WACHIRA MAINA

Wachira Maina is a constitutional lawyer.

Another first for Kipchoge after making debut on NFT

Saturday November 27 2021

Greatest Of All Time marathon champion Eliud Kipchoge auctioned off two videos of his career highlights on a Momentible online platform on April 8. PHOTO | COURTESY

Summary

Non-fungible tokens (NFT) are crypto art put up for sale or auction, with payment done in cryptocurrencies. Auction went live on April 26 on the OpenSea platform.

By KARI MUTU

More by this Author

In what is arguably Kenya’s first NFT auction, marathon champion Eliud Kipchoge has auctioned off two videos of his career highlights for $37,351.07 (Ksh4 million).

The auction winner received the artwork in high quality and a personal video message from Kipchoge to congratulate the new owner, according to Momentible, the online platform that hosted the event on April 8, 2021. Momentible specialises in memorabilia from the world of sports and music, and the bidding took place on OpenSea, a peer-to-peer marketplace for the sale of singular digital items.

Kipchoge broke the marathon world record in Berlin in September 2018 with a time of 2:01:39. He then rose to new heights in May 2019 when he won the Ineos 1:59 Challenge in Vienna, Austria, becoming the first person to run a full marathon in under two hours. It is digital images of these two events that were auctioned as Non-fungible tokens (NFTs).

NFTs are a type of crypto art put up for sale or auction, with payment normally done in cryptocurrencies. A vast range of unique and rare collectibles can be turned into NFTs including music, films, videos, and digital artwork. The items are deposited on a blockchain system that stores electronic information, and from where it is possible to verify ownership of the piece.

Digital images

Originality and provenance are the basis of an NFT’s value although the buyer ultimately determines the sale price. NFTs are said to be impossible to forge but can be resold multiple times, with ownership tracked along the way. However, the original owner retains copyright.

The world gasped collectively in March 2021 when American digital artist “Beeple” (Mike Winkelmann) auctioned an NFT artwork for over $69 million at a Christie’s online auction. Everydays: The First 5000 Days is a collage collection of Beeple’s digital images from his Everyday series. Bought by a client in Singapore, this “third most expensive work sold by a living artist” undoubtedly helped push NFT to mainstream of the artworld. Soon after, prestigious auction houses Sotheby’s and Phillips went on to publicise upcoming NFT auctions as have many art galleries worldwide.

With the Kipchoge NFT auction, Kenya joins a small group of African countries that have hopped onto the crypto bandwagon. Digital artist Prince Jacon Osinachi of Nigeria is recognised as Africa’s “foremost crypto artist” with figurative works that explore family, culture and sexual identity.

In 2018, he became the first Nigerian to feature at the Ethereal Summit, a conference for connecting blockchain technology, artists and entrepreneurs.

South Africa, the continent’s leading arts market, announced in March the launch its first NFT auction. The artwork is a digital portrait with movable elements and created by local artist Norman O’Flynn.

Presented by Worldart Gallery of Cape Town, it is expected to fetch between R60,000 and R100,000 ($4,170-$6,950).

Afro-renaissance

Senegalese-American music celebrity Akon announced the launch of his own platform for NFTs. The AkoinNFT platform has come on the back of a difficult year for the arts industry in the wake of Covid-19 and is meant to assist creatives create, design and distribute their works as cryptographic assets.

Back in Kenya, the digital media company Picha Images has gone crypto with a series of Afro-renaissance photographs by co-founder Rich Allela and converted into NFTs. Allela note that Picha Images wants to empower artists to “maintain the copyright of their work and earn from secondary sales,” adding that the auction highlights the value of art as an investment worth making.

Nevertheless, the meteoric rise of non-fungible tokens has recently raised outcry in environmental circles over their negative impact on the environment. The majority of crypto art is stored in the Ethereum cryptocurrency blockchain. However, electricity consumption for mining the digital tokens leaves a heavy carbon footprint.

“So one token equals one month of electricity," said Austrian architect Chris Precht, whose studio backed down from promoting NFTs after identifying the environmental impact.

In the headlines

Africa fails to step up Covid fight even with more vaccines

Recent data by AfricaCDC shows that only 6.6 pc of people on continent are fully vaccinated.

Rwanda reinstates quarantine rules for travellers

Arriving and departing passengers at Kigali International airport will be required to present a negative PCR test taken with 72 hours prior to...

China loan beneficiaries face debt distress

Military action fast outpacing diplomacy in Ethiopia as PM Abiy joins the frontline

EAC contributions pegged on member’s ability to pay

Kenya on high alert over Covid 'super variant'

Ethiopia bans press from reporting military operations

Bongo artists go for NFTs and extended reality pieces

Saturday November 27 2021

Art lovers experiencing live art during AR exhibition at The Drum space, in Dar es Salaam. PHOTO | COURTESY

Summary

Tanzania's art industry has been evolving over the years and with technological advancement, the industry is bringing more eyeballs to creative works of arts crafted by the art community.
According to Ngaira, the Tanzania art industry is now seeing promising changes as it has gained a spotlight from local and international viewers as well as being part of the global market.
Ramadhan King’oma, who makes artistic pieces by scribbling on materials like woods and other surfaces, taught himlsef the techniques through online lesson inspired by the likes of Vincent Low and Erick Centeno, globally renowned artists.

