Africa Brief: Delta beer sales, Kenyan oil products, Tanzanian cellular fees, and more
Zimbabwe’s Delta sees lager, premium beer sales rise
Delta Corporation partly owned by SABMiller has been projected to raise its 2013 annual profit by 31%, although the trading update shows the Chibuku sales volumes declined by 10%.
Delta explained this decline in Chibuku sales volumes was in line with the decline in sales volumes for the previous corresponding period. The decline in sales for the Chibuku brand has been replaced by an increase in sales in the premium brands and other lager beers.
Invictus Securities stated it expects Delta revenues to increase 20% for the current trading period. Delta stated its financial performance for the quarter ended December was ‘in line’ with expectations.
For the full story, read Zimbabwe’s Delta sees lager, premium beer sales rise by Tawanda Karombo, published in Business Day on 22/01/2013.
Kenya orders lots of oil
Kenya ordered 500 000 tonnes of oil products for delivery over February to April, 13% more than the last round of purchases. The countries importers are looking for jet fuel, petrol and sulphur gasoil.
For the full story, read Kenya orders lots of oil by Reuters, published in The New Age on 22/01/2013.
Tanzania cellular fees move alarms Vodacom
Vodacom Group’s Tanzanian unit has said it is concerned that a proposed reduction in interconnection fees may curb investment in telecoms infrastructure in the East African nation. This comes after Tanzania Communications Regulatory Authority (TCRA) said it may lower the rate that Cellphone companies charge each other for calls across networks to boost competition.
TCRA spokesman Innocent Mungy said,” this will encourage competition in the sector, and to ensure calling is affordable to consumers”.
The regulator will decide on the magnitude of the reduction this month (January 2013). The reduction was based on a cost survey it commissioned auditing firm PwC Tanzania to conduct among telecoms companies operating in East Africa’s second-biggest economy.
However, Vodacom Tanzania MD Rene Meza said “it is important that interconnect charges are designed to reflect the actual costs of mobile operators and the impact that the reduction will have on investment plans by Vodacom and other national operators”.
Vodacom Tanzania was also in talks with the regulator about plans to introduce number portability in Tanzania. This will be a system which Cellphone owners can retain same phone number when switching network operators.
For the full story, read Tanzania cellular fees move alarms Vodacom by David Malingha Doya, published in Business Day on 23/01/2013.
Ethos fund ‘exceeds capital-raising expectation’
Ethos exceeded expectations in raising $800 million in its newest private equity fund. The amount raised in the fund was the most raised since 2006. Private equity is equity raised from private sources as opposed to traded shares. Investors are constrained, but they are looking beyond the developed markets for investment opportunities.
Pension funds have been able to raise up to 10% in private equity since July 2011, compared to the previous limit of 2.5%.
For the full story, read Ethos fund ‘exceeds capital-raising expectation’ by Evan Pickworth, published in Business Day on 24/01/2013.
Kenya’s City Trust stock surges
The report of the proposed merger between Nairobi-based I & M bank and Nairobi City Trust resulted in the stock price surging by the maximum daily limit of 10%.
For the full story, read Kenya’s City Trust stock surges by Bloomberg, published in Business Day on 24/01/2013.
Budget airlines join new scramble for Africa
London-listed budget airline Fastjet is negotiating with the creditors of 1Time as it intends to restart the airline as a part of its growing network.
Fastjet is building a pan-African carrier and intends to include Johannesburg as one of its destinations. Fastjet’s plans are being opposed by Mango, SAA and British Airways, which see it as a threat to their local and regional market share. They have submitted objections saying that legislation prohibits a foreign owner from having a large share in a local airline.
The Air Services Licensing Act states that African residents must have at least a 75% shareholding in domestic airlines. The minister of transport has the power to grant exemption from this requirement.
For the full story, read Budget airlines join new scramble for Africa by Audrey D’Angelo, published in The Star, Business Report on 24/01/2013.