sheVestorAfrica Storms Africa-  ‘MEET&GREETAFRICA 2017’ right at your doorstep

shev afriTo all young African women or let me say sheVestors out there, it’s time to get your finances in order and plan a greater future. You might be doing ‘good’ so far from reading financial books, but remember, ‘Good is an enemy of Great’. It’s time to be great and excel beyond the ordinary.

You can begin by hitching your wagon to something greater. To the next level of investment and financial growth.  To revolutionary thinkers and top notch entrepreneurs. To sheVestor Africa.
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sheVestor Africa is a community that empowers young African women with financial knowledge to become financial literates and hone their financial skills in order to be financially empowered.

Mission: To Inspire, Connect, Educate and Equip the community and spur them on to actively hone their financial skills and participate in Africa’s growth story.

MEET & GREET EVENT:

sheVestor Africa and her super awesome crew with top notch experts will be coming to Mauritius, Sierra Leone, South Africa, Botswana, Zambia  and Uganda.

The Meet and Greet Event will introduce the #sheVestorAfrica  community and create awareness on the importance of financial education in building financially stable young African women.
The mind blowing aspect of this is that, it’s FREE!!!!!

WHAT TO EXPECT;
Expert-led sessions with entrepreneurs who will share their financial journey among interesting fun activities.

THE SIERRA LEONE STOP:
sheVestor Africa presents #MeetnGreetSierraLeone, a one day  introduction, learning and networking event for young African women who are keen on becoming financially independent and building  a stable financial life.

Speakers for #MeetnGreetSierraLeone are:

Christine Sesay  – Founder, Africa’s Moneypreneur and Co-founder, Freetown Business school.

Ariana Oluwole – Founder, Narnia Daycare.

Date:   30th Jun, 2017

Venue :  Africell American Corner, Bathurst street, Freetown.

REGISTER FOR FREE: https://goo.gl/forms/zRwZ44U57rlDsPtB2

Follow sheVestor Online:
Join the community via  http://shevestorafrica.org/join-our-community/

fb https://www.facebook.com/sheVestorAfrica/

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twt@sheVestorafrica

 

African Capital Markets – The Potentials & The Lost Opportunities.