By LILIAN NDILWA

More by this Author

Tanzania's art industry has been evolving over the years and with technological advancement, the industry is bringing more eyeballs to creative works of arts crafted by the art community.

With technology advancement, Tanzanian artists have not only been able to tell their stories differently, they have also been able to get the long waited for exposure in the market arena whilst making their audience and stakeholders interested and invested in their creative works.

Speaking to The EastAfrican, several artists in Tanzania have shared their experiences since they started blending art with technology.

Arafa Hamadi, a digital artist based in Dar es Salaam said technology was one of the things that rescued the art industry when the Coronavirus pandemic hit.

“As much as the pandemic brought the world misery, it was a blessing in disguise for artists especially in our country because we found new spaces to work in. We have seen our audience slowly gaining interest in the new spaces including 3D spaces and Augmented Reality (AR),” said Arafa.

Ngaira Mandara, a visual artist based in Dar es Salaam said that technology has made it easier for artists to explore and create new experiences.

“Before technology, I used to draw on paper and painted on canvas, and I had no means of showcasing my talent to the world beyond my close friends and family. As time went by, I wanted to differently create works of art whilst showcasing them to the world, and as I did this, not only did it better my talent but it gave me exposure to the pieces I created,” said Ngaira.

The 30-year old artist said technology has positively impacted the Tanzanian art industry by giving artists multiple platforms to share their arts including Instagram, Twitter, and Walli as well as giving them an opportunity to experience art through Extended Reality (XR).

According to Ngaira, the Tanzania art industry is now seeing promising changes as it has gained a spotlight from local and international viewers as well as being part of the global market. He explains that when exhibitions are organised by artists and stakeholders to showcase art, it is likely that many people will participate hence giving artists the deserved exposure.

As he explained the future of art in technology, Ngaira said artificial intelligence and the now trending non-fungible Tokens (NFTs) are looking to be the future of art because with them, artists are able to create their artworks and stories differently and better.

“With NFTs, artists can now create and sell artworks that are made digitally. This is a great opportunity that should definitely be embraced by all artists in the country,” said Ngaira.

Ananias Nyalada, an artist who is also based in Dar es Salaam, technology has greatly impacted the art industry in terms of its creation, learning and audience.

Popularity

He said larger audiences in Tanzania and beyond are now more likely to come across artists’ creations through different platforms. With technology, an artist can create something and share it on social media, and when a person wants to buy that particular art, it can easily be sent to them.

Ananias explained that “art has now become a limitless arena that has endless opportunities that assure an artist of their talent growth alongside a whole different experience enabled by different devices and gadgets.”

For Undare Mtaki, a painter who resides in Mwanza, technology advancement has revealed a whole new side of art and how it can be improved to global standards.

“Artists' involvement with technology speaks volumes of their work because it assures gradual development of their skills as well as in selling their works. I started involving myself with social media when I was a first year student at Ardhi University in 2014. I was doing art as a side hustle to keep up with multiple bills. To do it correctly, I decided to have an Instagram account so that people would know what I do,” he said

Undare, whose work is made of materials reflecting the art, said technology is a powerful tool that should be explored by artists. Spotlighting himself as an example, Undare recalled how his solo exhibition titled ''Shades of Magufuli'' held at the The Drum space this past June, made him reliase the importance of technology.

It was after the exhibition's opening day, that Undare posted up an Instagram weekly advertisement influencing people to visit his exhibition and physically see his artworks.

“Seeing people responding to that advertisement made me see this whole other side of the power social media carries. Not only did the number of exhibition attendees increase, I was also pushed to open my own art gallery that was in the works since 2018,” he said.

Ramadhan King’oma, who makes artistic pieces by scribbling on materials like woods and other surfaces, taught himlsef the techniques through online lesson inspired by the likes of Vincent Low and Erick Centeno, globally renowned artists.

“It took me six years of online lessons on scribbling and sketching from these renowned artists who have taught me to embrace this less known type of art. As time went by, I advanced to digital scribbling with special devices as a way of understanding the work I do even more, technology has helped me understand art and it has pushed me to share my work so that I can somehow be an inspiration for young artists who are yet to find their niche in art,” said King’oma.

History

According to Tulanana Bohela, Cofounder of Ona Stories, a technological story telling company, art and technology have a complex but meaningful history of working together and influencing one another.

She explained that museums are now showcasing art collections online while artists have all the tools they need at their fingertips to promote and sell their own pieces, often without the challenges that come with running a physical exhibit.

