- Uganda - 2 YEAR Treasury Bond
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- Media Prima Digital and REV Asia to be known as REV Media Group
- August 4, 2020
Media Prima Digital and REV Asia from now on will be known as REV Media Group. With the new branding, REV Media Group hopes to offer better clarity and synergies as it continues to deliver the best solutions to its customers. – NST pic KUALA LUMPUR: Media Prima Digital and REV Asia from now on will be known as REV Media Group.
In a statement today, REV Media Group said the move was part of its corporate rebranding initiative to further streamline business processes and functions.
The team will be based in Sri Pentas, Bandar Utama.
"The new vision and mission are to be the number one Malaysian digital media company; in terms of reach, retention, and revenue and to achieve goals in a customer-centric, collaborative, and transparent manner.
"With the new branding, REV Media Group hopes to offer better clarity and synergies as it continues to deliver the best solutions to its customers," the statement read.
The group said it represents over 30 top authority brands spanning across multiple languages and platforms such as SAYS, OHBULAN!, Viralcham, NST Online, My Metro, BH Online, Mashable SEA and IGN SEA.
"Our extensive network reaches out to more than 15 million people each month, about 75 per cent of total internet population in Malaysia."
REV Media Group chief executive officer Rafiq Razali said the move was an important milestone as it officially marked the unification of two premier digital media organisations.
"I believe that this new brand will drive us even further and help us solidify our position as the leading digital publisher in Malaysia."
The group’s business operations director Sam Wee said: "We are really excited to be able to work closely with everyone in REV Media Group now as we share the same goals and vision and I am confident that this transformation will allow us to grow exponentially as a team."
Media Prima Digital previously acquired REV Asia Holdings in 2017 to focus on the expansion in digital content and digital media platforms, strengthening Media Prima’s position as Malaysia’s leading digital publisher.More exciting news will be announced soon.For more information regarding REV Media Group, log on to www.revmedia.my
- Shoprite to lay off 115 as it shuts Mombasa branch
- August 4, 2020
Africa’s biggest supermarket chain Shoprite Holdings is set to lay off 115 workers as it shuts its Nyali Branch this month, signalling inability to crack the Kenyan market. This is just three months after it closed its Waterfront branch in Karen putting 104 individuals out of work. The South African owned retailer has already notified the Kenya Union of Commercial Food and Allied Workers (KUCFAW) and invited them for a consultative meeting on Wednesday with their terminations set at the end of this month. “Endeavors to continue trading at the Nyali branch is no longer viable,” the notice to the union signed by Human Resources manager Carolyne Walubengo. There are currently 115 people employed at the Nyali branch of which 92 are members of KUCFAW. “It should be noted that the branch will cease trading operations on a sooner date but this will not prejudice employees as they will continue to continue the services at said branch until the termination date,” added Walubengo. The retail chain, which has a presence in 15 African countries, opened its first store in Kenya in 2018, aiming to take advantage of the gaps in Kenya’s retail sector after the collapse of top supermarkets including Uchumi and Nakumatt.
But now indications are that it may exit Kenya. The coronavirus pandemic, among other factors, have worsened retailers’ woes and heavily reduced footfall.
Foreign retailers such as Shoprite have been complaining that landlords are demanding dollar-based rents. Covid 19 Time Series
- South African retail and the story of Africa’s consumer boom
- August 4, 2020
As Shoprite announces its probable withdrawal from Nigeria, Dianna Games examines the rise and fall of South African retail expansion across the continent and what it tells us about Africa’s wider investment climate
The retail sector in Africa has been one of the big success stories of the past decade, driven initially by a consumer boom in a handful of high-growth economies, demographics and a growing middle class. South African retailers and developers have ridden this wave, but in recent years some have encountered difficulties that reflect wider problems in the African investment environment.
The beginning of Africa’s consumer boom precipitated a round of growth in Western-style shopping malls, which were designed to offer a new experience to consumers used to small neighbourhood stores and the large open markets that characterise shopping in most of Africa. South African developers and retailers marched north to explore these markets as an alternative to the overcrowded and largely saturated market at home.
Shoprite, Africa’s biggest supermarket chain, was one of the first. Its first move outside South Africa and its immediate neighbours Lesotho, Swaziland, Namibia and Botswana had been to Zambia in 1995, where it opened a further 17 stores in less than a decade. It opened its first store in Nigeria in 2005 and by 2018 it had 25 stores across the country. Currently, it has operations in 13 African countries outside South Africa, although as the current edition of African Business went to press the company announced it was considering pulling out of Nigeria (see below).
Diversified department store Game, which was acquired in 1998 by Massmart (itself acquired by Walmart in 2011), is present in 12 countries. Another South African supermarket giant, Pick n Pay, has set up stores across southern Africa.