Guest Post by:
BOAKYE OGYEM EMMANUEL. ( 0261528542 / ogyemb@yahoo.com)
A few days ago, I decided to research Africa’s capital markets, and to my astonishment I realized that most of these markets were very resilient to exchange rate fluctuations and the debilitating effect of inflation. These findings fascinated my imagination and re-oriented my negative stereotypical perception about Africa’s capital markets. However my greatest disbelieve dawn on me when I realized that the GHANA STOCK EXCHANGE (GSE COMPOSITE INDEX) far out-performed the S&P 500 of the UNITED STATE OF AMERICA in terms of dollar adjusted returns within the years of 1992-2013, this means that passive investors in Ghana within the aforementioned years were better off than their counterparts in the united States. The research choose 1992 as the base year solely due to two reasons, firstly it was the year Ghana declared democratic rule and entered into the 4threpublic, making its capital market attractive to foreign investors. Secondly, it marks the start of the longest bull market in the history of the United States, which spanned for almost 7yrs, between the years of 1992-1999. The Ghana stock exchange in the mist of significant macro-economic pressures such as ,an annual compounded cedi depreciation rate of 18.54%, unwarranted high levels of inflation in the 90’s and a sluggish economic growth amid lackluster energy sector , surmounted to become more profitable than the S&P 500. Now let’s move on to the number crunching that reinforce these assertions, in 1992 the GSE all shares Index traded with a value of 62.17, by the end of the year 2013 the value of the GSE COMPOSITE INDEX was 2,145.20 after adjusting the Composite index to the ALL SHARES INDEX which was previously used by market participants until 2010,we arrived at a value of 16313.66 for year 2013. This value reflects an annualized return of 28.90% for all investors who had invested during the aforementioned investment horizon. One may ask how do these numbers translate into millions of cedis for the average Ghanaian who had invested in the GSE within the 1990’s? the answer will be an enormous amount of wealth, if an investor had invested a sum of GH₵1000 on the exchange within the year 1992 he/she would have pocketed a whooping sum of GH₵266,418.3791 (the equivalent of 2.6 billion old Ghana cedi’s) by the end of 2013 , not convinced? then add a zero to the initial amount invested , that is if an individual had invested an amount of GH₵10,000 in 1992 for his kid or dream house , that individual would have now pocked almost GH₵2.66million new Ghana cedi (the equivalent of 26 billion old Ghana ), yes!!! The individual would have been a millionaire due to the power of compounding, and the resilience of a stock exchange that has triumph against the overwhelming odds of high inflation and significant exchange rate fluctuations. One amazing discovery is that many Ghanaians during this same period gave far more money needed to invest and achieve these sterling results to dubious connection men, in other to seek greener pastures outside the country. However, the returns from the exchange indicates that those who stayed behind and placed their bet on the stock exchange are now better off and perhaps “millionaires” relative to their foes who went outside for greener pastures. As a value oriented investor I deemed it necessary to determine if there existed significant value in stocks trading outside my home land , due to this I decided to compare the results of the GSE to the US dollar and the S&P 500 index. Thorough data gathered from renowned investment sites (CNN MONEY, BLOOMBERG DATA etc.) indicates that the S&P 500 started with a value of 262.79 in 1992 as at 31st December 2013, the index was trading at a value of 1813.036; this represents an annualized value of 9.1759% on a compounded basis. That means that if an investor had invested $1000 in the S&P 500 for the 22yrs period he/she would have pocketed an amount of $6,897.79 for year-end 2013. In order to reasonably compare these exchanges a dollar adjusted return for the GSE Composite index was computed to be an annualized 10.35% for the same investment horizon. However the S&P’S annualized gain was 9.1759%. Data used for the dollar adjusted return was acquired from Dr. Mahamadu Bawumia’s speech titled “RESTORING THE VALUE OF THE CEDI”. According to the article the cedi value against the US dollar during 1992 was at GH₵0.05208 (the equivalent of ₵520 old Ghanaian cedi), as at 2013 the value of the cedi was GH₵2.20 (the equivalent of ₵22,000 old Ghana cedi). This represents an annualized compounded depreciation rate of 18.55% which lags against the GSE index’s sterling performance. Finally, from the research it’s apparent that the GSE (GHANA STOCK EXCHANGE) has shown its superiority amid a turbulent exchange rate fluctuations, economic sluggishness and unabated inflationary pressures , to emerge as the best investment entity for the long term. Furthermore, it’s strategically positioned than ever before to produce sterling performance going forward, this can partly be attributed to increase positive inflow of FDI, strong economic growth fundamentals, stable political climate and copious oil /natural gas reserves. With all these positive factors looming in the long run, I think we should all start investing into the future to realize our unlimited gains in the stock market.
Source: (CNN MONEY, ANNUAL REPORT GHANA, REUTERS, ARTICLE FROM DR.BAWUMIA, WIKIPEDIA , INVESTINGAFRICA.COM)

New Kid on GSE – Mega African Capital Ltd Listed.

Just so you don’t know:
Mega African Capital Limited (“MAC”) announced that it has allotted 1,333,334 ordinary shares of GHS 3.00 each in the capital of MAC (“Shares”), which rank pari passu with the existing 7,308,135 ordinary shares in issue, pursuant to the offer for subscription of up to 1,333,334 (the “Offer”) in connection with MAC’s listing on the Ghana Stock Exchange  (“GSE”). This is the first ever listing of a Company which invests in equities across Africa and the real estate sector in Ghana. IC Securities (Ghana) Limited was engaged by MAC as Financial Advisor and Sponsoring Broker on this landmark Transaction

The Offer was opened between 10 March and 28 March 2014 with 1,333,334 shares offered at GHS 3.00 per share. During this period, 30 valid applications were received for 1,333,334 Shares representing a total amount of GHS 4,000,002. The listing and the first day of trading of Shares on the GSE was on 23 April 2014.

Comment by Mr. Kwesi Amonoo-Neizer, Managing Director,:
“I am delighted by the success of our offer; this is the first Company that
invests in equities across Africa and the real estate sector in Ghana to list on the GSE. I look forward to updating all our shareholders with news of our progress, both in Ghana and beyond, over the coming years.”

MAC Overview 
MAC was established as a company for high net-worth shareholders seeking exposure to African opportunities with the potential to generate high returns. The Company’s objective is to provide long-term capital growth primarily through investment in selected African assets. This transaction has broadened the investor base of Mega African Capital Limited.

