NAIROBI, KENYA: Cabinet Secretary Peter Munya on Tuesday officially opened the African Private Equity and Venture Capital Association’s (AVCA) 16th Annual Conference in Kenya
The event is playing host to the top 400 private equity leaders as they discuss the most critical topics shaping the investment landscape in 2019.
CS Munya highlighted Kenya’s attractiveness as a destination for private investment and status as East Africa’s private capital hub.
“The government has made significant progress in improving the ease of doing business and we encourage the private sector to take the lead in the growth of the economy, notably in the Big Four priority areas”.
This topic was elaborated on during a panel with Berhane Demisse, Co-Founder & Managing Partner, Cepheus Growth Capital Partners, and George Odo, Senior Partner & Managing Director, AfricInvest who noted that “East Africa’s fast-growing consumer markets are fuelling significant investor interest and driving inflows of capital.”
A panel with Matthew Hunt, Principal, South Suez Capital, and Angela Miller-May, Chief Investment Officer, Chicago Teachers’ Pension Fund highlighted the continent’s attractive growth prospects, with the latter adding “as individuals at the forefront of private capital in Africa, we witness the vast opportunities that can be capitalised on. Our role is to demystify perceptions of Africa and drive sustainable and structural change across the region.”
American institutional investors including executives from the New York State Insurance Fund, Teachers’ Retirement System of the State of Illinois and the Board of Education Retirement System of the City of New York also discussed their perspective on opportunities in Africa.
Papa Madiaw Ndiaye, Chief Executive Officer & Founding Partner, AFIG Funds said: “African private equity can generate significant returns and diversify portfolios while bringing about the kind of positive impact our members want to see.”
Discussing venture capital, Maurizio Caio, Founder & Managing Partner, TLCom commented: “Africa’s venture capital ecosystem is in full swing and the future looks bright for the continent’s next unicorns.” Speakers from leading DFIs including, BIO, CDC group, DEG/KfW, FinDev Canada, FMO, OPIC, Proparco, and the EIB reiterated their commitment to the continent while Samia Tnani, Head of Credit, AfricInvest shed light on private credit, noting that it constitutes a promising asset class that has the potential to transform the SME segment.
Michelle Kathryn Essomé, Chief Executive Officer, AVCA, added: “We are happy to have convened so many of the key decision makers at our landmark annual conference. As we’ve heard from a diverse group of speakers encompassing LPs, GPs, and our Kenyan hosts, the future is bright for private equity in Africa and we are proud to play a role in contributing to the industry’s long-term growth.”
World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.