Wednesday, May 23, 2012

Idea Exchange: Global Voices, TED Fellows, Journalist & Travel Opportunities


The  African News Innovation Challenge designed to promote the development of digital media products and innovations is now accepting applications and winners will receive grants from $12,500 to $100,000 for the best projects aimed at strengthening and transforming African news media.  It is Sponsored by the Omidyar Network, Google, the Bill & Melinda Gates Foundation, Knight Foundation, U.S. State Department, the Konrad Adenauer Stiftung (KAS) and the World Association of Newspapers and News Publishers (WAN-IFRA). More and entries must be submitted online by July 10, 2012.

The Big Picture Digital Journalism Project is an innovative new project that aims to strengthen African journalists’ capacities through training in the use of crowdsourced journalism techniques which aim to leverage citizen participation and increase the representation of local voices and perspectives through both traditional and new media channels. Apply here.

Global Voices Citizen Media Summit  will be in Nairobi on July 2-3, 2012 and a  couple of local blogger are invited to attend for free by  writing a blog post of 500 words or less on the How citizen media can help ensure peaceful elections in Kenya in 2012-13.  More and the deadline is  June 11.

Google Europe, Middle East, and Africa  (EMEA) Travel and Conference grants to encourage women to excel in computing and technology. These can include free registration to selected conferences and up to 1000 euros towards travel costs. More
   
The Prince Claus Fund welcomes project proposals for cultural initiatives in the fields of digital culture and new media. Apply by the Deadline of 17 June 2012 (via @itsbuddhablaze)

Rockefeller Foundation- 2012 Innovation Challenges Competition. Details
  
TED  
  • Apply to be a TED2013 Fellow, opening on  May 28.
  •  Share your idea for the City 2.0 — and  apply  for a $10,000 award to make it happen.
The Thomson Reuters Foundation  is sponsoring a Financial & Economic Reporting traning course in Kampala in June 2012 to help journalists in Africa to strengthen their reporting on financial and economic topics. More  and the application deadline is 31 May 2012 (via @uginsomniac) 

Young Innovators Competition – Your Innovation on a World Stage:  ITU, the leading United Nations Agency for information and communication technology is looking for the next generation of young visionaries for its Young Innovators Competition.  Details here

Wednesday, May 16, 2012

Don't call out a Foul


As we wait for the results of the Kenya Aiways rights issue, it seemed to have passed without any investment banks or stock brokers producing any independent analysis and recommendation on it's prospects. 

That’s not a 100% true as a Google search has found two broker reports on the KQ rights, one with a buy recommendation, and the other with  an underweight recommendation - which usually means that the security is expected to underperform either its industry, sector, or even the market. 

Still, it's been almost impossible to get my stockbroker, or any other investment bank to share a copy of a report on KQ, or the earlier British American IPO. Yet a few years ago, most brokers were happy to share analysis (theirs, or from other brokers/banks) on Kengen, Safaricom, even Kenya Re. 

I discussed with @Coldtusker around the time of Britak and his view was that brokers don't produce public analysis reports for shares that they don't believe will perform well - They say nothing, so as not to be seen to endorse, or hype weak share sales to their insititutional or retail clients.

Is that the case? Are negative reports shelved in order to keep corporate issuers happy, and ensure retail shareholders line up and buy shares? So where's a retail shareholder supposed to  get objective reports?

Monday, May 14, 2012

Mobile Money Tithing

Last week Family Bank announced the launch of a new product called M-Kanisa which allows church faithful to send their tithes and contributions to their Churches via mobile phone.  It works with Safaricom's M-Pesa’s paybill and offers convenience and speed for church members who need to meet their tithing obligations to their churches or institutions.

For the church, it needs open a bank account and share the paybill account with their congregation and the Church will also get Immediate notification via sms  when tithes and offerings are deposited into the account.
  
Another mobile money church service, discovered via twitter, is ZionCell which works on the Airtel Money from rival provider Airtel. With this one, Church members can also sign up for insurance cover, receive daily devotional messages, health & financial messages and there are additional benefits of merchant account discounts and a Zioncell debit card. Their site appears to show that almost 3,000 different churches, affiliated to the Kenya Assemblies of God, and the Deliverance Church, are signed onto Zioncell.