MAC has, since its inception, invested some of its capital in securities in some selected African countries. MAC currently has investments in Ghana, Malawi and Tanzania. Additionally, the Company has invested in real projects in Ghana. 

Mutual Monday: Investment Funds (Mutual funds & Unit Trusts) in Ghana.

Today is another Mutual Monday and welcome to my blog. In today’s post I would outline the various types of investment funds we have in Ghana and the fund managers of each. Mutual funds and Unit trusts are referred to as investment funds. Mutual Fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as bonds, stocks, money instruments and similar assets. Each shareholder or unit holder participates proportionally in the gain or loss of the fund. In my next posts, I would go into details and explain how it is managed or priced.

In the Ghanaian economy, there are investment funds that are capital market or long term oriented and there are those that are money market or short term oriented. Others are balanced for both the capital and money markets. There are other specifications for some funds like that of ethical funds, who invests in ethical stocks (e.g. those that are not in alcohol or tobacco businesses). No matter what type of investor you are, there is bound to be a mutual fund that fits your style. Each mutual fund in the market has different risks and rewards and as we all know, the higher the risk the higher the rewards.
In the Ghanaian market, there are about two types of mutual funds, 1. Equity oriented funds (capital market (stocks), 2. Fixed income / Money market oriented funds (Bonds, t-bills etc).
Below are some investment funds in Ghana;

FUNDS / Time Horizon
MANAGERS
EPACK (Long term)
Databank Financial Services
Mfund (Short term)
Databank Financial Services
Bfund (Short to Long term)
Databank Financial Services
Ark fund (Long term)
Databank Financial Services
Ifund (Long term)
Ecobank Capital
Gold fund (long term)
Gold Coast Securities
SAS Fortune Fund  (long term)
Strategic African Securities
HFC Equity fund (Long term)
HFC Investments
SDC Campus Mutual fund ( medium to Long term)
SDC Brokerage Ltd
First BanC Heritage Fund (Long term)
First BanC
HFC REIT (Long term)
HFC Investments
HFC Unit Trust (Long term)
HFC Investments
First Banc First Fund (long term)
First BanC
NTHC Horizon fund  (long term)
NTHC
Next week, I would look at each of them into details and what they invest in. With time we would master investing in mutual funds.

Keep investing.

Only 38 West African companies made it to the list of Africa’s Top 250 companies

Over thousands of companies are registered in West Africa. Most of which are registered in Nigeria, Ghana and Cote d’ Ivoire. But despite the numbers, only thirty eight of  West African companies made it to the list of Africa’s Top 250 Companies.

Africa’s Top 250 Companies list is compiled annually by the African Business team and in the April issue of the AFRICAN BUSINESS magazine, financial data from Dr. Ayo Salami, (co-founder of African Business Research Ltd) as at 31st December 2011 indicated that
African businesses lost value from $848 billion to $ 652 billion (current market capitalization). As at that date, only 86 companies in Africa are worth a billion dollar.

In this Top 250 list, Dangote Cement, a Nigerian company in the construction and materials industry maintained the 15th position but was the biggest in West Africa with a market capitalization of about $10. 6 billion. Anglogold Ashanti (Ghana: Market cap: $5.5 billion) in the mining and metals industry was the second largest in the region and the 25th in Africa.

It’s quite bad to know that only 38 companies in the region are larger than $210 million (Market cap. of the 250th company on the  list).  Another notable thing is that, only one company, Ecobank Transnational Inc, on the list is from Togo. This company dropped from 126th on the 2011 Top 250 list to 130th in the latest publication with a market capitalization of $667 million.
Nigeria dominated in West Africa with 26 companies in a total of 38 companies from the region. Ghana and Cote d’ Ivoire followed as usual.

I hope this year brings success to African companies especially the West African ones.
With the current press from the Bank of Ghana, most Ghanaian banks may consider merging to meet the required capital for banking which would aid growth of the banking industry.

The growth of these companies would help the West African region develop to meet its pressing needs.

Long live African Businesses, Long live Start-ups.

