Showing posts with label Strategy. Show all posts
Showing posts with label Strategy. Show all posts

Wednesday, 17 August 2016

Pan Africa Insurance Holdings Limited has rebranded to Sanlam Kenya

Pan Africa Insurance Holdings rebrands to Sanlam Kenya

By Nicholus Nduati
Pan Africa Insurance Holdings Limited has rebranded to Sanlam Kenya, a financial services group currently listed on both the Johannesburg and the Namibian Stock Exchange.
Sanlam Kenya CEO Mugo Kibati says the rebrand has positioned the firm to offer Kenyans greater access to a comprehensive and tailored range of insurance and investment financial solutions.
The rebrand according to Kibati aims to offer Kenyan shareholders, clients and other stakeholders the added comfort and security of doing business.
Currently, Sanlam Kenya enjoys an estimated market share of 8 percent in the Kenyan life insurance industry.
The move sees Pan Africa Insurance Holdings subsidiaries, Pan Africa Life, Pan Africa Asset Management, Gateway Insurance and PA Securities also rebrand to Sanlam Life Insurance, Sanlam Investments, Sanlam General Insurance and Sanlam Securities respectively.
Sanlam Kenya has lined up a variety of general insurance and investment financial products to be launched soon.
The Sanlam Group currently has businesses in 33 countries across Africa and first acquired a stake in Pan Africa Insurance Holdings Limited in 2006, following Sanlam’s acquisition of African Life Assurance Group.

Pan Africa Life Insurance/Assets now Sanlam Kenya set to offer products through Mobile Phones

Sanlam Kenya, formerly Pan Africa Life Insurance, has disclosed plans to offer insurance products through mobile phones in an effort to boost uptake. 
By GEORGE NGIGI


Posted  Wednesday, August 17   2016 at  18:19  http://www.businessdailyafrica.com/Sanlam-Kenya-plans-insurance-products-through-mobile-phones/539552-3348240-item-0-nh24stz/index.html 
IN SUMMARY
  • The system upgrade by the insurer was, however, problematic resulting in the loss of clients and intermediaries following delays and inaccuracies in premium calculation.
  • Linda Jamii is a micro-health cover that was launched in January 2014 together with Safaricom and Changamka Microinsurance targeting the underserved low end of the market.
Sanlam Kenya, formerly Pan Africa Life Insurance, has disclosed plans to offer insurance products through mobile phones in an effort to boost uptake.in
The insurer last year upgraded its systems to support introduction of new technology-driven services.
Insurance penetration in the country has remained low especially in life business, which is viewed as a preserve of the wealthy.
“The only way to increase penetration of insurance is to use different means away from the traditional agency operation to include digital operations and partnerships,” said Mr Ian Kirk, the chief executive of Sanlam Group.
He, however, declined to disclose the time-lines in which the company is expected to launch the mass market products.
Insurance agents and brokers are the source of 83 per cent of business booked by insurers in the Kenyan market.
The system upgrade by the insurer was, however, problematic resulting in the loss of clients and intermediaries following delays and inaccuracies in premium calculation.
Sanlam’s new life business sales for last year declined by 19 per cent leading to shrinkage of its market share to eight per cent at the end of 2015 from 9.8 per cent a year earlier, according to data from the Insurance Regulatory Authority.
Rebranded
“What hit us were the initial implementation challenges where there were mismatches but now we are optimising the system,” said Sanlam Kenya Group chief executive Mr Mugo Kibati.
The insurer has rebranded to Sanlam Kenya to identify with its South Africa-based parent Sanlam Group.
Sanlam Group owns 56.3 per cent stake of the listed company, which recently added general insurance to its mainstay life insurance products.
The multinational has made known ambitions to raise its stake in the subsidiary to 60 per cent.

Friday, 8 April 2016

Pan Africa Life Additional Investments into Gateway General Insurance and Its Performance after Acquisition

Pan Africa buys additional stake in Gateway Insurance

By VICTOR JUMA, vjuma@ke.nationmedia.com  http://www.businessdailyafrica.com/Corporate-News
Pan Africa Insurance Holdings chief executive Mugo Kibati. PHOTO | FILE
Pan Africa Insurance Holdings chief executive Mugo Kibati. PHOTO | FILE 
By VICTOR JUMA, vjuma@ke.nationmedia.com

Posted  Monday, March 28   2016 at  23:00
IN SUMMARY
  • Pan Africa first bought into the general insurer in March last year, acquiring a 51 per cent stake for Sh561 million.
  • The company later raised its interest in Gateway to 56 per cent at a cost of about Sh55 million.
  • The move by Pan Africa to raise its stake in Gateway signals its confidence in the company’s future prospects though the subsidiary’s earnings have deteriorated following its acquisition.
Pan Africa Insurance Holdings has acquired an additional five per cent stake in Gateway Insurance, raising its equity in the subsidiary to 56 per cent.
The company had announced that it would buy additional shares in Gateway to make the subsidiary’s founders comply with insurance regulations that cap ownership by individuals at 25 per cent.Pan Africa chief executive Mugo Kibati told the Business Daily that the company subsequently raised its interest in Gateway to 56 per cent at a cost of about Sh55 million.
Pan Africa did not say to what level it was prepared to raise its stake in Gateway but noted that the extra shares would be bought from the family of the company’s founder, the late Godfrey Karuri.
The additional shares were to be bought at the same price of Sh17.56 per share that Pan Africa paid to buy the initial 51 per cent stake.
The move by Pan Africa to raise its stake in Gateway signals its confidence in the company’s future prospects though the subsidiary’s earnings have deteriorated following its acquisition.
Acquisition of Gateway marked a change in strategy at Pan Africa which in 2011 exited the general insurance business to focus on life policies by selling its 39.9 stake in APA Insurance for Sh855 million.
The company later said it needed to re-enter the general insurance business if it was to get a share of economic growth driven by sectors such as construction.
This prompted the Gateway acquisition whose completion coincided with increased competition in Pan Africa’s mainstay life insurance business where it previously was among the largest players.
Gateway’s performance has, however, disappointed, with Pan Africa taking a Sh564 million hit from the subsidiary last year and contributing to a 97 per cent fall in the parent firm’s profit in the year ended December.
Pan Africa reported that the excess value it anticipated from the takeover of Gateway has surpassed the net worth of the subsidiary by the Sh564 million.
This means Pan Africa paid a hefty premium in the acquisition whose payback is likely to take longer than initially expected.
The accounting loss contributed to the 97 per cent drop in the listed firm’s net profit to Sh27.3 million in the review period, down from Sh871.1 million the year before.