“The more technology grows the more opportunities there will be for art to develop. Artists now have the endless canvas of the digital world to create. In Tanzania, we have seen artists use immersive media of AR to create interactive experiences for their audiences. Audiences can use their phone and scan an image that then comes to life. It provides more personal interactive experience that holds the attention of the audience for longer,” said Bohela.

In the headlines

Africa fails to step up Covid fight even with more vaccines

Recent data by AfricaCDC shows that only 6.6 pc of people on continent are fully vaccinated.

Rwanda reinstates quarantine rules for travellers

Arriving and departing passengers at Kigali International airport will be required to present a negative PCR test taken with 72 hours prior to...

China loan beneficiaries face debt distress

Military action fast outpacing diplomacy in Ethiopia as PM Abiy joins the frontline

EAC contributions pegged on member’s ability to pay

Kenya on high alert over Covid 'super variant'

Ethiopia bans press from reporting military operations

Uncertainty as S. Africa scraps permits for Zimbabweans

Saturday November 27 2021

Undocumented Zimbabwean nationals are rounded up by the South African National Defence Forces. South Africa has declined to renew special residence permits for nearly 200 000 Zimbabwean economic refugees and asylum seekers. FILE PHOTO | AFP

Summary

Pretoria said it will instead give beneficiaries of the scheme that was first introduced in 2009 to regularise the stay of undocumented immigrants from Zimbabwe up end of next year to apply for other types of permits that would allow them to continue living in South Africa.
Mondli Gungubele, a minister in the Presidency, said those who fail to secure permits by the end of 2022 must voluntarily leave South Africa or be deported.
South Africa first introduced the special permits in April 2009 under a programme known as Dispensation of Zimbabweans Project (DZP) to document those living and working illegally in one of Africa’s most advanced economies.

By KITSEPILE NYATHI

More by this Author

South Africa has declined to renew special residence permits for nearly 200 000 Zimbabwean economic refugees and asylum seekers that expire next month.

Pretoria said it will instead give beneficiaries of the scheme that was first introduced in 2009 to regularise the stay of undocumented immigrants from Zimbabwe up end of next year to apply for other types of permits that would allow them to continue living in South Africa.

Mondli Gungubele, a minister in the Presidency, said those who fail to secure permits by the end of 2022 must voluntarily leave South Africa or be deported.

“Following its deliberations, the Cabinet has decided to no longer issue extensions to the Zimbabweans and special dispensations,” Mr Gungubele told journalists.

“However, the Cabinet decided on a 12-month grace period at the expiry of current permits.

“In this period holders of this permit should apply for other permits appropriate to their particular status or situation.

“At the expiry of this grace period, those who are not successful would have to depart the Republic of South Africa or deported.”

South Africa first introduced the special permits in April 2009 under a programme known as Dispensation of Zimbabweans Project (DZP) to document those living and working illegally in one of Africa’s most advanced economies.

The permits expired in 2014 and this prompted Pretoria to introduce a new scheme known as the Zimbabwean Special Dispensation Permits (ZSPs), which were replaced by the Zimbabwean Exemption Permits (ZEP).

ZEPs expire on December 31. Last month, lawyers representing holders of the ZEP permits approached a South African High Court seeking to force President Cyril Ramaphosa’s government to grant them permanent residence.

They argued that under South Africa’s immigration laws, foreigners can apply for South African citizenship through naturalisation.

The South African government, however, says the Zimbabweans do not quality for citizenship because of the nature of their permits.

Simba Chitando, the lawyer representing the ZEP permit holders, said they will press on with the litigation.

“I’m very disappointed with the decision by the Cabinet,” Advocate Chitando said.

“I knew that the cancellation of the permits was being called for by many political parties, many of whom did well in the (recent) elections.

“The unfortunate decision has left litigation as the only viable solution for ZEP holders, permanently resident in the country, and who have given over a decade of their lives in this country.”

The number of Zimbabweans living in South Africa is unknown as most of them are undocumented, but some put the number at above one million.

Zimbabweans continue to trek to the neighbouring country in search of jobs as the economic problems back home continue to intensify while others run away from political persecution.

The illegal immigrants were a major issue in South Africa’s recent local government elections where the ruling ANC performed badly amid allegations that it is failing to deal with the problem.

In the headlines

Africa fails to step up Covid fight even with more vaccines

Recent data by AfricaCDC shows that only 6.6 pc of people on continent are fully vaccinated.

Rwanda reinstates quarantine rules for travellers

Arriving and departing passengers at Kigali International airport will be required to present a negative PCR test taken with 72 hours prior to...

