SBUL 500 IAS Africa Rising 10 February 2015

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Rwandan Telcos shun new 4G network

Telecommunications companies in Rwanda have shunned the usage of the new 4G

network due to high charges according to a report by the East African. Almost three

months after the launch of the network, all telecos save for Tigo are yet to launch any

products because of the high costs involved.

In February 2015, Tigo unveiled online television services for 4G internet subscribers in

partnership with iRokotv, an online entertainment TV channel to provide subscription-

based video entertainment for its 4G clients. However, some telecos companies are

being cautious to fully embrace the network while others are launching fibre as an

alternative network.

By the end of April, Liquid Telecom hopes to launch fibre to the home, FTTH, to provide

homes and small businesses in the country with unlimited data packages. Sam Nkusi, the

chief executive of Liquid Telecom Rwanda, said FTTH networks are the latest

technology, which are according to him, more affordable than any other network

method. With FTTH in place and being embraced by one of the biggest data providers in

the country, the uptake of the 4G network is likely to suffer a further decline.

Low uptake of 4G was anticipated given that a few months preceding its launch, the

telecoms operators and the providers of the network — Korea Telecom and government

of Rwanda - were engaged in prolonged discussions regarding the pricing. MTN, the

biggest telecoms operator in the country by subscriber numbers, has been pushing the

4G network on the market since its launch albeit with limited uptake. Yvonne Makolo,

chief marketing officer of MTN attributed the low uptake of the network to the small

area which it covers and the pricing. 4G was rolled out in Kigali city with plans to

extend the coverage to other parts of the country over time. “The pricing is still an

issue but we hope as more users join the network, the prices will ultimately come down

and a growth in uptake will be witnessed,” said Mrs. Makolo.

With limited up take in Kigali which is considered relatively affluent, the roll out by the

service providers to other parts of the country may take a cautious path especially if

the prices remain high. The pricing problem stems from the 4G network model in the

country where Rwanda telecos were locked out from developing and providing the

network, which has seen some operators drag their feet in introducing the product.

Previously, internet networks such as 3G were provided by the telecos to their retail

customers. Local telecos now purchase the universal mobile broadband bandwidth at

wholesale prices from the government and Korea Telecom which have the exclusive

rights to sell to the operators.

Telecos are expected to purchase from the suppliers with 1 gigabyte being sold for RWF

2,411 with the cost burden transferred to the end users. At MTN for example, the 3G

network data at the end of 2014 was being sold to consumers at RWF 800 per GB, which

was much lower than the latest 4G retail price where 5GB retails at RWF 18,600 for a

one month subscription while Airtel has projected to sell the same for RWF 20,000.

Rwanda Utilities Regulatory Authority (Rura) however, has said it will not take any

position regarding the pricing of the 4G network. “We are still assessing the impact of

the current price and we have sent out questionnaires to all the service providers,” said

Jean Baptist Mutabazi, director of communications at Rura. “We are still analysing the

data to find out the challenges in adopting the network.”

The move towards 4G technology by Rwanda is commendable. However, consumers may

fail to see the benefits of the new technology as long as the prices remain unaffordable

and out of reach for most of them with cheaper alternatives such as 3G still available,

albeit at slower speeds. Consequently we believe that the regulatory authorities need

to move faster to make 4G more ubiquitous within Rwanda.

Country Performance

Country Daily % YTD% (USD)

Namibia 0.01% 4.46%

Zimbabwe 0.32% 4.02%

Kenya 0.50% 2.90%

Malawi 0.00% 1.90%

Uganda -0.21% 1.45%

Tanzania -1.16% 0.96%

Botswana 0.19% 0.49%

Rwanda 0.60% -0.65%

Zambia -0.39% -2.75%

BRVM 0.00% -7.19%

Mauritius -0.20% -7.78%

Ghana 0.29% -10.43%

Nigeria -2.08% -20.28%

Source: IAS/S&P

Source: IAS

Country Value traded (USD m)

Nigeria 31.05

Kenya 5.95

Zimbabwe 1.17

Mauritius 1.01

Tanzania 0.30

Country Volume traded (m)

Nigeria 364.47

Kenya 26.32

Zimbabwe 6.32

Mauritius 3.86

Tanzania 0.86

TOP 5 VALUE TRADED

TOP 5 VOLUME TRADED

1 100

1 300

1 500

1 700

1 900

2 100

2 300

Nov-13 Mar-14 Jul-14 Nov-14

US$ price index US$ total return

S&P Africa Frontier Index

Equity Research

Sub-Saharan Africa

10 February 2015

Africa Rising

Source: IAS/S&P

-

CLOSING MARKET SUMMARIES - 09 FEBRUARY 2015

BOTSWANA

Index Today Previous Day % YTD %

BSE DCI 9 475.62 9 457.70 0.19% -0.27%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 97 764 -92.54% 115 089 -66.69%

