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					The Africa Weekly

Equity research | Pan-Africa | News & Analysis


In this week's issue                                                                    03 December 2010


Regional                                                                                MARKET MOVES             WEEK %       YTD %
                                                                                        Botswana                      -0.4        -1.7
    03b Networks plans Africa internet rollout by 2013; EASSy to double capacity;
                                                                                        Malawi                         0.0        -4.6
    Wal-Mart to pay USD 2.3bn for control of Massmart                                   Mauritius                      1.0        15.8
Southern Africa                                                                         Namibia                        0.1        10.9
                                                                                        Zambia                         1.9        18.3
    Angola: Taiwan's CPC buys at least 2m barrels; Watchdog calls for more              Zimbabwe                      -1.3         0.7
    transparent Angola oil sector; KBR plans to open operating center                   Kenya                         -3.1        35.1
                                                                                        Tanzania                       0.0        -2.5
    Botswana: Mobile market swells by 24,000 customers in four months;                  Uganda                        -1.5        63.1
    Discovery Metals receives 3mtpa environmental approval                              BRVM                          -0.2        18.8
    Lesotho: World Bank vice president for Africa visits Lesotho; SAFDICO buys          Ghana                          0.8        25.4
    Lets’eng special diamonds for USD 22.7m                                             Nigeria                        1.7        19.8
                                                                                        Egypt                         -2.2         7.7
    Malawi: Govt tells farmers to continue growing tobacco; Government optimistic       Morocco                        1.4        18.4
    on outcome of IMF board meeting; External debt rises to USD 833m                    Tunisia                       -0.1        22.7
    Mauritius: Nine months trade deficit widens on imports; MUR 27 bn MID               MSCI EM ex SA                 -0.7         9.9
    projects take off; Manufacturing to grow 2% in 2010                                 FTSE                           1.2         6.6
                                                                                        Johannesburg                  -0.5        12.6
    Namibia: NAD 683m for SOEs; Nuclear power plant for Namibia; No plans to            Nikkei                         0.9        -3.6
    privatise SOEs; Namibia Resources widens losses                                     S&P 500                        1.9         9.5
    Zambia: Zambia’s GDP exceeds projections; Farmers house to issue 3.9m
    bonds; Konkola Copper Mines LSE listing delayed                                     CURRENCY MOVES            LEVEL* WEEK %
    Zimbabwe: “Why not indict Bush and Blair?”; 2011 budget angers labor groups;        BWP                          6.67         -0.27
    African Sun halves loss, misses target; LonZim raises USD 7.9m                      MWK                        151.95          0.05
                                                                                        MUR                         30.75          1.71
East Africa                                                                             ZMK                        4836.0          2.13
                                                                                        KES                         80.27         -0.16
    Kenya: Government to begin regulating oil markets; Tea growers record               TZS                        1485.5          0.20
    doubled first-half profits; Essar acquires full control of Yu                       UGX                        2291.0         -0.04
    Rwanda: Central Bank lists RWF 3.5bn bond; Mineral exports to hit USD 60m           XOF                        497.68          1.30
    amid legislation challenges; Govt targets clean water for all by 2015               GHS                          1.45          0.00
                                                                                        NGN                        151.07          0.37
    Tanzania: Tobacco and gold exports rise; Orca Exploration to drill new natural      EGP                          5.79          0.20
    gas well; Korea pledged USD 3.5m grant to TRA                                       MAD                          8.44          0.95
    Uganda: Italian giant Eni still wants oil fields; Low exports, euro zone woes hit   TND                          1.45          0.96
    shilling; Standard Chartered bank to issue UGX 40bn bond                            EUR                          0.76          1.29
                                                                                        GBP                          0.64          1.14
West Africa                                                                             JPY                         83.72          0.13
                                                                                        ZAR (NAD, SZL,               6.89         -2.33
    BRVM: Business slow in Ivorian trade hub after poll row; Ivory Coast president      * relative to USD
    wants vote cancelled; Iamgold’s Burkina Faso mine to produce 131,000 ounces
    Ghana: Contract to improve rail transport signed; Tullow postpones its listing
    on the GSE to 2011; AYTRN releases its full year financial report
    Nigeria: Regulator cautions banks; Nigeria scraps ban on textile, furniture
    imports; Flour Mills of Nigeria opens books for USD 460m bond
North Africa
    Egypt: Ruling party heads to sweeping win in vote; Citadel Capital 3Q10 net loss    Randolph Oosthuizen CFA
    dips; Ezz Steel posts 3Q10 profit, beats forecasts                                  Head of Research
                                                                                        +27 11 214 8384
    Morocco: Morocco budget in red as subsidies surge; OCP to launch USD 7bn            oosthuizenr@africanalliance.com
    expansion project; Gulf SWFs back Morocco tourism fund
                                                                                        Chris Blaine
    Tunisia: GDP growth forecasted at 5.4% in 2011; 2010 production of phosphate        Editor
    increases of 12.5%; Orascom Telecom deal will be finalized on 2 January             +27 11 214 8324 blainec@africanalliance.com