Wednesday, 10 June 2015

Jubilee Insurance Kenya Chief Executive Patrick Tumbo is Africa CEO of the Year in the recently concluded 42nd Conference and General Assembly of Africa Insurance Organisation (AIO)

Jubilee Kenya boss named Africa CEO of the year

By MUGAMBI MUTEGI  Posted  Tuesday, June 2  2015 at  21:18 @Businessdailyafrica
 
 
Jubilee Insurance Kenya CEO Patrick Tumbo. PHOTO | FILE
Jubilee Insurance Kenya CEO Patrick Tumbo. PHOTO | FILE 

The Jubilee Insurance Kenya CEO Patrick Tumbo has been named chief executive officer of the year at an award ceremony in which 362 member companies from across the continent participated.
Mr Tumbo got the recognition at the recently concluded 42nd Conference and General Assembly of Africa Insurance Organisation (AIO) in Tunisia.
Organisers of the awards said the winner was selected based on successful product development, excellent service delivery and introducing innovative distribution channels targeting grassroots customers.
“We need to listen to our customers and develop products that serve specific customer needs. That way, the insurance sector will experience a revolutionary change for the better,” said Mr Tumbo.
Nigeria’s Mutual Benefits Insurance won the Innovation of the Year award while the Insurance Company of the Year award went to Misr Insurance Company of Egypt.
Increased premiums
Jubilee Holdings reported a 24 per cent jump in net profit for the year ended December to Sh3.1 billion, helped mainly by increased premiums, with Kenya being its biggest contributing business unit.
Gross premiums increased 30 per cent to Sh30.3 billion, making the company Kenya’s largest in both general and life insurance business.
The insurer recorded double-digit growth in all its insurance operations, including pensions and medical.
The AIO is made up of member insurers across 55 countries in Africa.
The awards are meant to promote growth of the insurance sector through good corporate governance, insurance practice, leadership and risk management.
“Sharing and dissemination of new successful and practical ideas in the industry can be a great tool to fast-track the development of insurance in the continent,” said AIO secretary-general Prisca Soraes.
The conference, which took place between May 24 and May 27, focused on the rise of political risk in the continent and the need for new risk pools to respond to natural catastrophic risk.

Monday, 6 April 2015

Pan Africa Insurance Holdings Limited acquires a 51% majority shareholding in Gateway Insurance Company Limited.


Pan Africa Insurance buys stake in Gateway Insurance

Daily Nation,  Wednesday, March 18, 2015


 


Pan Africa Insurance Holdings Limited has acquired a 51 per cent majority shareholding in Gateway Insurance Company Limited.
Shareholders of the latter will get Sh561,023,562 in exchange for 31,948,950 ordinary shares priced at Sh17.56 apiece.
“We are delighted to have concluded this transaction, giving us a majority stake in Gateway. Pan Africa’s Group strategy includes diversifying investments in a way that will maximise and meet client expectations while growing shareholder value. We are on a path to make Pan Africa a one-stop-shop for our client financial solutions,” board chairman John Simba said.
He said the company had returned to general insurance at a time when figures indicated that insurance penetration was low, therefore, providing huge opportunity for growth.
A CRITICAL COMPONENT
“Financial services are a critical component of any economy which intends to record sustainable growth. Insurance companies only account for 32 per cent of financial service providers in Kenya excluding co-operative societies and a measly 0.3 per cent when cooperative societies are included.
“This means that while a savings culture is budding among our people - which is how it should be - there is a gap in the area of risk management which cannot be ignored,” Mr Simba said.
“Gateway’s established brand in short-term insurance service and a countrywide presence fits well into Pan Africa strategy.”
The group structure will change to incorporate the new general insurance subsidiary so that management of the firm will be at holdings level by the group chief executive, while business lines (Life, General and Asset Management) will be headed by the respective chief executives.
Group chief executive Mugo Kibati said the new business venture would “see Pan Africa compete effectively” with their peers in the industry.

Thursday, 26 February 2015

Karibu new Pan Africa Holdings CEO - Mugo Kibati. Currently the Chairman of Lake Turkana Wind Power Ltd

Mugo Kibati joins Pan Africa Holdings as Chief Executive 

By GEORGE NGIGI, gngigi@ke.nationmedia.com http://www.businessdailyafrica.com/Corporate-News

Mugo Kibati, chairman of Lake Turkana Wind Power (LTWP) Ltd. PHOTO | FILE

  • The company has been searching for a chief executive after Tom Gitogo resigned to join CIC Insurance in September last year.

Former Vision 2030 director Mugo Kibati has been appointed Group Chief Executive Officer of Pan Africa Insurance Holdings Ltd. He his currently the chairman of Lake Turkana Wind Power (LTWP) project, which has won the African Renewables Deal of the Year 2014 after it successfully structured Sh70 billion financing. http://www.businessdailyafrica.com/Lake-Turkana-wind-project-wins-deal/-/539552/2635528/-/hdd6yl/-/index.html

The position is new to the company which has a life assurance business, general insurance arm - Pan Africa Securities and an asset management subsidiary.
Pan Africa also confirmed Stephen Kamanda as the chief executive of its assurance business.
The company has been searching for a chief executive after Tom Gitogo resigned to join CIC Insurance in September last year.
Mr Kibati previously served as managing director of East African Cables before he was appointed by the government to head the Vision 2030 secretariat. He holds a degree in electrical engineering, a masters degree in international business and a masters degree in technology and policy.
Last week Pan Africa announced issued a profit warning which has seen its share price at the Nairobi Securities Exchange drop by 9.3 per cent in the last five trading sessions.
  • The insurer said that gains from the NSE last year were lower compared to 2013, which was further compounded by reduced deals in the property market.
  • Analysts said the performance is representative of the insurance industry whose results are influenced by NSE’s.
  • Pan Africa’s net profit grew 31 per cent to Sh295.5 million in 2013 and the profit alert means it will post earnings below Sh221 million.
The insurer attributed the drop in profits to lower gains in the equities market compared to 2013 and reduced deals in the property market.