Low-cost clothing retailer Pep Stores set up in six African markets, including Nigeria, where it has outlets in 20 cities, while clothing and household retailers Mr Price and Truworths joined restaurant chains, mobile phone companies, hospitality groups, and many other South African companies investing in other African countries.
Private equity money lined up behind this popular commercial opportunity and facilities managers made the move to provide services to new developments in modernising cities. Property developers Atterbury, Hyprop, Attacq, Liberty Properties and others, snapped up shopping mall developments developed by UK-based Actis and others in Nigeria, Zambia and Ghana. Problems emerge
The South African engagement was generally positive – the companies brought jobs and […]
- Firms tackle plastic waste problem
- August 4, 2020
Stanbic, Coca-Cola, Nice House of Plastics sign plastics deal Kampala, Uganda | JULIUS BUSINGE | Faced with the undeniable consequences of a toxic tide of plastics, three private firms have entered into a partnership to recycle plastic waste.
Stanbic Bank, Cola-Cola Beverages Africa and Nice House of Plastics on July.22 signed a Memorandum of Understanding to enable them collaborate in recycling plastics to protect the environment.
This comes as available data indicates that an estimated 600 tons of plastics are consumed every day in Uganda, with most of them disposed of irresponsibly.
In Kampala city alone, an estimated 51% of the garbage is left uncollected, the reason behind the frequent clogging of sewage systems.
Ann Juuko, the chief executive officer at Stanbic Bank said the lender will provide all the necessary finance and advisory services required to facilitate plastic waste recycling.
“…We are proud to be the financial advisors in this initiative as it also aligns to our social, economic and environmental (SEE) priorities,” she said, noting that the bank is committed to promoting sustainability through its activities and increase opportunities to deliver sustainable and impactful investment expertise to its clients.
Juuko said environmental sustainability must remain a priority for all organisations as they shall each contribute to the achievement of the United Nations Sustainable Development Goals (SDGs).
Stanbic Bank is currently the country’s largest commercial bank with approximately Shs7trillion in assets. Last year, the lender recorded Shs 259bn in net profit, which translates into nearly a quarter of the country’s banking industry profit. Its financial muscle is expected to cause success of this partnership.
The Coca Cola Beverage Africa’s Plastic Recycling Industries (PRI) will not only scale up plastic waste recycling but also collect and supply PET flakes as raw materials for Nice House of Plastics to create finished products such as Yarn-Fibre, Wood Plastic Composite and rPET (recycled PET bottles).
The companies will also make the necessary effort to engage plastic manufacturing companies to set up plastic collection centres in the communities as part of an extended producer responsibility to increase the amount of plastics collected and channeled to the recycling project.
The partnership will provide a market for valued added recycled plastics that can be used locally in the Ugandan market. This move is expected to create more simple jobs especially for youth and women both directly and indirectly.Melkamu Abebe, the general manager of Coca-Cola Beverages Africa entities in Uganda (Century and Rwenzori Bottling Companies) said […]
- Magoola replaces Mathu Kiunjuri as BAT Uganda managing director
- August 4, 2020
Kirunda Magoola Kirunda Magoola is the new managing director and executive board director of British American Tobacco (BAT) Uganda Limited.
He took over on August 1, replacing Mathu Kiunjuri who resigned from the position effective July 31.
An official statement shows Kiunjuri has been redeployed to a new senior role within the company. Kiunjuri was appointed to the Board as Managing Director on 14 October 2017.
Prior to joining BAT Uganda, he held various senior management positions in the company’s units in Kenya, Uganda, Tanzania, Ethiopia and South Africa.
“Under his stewardship, the Company registered significant growth evidenced in its strong performance, thereby delivering sustained value for its shareholders,” reads the statement.
His replacement, Kirunda Magoola, was until recently manager of Corporate and Regulatory Affairs Manager at BAT Uganda.
He is an experienced marketing and communications professional with over 15 years’ experience within the consumer goods and utilities industries.
The statement says Magoola is skilled in business planning & management, risk management as well as regulatory and policy management.
He holds a Master of Science degree in Accounting and Finance from Makerere University Business School and a Bachelor of Commerce degree from Bhopal University, India.