EDIT From Swaziland, here's a link to a story about a tithe contribution arrangement between MTN and two local church groups.

Sunday, May 13, 2012

Shares Portfolio May 2012

Comparing to last quarter  and a year ago.

The shares market seems to have bottomed out and share prices have surprisingly, for an election year, began to go back up after a long downward period.

The Stable
Barclays ↑
Bralirwa (Rwanda) ↑
Britak ↑
Diamond Trust Bank ↑
East African Breweries (EABL) ↑
Kenya Airways ↓
Kenya Commercial Bank (KCB) ↑
Kenya Oil Company (Kenol) ↑
Safaricom ↑
Scangroup ↑
Stanbic (Uganda) ↓
Uchumi ↑

Review
  • The portfolio, excluding new shares, is up 12% since February 2012 while the Nairobi Shares Exchange main index is up 14% over the same period.
  • Best Performer: Uchumi  (up 109% in 3 months), Britak (33%) Scangroup, EABL, KCB, Kenol (all +20%)
  • Worst Performer: Kenya Airways (down 20% in 3 months), Stanbic Uganda (due to exchange rate)
  • In: None
  • Out: None
  • Increase: Took up some, but not all of the Kenya Airways (KQ) rights
  • Decrease: none
  • Unexpected gains/losses: A buyout at Kenol of the majority shareholders was announced,  but the future for minority shareholders is unclear with the (under-valued) shares now suspended from trading. More Kenol deal analysis by Coldtusker.

Events/Outlook:  
  • Equity Bank's James Mwangi lamented that more foreigners and hedge funds now see the under-valued shares  of the bank and are buying (now own 43% of the bank) more than local investors.
  • A fight between the directors of the Tuskys super market chain exposed the rapid growth of this unlisted company, whose turnover and profit of Kshs 20 billion was almost twice that of listed Uchumi, but whose profit of Kshs 245 million was about half of  Uchumi's.
  •  Safaricom's  full year results after a tough year 
  • With the high cost of bank funding (loan rates are still at +18%), Standard Chartered, East African Breweries and Total have all borrowed from their foreign parent companies for local investment and capital commitment.

Looking Forward to:
  • - Payment of the Barclays special dividend to go a long with final dividends from KCB, Scangroup and others. But it's hard to keep track of dividend payments and bonus issues since the Nairobi Stock Exchange stopped sharing their daily free price lists.
  • Cautiously investing in Government bonds. Got a CDS account with the Central Bank of Kenya for bond trading, but with so many doing it now (it takes three weeks to get an application approved), it's time may have passed.
  • Results of the Kenya Airways rights issue (May 30)
  • New listings from CIC Insurance, and Longhorn Publishers, but UAP have pushed back  their back their plans till around 2013 and indecisive Family Bank has again postponed a listing decision.


 

Monday, May 07, 2012

Guide to Harare

A guest post
Getting There: One can fly to Zimbabwe from Nairobi with South African Airways (via Jo'burg), Ethiopian Airlines (via Addis Ababa), Emirates (via Dubai) or Kenya Airways (KQ) for approximately $850. KQ flies direct to Harare and sometimes via Lusaka and returns via Lilongwe, Gaborone or Lusaka. Kenyans do not require visas and there was no Yellow Fever certificate requirement.  If one plans on extending their  stay in Zimbabwe, it’s best to write more days (than required) on the immigration form rather than the exact number in one's  current itinerary.

On arrival, you find that, what used to be Harare International Airport in the 1990’s is now the Domestic Terminal, while the new Chinese-built airport, is modern, airy and clean. Zimbabwe has four (4) airports around the country, but no domestic flights at the moment, besides charters.

The Immigration and Visa desks at Harare International are labeled in both English and Chinese.  Visa prices vary depending on nationality and tourists needing visas can pay up to US$55 for one.

The baggage claim area at the airport is spacious and luggage carts are free.  At one end of baggage claim, there are several glass cubicles where Customs officials search people’s suitcases for items bough abroad and sometimes make one pay duty fees.

Getting Around: The taxi/cab minimum fare is US$4 for a distance of about 3KM or transport within the city. Transport outside the city varies, and one must negotiate before entering the cab. They speak English very well and Shona is widely spoken.

Harare is clean and organized with orderly driving.  The streets are Western style and organized into blocks.  If one has a driving license one can hire and drive any car so long as they have been in the country for less than 6 months and carry their passport at all times.