Monday, 24 November 2014

Bitcoin Digital Lessons from M-pesa

Digital Currency Regulation in East Africa

by http://community.ihub.co.ke/blogs/21645/digital-currency-regulation-in-east-africa

Digital Currency Regulation in East Africa
Guest Blog: Michael Kimani
What is Bitcoin? – A puzzling question posed by everyone coming across Bitcoin for the first time. The Bitcoin Kenya Meet up group regularly convenes at the iHub for monthly open discussions on this subject. The discussion on November 5 was ‘BitLegal Status Around the World’ – a cursory look at what regulators and government authorities all over have to say about new forms of digital currency. It is important as it defines a domain for regulators in East Africa. Interestingly, regulators just like regular folks, have trouble wrapping their head around ‘What is Bitcoin?’
IMO, Bitcoin is what Nassim Taleb - a scholar, refers to as a black swan
“An event that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact with the benefit. image 2
Bitcoin is one of the most important breakthroughs of the digital age since the internet! Bitcoin is a global secure layer on top of the internet with online payment capabilities. Just to get a clear picture of how immense it is, this brief 4min video will get you up to speed.
Bitcoin is a platform with a long list of possible applications built on top of it. One of these apps, is bitcoin, the currency. These features make it a unique global payment network that anyone can take part in. It is a currency, asset, platform, decentralized network – all wrapped into one burrito.
Understandably, government agencies and financial regulators find it difficult to demarcate a regulatory framework for innovative digital currencies such as Bitcoin. Largely, it has been a net positive; a mixed bag of official statements falling on the‘Wait and See’ approach, early guidance on its use, adoption and Bitcoin start-ups. A couple have out rightly banned its use – Iceland and Ecuador in favour of their own digital currency.
Digital Currency Regulation in Kenya – Lessons from Mpesa
In a lot of ways, the ongoing debate on Bitcoin regulation in the rest of the world is surprisingly similar to that of MPESA in its infancy stage (Pre- 2008). Mpesa, just like Bitcoin was a unique innovation that did not fall within existing regulatory framework during the time. A case study report by the AFI [Enabling Mobile Money Transfer – CBKs treatment of Mpesa] pdf here, details the early regulatory considerations of Mpesa involving multiple stakeholders – GoK, National Assembly, Safaricom, Central Bank of Kenya, Banks and the Kenyan public.
In retrospect, we can all agree it was wise to foster Mpesa. Because it remedied an immediate financial inclusion challenge, letting it grow into its potential was crucial all the while adhering to money laundering and money transfer regulations. Was it a bank? Was it a payment network? Did it fall under the law?
Eventually, the ability of this innovation to radically offer access to financial services by the unbanked tipped the scale and won it for Mpesa. A watershed that has defined Kenya in more ways than we can quantify. The Central bank of Kenya commendably handled it well, recognizing the best way to tap into the mobile phone as a money transfer tool.
Bitcoin regulation around the world
pic 3
Thiswiki is a comprehensive start for a full list of what regulators’ guidance in different countries, albeit several months old has been.
Bitcoin and digital currencies have a place in connecting Kenya and East Africa to the global market and commerce. Mpesa has worked well for money transfers within the country – Bitcoin and digital currencies complement that by making global payments faster, cheaper and straight into/from your phone!  The internet made it possible for all of us to take part in a global economy, Bitcoin enhances global value exchange as cash for the internet!
Finally, if you couldn’t make it for our meet up, you can view the slides here. We are having our next meet up on the 1st of December on ‘Buying, Selling, Trading and Securing Bitcoins’ at the iHub. See the event detailshere. For questions and info, email us atinfo@africandca.orgor myself atmkimani@africandca.org.


About the Author:Michael Kimani is the Lead Coordinator at the ADCA @African_DCA www.africandca.org Based in Nairobi, Kimani advocates bitcoin & digital currencies in East Africa. He also regularly writes on digital finance, electronic payments and digital currencies in East Africa on @pesa_Africa.

Thursday, 14 August 2014

Best Insurance Companies in Kenya Past Performance

Pan Africa Life Innovation and Jubilee Lifetime Achievement
Article @By: Yarinka Lukiza
http://www.bizrika.com/banking-and-finance/best-insurance-companies-in-kenya-named/

The 2011 best insurance companies in Kenya were named in the annual gala night organized by Think Business; a Kenyan based financial sector-focused company that specializes in strategic business intelligence, research and publishing.
During the colorful gala night held at a Nairobi hotel on 21 July, Chartis Kenya and Pan Africa Life were named the best insurance companies in Kenya in the General Life and Composite Business categories. The first and second runners-up positions in the best business category went to Jubilee and CIC Insurance respectively, while British American Insurance and Jubilee Insurance clinched first and second positions respectively in the Life Business category. CIC Insurance was declared the only runner-up in the Composite Business category.
Pan Africa Life and Jubilee Insurance emerged best in the Best Company in ICT category, coming in first and second place respectively. No company was deemed fit to win the Best Corporate Broker category.
Jubilee Insurance showed up again to scoop the Best Insurance Company in the Risk Management category.

Other awards and winners

Best Insurance Company in Claims Settlement (Life Business)
Winner: Apollo Life Assurance
Runners-up: Pan Africa Life and CIC Insurance
Best Insurance Company in Claims Settlement (General Business)
Winner: APA Insurance
Runners-up: Chartis Kenya and Jubilee insurance
Major Loss Award
Winner: Jubilee Insurance
Runners-up: APA Insurance
Best Fraud Detection and Prevention Initiative
Winner: Pan Africa Life

Best Medical Insurance Provider

Winner: AAR Health Services
Runners-up: Goldstar Health Care
Best Medical Insurance Underwriter
Winner: Jubilee Insurance
Best Customer Service Innovation
Winner: Jubilee Insurance
Runners-up: CIC and AAR
Best Insurance Company in Customer satisfaction
Winner: CFC Life
Runners-up: Britak and Kenindia
Best marketing Initiative of the Year
Winner: CIC Insurance
Runners-up: APA and Jubilee Insurance
Best Training Initiative of the Year
Winner: CIC
Runners-up: Pan Africa Life and Jubilee Insurance
Most Socially Responsible Corporate
Winner: AAR Health Services and Jubilee Insurance
Overall, Jubilee Insurance won the largest number of awards. The company bagged 11 awards in total and crowned it with the Lifetime Achievement in Insurance Award which went to Nizar Juma, the Jubilee Holdings chairman.
Commenting on the awards, Mr. Ochieng Oloo, the CEO of Think Business, said 2010 was a good year for the Kenyan insurance sector, as demonstrated by strong growth in total assets which went up from Ksh174 billion in 2009 to Ksh240 billion in 2010, representing an increase of 27%.
The industry’s profit before tax swelled by a record 42% to hit Ksh11.9 billion, up from Ksh6.8 billion in 2009.
Medical cover leading
Of all the insured Kenyans, 74% have taken up medical cover while 69% have insured against motor vehicle risks. Insurance covers for assets, education and accident account for 40%, 44% and 48% respectively.