- Nationalisation: There’s more to KQ than its aircraft
- August 4, 2020
Passengers arrive at Jomo Kenyatta International Airport in Nairobi following the resumption of International flights at the airport yesterday The proposed nationalisation of Kenya Airways, better known as KQ, is an economic hot potato. Beyond the term nationalisation – which echoes communism – there are other issues that need soberness and return to reason. KQ is not about planes, it’s about real people, jobs, national pride and a reaction to geo-health issues arising from Covid-19 and hyper competition. Let’s start from the ground before we fly. Many Kenyans can’t understand how KQ can’t be making money. If a ticket from Nairobi to Mombasa goes for Sh15,000 and a bus Sh4,000, how can the airline not make money? Costs are high and the industry is highly regulated. Safety standards must be maintained from the ground to the sky where there are no ‘pit stops’. A margin of five per cent is a call for celebration. Any economist would easily oppose the nationalisation and argue that the invisible hand of the market should be left to work. The visible hand of the Government has not been that good, if we go by Uchumi and Kenya Meat Commission, to name a few. It is this history that is leaving our heads spinning. To be fair, other governments have intervened in the market to rescue private businesses in the past. Chrysler, General Motors and other well-known firms got US government money; they are still running. The decisions to rescue them were hinged on patriotism and national interests. But the best reason would be the systemic risk to the economy. Industries depend on each other and a break in the chain would have a ripple effect throughout the economy. Think of all KQ stakeholders and how they would be affected the airline was allowed to fail. Airport workers, travel websites, aircraft manufacturers and other related industries. Our national image would be dented, affecting the market for our goods and services. Think of offices KQ has in other countries, our exports, humanitarian flights and alliances with other airlines. It may send an impression that we are not a serious nation. In turning KQ around, we are using wrong benchmarks such as Ethiopian Airlines, which has always been in government hands. The socio-political system in Ethiopia is way different from Kenya or Rwanda. How did Ethiopian continue flying during Covid-19? We are assuming, I guess wrongly, […]
- BATU to pay Shs 15.7bn to shareholders
- August 4, 2020
British American Tobacco Uganda (BAT Uganda) will pay its shareholders Shs 15.7 billion (Shs 320 per share) as a first and final dividend for the year ended December 31, 2019 after a majority vote favoured the resolution during the company’s annual general meeting that was held on July 23.
The fee that was paid in advance on June 19 in line with the company’s 100 percent dividend pay-out policy was a timely income injection for Ugandan shareholders amidst economic impacts of the Covid-19 pandemic.
Philemon Kipkemoi, a non-executive director at BAT Uganda, while addressing a press briefing, explained some of the strategies the company took to survive the after effects of Covid-19 on the business environment in Uganda.
“As a result of the pandemic, government introduced other measures and restrictions… So, we had to come up with a business continuity plan. In this plan, we prioritized three things, namely: keeping our staff and employees safe by providing them with personal protective equipment (PPE) to keep them out of harm’s way. We also made sure that we revised how we looked at the market presently to be certain of business continuity. Lastly, we looked at reviewing our business processes to ensure that we are ready when the pandemic goes.”
BAT Uganda chairman Elly Karuhanga commended BAT Uganda for its resilience and delivering strong business results on the back of a challenging operating environment.
Adding: “BAT Uganda continues to contribute to Uganda’s socio-economic development through the remittance of significant tax revenues to the government. In 2019, the company’s tax payments increased to Shs 96 billion…”
BAT Uganda Managing Director Mathu Kiunjuri, however, decried the level of illicit cigarette trade.
“According to independent third-party research, approximately 19 per cent of cigarettes sold in Uganda are illegal. These worrying levels of illicit trade not only impact consumers who unknowingly purchase these products but also government revenues and the legitimate tobacco market,” he said.
“Tax-evaded illegal cigarettes continue to deprive the government in excess of an estimated Shs 30 billion every year. This is revenue that is desperately needed to support the country’s economic recovery given the adverse impact of Covid-19.”
Kiunjuri further called upon the Ugandan authorities to ratify the World Health Organisation’s protocol to eliminate illicit trade in tobacco products.
“Ratification would provide a robust framework for the implementation of global standards in fighting illicit trade, optimizing benefits of the Uganda Revenue Authority’s Digital Tracking System and helping to tackle illicit […]
- BAT registers 9.9 billion profit in half year results released
- August 4, 2020
BAT Uganda has announced its half-year results for the six months ending 30th June 2020; posting gross revenue of Ushs 76 billion, profit before tax of Ushs 9.9 billion and contributions to Government revenue of Ushs 42.9 billion.
“I am pleased to report that BAT Uganda’s business continues to show resilience despite the difficult operating environment in the country.
“For the first half of 2020, gross revenue reduced by 12% to Ushs 76 billion, mainly due to the impact of the COVID-19 pandemic on the consumer purse.
“With rising unemployment and a significant increase in the cost of various basic consumer goods, the pandemic has left many consumers more cash-stretched than ever.
“ Additionally, the closure of retail outlets led to constrained consumer access to our products. Despite these challenges, our Business
continues to be resilient, posting a 2% increase in profit before tax to Ushs 9.9 billion due to prudent cost management measures undertaken to mitigate the decline in revenue,” said BAT Uganda Managing Director, Mathu Kiunjuri.
“As we navigate the particularly challenging business environment occasioned by the COVID19 pandemic, the menace of illicit trade is entrenching itself now more than ever, on the back of heightened consumer affordability challenges.
