is reached at a meeting to be held in Djibouti in December this year,” said the lobby in a statement.
“This will build a strong case for Africa to win a bid for the World Chamber Congress in 2021.”
Previously, the forum has been held in France, South Korea, Canada, South Africa, Turkey, Malaysia, Mexico, Qatar and Italy.

Sao Paulo, Brazil, will host the next conference in 2019.

The 2021 congress is earmarked to take place in either Middle East or Africa. Bidding countries include Kenya, Ethiopia, Dubai, Oman, Jordan and Iran.
“The purpose of such a congress is to allow participants to benefit from networking opportunities. It provides an unparalleled opportunity to connect and strengthen relations with a diverse and international group of individuals representing more than 100 countries,” said the statement from KNCCI.

The Kenyan chamber said the congress would open doors to vast international business opportunities. “Professionals in Kenya would be able to forge meaningful partnerships and connections. This is a fantastic chance to showcase Nairobi and the country at large to positively stimulate the economy,” it said.

President Uhuru Kenyatta backed Kenya’s bid to host the meeting during a visit made by Mr Anthony Parkes, World Chambers Federation (WCF) director.
At the same time, small and medium enterprises are set to benefit from training and financial support to improve their businesses and access markets for their products, according to a new arrangement.

The first phase of the project, a partnership between Equity Bank and KNCCI, Nairobi chapter, will cover thousands of owners of small companies over one year.
It will entail financial literacy, start-up development, advisory services, research assistance, mentoring and networking.
The new initiative follows a meeting between the chamber’s officials and Equity bank, led by chief executive officer James Mwangi last week.

The training, which will primarily target the youth, women and owners of SMEs, will equip participants with skills to start and grow their businesses. Participants will also be taught how to export and import products, succession planning, appropriate staffing and finance sources to grow their ventures.

“The partnership aims at helping these businesses. It will not end at the training phase; we want to grow with them, and help them win at least 30 per cent of tenders in the 47 counties,” said KNCCI Nairobi Chapter chairman Richard Ngatia.

To achieve this, business lobbies and the bank will liaise with various county governments and the national government to offer 30 per cent of tenders to businesses owned and managed by the youth, women and the disabled in line with the national policy.
Poor access to loans has been cited as one of the biggest obstacles to the growth of small companies in Kenya, with lending institutions making prohibitive demands such as provision of title deeds as security, among other documents.

The programme will also focus on management of capital and investments to improve the financial health of targeted businesses.
The bank is a patron member of KNCCI and runs specific programmes targeting SMEs across the country.

Meanwhile, the World Bank will provide support to enhance the investment climate in counties. The support will range from consultancy to improving the counties’ ease of doing business. This was agreed upon during a meeting between the bank’s representatives and KNCCI Nairobi chapter CEO Nemaisa Kiereini.

Source: Business Daily

Kenya’s Entertainment and Media industry worth Sh216.9 billion – PwC

Published on Friday, 22 September 2017 09:11

This is according to PwC’s Entertainment and Media Outlook report 2017.

The report forecasts revenue to grow at an 8.5 percent Compound Annual Growth Rate over the next five years, hitting the Sh309.9 billion in 2020 and totaling to Sh330.5 billion in 2021.

“Amid shifting consumer preferences, rapid advances in technology and ongoing disruption to business models, the new strategic imperative for E&M companies is to turn customers into fans – by innovating to create the most compelling, engaging and intuitive user experiences,” it says.

The growth will be backed by internet access, which is singled out as the most established industry within the Kenyan market, boasting the largest revenues and one of the highest growth rates by 2021.

“The internet sector will also be the first sub-segment in which revenues will hit US$1 billion, which it will reach in 2020,” reads the report.

Mobile internet access is the main revenue driver, as smartphone adoption increases in popularity. Over the forecast period, high-speed mobile internet connections are expected to rise to 84.9 percent Compound Annual Growth Rate, while subscriber numbers are set to double over the next five years reaching 33 million in 2021.

“To thrive in a marketplace that is increasingly competitive and crowded, companies are focusing on implementing strategies and building capacities to engage with consumers.”

The outlook analyses consumer and advertising spending across five countries that include Kenya, Nigeria, South Africa, Ghana and Tanzania.

Source: capitalfm