Tuesday, 3 June 2014

Africa Biggest Economy is Nigeria

Nigeria overtakes South Africa as continent’s largest economy

  

Nigeria today officially overtook South Africa as the largest economy on the continent, after the West African country changed the base year for calculating its gross domestic product (GDP).
Nigeria’s National Bureau of Statistics (NBS) on Sunday presented the country’s rebased GDP figure, revealing the economy is significantly bigger than originally reported. Nigeria’s GDP in 2013 was US$509.9bn, much higher than that of South Africa.
The base year is the benchmark for all calculations used in working out the GDP of a country, as it determines the year in which prices are held constant and enables one to distinguish between economic growth and inflation.
The majority of higher income countries revise their base year every five years to reflect changes in the nature of output and consumption. Up until today, Nigeria’s GDP was calculated using 1990 as the base year, which does not account for the rapid development of some of the country’s booming industries, such as telecommunications and entertainment (notably the Nollywood film industry).
Nigerians however shouldn’t expect to see any material benefits from the GDP rebasing. According Renaissance Captial chief economist Charles Robertson, the rebasing is simply “the NBS… doing a better job in measuring the output that is already happening”.
“Improving the measurement of GDP does not raise monthly wages. It does not lift consumption of imports. It does not make Nigeria better off in any obvious material way… The important fact to bear in mind is that GDP is only being recorded better. Rebasing does not mean Nigerians are better off – it just means they are better off than official statistics previously indicated,” said Robertson in an earlier note.
Being Africa’s largest economy could however hold some psychological advantages. “It would be interesting to see how international relations will be affected when South Africa is no longer the largest African economy – South Africa is, for example, the only African country represented in the G20,” wrote Roelof Horne, portfolio manager at Investec Asset Management in an opinion piece published by How we made it in Africa on Friday.
“South Africa was historically the ‘go-to’ country for investment into Africa. However, the reality is that other regions are increasingly asserting their economic voice and this has resulted in several multinational corporations opting to have their Africa base in countries such as Kenya or Nigeria, instead of South Africa,” Horne added.
The rebasing will also improve Nigeria’s balance sheet. “This should lead to lower borrowing costs for the government, which is ultimately beneficial for the country’s citizens,” said Horne.
According to Robertson, Nigeria’s growth rate is likely to be revised down following the rebasing. “Instead of around 7% annual growth over the previous decade, the higher GDP base means growth may turn out to have been closer to 5-6%.

Tuesday, 15 October 2013

How to screw business as usual for start-ups - Virgin.com

How to screw business as usual for start-ups - Virgin.com

Top tips for start-ups on how you can screw business as usual from the beginning.

1) Community Bulding
2) Going Green From the Start
3) Happy people
4) Test Yourself

Screw Business as Usual is Richard Branson's book about changing the world. Just by buying this book you'll make a difference as 100% of Richard's royalties go to Virgin Unite, to support our entrepreneurial initiatives on the front lines.

Monday, 14 October 2013

You Need to Stop Looking for a Rule Book to Success.

There’s No Rulebook For Success

You need to stop looking for a rule book to success. There is no such thing. You can learn from other people experiences, but focus on creating your own. Other people’s experiences are a good starting point, but don’t try to experience the exact same thing. Life is about creating your own experience. Grasp their stories and develop qualities like foresight, determination and resiliency.
Read more at http://under30ceo.com/theres-no-rulebook-for-success/#BFVDCq068Vf5Do88.99
 There is no such thing. You can learn from other people experiences, but focus on creating your own. Other people’s experiences are a good starting point, but don’t try to experience the exact same thing. Life is about creating your own experience. Grasp their stories and develop qualities like foresight, determination and resiliency. 
 Test your perseverance
 Visualize the unseen
 Plan your product instead of just ideating

Plan your product instead of just ideating
Read more at http://under30ceo.com/theres-no-rulebook-for-success/#BFVDCq068Vf5Do88.99Visualize the unseen
Plan your product instead of just ideating
Read more at http://under30ceo.com/theres-no-rulebook-for-success/#BFVDCq068Vf5Do88.99
Read More: http://under30ceo.com/theres-no-rulebook-for-success/?utm_source=rss&utm_medium=rss&utm_campaign=theres-no-rulebook-for-success
You need to stop looking for a rule book to success. There is no such thing. You can learn from other people experiences, but focus on creating your own. Other people’s experiences are a good starting point, but don’t try to experience the exact same thing. Life is about creating your own experience. Grasp their stories and develop qualities like foresight, determination and resiliency.
Read more at http://under30ceo.com/theres-no-rulebook-for-success/#BFVDCq068Vf5Do88.99
You need to stop looking for a rule book to success. There is no such thing. You can learn from other people experiences, but focus on creating your own. Other people’s experiences are a good starting point, but don’t try to experience the exact same thing. Life is about creating your own experience. Grasp their stories and develop qualities like foresight, determination and resiliency.
Read more at http://under30ceo.com/theres-no-rulebook-for-success/#BFVDCq068Vf5Do88.99
You need to stop looking for a rule book to success. There is no such thing. You can learn from other people experiences, but focus on creating your own. Other people’s experiences are a good starting point, but don’t try to experience the exact same thing. Life is about creating your own experience. Grasp their stories and develop qualities like foresight, determination and resiliency.
Read more at http://under30ceo.com/theres-no-rulebook-for-success/#BFVDCq068Vf5Do88.99

Monday, 29 July 2013

Africa Property Investment Summit about African Real Estate Investment and Development: Sept 2013