                                                                                        Rob Brownlee
                                                                                        Head of International Sales and Trading
                                                                                        +27 11 214 8464
                                                                                        brownleer@africanalliance.com




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The Africa Weekly

Equity research | Pan-Africa | News & Analysis



                                         TABLE OF CONTENT
                                         Market Snapshot.....................................................................................................................3

                                         Market Commentary ..............................................................................................................5

                                         Economic Indicators ...............................................................................................................7

                                         Regional ..................................................................................................................................8

                                         Egypt........................................................................................................................................9

                                         Nigeria...................................................................................................................................12

                                         Tunisia ...................................................................................................................................15

                                         Kenya.....................................................................................................................................17

                                         Morocco.................................................................................................................................19

                                         Mauritius ...............................................................................................................................21

                                         Zimbabwe ..............................................................................................................................23

                                         Botswana ..............................................................................................................................25

                                         BRVM .....................................................................................................................................27

                                         Ghana ....................................................................................................................................29

                                         Zambia...................................................................................................................................32

                                         Tanzania ................................................................................................................................33

                                         Namibia .................................................................................................................................35

                                         Malawi ...................................................................................................................................38

                                         Uganda ..................................................................................................................................40

                                         Rwanda..................................................................................................................................42

                                         Angola ...................................................................................................................................43

                                         Lesotho..................................................................................................................................44

                                         Recently Published Research ..............................................................................................45

                                         Regular Publications ............................................................................................................45




2 | African Alliance Pan-African Securities Research                                                                                                           03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis



                                         MARKET SNAPSHOT
                                         Weekly market moves (%chg local)
       MARKET       INDEX NAME
      Botswana         Domestic                                           Tunisia -0.06%
                      Companies
      Mauritius       Semdex (All                        Morocco
                          Share)                       1.45%

        Malawi          All Share                                                                    Egypt
                                                                                                     -2.16%
       Namibia              Local
     Swaziland          All Share
        Zambia          All Share
     Zimbabwe           Industrial                            BRVM
         Kenya             Top 20                             -0.23%

       Tanzania         All Share
                                                                       Nigeria
        Uganda          All Share
                                                                       1.68%
         BRVM          Composite                              0.78%
          Egypt            EGX 30                             Ghana
         Ghana          All Share
                                                                                                    Uganda: -1.50% Kenya
       Morocco          All Share                                                                                  -3.09%

        Nigeria         All Share
                                                                                                               Tanzania
        Tunisia         All Share                                                                             0.04%

   South Africa         All Share
                                                                                                                   Malawi
                                                                                                 Zambia            0.05%
                                                                                                  1.88%

                                                                                 Namibia            Zimbabwe                      Mauritius
                                                                                   Namibia
                                                                                    0.06%    Botswana -1.32%                       1.02%
                                                                                              -0.37%


                                                                                                                 Swaziland
                                                                                             South Africa
                                                                                              -0.49%




                                         Source: African Alliance database




3 | African Alliance Pan-African Securities Research                                                                         03 December 2010
 The Africa Weekly

 Equity research | Pan-Africa | News & Analysis


                                            AFRICAN AND GLOBAL MARKETS HEAT MAP (%CHG LOCAL)