China loan beneficiaries face debt distress

Military action fast outpacing diplomacy in Ethiopia as PM Abiy joins the frontline

EAC contributions pegged on member’s ability to pay

Kenya on high alert over Covid 'super variant'

Ethiopia bans press from reporting military operations

Africa fails to step up Covid fight even with more vaccines

Saturday November 27 2021

People queue to receive Covid vaccination in Nairobi. Low uptake of vaccines is a challenge on the continent amid reports of a new coronavirus variant. FILE PHOTO | COURTESY

Summary

As of Thursday, data from the Africa Centres for Disease Control and Prevention (AfricaCDC) showed that only 6.6 per cent of Africans have so far been fully vaccinated against Covid-19, with 55 per cent of the 403 million doses availble administered.
This comes at a time the World Health Organisation (WHO) is saying it is concerned by an emerging threat of a new variant detected in South Africa.
Across the world, an upturn in infections has seen countries mandate immunisation for groups at high risk.

By Elizabeth Merab

More by this Author

With a large proportion of Africans still unvaccinated, experts are concerned that Covid-19 vaccine supply on the continent is fast outpacing the uptake.

As of Thursday, data from the Africa Centres for Disease Control and Prevention (AfricaCDC) showed that only 6.6 per cent of Africans have so far been fully vaccinated against Covid-19, with 55 per cent of the 403 million doses available administered.

“Going by what is happening in Europe and America which are in winter, there is no doubt that we will have a surge. The lesson is that vaccination reduces severe disease and hospitalisation,” said AfricaCDC director John Nkengasong.

This comes at a time the World Health Organisation (WHO) is saying it is concerned by an emerging threat of a new variant detected in South Africa.

Across the world, an upturn in infections has seen countries mandate immunisation for groups at high risk.

Italy was first in Europe to make the Covid-19 vaccine mandatory for healthcare workers; followed by the UK starting next year.

In Africa, Egypt has mandated public servants be vaccinated or take a weekly Covid tests.

In Kenya, a government directive that citizens must show proof of Covid vaccination by December 21 to access government services is being contested in court. Only 9.4 per cent of people in Kenya are fully vaccinated.

But with the slow uptake of the vaccine, should African countries consider obligatory vaccination?

Dr John Nkengasong says: “We shouldn’t get to a point of implementing vaccine mandates. However, if countries buy vaccines through taxpayers’ money and get more from donors and then they end up not being used, it begins to be a moral issue”.

A new survey of 25 African nations by WHO-Afro found only one in four (27 per cent) of health workers are fully vaccinated against Covid-19.

Of the countries surveyed, only six had fully vaccinated more than 90 per cent of their health workers.

Some of the countries doing well in vaccinating large numbers of health workers include Lesotho, Cabo Verde, São Tomé and Príncipe, Rwanda, Kenya, Madagascar, Botswana, Eswatini and Zambia.

“Our appeal is that vaccines save lives and if a vaccine mandate has to be imposed then we will have no choice but to impose it.”

In contrast, a global WHO survey found that 22 countries — mostly high-income — had vaccinated over 80 per cent of their health workers.

The countries with the lowest ratio of patients to health workers include Benin, Central African Republic, Chad, Madagascar, and Niger, Dr Moeti said. Other countries that have struggled include Chad, the Democratic Republic of Congo, Central African Republic, and Cameroon.

Other countries have made jabs compulsory for public servants and other workers

The US plans to get US companies with 100 or more workers to vaccinate their staff or bring in regular tests.

WHO-Afro regional director Dr Matshidiso Moeti however noted that the low coverage had largely been due to supply delay and hesitancy.

But hesitancy amongst the population driven by misinformation and fear of some of the rare side effects of the vaccines has seen even health workers in some countries across the continent shy away from the vaccine,

In the headlines

Rwanda reinstates quarantine rules for travellers

Arriving and departing passengers at Kigali International airport will be required to present a negative PCR test taken with 72 hours prior to...

China loan beneficiaries face debt distress

Military action fast outpacing diplomacy in Ethiopia as PM Abiy joins the frontline

EAC contributions pegged on member’s ability to pay

Kenya on high alert over Covid 'super variant'

Ethiopia bans press from reporting military operations

On child mothers, Samia regains the moral high ground

Saturday November 27 2021

In making an executive order returning teenage mothers to school this week, Tanzanian President Samia Suluhu Hassan has undone an injustice that had cut short the prospects for thousands of schoolgoing girls when, in 2017, her predecessor John Magufuli decreed that pregnant schoolgirls and teen mothers be ostracised from the school system. FILE PHOTO | NMG

Summary

Even in a generally pliant society like Tanzania, the move then by now deceased president attracted considerable domestic and international acrimony.
As a woman, she was as much hostage to the policy of her predecessor as its more direct victims and the other members of the Executive that were bound by collective responsibility.
Locking Tanzania’s victims of teenage pregnancy out of school was a double blow. It is bad enough for an adolescent to take on the responsibilities of parenthood.