Africa Property Investment Summit: 3-4 September 2013

BY | July 11, 2013 at 15:07 http://www.howwemadeitinafrica.com
If investment and development feature strongly on your business agenda, then this commercial property forum is not to be missed. An annual event, the African Property Investment Summit has earned the respect of the industry and is an anticipated event on the African real estate calendar.
The Africa Property Investment Summit is fast approaching with limited bookings available. The two-day event, taking place in Johannesburg from 3-4 September 2013, will be once again be held at the beautiful Sandton Sun Hotel.
This summit presents a professional platform for learning about African real estate investment and development. Following its success in 2011 and 2012, the summit returns with the support of more industry heavyweights and an agenda designed to draw the leading minds in the property arena.
This is a unique opportunity to discuss current trends, share industry experiences and enjoy insightful debate. If you are committed to an African growth strategy, this is a property event you cannot afford to miss.
This year’s event features an exciting line up of speakers and panel discussion participants actively doing deals across the continent.
The two day conference package (R7,950/$895) includes all lunches and refreshments, an invitation to the gala dinner, parking and full access to all research, presentations and documentations. For booking information and enquiries contact Muhammad Joosub on muhammad@apisummit.co.za or +27 11 593 2288 or visit www.apisummit.co.za

Friday, 26 July 2013

Nairobi’s Prime Real Estate Growing by 25% faster than Miami (19.1%), London (12.1%).

Kenya’s luxury property market records highest growth globally in 2011


Kenya’s luxury real estate saw the greatest price increase globally in 2011, according to Knight Frank’s Prime International Residential Index (PIRI), which monitors price changes across the world’s top-end property markets.
Price growth in both Kenya’s capital Nairobi and the country’s Indian Ocean coastal hot spots was more than any of the other global locations included in the Index, with the value of Nairobi’s prime real estate growing by 25% in 2011 and the Kenyan coast by 20%.
Knight Frank defines “prime property” as a location’s most desirable and usually most expensive real estate.
Kenyan luxury real estate prices grew faster than major cities such as Miami (19.1%), London (12.1%), Moscow (9.8%), New York (3.1%), Shanghai (-3.4%) and Singapore (-4.7%).
It should, however, be noted that Kenya’s growth comes from a base of relatively low luxury property prices. The average price per square metre of prime real estate in Nairobi is only US$1,700, which doesn’t even compare with cities such as Monaco ($58,300/sq m), London ($48,900/sq m), Beijing ($17,400/sq m) or Mumbai ($11,400/sq m).
Increasingly affluent buyers from emerging markets are boosting residential property prices in developed world locations such as Miami, London and Vancouver. “When asked which nationalities will become most important as prime property buyers over the next five years, Chinese, Russian, Middle Eastern, Latin American and those from other growth economies consistently top advisors’ lists,” notes Liam Bailey, head of residential research at Knight Frank.
The reason for this is that many of the newly rich in the developing world fear that issues such as corruption and politics can pose a risk to property investments in their home countries. They therefore prefer safe haven locations such as London, which has a cosmopolitan environment, good education and both personal and property security.
Bailey says that New Zealand’s isolation from the world’s conflict zones makes it possibly the ultimate safe haven destination for the world’s super-rich.
Although ‘safe haven’ isn’t necessarily a phrase many people would use to describe Kenya in a global context, compared to its neighbouring countries it is just that, commented Ben Woodhams, managing director of Knight Frank Kenya.
Woodhams added that Kenya’s fast economic development is attracting domestic and international private equity. However, recent events such as the kidnapping of tourists staying on Kenya’s north coast and a steep rise in interest rates to almost 25% also highlight the potential vulnerability of some emerging prime markets.
Saskia Sassen, co-chair of the Committee of Global Thought at Columbia University and the person who coined the term ‘global city’, said that Nairobi is becoming “increasingly important in a rapidly urbanising world”.

Monday, 22 July 2013

soleRebels: Africa’s largest footwear brands and transforming the economic landscape in Ethiopia

How soleRebels became one of Africa’s most celebrated footwear brands. http://www.solerebelsfootwear.co/#