                          Daily price changes (%)        (21-Nov - 02-Dec 2010)         Weekly chg (%)       Year-to-date change
Date                      21N 22N 23N 24N 25N            28N 29N 30N 01D 02D          25-Nov-10 02-Dec-10    01-Jan-10 02-Dec-10     %ch
Botswana                  -0.4 -0.2 -0.1 -0.0 -0.1        0.2 -0.3 -0.0 -0.3 0.0           -0.8       -0.4      7,241.9    7,118.5   -1.7
BRVM                      -0.3 0.2 -0.4 -0.5 0.6          0.1 0.1 -0.3 -0.2 -0.0           -0.5       -0.2        132.1      156.8   18.8
Egypt                      1.5 0.8 -1.4 -0.7 0.1         -0.7 0.4 -1.6 -0.3 0.1             0.2       -2.2      6,208.8    6,689.8    7.7
Ghana                      0.8 -0.1 0.4 -0.0 -1.2         0.2 1.6 0.6 -0.1 -1.4            -0.2        0.8      5,572.3    6,990.5   25.4
Kenya                      0.5 -0.1 -0.0 -0.6 -0.5       -1.3 -0.8 -0.9 -0.1 -0.1          -0.6       -3.1      3,247.4    4,388.4   35.1
Malawi                       -    -    - 0.0 0.0            - 0.0 0.0      - 0.0            0.1        0.0      5,155.1    4,919.5   -4.6
Mauritius                 -0.0 -0.4 0.1 -0.7 0.3          0.2 -0.2 0.1 0.5 0.4             -0.8        1.0      1,660.9    1,924.0   15.8
Morocco                    0.8 -0.2 -0.2 -0.1 -0.6       -0.6 0.8 0.1 0.6 0.5              -0.4        1.4     10,443.8 12,360.6     18.4
Namibia                   -0.1    - 0.0 0.2 1.8           0.0    -    - 0.0     -           1.9        0.1        154.8      171.6   10.9
Nigeria                   -0.9 -0.3 -1.0 -0.7 0.3         0.3 0.2 0.4 0.4 0.3              -2.6        1.7     20,827.2 24,942.4     19.8
Swaziland                    -    -    -    -    -          -    -    -    -    -             -          -        218.0      224.3    2.9
Tanzania                   0.1    -    - -1.1    -          -    -    - 0.0     -          -0.9        0.0      1,192.4    1,162.5   -2.5
Tunisia                   -0.2 -0.1 -0.5 -0.2 -0.3        0.3 -0.1 -0.0 -0.3 0.1           -1.3       -0.1      4,291.7    5,266.3   22.7
Uganda                       - -0.1 0.5     - -1.4          - -0.9 -0.2    - -0.4          -1.0       -1.5        732.5    1,194.6   63.1
Zambia                     0.5 0.6 -0.0 -0.5 0.1         -0.1 1.8 0.1 0.7 -0.6              0.7        1.9      2,794.9    3,306.0   18.3
Zimbabwe                  -0.2 -0.2 -0.4 -0.1 -0.1       -0.2    - -0.1 -0.2 -0.8          -1.0       -1.3        152.0      153.1    0.7

South Africa              -0.6   0.0 -1.6    0.7   0.6 -0.4 -1.5 -1.5     1.7   1.2         -0.9      -0.5     27,666.5     31,145.2 12.6

FTSE 100                  -0.6 -0.9 -1.8 1.4       0.7   -0.5 -2.1 -0.4   2.1   2.2         -1.2       1.2      5,412.9      5,767.6 6.6
Nikkei 225                 0.1 0.9     - -0.8      0.5   -0.4 0.9 -1.9    0.5   1.8          0.7       0.9     10,546.4     10,168.5 -3.6
S&P 500                    0.3 -0.2 -1.4 1.5         -   -0.7 -0.1 -0.6   2.2   1.3          0.1       1.9      1,115.1      1,221.5 9.5
Shanghai Composite         0.8 -0.1 -1.9 1.1       1.3   -0.9 -0.2 -1.6   0.1   0.7          1.1      -1.9      3,277.1      2,843.6 -13.2