Top Traders Volume Turnover (USD)

BIHL 25 379

SECHABA 70 126

Top Gainers Bottom Losers

SECHABA 1.35% CHOPPIES -0.25%

SEFALANA 0.94%

CHOBE 0.45%

BIHL 0.43%

BRVM

Index Today Previous Day % YTD %

BRVM 10 261.85 261.85 0.00% -2.12%

BRVM Composite 254.33 254.33 0.00% -1.45%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 - -100.00% - -100.00%

Top Traders Volume Turnover (USD)

No Data - -

Top Gainers Bottom Losers

GHANA

Index Today Previous Day % YTD %

GSECI 2 155.95 2 149.80 0.29% -4.65%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 206 220 -18.30% 23 297 -90.16%

Top Traders Volume Turnover (USD)

UTB 126 500 6 687

Top Gainers Bottom Losers

ETI 4.17% SIC -15.00%

BOPP 0.72% UTB -5.26%

GCB 0.40% TLW -0.14%

KENYA

Index Today Previous Day % YTD %

NSE All Share 169.03 168.19 0.50% 3.77%

NSE 20 5,296.07 5,280.72 0.29% 3.59%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 26 316 200 -5.30% 5 945 855 19.73%

Top Traders Volume Turnover (USD)

Safaricom 13 757 300 2 226 685

Top Gainers Bottom Losers

E.A.Portland Cement Co. 9.17% Mumias Sugar Co. -3.17%

Kakuzi 7.44%

Carbacid Investments

-2.78%

Total Kenya 6.67% I&M -1.61%

Kenya Re Insurance Corp 5.10% NIC Bank -1.53%

Sameer Africa 4.88% TransCentury -1.34%

MALAWI

Index Today Previous Day % YTD %

DASI 11 780.30 11 780.30 0.00% 0.51%

MASI 14 961.60 14 961.60 0.00% 0.51%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 542 816 -74.40% 38 507 46.34%

Top Traders Volume Turnover (USD)

NITL 389 580 35 230

Top Gainers Bottom Losers

There were no gainers There were no losers

MAURITIUS

Index Today Previous Day % YTD %

Semdex 1 990.82 1 994.83 -0.20% -4.00%

Sem 7 369.74 370.94 -0.32% -4.17%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 3 855 922 -63.22% 1 010 622 -74.4%

Top Traders Volume Turnover (USD)

SBM 3 081 163 533 008

Top Gainers Bottom Losers

ROCKCASTLE(USD)* 13.89% United Docks -12.86%

Fincorp 1.36% Policy -9.32%

MUA 1.32% NMH -1.84%

Lux Island Resorts 0.98% BLUELIFE LIMITED -1.03%

Rogers 0.70% CIEL LIMITED -0.86%

NAMIBIA

Index Today Previous Day % YTD %

NSX Local 402.74 402.68 0.01% 3.53%

NSX Overall 1 135.49 1 132.60 0.26% 3.41%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 10 629 -97.26% 33 711 -97.42%

Top Traders Volume Turnover (USD)

Bank Windhoek Ltd 5 700

Oceana 22 223

Top Gainers Bottom Losers

Truworths 1.83% B2Gold Corp -4.43%

Anglo-American 1.66% Paladin Energy -2.33%

Trustco 1.61% Vukile Property -1.82%

Barloworld 1.04% Shoprite -1.24%

Investec 0.68% PSG Konsult -1.01%

NIGERIA

Index Today Previous Day % YTD %

NSE All Share 29,360.55 29,985.08 -2.08% -15.28%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 364 472 058 -15.67% 31 052 406 24.24%

Top Traders Volume Turnover (USD)

Access 107 361 184

Nestle 12 461 146

Top Gainers Bottom Losers

Seplat 10.25% Maybaker -8.67%

Dangflour 9.50% Stanbic -6.80%

Vitafoam 4.92% Nem -6.78%

Rtbriscoe 4.88% Pz -5.00%

Eterna 4.76% Nestle -5.00%

-

CLOSING MARKET SUMMARIES - 09 FEBRUARY 2015

RWANDA

Index Today Previous Day % YTD %

RSI 236.48 235.07 0.60% -0.12%

RSE All Share 136.29 135.43 0.64% 0.32%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 418 500 135.24% 179 824 117.93%