An innovative footwear manufacturer that pays fair wages and uses locally sourced materials is helping to transform the economic landscape in Ethiopia. SoleRebels, which was founded by Bethlehem Tilahun Alemu in 2004, has become one of Africa’s largest footwear brands, with its range of artisan-made shoes now selling in 55 countries. In 2011, the company ramped up US$2 million in sales and it is expecting to generate over US$15-20 million in revenue by 2015.
Bethlehem Tilahun Alemu
Bethlehem Tilahun Alemu-Ethiopia Entrepreneur
Alemu has become one of Africa’s most celebrated businesswomen. She was featured on the front cover of Forbes magazine in January 2012, and was selected as a “Young Global Leader” by the World Economic Forum 2011. In June 2012, she won the award for “Most Outstanding Businesswoman” at the annual African Business Awards, organised by African Business magazine.
Export-oriented success story
Her success with soleRebels is regularly cited as a sign that Ethiopia is ready to transition from being reliant on foreign aid to being able to direct its economic future by exploiting home grown skills, resources and business opportunities.
The company is also held up as inspiration for Ethiopia’s newly-emerging private sector, particularly as an example of an export oriented success story.
Alemu explained how she set up the company in a small village on the outskirts of Addis Ababa, “Having grown up watching our family and neighbours struggling, we decided to create the ‘better life’ we were all waiting for by harnessing our community’s incredible artisan skills and channeling them into a sustainable, global, fair trade, footwear business.”
She continued, “We selected shoes because we saw that footwear was an excellent platform to begin to share many of Ethiopia’s indigenous eco-sensible craft heritages and artisan talents with the world. Our approach to footwear creation – hand-crafted and eco-sensible – meant we could source and make almost all our materials locally, thereby creating an export product from 100% local inputs.”
Tyre-soled shoes
The soleRebels footwear range includes sandals, flip flops and shoes with soles made from recycled car tyres. Alemu explained that the recycled car tyre-soled shoe has existed in Ethiopia for a long time. “It was the footwear from back in the day when the original “soleRebels” fought off the invading forces and kept Ethiopia as the only African nation to never be colonised! We took this wonderful, indigenous, age-old recycling tradition and fused it with fantastic Ethiopian artisan crafts and excellent modern design sensibilities, and turned it into footwear that has universal flavour and appeal.”
She is proud of the production process, stating that all the company’s styles incorporate as much recycled and sustainable materials as possible, with ingredients like hand-spun and hand-loomed organic cotton fabrics, and natural fibres, including Abyssinian hemp and koba. However, she shuns the term, ‘green business’, stating that she regards it as something of a fad. “We are embracing these deeply sustainable and traditionally zero-carbon methods of production and materials because they are integral parts of Ethiopia’s cultural fabric, a tradition which we grew up within and feel passionate about preserving.”
Workers’ rights
SoleRebels is also setting a high standard for workers’ rights, providing 100% medical coverage for employees and their families and free doctor-run medical checks, as well as providing transport to and from the worksite for workers with disabilities. Alemu insists that workers are treated with respect, noting that on average the company’s 90 employees get paid four times the legal minimum wage and three times the industry average wage for similar work.
Unlike most companies in the apparel and footwear sector, soleRebels does not use a quota system. Alemu explained, “The quota system of work, endemic in the fashion business always struck us as truly demeaning. It is a system that shows no confidence that workers can be incentivised to achieve targets and it creates a hostile working environment. SoleRebels pays all workers based on negotiated wages that are subject to mutually agreed, company-wide goals. This means that we are all in it together in terms of making sure that deadlines are met and that top-notch product quality is always achieved.”
Expansion
In order to meet growing demand, the company is constructing a new production facility and when it is finished Alemu expects the workforce to grow in number to around 300 employees. “Built with indigenous, eco-sensible materials and employing 100% renewable and self-generating power, this first of its kind production facility will serve as a leading innovation centre, allowing us to develop the cultural wealth of the country, while simultaneously expanding and enhancing our own production capabilities.”
Alemu believes that her company can be emulated by others and help foster inclusive, sustainable development in Ethiopia. She said, “soleRebels is living proof that creating innovative world class products and trading them with the world is the best road to greater shared prosperity for developing nations like ours.”
She also sees lessons for the rest of Africa. “Today, Africa accounts for a mere two percent of global trade. If sub Saharan Africa were to increase that share by only one per cent, it would generate additional export revenues each year greater than the total amount of annual assistance that Africa currently receives. We simply need the opportunity to increase our market share, something every good, strong, global business seeks to do.”
This article was first published in UNIDO’s Making It magazine

Thursday, 27 June 2013

Property: India’s Richest Business Mukesh Ambani Cashes on Kenya Real Estate Boom

Mukesh Ambani cashes in on Kenya’s real estate boom
by Jun 27, 2013 
Ben Woodhams, Managing Director at KnightFrank
http://rm.co.ke/blog/kenya-property-news/mukesh-ambani-cashes-in-on-kenyas-real-estate-boom/

India’s commercial real estate maybe in doldrums but in Kenya, Nairobi has witnessed the fastest growth rate in rentals for high-end commercial property in 2012. And guess who is cashing in on this real estate boom?
Yup, it is India’s richest business man Mukesh Ambani.
According to a report in the Hindu Business Line, Ambani-owned Reliance Industries has bought 10 prime land plots in  Nairobi, for around Rs 202 crore ($33.9 million) for commercial and residential  development as agricultural land here is cheaper than residential. This deal was jointly inked by RIL and its subsidiary Delta Corp East Africa Limited (DCEAL).
Source:Knight Frank
Source:Knight Frank
This is not Ambai’s first tryst with real estate in Kenya. He had previously also acquired and developed prime plots within Nairobi which were either sold or rented to international organisations, private firms and government agencies. RIL Group holds a 60% stake in the joint venture with Delta Corp which had in 2008 more than one million square feet of land at various stages of development.
Ambani has been slowly  upping his interest in East Africa, and with rising demands for both commercial and residential spaces, Ambani is cashing in by building office towers in Nairobi’s Upper Hill and Westlands areas.
In fact, Reliance Industries has sold two properties in Nairobi–Delta Centre (Upper Hill), which was sold to the World Bank, and Delta Towers (Westlands), which was sold to the University of Nairobi and PricewaterhouseCoopers.
According to Mentor Group, a real estate firm, Upper Hill and Westlands will contribute 70 per cent of the 1.7 million square feet of office space that will come into the market annually over the next two years, with Upper Hill expected to record a temporary office space supply glut in 2015.
A survey by Economist Intelligence Unit (EIU), the research arm of the Economist, ranked Nairobi 112 among the 120 most promising global cities of the next decade, based on parameters like the city’s economic strength, financial maturity, physical capital, human capital, global appeal etc.
“In its broadest form, competitiveness is defined as a city’s ability to attract capital, businesses, talent and people. The Index benchmarks the competitiveness of cities at two points in time: today and in 2025,” said the report. According to the report, Nairobi’s profile as a regional business hub has been growing as seen by the number multinationals, from diverse industries, which have chosen to open shop in the Kenyan capital or decided to choose the city as their base for Africa-wide operations.
However, infrastructure is still the biggest laggard for the city. According to a report by global real estate consultancy firm Knight Frank, poor roads, interrupted water and power supplies are hindering the city from achieving a higher rank.
The list of multinationals that have recently set base in Nairobi include General Electric, Google, IBM, Visa International, Pepsi, Nestle, Foton Automobiles, Bank of India and HSBC. According to Knight Frank, companies relocating their regional headquarters to Nairobi are flying in a large number of expatriates, feeding the high-end market for residential property.
“A significant proportion of the recent take-up has been due to large corporates setting up regional headquarters in Nairobi, in preference to the traditional regional hub of Johannesburg,” said Ben Woodhams, Managing Director at KnightFrank in its Africa Report 2013, adding that in 2012, office space rent in Nairobi’s high-end areas rose 17.9 percent against the 5.1 percent global average.
But this real estate boom, is proving to be a bane for the agriculture sector as developers argue that it makes more business sense to build homes on lush farmlands. Agriculturalists, on the other hand, argue that urban expansion is threatening the  sector which is a key source of exports and forex for the  country.

