Gold & ETF In Kenya

Monday, February 27, 2017

It is no secret that there is gold in some parts of western Kenya. Only its commercial viability is in question.

So when London-based Acacia Mining announced early on Monday that it had found “inferred mineral resources” on the Liranda Corridor, its shares jumped as much as 2.46%  as a number of investment brokers adjusted their price target on the Africa-focused mining company to a ‘strong buy’.

The 1.31 million ounces high grade gold find by Acacia Mining is estimated to be worth about US$1.65 billion at the current price of US$1,258 per ounce. The explorer said it plans to invest US$12 million on further search long the Liranda Corridor. 

In other gold news, Barclays Africa Group will finally list its gold-backed exchange-traded-fund on the newly formed ETF market on the Nairobi Securities exchange.

Barclays Africa’s Absa Capital had announced its intention to list its NewGold  ETF in Kenya back in 2010 even before the platform was created. The largest gold ETF in Africa already trades in five other markets on the continent.

Kenya’s ETF market was launched at the end of 2016.

ETFs trade like stocks, allowing investors access to commodities like gold and platinum without taking physical delivery of them.

Frontrunning Kenya News - August 24

Monday, August 24, 2015

  • CBK recommends Dubai Bank Kenya be liquidated (In the mail) 
  • Why is the public being allowed to continue buying Kenya Airways share at the NSE? (Daily Nation)
  • After all the hype, Safaricom's Big Box cannot even function indoors - (Business Daily)
  • CBA takes Mshwari regional (Business Daily)
  • Does CBK want the shilling to fall? Why are they loosening up the interbank? (Business Daily)
  • HELB's future threatened by a 'socialist bill' (Daily Nation)
  • Mumias Sugar to reopen after a month of closure (Sunday Nation)
  • Accountants beg Uhuru not to assent new Companies Bill (Standard)
  • Rural Electrification goes solar for last mile connections (Standard)

More M&A coming to East Africa

Wednesday, April 03, 2013

In an opinion piece in the Business Daily Sheel Gill of KPMG East Africa suggests that most small and medium sized companies in the region may have to shape up by merging with bigger ones or shape out by getting acquired all together in order to survive the coming growth boom fueled by the oil money.

Clearly, rising business confidence due to reduced political risk, consumer demand and improving economic prospects in the region after the discovery of oil and gases deposits could see more firms in the technology; mining and financial services sectors look to M&A for growth and expansion.
“We have 46 banks in Kenya, 67 per cent of which are in the category of small, all competing for increasing business. For such banks to grow and increase shareholder value there will be need for a series of consolidations across the sector.” – Gill (History of M&A in Kenyan banks)
For these Gill cites the I&M merger with City Trust that will see the former reverse list on the Nairobi Security Exchange. This will be first reverse listing in a region more accustomed to IPO’s, right issues and cross-listings.

M&A’s are not entirely new in East Africa. The most recent ones being the failed KenolKobil/Purma Energy takeover bid, CFC/Stanbic merger, the botched BOC/Carbacid merger, Craft silicon/Fanisi Capital, Taipan/Lion Petroleum inc merger, Marsh Ltd/Alexander Forbes acquisition, Emerging Capital Partners/Java 90 percent stake buyout, and many others.

Most of the nearly 20 documented M&A last year took place in Kenya.

But with more of these M&A’s comes regulatory challenges that could see some listed firms exit the exchange in the near future.


Information on this blog is based on data available to the author and his own personal opinion. The author cannot guarantee the accuracy or completeness of any post and readers are advised to conduct their own due diligence.