MSCI World                 0.1 -0.3 -1.7 0.9 0.1 -1.1 -0.8 -0.6           1.9   1.7         -0.8       1.1      1,168.5      1,237.4 5.9
MSCI EFM Africa ex ZA      0.3 0.9 -1.4 -1.1 -0.1 -0.2 -0.2 -1.1          0.3   0.6         -1.5      -0.7        565.9        621.8 9.9
MSCI EM Index              0.1 0.1 -2.1 0.6 0.2 -1.6 -0.0 -0.4            2.0   1.5         -1.1       1.4        989.5      1,114.0 12.6




 4 | African Alliance Pan-African Securities Research                                                                     03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis



                                         MARKET COMMENTARY

                                         The Moroccan market closed 1.4% up this week, on the back of increases in banks (3.1%),
                                         telecoms (1.1%), and agri stocks (3.7%). Attijariwafa (+7.0%), MMCI (+1.1%) and Salafin
                                         (+3.4%) were the best performing banking shares. Central Laitiere (+5.9%) was the best
                                         performing agri share. Maroc Telecom closed the week up 1.1% for the week, accounting
                                         for 11% of weekly value traded. Banks accounted for 45% of value traded followed by
                                         building stock at 24%.

                                            Egypt,
                                         In Egypt the EGX30 index shed 2.2% this week driven by poor performances in the
                                         building (-4.5%) and property (-2.9%) sectors, and industrials (-2.8%). Banks and
                                         consumers were the only sectors to report gains at 1.5% and 1.2% respectively. Amongst
                                         banks, Egyptian Abroad Investments (+9.4%) and National Societe (+7.3%) were the best
                                         performers. Orascom Construction fell 4.6% while Orascom Telecom declined 4.8%. The
                                         worst performing share was Helio Housings, which slid 35%. Banks accounted for 32% of
                                         value traded followed by Telecos at 23%.

                                         The Nigerian market gained 1.7% this week. All sectors with the exception of industrials
                                         were positive. Failed banks continued to post strong gains, primarily Interconti (+9.5%),
                                         Bank PHB (+10.1%) and Oceanic (+10.4%). Amongst the healthy banks, Access was the
                                         best performer at 5.5% up. Banks also dominated trade, accounting for 61% of weekly
                                         value traded, mostly in Zenith and Guaranty Trust Bank. In other sectors, Dangote Cement
                                         gained 2.4% for the week on the back of light trading, while Nigerian Breweries and
                                         Ashaka Cement were up 4.0% and 10.1% respectively.

                                         In Kenya this week, equity turnover continued to slide on the back of minimal local
                                         investor participation. After reduced activity in the segment over the past two weeks,
                                         banking stocks dominated trading in the week (led by KCB and Equity Bank). EABL and
                                         Safaricom were the week’s other top traders with the former ending the week 3.7% lower,
                                         following active trading by foreign investors. Safaricom edged up 1.1% on thin volumes.
                                         The NSE 20 share index recorded one of its largest weekly losses, to close the week 3.1%
                                         lower. Standard group was the week’s top gainer up 2.8%. As investors continued to react
                                         to the company’s recent profit warning, Sameer Africa slid 15.4% to lead the list of top
                                         losers. Following the commencement of trading of its rights on Wednesday, KPLC’s
                                         shares slid closing the week 12.6% lower. Trading of the rights closes on 15 December.

                                              Excluding Letshego, activity in Botswana was low across the board, with only
                                              BWP 1.9m worth of shares changing hands on the market during the week. Letshego
                                              (down 2.6% for the week) saw a signification trade of BWP 40m on Wednesday which
                                              meant that it accounted for 97% of total value traded for the week. The DCI spent four
                                              sessions marginally in the red, closing flat only on Thursday and ending the week
                                              0.4% weaker. The index was largely dragged down by the banks as Barclays (-3.4%)
                                              ended in negative territory in all five sessions in the week, and Stanchart (-11.1%)
                                              further extended its 15.8% decline from the previous week. Elsewhere, FNB
                                              Botswana (+2.0%), G4S (+10.7%) and RPC Data (+5.3%) were the only ones to record
                                              gains.
                                              The BRVM composite index shed 0.2% this week. Sonatel, which accounted for 71% of
                                              value traded, was unchanged. Most sectors were flat with the exception of
                                              consumers, which declined 5.3% owing to a 7.5% fall in the price of Nestle CI.