By The EastAfrican

More by this Author

Even in a generally pliant society like Tanzania, the move then by now deceased president attracted considerable domestic and international acrimony. While as Vice-President Samia was part and parcel of the Magufuli administration, in reversing that atrocious policy barely eight months into her tenure has made her regain the moral high ground.

As a woman, she was as much hostage to the policy of her predecessor as its more direct victims and the other members of the Executive that were bound by collective responsibility. The time it has taken to arrive at the decision also reflects the internal horse-trading between conservative elements and progressives in Tanzania’s delicate power balance.

By all measures, giving hope to likely victims of sexual violence is a positive move that rekindles their dreams and vastly expands their options in life. It also reverses a gross injustice in which the other party to the act — the boys or men — without whom procreation would have not been possible, walked scot-free.

Locking Tanzania’s victims of teenage pregnancy out of school was a double blow. It is bad enough for an adolescent to take on the responsibilities of parenthood. It is worse when any opportunities for a second chance and redress are snuffed out by public policy.

Coming against the backdrop of the United Nation’s 16 days of Activism Against Gender-based Violence that started on November 25, the timing of Samia’s decision couldn’t have been more poignant for the victims. Every year, millions of girls and women around the world fall victim to gender-based violence. Such violence should not manifest in the form of government policy, as happened in Tanzania four years ago.

Outside the controlled environment of school, a girl becomes more vulnerable to all manner of threats, including unwanted pregnancy. The near universal experience of the Covid-19 lockdowns, during which several countries reported a spike in teen pregnancy, speaks volumes about the consequences of a policy that deliberately locks girls out of school for one reason or another. The sanitised environment of schools is good for girls because it shelters them from the common pitfalls that litter their path to adulthood.

Educating girls and women also has multiple benefits. Women who have had the benefit of an education raise healthier and more viable families. Keeping them in school also has implications for population growth and economic development, since many will postpone childbearing. Educated and working women also help reduce the dependence burden and support the formation and expansion of the middle class.

A lot more still needs to be done for the youth in Tanzania and Africa in general, but returning the girl-victims to class is a positive first step. There are simply far too many children in Africa who never achieve their full potential because of disruptions to social security.

Every child has a dream to be someone in adult life. Public policy should focus on creating the necessary safety nets that enable them to grow into the adults of their aspirations.

In the headlines

Africa fails to step up Covid fight even with more vaccines

Recent data by AfricaCDC shows that only 6.6 pc of people on continent are fully vaccinated.

Rwanda reinstates quarantine rules for travellers

Arriving and departing passengers at Kigali International airport will be required to present a negative PCR test taken with 72 hours prior to...

China loan beneficiaries face debt distress

Military action fast outpacing diplomacy in Ethiopia as PM Abiy joins the frontline

EAC contributions pegged on member’s ability to pay

Kenya on high alert over Covid 'super variant'

Ethiopia bans press from reporting military operations

Abiy is playing Russian roulette by leading his troops from the front

Saturday November 27 2021

Ethiopian Prime Minister Abiy Ahmed. His returning from the battlefield with his adversaries vanquished could install himself as the new Ethiopian emperor and get away with it. FILE PHOTO | AFP

Summary

Abiy announced he was jumping into camouflage, taking up a gun, and going to the front to lead his government’s pushback.
Africa — and indeed the world — loves to glorify its victorious generals and rebel leaders.
The US, France, Germany, Turkey, and other countries have advised their nationals to flee Ethiopia, as they fear a bloody fight for Addis Ababa is nigh.

By Charles Onyango-Obbo

More by this Author

With the Tigray People’s Liberation Front (TPLF) rebels and the Oromo Liberation Army (OLA) pressing on with their fight in Ethiopia and threatening the capital Addis Ababa, Prime Minister Abiy Ahmed has put his money where his mouth is.

Abiy announced he was jumping into camouflage, taking up a gun, and going to the front to lead his government’s pushback.

It is dangerous business. When Chad’s strongman Idriss Déby, who had some credits to his name as a frontline warrior, joined his troops in April to battle rebels, he returned home in a coffin within a few days.

Presumably, then, as Kenyans say, Abiy should put his affairs in order before heading out to the frontline. Risky though it is, should he prevail, the political pay-off would be massive. Africa — and indeed the world — loves to glorify its victorious generals and rebel leaders. An Abiy returning from the battlefield with his adversaries vanquished could install himself as the new Ethiopian emperor and get away with it.

The calls for him to be stripped of the 2019 Nobel Peace Prize he won for making peace with bitter foe Eritrea would be even louder, though. It’s possible the Nobel committee could take the unprecedented move of withdrawing the prize. If Abiy were not to return from the war, though, the pressure would be off. His supporters — and they are many — would present him as a martyr. He would have served his penance.