1st Quarter Analysis of the Manufacturing sector on the Ghana Stock Exchange

The Manufacturing sector on the Ghana Stock Exchange (GSE) include stocks like that of Unilever Ghana Ltd. (UNIL), PZ Cussons Ghana Ltd. (PZC), Aluworks Limited (ALW) and the Pioneer Kitchen Limited (PKL). PKL is no more listed on the GSE with effect from 26th March 2012 due to a sanction from the exchange for refusing to observe the continuing listing obligation including failure to hold annual general meetings. This move by the GSE reduces the market capitalization and that of the manufacturing sector by about GHS 2 million (about $1.25 million).
This sector on the exchange is dominated by Unilever Ghana Ltd; with a market capitalization of GHS 509.37 million (about $312.50 million), making it the most capitalized in the manufacturing sector.

UNIL
Unilever Ghana Limited (UNIL) manufactures and markets consumer goods throughout Ghana some of which includes toilet soaps, personal products, detergents, and consumable food products.
UNIL: 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 
This year, UNIL began trading at GHS 6.64 (03.01.12) per share on the exchange and saw price hikes to close at GHS 8.15 as at today with a Year-High of GHS 8.15 and a Year-Low of GHS 6.63. An investment made in UNIL exactly one year ago would yield 31.34% profit.  UNIL records a Price/Book value of 8.0428 in the most recent Quarter with Earning per share and Price/Earnings ratio of 0.5081 and 16.0388 (trailing 12 months) respectively.

PZC
PZC 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 
PZ Cussons Ghana Ltd. (PZC) is another company in the manufacturing sector on the GSE. This company is the manufacturer of over-the-counter pharmaceutical preparations, cosmetics and beauty products. PZC began trading on the exchange in 2012 with a share price of 0.24p (03.01.12) and since then, there was no price change. The 1st quarter did not favour PZC in terms of price change although it traded some volumes of share in the quarter. With a market capitalization of GHS 40.32 million, PZC recorded a dividend yield (trailing 12 months) of GHS 1.5694 and as reported by Bloomberg, an enterprise value of GHS 38.54 million.
ALW
ALW: 1st Quarter Chart on GSE: (courtesy; Bloomberg & GSE) 
Aluworks Ghana Limited as the name implies works with aluminum. It is an aluminum rolling mill with produces semi-finished and finished aluminum sheet in coil, circles, flat sheet and corrugated roofing sheets. This company was incorporated on February 24, 1978 and currently has a market capitalization of GHS 6.44 million making it the lowest in the manufacturing sector on the exchange since PKL has been suspended. ALW began the quarter and the year with a 0.13p share price (03.01.12)  and later dropped to 0.12p to 0.9p and now closed at 0.07p per share. With an obvious Year-High of 0.13p and a Year-low of 0.07p/share, ALW has a Price/Book of 0.2355, Earning per share (trailing 12 months) of -0.0977 and an Enterprise value of GHS 28.04 million.
The Manufacturing Sector as a whole did not performed so well despite the driving and dominating strength of UNIL in the sector. Investors should follow closely activities in this particular sector and look for the opportunities. 

Building the Economy: Middle Class of Ghana Unconcerned

Are we really sleeping? Then it is time to wake up.

The Middle Class in Ghana, simply don’t care. They find means to solve public problems in personal ways and just remain unconcerned, very quiet!! It’s a culture problem, people say. Others say Ghanaians just think about their families and not the Public. Scholars blame it on education, stating that, “you can’t teach an old dog new tricks”. But is this helping the nation? Would it ever? How can we develop with this? Why won’t us remain poor? Failed government or State, Failed Top Class, Now failing Middle class & educated elites, and the Voiceless/uneducated poor (which are the most populated).
We have the platforms, we don’t use them. We have the knowledge, we don’t apply it to help our nation, the worst of all, we sell them cheap to other nations. We have the energy, we misuse it. Oh Mother Ghana!!! How long would the Middle Class decide to be silent. It’s pathetic they understand the problems better than anyone but decide to stay away.
Typical Middle Class (educated elites) Behaviors:
Power outage:- Put on the generator (For the family alone) and shut up.
Water Problem:- Get enough Poly-tanks to store water for the family. Don’t care about the community or person next door (who’s probably voiceless).
Education:- Send children to schools abroad. (No Teachers’ strike).
Health:– Go to private hospitals. Don’t care if doctors are on strike.
Ehhhhh!!!! My people. Are we safe? When the Voiceless or low class decide to talk or fight back, can we stand them? Ghana, we can’t afford to fail God and the next Generation. Let’s act NOW in all sectors of the economy. Let’s be responsible and not think about our families alone. Let’s build the economy of Ghana.
Oh Ghana!!!!. God Help us. Long Live Ghana