                                                 Ghana,
                                              In Ghana, the GSE ALSI regained part of the loses recorded during the previous week
                                              to end the week under review up 0.78%, closing at 6,990.50 points on the back of price




5 | African Alliance Pan-African Securities Research                                                               03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis


                                              changes in 13 equities comprising seven gainers and six losers. A block trade in Fan
                                              Milk resulted in the company being the most traded equity by value, accounting for
                                              24.5% of the market turnover of GHS 2.41m compared with GHS 3.27m for the
                                              previous week. Fan Milk was the top gainer (+12.6%), while Benso Oil Palm Plantation
                                              emerged the biggest price loser (-12.2%) for the week under review.
                                              The Malawi index closed up 0.05%, pushed up by the gain in NITL (+5.1%), which
                                              accounted for 3% of the week’s activity. FMB Malawi was the most actively traded
                                              stock (67% of total value traded), but closed flat.

                                              Mauritius saw some positive sentiment creep back into the market following the
                                              previous week’s lackluster performance; SEMDEX ALSI rose by 1.0%. Banks and
                                              hotels were mostly responsible for this outcome; MCB and SMB increased 1.3% and
                                              2.3% respectively while NMH (+1.8%) and Sun Resorts (+2.8%) also managed to
                                              reverse their losses from last week. The best performer was Mauritius Leasing
                                              (+10.0%) while the worst performer was Mauritius Stationary (-12.6%). Banks
                                              accounted for 33% of value traded followed by investment trusts at 31%.
                                              The Namibian local index was flat with Namibian Breweries the only share to record
                                              a price change (+0.12%). Namibian Breweries accounted for 42% of value trade out of
                                              a total of NAD 0.63m.

                                              This week the Rwanda OTC market had a total turnover of RWF 1,811,400 from KCB
                                              10,700 shares traded in four transactions between RWF 169 and RWF 174. The share
                                              price of KCB closed RWF 2 lower from the previous week. The NMG counter did not
                                              record any transactions and its share price remained unchanged for the week. KCB
                                              shares closed at RWF 172 and NMG shares closed at RWF 1,200.
                                              There was no trading in Swaziland this week.

                                              The Tanzanian DSE index was flat (+0.04%) for the week. Tanzania Cigarette (+0.9%)
                                              was the only stock to register any price move for the week. Trade was dominated by
                                              CRDB, Tanga Cement and Nicol.
                                              The Tunisian market was mostly unchanged (-0.06%) for the week. However, sector
                                              performance was mixed; investment trusts fell 1.6% while transport gained 3.3%.
                                              Worst performers were Electrostar (-5.7%) and Sotetel (-6.3%) while best performers
                                              were Tunisair (+4.7%) and Sotumag (+3.8%). Banks accounted for 60% of total value
                                              traded.
                                              In Uganda this week, BATU was the top gainer closing at UGX 1,679 having opened
                                              the week UGX 1,250 which was a 34.3% change in just one week. This was due to very
                                              high demand at the maximum price of a given session. On Thursday the market
                                              closed with outstanding demand of over 800,000 BATU shares. Stanbic traded the
                                              biggest volume this week of over UGX 400m which was 53% of the total market
                                              turnover with most shares changing hands at UGX 265 and a few at UGX 270,
                                              indicating a possible price rise from UGX 265 to UGX 270 in the near future.
                                              In Zambia the LuSE index gained 1.9% during the week, on the back of strong gains in
                                              Zambrew (+13.6%), BAT Zambia (+10.0%), BP Zambia (+21.6%) and Copperbelt Energy
                                              (+10.9%). Zanaco declined 5.1% on a single large trade. Zambeef was the most active,
                                              accounting for 71% of weekly value traded.
                                              The Zimbabwe industrial index ticked down steadily over the course of the week, to
                                              close weaker by 1.3%. The decline was largely attributable to declines in building
                                              stocks (Lafarge Zimbabwe down 9.1%) and hotels (-6.1%). Econet dominated trading
                                              activity, accounting for 34% of the week’s trade followed by Innscor at 15%.