But the controversy over Abiy’s Nobel is a beautiful one. For one, it starkly — and inconveniently — takes the prize back to its contradictory roots. The prize was founded by Alfred Nobel, the Swedish chemist, engineer and industrialist who invented dynamite and made his fortune selling it and other explosives. Nobel’s conscience was troubled by the destructive power of his inventions.

Nobel died in 1896, leaving his considerable fortune as an endowment for yearly awards in peace, chemistry, physics, medicine and literature — all representing his lifelong interests.

If there is one person in the world who personifies the history, incongruity, possibilities and problems with the Nobel Peace Prize, then it is Abiy.

The tragic drama unfolding in Ethiopia also highlights an old problem; about when to get on a political ship, and when to abandon it.

The US, France, Germany, Turkey, and other countries have advised their nationals to flee Ethiopia, as they fear a bloody fight for Addis Ababa is nigh.

The United Nations, too, is “temporarily relocating” families of international staff from Ethiopia due to the security situation. Kenyan giant telco Safaricom, which had a historic deal to operate in the prized Ethiopian market, weeks back announced it was pulling back some staff.

It is the right thing to do. However, if you are going to enjoy the fruits that a country offers when it is stable, and to take the first parachute out when it is in trouble, there is a way you should conduct yourself.

Don’t lecture it about how it should run its affairs when the going is good. As good old Dolly Parton sang, “If you want the rainbow, you gotta put up with the rain.”

Charles Onyango-Obbo is a journalist, writer, and curator of the “Wall of Great Africans”. [email protected]

In the headlines

Africa fails to step up Covid fight even with more vaccines

Recent data by AfricaCDC shows that only 6.6 pc of people on continent are fully vaccinated.

Rwanda reinstates quarantine rules for travellers

Arriving and departing passengers at Kigali International airport will be required to present a negative PCR test taken with 72 hours prior to...

China loan beneficiaries face debt distress

Military action fast outpacing diplomacy in Ethiopia as PM Abiy joins the frontline

EAC contributions pegged on member’s ability to pay

Kenya on high alert over Covid 'super variant'

Ethiopia bans press from reporting military operations

KCB eyes total buyout of Rwandan lender

Saturday November 27 2021

Atlas Mara Bank says it is finalising plans to allow local shareholders sell their stake in the lender amid a planned acquisition by KCB Group. FILE PHOTO | COURTESY

Summary

Managing director Maurice Toroitich said the bank is targeting to finalise the process before end of year to enable Rwandan BPR shareholders to offload up to 23.7 percent of their shares.
The major beneficiary is expected to be KCB Group, which acquired 62 percent of BPR shares from Atlas Mara Ltd in November 2020 and an additional 14 percent from private equity firm Arise in August this year, bringing its ownership in BPR to 76 percent.
Experts in the financial sector say the fragmented Rwandan banking sector can only grow and play it's role as an economic driver, if it consolidates.

By MOSES K. GAHIGI

More by this Author

Rwandan bank BPR Atlas Mara has said it is finalising modalities to allow local shareholders sell their stake in the lender amid interest by Nairobi-headquartered KCB Group.

Managing director Maurice Toroitich said the bank is targeting to finalise the process before end of year to enable Rwandan BPR shareholders to offload up to 23.7 percent of their shares.

The major beneficiary is expected to be KCB Group, which acquired 62 percent of BPR shares from Atlas Mara Ltd in November 2020 and an additional 14 percent from private equity firm Arise in August this year, bringing its ownership in BPR to 76 percent. It now has its sights on the remaining 24 percent minority stake in the hands of local shareholders to claim full ownership of the Rwandan lender.

“Some shareholders have been complaining in the media about not having the means to sell their shares, but now in a week or two this will be possible. We already have seen some of them expressing interest to sell,” noted Mr Toroitich.

The shares held by the original Rwandan founders of the bank have in the past been a bone of contention whenever majority shareholding changed.

When Atlas Mara bought BPR in 2016, the shares belonging to local owners were largely unclaimed.

At that time, up to 415,292 of the 590,292 shareholders had not been registered. The bank in a bid to clean up the shareholder registry to avoid cases of ghost owners issued a communique calling on all investors to register and re-establish their status or lose their stake. Some of the shareholders can be traced back to its founding in 1975 when BPR was a co-operative bank.

It is not yet clear how many BPR shareholders are willing to sell, but Toroitich said the transactions will be at the discretion of individual owners.

"It is a process that can go on for some time but what is important is that there will be an avenue for them to be able to sell their shares," he said.

On whether KCB Rwanda and BPR will be merged to complete the acquisition process, Toroitich said: "Both parties are still involved in background work to that effect. We are also awaiting some approvals before both units are merged into one bank. There are governance and regulatory processes that have to first get out of the way."

"At the moment nothing has changed from an operational stand point, we are still operating as two separate banks," he added.

KCB’s acquisition of Atlas Mara's other unit in Tanzania, African Banking Corporation Tanzania Ltd (BancABC), is awaiting final regulatory approval. The Kenyan-based banking giant is also interested in acquiring a bank in the Democratic Republic of Congo, cementing its presence in East and Central Africa.