Harare is a nice city to drive around in. The area around Samora Machel Avenue and First Avenue has a mix of indigenous banks and international banks which have now been localized. Across from these banks is the Federal Reserve Bank of Zimbabwe.

Business and Economy: Zimbabwe is a multi-currency state. The economy was dollarized in 2009 and US Dollars, South African Rand and Euros are the most common legal tender, while Botswana Pula is also accepted. Cash is king as many places do not accept cards.

The US$ is the most preferable currency, and while you’ll find the rare $2 bills here,  US coins are not in circulation. Obtaining change is a large problem countrywide in shops/supermarkets and with vendors, so cashiers will give out candy, matches, pegs, sugar packets, bottle openers or a pens as change.

Also US dollar notes are washed in washing machines by individuals & shopkeepers to keep them clean (delicate cycle), then hang out on clothes lines to dry. Its the easiest way to have "crisp" notes in the absence of fresh new US dollar notes fresh from a mint.

Power blackouts are common and most Hotels and Lodges have generators. Also, while all the city roads had, street lighting, they were never on at night.


 Where to Stay:
  • Rainbow Tourism Group Hotel (Formerly Sheraton Hotel) costs US$110 per night. It is a huge hotel that is gold in color, has free Wi-Fi and is located  close to the city center from where one can walk to fast food places such as Steers, Nandos, in 20 Minutes. Food at the hotel is good and ranges between $16  - 25 for the buffet dinner and the breakfast is also good in quantity and quality. 
  • House of Garrison is a lodge in the upmarket suburbs where one can get multiple supermarkets and restaurants. It costs $100, and is a bit of a ride from the city center, but the lodge has a custom breakfast and  free Wi-Fi.
  • Meikles Hotel; a very nice hotel right next to Eastgate Mall, Zimbabwe Parliament and a beautiful public city park, which costs $275 per night for bed &  breakfast. The service is great and the staff attention to detail is very impressive.  The walls all over the large hotel have lovely photographs from Zimbabwe's history. The internet here is reliable, with  Wi-Fi is US$1 for one hour.
Keeping in Touch: The airport has a "Rent A Phone” shop in the Arrivals area.  For mobile communication, its better to use the local carrier services, as roaming is costly. A local SIM card is US$4 and one is required to register it with their passport, and it can take up to 48 hours to activate your number. Phone airtime/credit is sold in units of US$1, 5, and 10.  Hotels in Harare have reliable Wi-Fi which is sometimes free, while lodges outside Harare can charge up to US$5 for 30 minutes of internet.



Shopping & Sight-Seeing: To view animals, one can visit Chengata, Pamuzinda and Shumba Lodges which are about 1 ½ hours from Harare and all very close to each other. Pamuzinda has a resident giraffe named Geoffrey, while at Chengata, one can get to pet and feed a small elephant family

Taking photos in or around the airport area or any “government” area is not allowed. Cars that are parked at the drop off area get their car wheels clamped immediately the driver leaves the vehicle, even if it's for a few minutes.

Food & Bars: Various familiar South African franchise restaurants are found in Harare such as Spur, Nandos, Steers, with meals going for less than US$8.  The Steers, Chicken Inn, Debonairs Pizza outlets in town all had the loose change dilemma, and at  Chicken Inn, they offered fried eggs, chili sauce tubs or cheese slices equivalent to one’s change!


Food in top Harare restaurants is excellent especially the steaks. We visited an Irish pub, O’Hagan’s, and a restaurant Millers Cafe, both in Harare's The Village.  A beer was US$4 at O’Hagan’s and a ½ kilo steak meal was about US$15 at Millers Cafe.  However a majority of the restaurants are closed on Sundays.

Odd Points:
  • You may dislike President Mugabe but refrain from political discussions in public, it can get you in trouble.  
  • Police use some Mercedes Benz as police cars, and it is claimed they often ask citizens who call for assistance, for fuel money before they to rush the crime scene. 
  •  When driving out of Harare, one gets to see the once "White Farms", which now have large tracts of long wild grass, with small patches of maize/corn growing. 
  • A can of Coca Cola soda at the Harare International Airport goes for US$10, but at other shops, a 300ml bottle can cost US$ 0.50.

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