Prime Minister Theresa May is visiting South Africa, Nigeria and Kenya this week.
Travelling with her on the first UK prime ministerial trip to sub-Saharan Africa for five years is an entourage of 29 business leaders including Bill Winters, the chief executive of Standard Chartered, and LSE head David Schwimmer.
There is also realism about the size of the continent’s economies. The three countries that May is visiting may well be Africa’s powerhouses, but the combined nominal GDP of Kenya, Nigeria and South Africa barely matches the Netherlands.
“By 2022, I want the UK to be the G7’s number one investor in Africa, with Britain’s private sector companies taking the lead in investing the billions that will see African economies growing by trillions,” May will say. “It is the private sector that is the key to driving that growth -- transforming labor markets, opening up opportunity and unleashing entrepreneurial spirit. And the U.K. has the companies that can invest in and trade with Africa to do just this.”
United Nations figures put annual UK investment in the continent at $55 billion, ahead of France’s $49 billion and second to the U.S. on $57 billion
Theresa May actually stopped in Cape town first and that made my Mind loop back to another Speech which was delivered to the Parliament in Cape Town but that speech was delivered on February 3rd 1960 and by a British Prime Minister Harold Macmillan who said
''The wind of change is blowing through this continent. Whether we like it or not, this growth of national consciousness is a political fact'' [Looking at events unfold over the Border those remarks appear prescient]
Zambia which is resolutely avoiding IMF's madam Lagarde and its Eurobonds have lost 10 per cent this month, more than any of the 75 countries in the Bloomberg Barclays Emerging Markets USD sovereign bond Index. That’s extended their decline to 23 percent this year and sent spreads over U.S. Treasuries soaring to more than 1,000 basis points.
S&P Global Ratings cut the foreign-currency rating to B-, six steps into junk territory, last week. Moody’s Investors Service lowered its assessment to Caa1 shortly before that.
Yields on Zambia’s $1 billion of notes maturing in 2024 fell 1 basis point to 13.86 percent on Monday, though they’re still up about 740 basis points in 2018.
@FLOTUS Melania and I were honored to welcome the President of the Republic of Kenya, @UKenyatta and Mrs. Margaret Kenyatta to the @WhiteHouse today! tweeted President Trump.
“Well, you were here on a very special day,” Trump told Kenyatta. “Everything I said is going to happen, it ends up happening, so you picked a good day to come. We’re in a very good mood.” Kenyatta said he hoped Trump would share the wealth with his country.
“We’ll bring that over to Kenya,” Trump joked.
President Trump and President Kenyatta obviously had good chemistry. The @WhiteHouse Office of the press secretary released a joint statement from President Trump and President Kenyatta which said ''the leaders resolved to elevate the relationship to a Strategic Partnership''.
President Kenyatta thanked President Trump and said ''As democracies committed to a rules-based international order, the United States and Kenya share a common vision for free and open societies. This includes global freedom of navigation, particularly in the Indo-Pacific region''.
''Recognizing the importance of high-quality infrastructure, President Trump and President Kenyatta welcomed the proposal by United States engineering and construction firm Bechtel Corporation to build a modern superhighway from Nairobi to Mombasa. Both sides agreed to undertake further consultations to conclude the terms of the financing agreement.''
The Nairobi Securities Exchange All Share rebounded +1.85 points to close at 173.18 lifted by Safaricom.
The NSE20 eased 6.28 points.
Commercial and Services
Safaricom rallied +2.588% to close at 29.75 and traded 4.929m shares.
I&M Holdings reported an +11.705% acceleration in H1 2018 Earnings Per Share, a +12.6445% increase in its Customer Loan Book from 144.54b to 162.82b a +6.299% H1 2018 Revenue Gain which clocked 8.749b, and a +12.77% acceleration in H1 2018 Profit After Tax. Customer deposits surged an eye-popping +30.565%. I&M Holdings eased a shilling to close at 104.00 and is -18.11% in 2018.
Equity Group eased 25cents to close at 49.25 and 3.913m shares.
Sanlam Kenya corrected -5.208% to close at 22.75 the day after issuing a Profits Warning. The Profits warning was issued on the basis of known impairments of Financial Instruments. They have either taken a hit because of Imperial Bank or via the Commercial Paper Market.