“This is partly evidenced by the reduction of our contribution to Government taxes in the form of Excise Duty, Value Added Tax (VAT) and Corporation Tax by Ushs 7.3 billion to Ushs 42.9 billion,” added Kiunjuri.
“We are concerned that, despite the enhanced border controls put in place to mitigate the spread of COVID-19, our trade teams continue to report an increased presence of illegal tax-evaded cigarettes in the Ugandan market, primarily tax-evaded cigarettes from Kenya.
“ This is consistent with third party research conducted at the end of last year, which indicates that about 44% of illicit cigarettes sold in Uganda have been smuggled across the Kenyan border.
“Evidently, border enforcement alone is not sufficient to curtail the illicit trade in cigarettes, which continues to deny the Government in excess of Ushs 30 billion every year.“Whilst we recognize the opportunity presented by URA’s Digital Tracking Solution (DTS), immediate action is required to redouble enforcement of anti-illicit trade regulations.“This enhanced action includes cooperation between Uganda and Kenya officials in stemming the flow of illicit cigarettes into Uganda, which requires identification of the source of these illegal products and their supply routes. We also reiterate our call to the Government to ratify the World Health Organisation (WHO’s) Protocol to […]
- Retailers’ woes call for change of tack
- August 4, 2020
First, Uchumi Supermarkets shut its doors. It was closely followed by Nakumatt and now the walls are slowly closing in on the Tuskys Supermarket chain. The troubled retail market has seen jobs losses, pay cuts and reduced incomes amid desperate efforts to save cash. The current crisis brought about by Covid-19 has not helped the country’s shaky retail market either. Consumption has fallen to historic lows in the last three months, a trend that is expected to only get worse as the pandemic takes its toll on lives and businesses. The situation in the retail sector has in the past claimed several powerful brands. We understand that businesses have to die at some point, but even among humans, we always try to avoid untimely deaths. Death of supermarkets does not only affect shareholders, but also devastates employees and suppliers and their families. These untimely deaths of major brands need to be prevented. And the best place to start is at the top of these chains. Retail chains, whether family-owned or publicly-listed, need to be run professionally. Instead, what the public has been treated to is a looting competition by siblings who cannot tolerate each other. Corporate governance is critical to any business, but how our big retailers are structured remains wanting. A competent board of directors will go a long way in not only saving these businesses from dying, but also ensuring suppliers and workers get their daily bread. These weaknesses have not spared Tuskys. It has been dealt a blow as evidenced by the empty shelves and closures of key stores. The situation, no doubt, calls for quick intervention. Covid 19 Time Series
- Stanbic Bank Named Kenya’s Best Investment Bank
- August 4, 2020
NAIROBI, Kenya, Juk 29 – Stanbic Bank Kenya has been recognized as Kenya’s Best Investment Bank by EuroMoney Awards for Excellence 2020, making it their second win with the Global Institution.
This award is recognition to Stanbic Bank’s ability to deliver solutions across a range of products and services to its customers and further demonstrates a breadth of capabilities in terms of client-driven business across debt, equity, Mergers & Acquisitions, corporate advisory, and areas such as foreign exchange and cash management.
Stanbic Bank Head of Corporate and Investment Banking Anton Marais said, “This recognition speaks volumes of our track record and is a pleasing achievement in Kenya’s highly competitive investment banking environment where we are up against both local and international competitors.”
The award further reaffirms the bank’s leading position in structuring relevant and innovative financial deals for its Corporate & Investment banking customers. It also demonstrates Stanbic’s unparalleled investment banking capabilities and expertise in financial advisory across the country and the pan-Africa region which has awarded them the International EMEA Award for 12 years consecutively.
Jonathan Muga, Head of Investment Banking Kenya added that, “We understand the intricacies of the Kenyan market and have the experience, skill and relationships to assist our clients negotiate the often challenging and complex financial and regulatory environments in Kenya and beyond. Delivering solutions for our clients that allow them to accelerate and grow their portfolio is our focus and this accolade is evidence that we are on the right track and are making an impact for our clients and the nation at large.”
For over a decade, Stanbic Bank Kenya has been ahead of the pack, leading investment banking for years and enabling key projects to materialize and help drive not only Kenya but the region at large. The bank has also maintained an efficient use of capital and strong collaboration between divisions. Highlighting this, Stanbic Bank’s investment in Sustainable Financing gained recognition when they received the most innovative and ground-breaking deal in 2019 for their involvement in closing Kenya’s first-ever Green Bond by Acorn Project (Two) Limited Liability Partnership, a Sh4.261bn 5-year fixed-rate green project bond.
This was the first Green Bond to be issued in East Africa and the first corporate issuance to be listed on both the Nairobi Securities Exchange (“NSE”) and the London Stock Exchange (“LSE”). It was also the first senior secured bond in Kenya and the first corporate bond to be […]