Monday, 17 June 2013

GARDEN CITY: Largest Mall in East and Central Africa by ACTIS

IFC to inject Sh4bn in Thika Road Shopping Mall, Garden City comprise retail, leisure and residential segments

Posted in Business Daily Africa  |Thursday 9th May, 2013

London-based private equity firm Actis is planning to invest in a 130,000 m2 mixed use development in Kenya, which will host the largest retail mall in east Africa. The Garden City development will be located along the Nairobi-Thika road, a KSh. 27 billion (US$322 million) new highway.
This is the latest major commercial project to be announced ahead of the completion of the Thika highway in September. Thika is an industrial town about 40 km north-east of Nairobi. Actis is developing Garden City Mall on a 32-acre site that previously belonged to East African Breweries Limited.
Garden City is on Thika super highway. The upgraded road is expected to boost the demand for space at the mall. World Bank unit starts talks for loan and stake in Garden City on superhighway.
Actis has said Garden City will cost $150 million (Sh12.6 billion) over five years. The International Finance Corporation (IFC) is negotiating to inject Sh4.1 billion ($49.8 million) in Garden City Mall, a shopping complex conceptualised by private equity firm Actis.
The investment will be in form of a loan and equity stake in Actis, according to an IFC disclosure note seen by the Business Daily. Actis says that Garden City Mall, a development along the Thika Super Highway, will be the region’s biggest shopping complex.

Other firms that have eyed investments along the highway include supermarket chains Uchumi and Nakumatt, PepsiCo which is establishing KSh. 2.4 billion ($29 million) bottling plant, and European furniture chain IKEA. Several residential projects like Tatu City, Migaa, and Thika Green have also been inspired by the eight lane highway, which will ease traffic along the busy Nairobi-Thika road.
According to a press release from Actis, the retail mall will include a flagship store for Game, their first in Kenya. Detailed discussions are progressing with other foreign retailers looking to enter the rapidly-expanding Kenyan market, such as South African fashion group Foschini.
Other than the 50,000 m2 retail mall, Garden City will also accommodate state-of-the-art commercial premises, 500 new homes and a central park, offering family friendly leisure space for Kenyans and visitors to the city. The park will also house an outdoor events arena for the staging of concerts and shows.
“Garden City offers a rare opportunity to create a large scale, world-class development directly serving the needs of Kenyan businesses, homeowners and shoppers. We have been encouraged by the strong demand shown by both local and international retailers, who like us, see Garden City as a landmark destination in Nairobi and the east African region. The inclusion of the central park and our commitment to green building measures will burnish Actis’s reputation as sub-Saharan Africa’s most experienced private equity real estate investor,” said Michael Turner, Actis head for east Africa.
The project is expected to attract more foreign retailers into the Kenyan market. Garden City is likely to send prices skyrocketing in neighbouring areas along the Thika highway.
Charles Kibiru, the managing director of Thika Greens, a golf estate located in Thika, reckons that Kenya should expect similar investments along the highway.
“Thika highway is the place to go. It is a hinterland and foreign investors should put their money here. We welcome the Actis investment because it will bring services closer to the people and help decongest the Nairobi central business district,” said Kibiru.
The project, he added, will also lead to job creation and economic development by attracting foreign brands to Kenya.
“Construction is expected to commence in June 2013 and IFC is considering a loan of up to $40 million and providing up to $9.8 million in equity to the project,” says the IFC note. Ground breaking for the multi-billion shilling project was planned for December 2012, and completion projected for May 2014.
 Garden City is using a ‘green-by-design’ approach incorporating sustainability measures from the very beginning of the design process: current features under discussion include water recycling and rainwater harvesting, the installation of solar collectors and the extensive planting of indigenous trees and landscaping forming a central park. Actis has a track record of successful real estate projects in Kenya, including its office complex Nairobi Business Park.

Friday, 26 April 2013

Bahati Ridge Development -Thika town’s premier gated community http://bahatiridge.co.ke

Bahati Ridge Homeowners

Bahati means luck in Swahili, and that’s what the homeowners on a 90-acre land will get. Originally a coffee estate that the chairman of the project, Mr. Joseph Kibe, bought in 1974 and later transformed into a horticultural farm growing French beans, the housing project will be home to 337 families on completion. Situated in Thika, a mere 45-minute drive from Nairobi's Central Business District (30 minutes on the soon-to-be completed eight lane super-highway), Bahati Ridge presents an exciting selection of townhouses, villas, bungalows and cottages that feature beautiful hill country views, a tranquil rural ambience and a refreshing escape from city chaos. Discerning homeowners will love this 97 acre integrated gated community and all the benefits of country living.

 Bahati Ridge Development Phases 1-4

 
Who owns Bahati Ridge?

Bahati Ridge Development Ltd owns 180 acres of farm property in Thika. The land is popularly known as Bahati Farm. Thika town is about 40 kms north of Nairobi, and is the headquarters of Thika District. Thika is well known for the Chania Falls, Thika Falls and the Ol Donyo Sabuk National Park.

What does the client intend to do with the property?

The directors intend to construct 337 low, medium and high density residential properties together with commercial properties (mixed user development) on 90 acres.
      NEWS!!!    NEWS!!!
Current Bahati Ridge Residential Property Show: Join us this weekend May 2013 for our 2nd Open Day from Thursday 2nd to Sunday 5th of May from 8am - 5pm. Lovely manicured country homes, amazing offers and prizes to be won don't miss out!!! Olengai Townhouse, Bahati Ridge! with Bahati Ridge, Maina Kageni, HassConsult RealEstate, The Property Guide, The Kenya Homes Expo @Bahati Ridge -Thika, Your Paradise Within Grasp! http://buff.ly/12TIu23

1)Olengai TownHouse: Outside is a 2 car parking space, Kitchen yard, a single servant’s quarters, an underground water tank, water pump, a cosy garden and paved walkways. As you ascend to the first floor, you can relax in any of the other 3 Bedrooms, including the en suite Master Bedroom, set apart in your own private space. Olengai TownHouse!

2)At Bahati Ridge we create an environment that allows you to enjoy tranquility, peace of mind and nature.Osotua Villas!
3)The noise and haste of metropolitan Nairobi may fire up your drive to succeed, but your soul also seeks equilibrium in a tranquil setting.Bahati Ridge is ... your paradise within grasp! Eseriani Bungalows!

Who is on the board of Bahati Ridge Development Company?