Experts in the financial sector say the fragmented Rwandan banking sector can only grow and play it's role as an economic driver, if it consolidates.

In the headlines

Africa fails to step up Covid fight even with more vaccines

Recent data by AfricaCDC shows that only 6.6 pc of people on continent are fully vaccinated.

Rwanda reinstates quarantine rules for travellers

Arriving and departing passengers at Kigali International airport will be required to present a negative PCR test taken with 72 hours prior to...

China loan beneficiaries face debt distress

Military action fast outpacing diplomacy in Ethiopia as PM Abiy joins the frontline

EAC contributions pegged on member’s ability to pay

Kenya on high alert over Covid 'super variant'

Ethiopia bans press from reporting military operations

NSE cuts same-day trading charges in new rules to increase investor activity

Saturday November 27 2021

A trader at Nairobi Securities Exchange trading floor at the Exchange Building in Nairobi. FILE PHOTO | COURTESY

Summary

The stockmarket is weighed down by investor apathy, lack of new listings and unscrupulous dealers preying on unsuspecting investors through insider trading.
According to the guidelines approved by the Capital Markets Authority (CMA) on October 21 rebates, calculated as a percentage of the transaction levies , will be offered to investors on trade offsetting positions created on the same day.
Risk exposure of potential issuers to post-offer/listing price correction and in some instances complete price collapse in spite of professional valuation has also been singled as a barrier to new companies coming to the market.

By JAMES ANYANZWA

More by this Author

Nairobi Securities Exchange (NSE) Plc has reduced transaction fees by five percent for equity investors who adopt the same-day trading model.

The bourse is gearing up for the implementation of a Day-Trading model in equity transactions in the latest attempts to woo investors and new companies to list.

The stockmarket is weighed down by investor apathy, lack of new listings and unscrupulous dealers preying on unsuspecting investors through insider trading.

The latest move is designed to bolster liquidity in the market, with the buying and selling or selling and buying of shares of the same security on the same account being effected on the same day, also referred as intraday trading. However, the cash settlement for the traded shares will still be carried out on the current T+3 cycle where payment is effected three days after the transaction.

According to the guidelines approved by the Capital Markets Authority (CMA) on October 21 rebates, calculated as a percentage of the transaction levies , will be offered to investors on trade offsetting positions created on the same day.

According to the rules, NSE levy of 0.12 percent will reduce to 0.114 percent of the value of the transaction after applicable rebate of five percent while CMA and Central Depository and Settlement Corporation levies of 0.12 percent and 0.08 percent respectively will remain unchanged. The guidelines stipulate that only trades executed on the same day for the same security on the same Central Depository System account with a single broker will qualify for selection as day trades.

Efforts to get comments from NSE chief executive Geoffrey Odundo proved futile as he didn’t not respond to our emailed questions by the time of going to the press.

The stockmarket which harbours 66 listed companies some of which have been suspended and delisted, is fighting to recapture the allure that vanished in the thin air after the Safaricom initial public offering (IPO) fiasco in 2008 that pulled over 742,000 new investors in the market

Many took bank loans and sold personal properties to buy into the 10 billion share offer that later backfired after the share price fell below the IPO price of Ksh 5 ($0.04) per share, causing many investors particularly the small and retail investors to flee the market.

NSE 20 Share Index, a key market performance indicator has declined by more than twofold to as low as 1,866.97 on November 24 from a high of 5,444.83 in 2007.

Investor accounts have stagnated at around 1.5 million of which 1.13 million accounts were active last year, following increased awareness campaigns urging stockmarket investors to activate dormant accounts.

An attempt by the NSE and CMA to jumpstart the market recovery through new products such as real estate investment trusts, exchange traded funds, derivatives , securitisation, global depositary notes and receipts, securities lending and borrowing have not been successful in bring new investors in the market.

According to the CMA, the worrying situation on the stockmarket has been compounded by competing investment opportunities that are short-term in nature including mobile money products sports gambling and government securities.

On the other hand potential issuers have been kept off the market due to high listing costs and listing disclosures, tough macroeconomic environment leading to declining share prices on the exchange and the proliferation of private equity firms that are providing virtually free and easily accessible capital to SMEs, with the added benefit of enhancing professional management and governance of such firms

Risk exposure of potential issuers to post-offer/listing price correction and in some instances complete price collapse in spite of professional valuation has also been singled as a barrier to new companies coming to the market.

According to CMA market, concentration also remains a key risk with the top five companies accounting for more than 80 percent of the total market turnover at the bourse, with mobile phone operator Safaricom in some instances accounting for 60 percent of the market share.

In the headlines

Africa fails to step up Covid fight even with more vaccines

Recent data by AfricaCDC shows that only 6.6 pc of people on continent are fully vaccinated.

