Embracing local partnerships, bridging East Africa’s information gap to unravel the region’s investment potential

Inflation back to single digits and resurgence in growth continues
The region has succeeded in taming the inflation levels from double digit of 30.5 per cent, 19.8 per cent and 19.7 per cent for Uganda, Tanzania and Kenya in 2011 to 5.5 per cent, 5.7 per cent and 8.0 per cent. Continue reading

Making sense of Uganda’s 60,000 barrels per day oil refinery project

Seven years since  Uganda’s oil discovery and production has still not commenced. A two year deadlock, orchestrated by the Ugandan government’s resolve to have a refinery before production gets underway, as opposed to oil producing companies’ demand for a pipeline, partly explains the hold up. Continue reading

Kenya and South Africa vying to host a Yuan (RMB) Clearing House but is the time right for Africa?

As China’s influence on the global and African economies grows, so does the desire to internationalise the Yuan. The competition to host a Yuan clearing house among the Asian economy’s trading partners has grown stronger. There is little or no surprise that the RMB has moved up to 13th in the list of world payment currencies from 20th as of January 2012. Trade remains a fundamental driver of this influence as shown by the volume of her exports and imports in 2012 estimated at USD 2.0 trillion and USD 1.8 trillion respectively. While the EU and US remain the top importers of Chinese products, economic conditions and competition are forcing China to grow its trade ties with emerging economies as well as Africa. Continue reading

Oil and gas to continue fuelling East Africa’s M&As

The M&A sub sector on the African continent has been dominated by Britain (437 deals worth USD 30.5 billion), France (141 deals worth USD 30.47 billion) and now China (49 deals worth USD 20.8 billion) over the past decade. Most recently, Kenyan and South African firms have been at the forefront of the deals within East Africa one of Africa’s fastest growing blocs. Continue reading

Could Africa’s resource boom and infrastructure projects unlock yet more decades of China’s rapid growth?

 

In the wake of declining growth prospects for the Chinese economy, could the resilient African continent support the economic boom has spanned over a decade? Continue reading

Exit strategies: one of many thorns in East Africa’s P.E. side

 

Overall the deal value of Private Equity transactions in 2012 in Sub Saharan Africa moved southwards of the 2011 performance by 62.6 per cent, to USD 1.1 bn. The number of deals was also 12.1 per cent below those of 2011, where 66 deals were done. Continue reading

East Africa’s Road to Middle Class Status through Infrastructural Development.

East Africa’s infrastructure lags behind that of Southern and Western Africa across a range of indicators. This has not stopped the region from posting faster growth rates than the two regions. However, if East Africa’s infrastructure is improved to the level of the strongest performing country in Africa (Mauritius), regional growth performance would be boosted by six percentage points with power making the strongest contribution. (Africa Infrastructure Country Diagnostic, AICD) Continue reading

Kudos to B.O.U but with aid cuts, all eyes are on the private sector for 2013

Midway the 2012/13 financial year, the festive season has been a clear reflection of the kind of year 2012 has been for the Ugandan economy with a Christmas characterised by vendors, open shops and unusual activity on the outskirts of Kampala and in Mbarara. Continue reading

Demystifying the high start- up high business failure paradox

If business failure is defined as liquidating all assets with investors or entrepreneurs losing almost all or all of their investment then business failure is estimated at between 30 and 40 per cent according to Shikar Ghosh a senior lecturer at Harvard Business School.  Uganda like other fellow East African nations is no exception to this business reality. Ranked as one (6th) of the most entrepreneurial countries globally by the Global Entrepreneurship Movement in 2010, the big challenge remains the more than commensurate business failure rate after periods of between 3-5 years from establishing the business.

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East Africa, resilient amidst the Global Economic Storm

East Africa is no doubt one of the fastest growing regions on the continent, with a GDP growth rate for the bloc averaging 6.3 per cent, compared to 4.9 per cent for the continent as of 2010. Even with the tough economic times, the economies still grew at 3.2 per cent, 4.4 per cent, 6.4 per cent and 8.6 per cent respectively for Uganda, Kenya, Tanzania and Rwanda, according to IMF.

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