Top Traders Volume Turnover (USD)

Bank of Kigali 402 500 170 845

Top Gainers Bottom Losers

Bank of Kigali 1.72% There were no losers

Bralirwa 1.30%

TANZANIA

Index Today Previous Day % YTD %

TSI 4 970.62 5 028.96 -1.16% 6.38%

DSEI 2 699.25 2 717.45 -0.67% 7.13%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 859 128 -71.02% 297 775 -93.34%

Top Traders Volume Turnover (USD)

CRDB 828 525 225 682

Top Gainers Bottom Losers

NMB 19.35% SWALA -7.14%

JHL 2.12% ACA -4.86%

KCB 1.77% NMG -1.16%

EABL 1.18% TPCC -0.51%

SWISSPORT 0.19% TCC -0.18%

UGANDA

Index Today Previous Day % YTD %

USE All Share 2 012.00 2 016.28 -0.21% 4.41%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 576 085 -77.46% 21 554 -91.20%

Top Traders Volume Turnover (USD)

SBU 500 000

NVL 13 770

Top Gainers Bottom Losers

JHL 1.08% UCHM -5.90%

KA 0.88% EBL -1.01%

KCB 0.76% CENT -0.85%

DFCU 0.42% NMG -0.47%

EABL -0.42%

ZAMBIA

Index Today Previous Day % YTD %

LuSE All Share 6 158.30 6 182.56 -0.39% -0.04%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 19 071 -23.38% 2 420 -9.75%

Top Traders Volume Turnover (USD)

Zanaco 15 385

ATEL 796

Top Gainers Bottom Losers

There were no gainers CEC -4.69%

ATEL -1.44%

ZIMBABWE

Index Today Previous Day % YTD %

Industrial 169.91 169.37 0.32% 4.02%

Mining 59.93 59.03 1.52% -12.01%

Trading Ac tivity Volume Daily % Turnover (USD) Daily %

9-Feb-15 6 324 644 94.70% 1 170 539 -43.81%

Top Traders Volume Turnover (USD)

ZPIL 3 255 281

DELT 800 350

Top Gainers Bottom Losers

EDGA 25.00% TURNAL -8.33%

POWE 22.22% HIPP -6.25%

DZLH 12.50%

ZPIL 9.09%

BIND 1.96%

Imara Africa Securities

(A division of Imara SP

Reid)

Imara House Block 3, 257

Oxford Road, Illovo

Johannesburg 2146

South Africa

Tel:

+27 11 550 6200

Fax:

+27 11 550 6295

Imara Securities

Angola SCVM

Limitada

Rua Rainha Ginga

74, 13th Floor,

Luanda

Angola

Tel: +244 222 372

029/36

Fax: +244 222 332

340

Imara Capital

Securities

2nd Floor Morojwa

Mews, Unit 6, Plot

74770

Western

Commercial Road

CBD

Gaborone

Botswana

Tel: +267 3188886

Fax +267 3188887

Members of the

Botswana Stock

Exchange

Imara Edwards

Securities (Pvt.) Ltd.

Tendeseka Office Park

1st Floor Block 2

Samora Machel Avenue

Harare

Zimbabwe

Tel: +263 4 790590

Fax: +263 4 791435

4 Fanum House

Cnr. Leopold

Takawira/Josiah

Tongogara Street

Bulawayo

Zimbabwe

Tel: +263 9 74554

Fax: +263 9 66024

Members of the

Zimbabwe Stock

Exchange

Imara S.P. Reid

(Pty) Ltd

Imara House

257 Oxford Road

Illovo 2146

P.O. Box 969

Johannesburg

2000

South Africa

Tel: +27 11 550

6200

Fax: +27 11 550

6295

Members of the

JSE Limited

Stockbrokers

Malawi Ltd

Able House

Cnr. Hanover

Avenue/

Chilembwe

Road

Blantyre

Malawi

Tel: +265

1822803

Members of

the

Malawi Stock

Exchange

Namibia

Equity

Brokers

(Pty) Ltd

1st Floor

City Centre

Building,

West Wing

Levinson

Arcade

Windhoek

Namibia

Tel: +264 61

246666

Fax: +264

61256789

Members of

the

Namibia

Stock

Exchange

Stockbrokers

Zambia Ltd

2nd Floor,

Stock Exchange

Building, Central Park

Cairo Road/

Church Road

P O Box 38956

Lusaka

Zambia

Tel: +260 211 232456

Fax: +260211 224055

Members of the Lusaka

Stock Exchange