Rwanda reinstates quarantine rules for travellers

Arriving and departing passengers at Kigali International airport will be required to present a negative PCR test taken with 72 hours prior to...

China loan beneficiaries face debt distress

Military action fast outpacing diplomacy in Ethiopia as PM Abiy joins the frontline

EAC contributions pegged on member’s ability to pay

Kenya on high alert over Covid 'super variant'

Ethiopia bans press from reporting military operations

Stakeholders’ wishlist as China and Africa leaders converge on Dakar

Saturday November 27 2021

China’s President Xi Jinping and African leaders during a Forum on China-Africa Cooperation in Beijing in 2018. FILE PHOTO | AFP

Summary

Trade between China and Africa has evolved significantly over the past two decades following the establishment of the Forum on China-Africa Cooperation (FOCAC) in 2000.
A series of ministerial meetings have led to a growing portfolio of development projects that have positively impacted investment and trade growth.
Imperative to this is ensuring that negotiations and projects remain consistent with the UN Sustainable Development Goals, the African Union Agenda 2063 and the Africa Green Recovery Plan 2021-2027.

By JACKSON KIPLAGAT

More by this Author

By TAYE TEFERI

More by this Author

Trade between China and Africa has evolved significantly over the past two decades following the establishment of the Forum on China-Africa Cooperation (FOCAC) in 2000.

A series of ministerial meetings have led to a growing portfolio of development projects that have positively impacted investment and trade growth.

However, the partnership needs further strengthening to achieve a sustainable win-win outcome, especially in integration of sustainable principles in investment and trade flows.

Imperative to this is ensuring that negotiations and projects remain consistent with the UN Sustainable Development Goals, the African Union Agenda 2063 and the Africa Green Recovery Plan 2021-2027.

Stakeholder participation

The FOCAC 2021 Summit will be held in Dakar, Senegal this November 29-30, and comes at a time when post-Covid-19 recovery is top on the agenda of African nations. The 2021 summit presents Africa with the opportunity to negotiate for a green, sustainable, inclusive and just recovery.

Over the past 20 years, the FOCAC process has been restricted to government delegations, with little room for input from relevant external stakeholders.

This year World Wide Fund for Nature (WWF) and TRAFFIC organised a virtual workshop for stakeholders from across Africa, and they raised the need for the FOCAC engagement process to be more transparent and inclusive. They also called for access to relevant information by all stakeholders who are not part of government delegation but play a critical role in supporting the national development agenda.

Furthermore, stakeholders also felt that the FOCAC process needs to include an open monitoring and reporting system to ensure the Action Plan is defined, tracked and implemented.

Stakeholders were united in calling for a FOCAC Action Plan that is clear on curbing deforestation, illegal and unsustainable wildlife trade, promoting renewable energy and addressing biodiversity loss.

While recognising China’s recent nature-positive decisions to cut funding for the development of coal power and to support elimination of global illegal deforestation, stakeholders urged for a stronger focus and investment in accessible and affordable renewable energy.

The other key ‘asks’ were the expansion of the FOCAC process to external stakeholders and the employment of a two-step process in design and implementation, at a national level and continental level.

The stakeholders want the 2021 outcome to signal a strong commitment to support African countries embark on an inclusive green, post-Covid-19 recovery with enough financing and human technical capacity development such as offering scholarships to African youths.

They recognise that most of the key activities under the FOCAC 2018 Action Plan were not implemented because of the disruption by the pandemic. Thus, the recommendation for the Dakar Ministerial Conference to roll over all relevant activities to support biodiversity conservation in Africa, support for sustainable energy development, development of green projects, capacity building and appropriate technology transfers to the new FOCAC 2022-2024 Action Plan.

As stakeholders we envisage a two-step process, one, consultation involving all relevant sectoral ministries, civil society as well as the private sector and two, for a more synchronized approach to Africa’s preparation and participation in the upcoming Ministerial Conference.

While also recognising and appreciating the positive impact of China’s closure of the domestic ivory market, stakeholders called for similarly decisive action against the sale of pangolin scales, rhino horn and tiger bone.

In addition, the 2021 conference outcome should include a strong commitment to improve the management capacity of African wildlife, forestry and fisheries institutions to tackle and eliminate any and all illegal activities in the sectors.

Lastly, but there is uncertainty about the path, duration, magnitude and the impact the pandemic poses on business and investment opportunities.

Jackson Kiplagat is the head of conservation at the World Wide Fund for Nature-Kenya and Dr Taye Teferi is the policy and partnerships co-ordinator - Africa, TRAFFIC- International.

E-mail [email protected]; [email protected]

Summary

Digital images

Afro-renaissance

Summary

Related

Popularity

History

Summary

Related

Summary

Related

Summary

Related

Summary

Related

Summary

Related

Summary

Related

Summary

Stakeholder participation

Related