Mr. Joseph Kibe is the Chairman; Mr. Gilbert Kibe is the Managing Director of Bahati Ridge Development Limited. Other Directors are, Mrs. Monica Kibe, Mr. Victor Kibe, Ms. Margaret Kibe, Mrs. Josephine Kibe and Mrs. Grace Kibe.

What is 'Bahati Ridges' target market?

Bahati Ridge is a unique, middle income integrated development in Thika on 90 acres of land. The focus of the development is a holistic, wholesome lifestyle that combines residences, shopping, recreational and office facilities. Bahati Ridge is a flagship project for Kenya. The development is designed to set new standards and will be marketed as a destination address.
Pictured below: Bahati Ridge welcomed home lovers to join them at their Open Day from the 23rd to 25th of November 2012.  Meet your neighbors and experience the Country Living Lifestyle, unique to Bahati Ridge, Thika.

 Now you can live your dream at Bahati Ridge: your paradise is within grasp!

What is expected population size of 'Bahati Ridges'?

The master plan, road, water and power networks have all taken into account the expected population in both the residential and commercial facilities of the project. The residential population is expected to be about 2,000 people housed in 337 homes while the commercial population will be roughly 500 people: 200 in the school, 200 in the hospital and 100 staff overall. This gives a total population of about 2,500 people. Vehicle population is expected to be about 700 cars for the residences and 100 cars for the commercial population.

What about the community?

The integrated project has been designed with convenience and security consideration. Within the 95 acre gated community are smaller neighbourhoods/courts with additional perimeter security. In close proximity to the development will be a retail centre, nursery school, hospital, chief's camp and police post.

What are some of the design features of Bahati Ridge?

Bahati Ridge's unique features include: 

  • Man-made lakes by the club house, office block and shopping mall
  • Water features and/or green spaces in each court
  • Beautifully landscaped common areas and open spaces
  • Cabro walkways and driveways.
  • Solar powered street lighting
  • Electrified environmentally-friendly parameter fence
  • 24-hour security patrols & CCTV
  • Fibre optic underground wiring
  • Intercom systems and panic buttons in each home
  • Data and cable-ready homes
  • Double entry transition gate into property
  • Double entry main security gate with security office
  • Double gate into each court with guard house
Housing Minister, Hon. Soita Shitanda, Hon. Peter Kenneth, Gatanga MP and assistant minister ministry of Planning and Vision 2030 with the chairman Bahati Ridge, Mr. Joseph Kibe were participants during the project launch.

Culture & Architecture

  Bahati ridge Development Villas and Bungalows model designs 
A mixture of Thika, Green Culture and Great Architecture 

Who are the team of consultants & Architects?

  • Project Managers - Pinnacle Projects
  • Architects - Dimensions Architects
  • Quantity Surveyors - Costwise Associates
  • Civil & Structural Engineers - Xenocon Consulting Engineers
  • Mechanical & Electrical Engineers - Servconsult
  • Physical Planners; Environmental Experts - Townscape Consulting Planners
  • Branding & Marketing Consultants - Divergys Limited
  • Website Consultant - Ali Hussein
  • Advocates - Wainaina Ireri & Mwaniki Gachoka
  • Tax Consultants - DCDM
  • Graphics Design - Sketches Multimedia
  • Graphic Animation – Peter and Simon Dawa
Persons Behind the project Vision 2030
Designed to run in four phases, this is one of the biggest private sector initiatives that fully captures the aspirations of the government’s Vision 2030. The consortia undertaking the project include Lee Karuri, a Nairobi-based architect and director, Dimensions Architects & Interior Designers who are confident that the project will be completed on schedule and within cost and have set strict timelines to deliver.
“For those keen to invest in secure, serene homes complete with all amenities within reach, this is it,” said Mr. Gilbert Kibe, Managing Director, Bahati Ridge. Epco Builders, a reputable company that has successfully completed over 150 major construction projects in the region since 1977, is undertaking the construction work.
The project was launched  at the National Museums of Kenya auditorium Soita Shitanda, Minister for Housing, who said it will be Thika town’s premier gated community. “This project is designed for a broad spectrum of people and will not only help decongest Thika Road but is a model development that needs to be emulated elsewhere,’’ said the minister.
With the project, the benefits of Thika superhighway, East Africa’s model road construction project, have started to emerge. The houses featuring townhouses, villas and bungalows will have a price range of between Sh9 million to Sh15.5million.
A quick glimpse of the interior designs of one of the house categories, Townhouses and Osotua Villas, reveals a meticulously well thought-out plan. A spacious ground floor foyer leads to a guest bedroom, a dining area, a kitchen and an optional attic/study room on the top floor. It also opens up into a lounge with a fireplace that overlooks a terrace where you and your family can enjoy the natural scenery with fresh air and occasional weaverbirds singing. On the first floor you can rest in the privacy of three bedrooms, all ensuite!


To secure the gated community, nothing has been left to chance. The developers have made provision for a police post to enforce 24-hour police patrols.
“Bahati Ridge is an environmentally friendly project that will have a water treatment recycling plant, a rain water harvesting capability and all the houses will be fitted with solar equipment to help supplement the family’s energy requirements,” said Ms Margaret Kibe, the project’s marketing and communications director.
The lead financier and mortgage provider for the project is Commercial Bank of Africa. Other mortgage providers include Housing Finance, Kenya Commercial Bank, S&L mortgages, CFC Stanbic Bank and Family Bank.
The housing project, whose foundation stone was laid in June this year, will incorporate all essential social amenities including an ultra-modern shopping mall complete with a supermarket, restaurants and cafes. It will have an educational centre, medical centre, boutiques, wellness centre, clubhouse and pavilion.

For Sales enquiries Contact:
Margaret W. Kibe
Marketing & Communications Director
Bahati Ridge Development
Tel: 020-8155380/0717049644
Email: info@bahatiridge.co.ke
www.bahatiridge.co.ke

Contact Us
Bahati Ridge Development Ltd Thika
P.O. Box 47739-00100 Nairobi
Tel: +254 20 815 5380 Fax: +254 20 815 5381
Mobile: +254 717 049 644, +254 737 149 644
Email for General Enquiries: info@bahatiridge.co.ke
Email for Sales Enquiries: sales@bahatiridge.co.ke
www.bahatiridge.co.ke
SMS: Sms the word 'BAHATIRIDGE' to 3841
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