6 | African Alliance Pan-African Securities Research                                                             03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis



                                         ECONOMIC INDICATORS
                                         COUNTRY                                       PRIME (%)   CPI (%)            MONTH
                                         Southern Africa
                                         Angola                                            18.00    16.08                 Oct
                                         Botswana                                          11.50      7.20                Oct
                                         Lesotho                                           11.83      3.10                Oct
                                         Malawi                                            17.75      6.70                Oct
                                         Mauritius                                          8.25      2.03                Oct
                                         Namibia                                           11.13      3.20                Oct
                                         Swaziland                                          9.50      4.16                Oct
                                         Zambia                                            21.30      7.10               Nov
                                         Zimbabwe                                                     3.60                Oct
                                         East Africa
                                         Kenya                                             14.38      3.09                Oct
                                         Rwanda                                             6.00     -2.20                Oct
                                         Tanzania                                          14.59      4.20                Oct
                                         Uganda                                            21.95      1.40               Nov
                                         West Africa
                                         BRVM average                                                 1.30               Sep
                                         Ghana                                             13.50      9.38                Oct
                                         Nigeria                                           16.89    13.40                 Oct
                                         North Africa
                                         Egypt                                              9.75    11.00                 Oct
                                         Morocco                                            3.25     -0.80                Oct
                                         Tunisia                                            4.62      4.50                Oct
                                         Source: Central banks, statistical agencies




7 | African Alliance Pan-African Securities Research                                                         03 December 2010
 The Africa Weekly

 Equity research | Pan-Africa | News & Analysis



                                          REGIONAL
                                          Pan-Africa

 Wal-Mart to pay USD 2.3bn for            Wal-Mart made a USD 2.3bn formal bid for control of Massmart, giving the world's largest
          control of Massmart             retailer a substantial presence in South Africa and paving the way for further expansion
                                          across the fast-growing continent. Tieing up with Wal-Mart will help discount retailer
                                          Massmart speed up its expansion in sub-Saharan Africa and its plan to increase its food
                                          retailing business, the South African firm's chief executive said on Monday. (Source:
                                          Reuters)

     03b Networks plans Africa            03b Networks, backed by Google, HSBC Principal Investments and cable operator Liberty
        internet rollout by 2013          Global, will launch high-speed Internet services Africa to tap into one of the world's
                                          potentially fastest growing markets. The company said on Monday it has secured
                                          USD 1.2bn from investors and banks for its satellite project to provide cheap, high-speed
                                          broadband access in 2013. (Source: Reuters)

     Abu Dhabi group plans big            ADS Holding, an Abu Dhabi-based commodities company is planning multi-billion dollar
            Africa investment             investments in African infrastructure with three other firms and is near to closing three
                                          deals shortly, the Financial Times reported on Thursday. (Source: Reuters)

                                          East Africa

Sudan extends vote registration           Sudanese authorities said on Friday they would give southerners an extra week to register
            after huge turnout            for a referendum on the independence of their region, but promised the extension would
                                          not delay the 9 January vote. (Source: Reuters)

      EASSy to double capacity            Chris Wood, CEO of WIOCC and Co-Chair of the EASSy Management Committee, today
                                          announced on behalf of the EASSy submarine fibre-optic cable Management Committee
                                          that the EASSy system will be upgraded in 2011, more than doubling the current available
                                          capacity on the system. The EASSy cable system entered commercial operation in August
                                          this year with an initial maximum capacity of 3.84 Terabits per second. “With landing
                                          points in every coastal country from South Africa to Sudan, as well as landings in
                                          Madagascar and Comores, EASSy provides the most extensive reach on the East African
                                          coast and provides onward global connectivity through multiple interconnect points with
                                          other fibre-optic systems,” the WIOCC said. (Source: MyBroadband)

                                          Southern Africa

   Mozambique sees 2011 GDP               Mozambique's economy should expand by at least 7.2% this year and growth in 2011
              growth at 7.5%              should pick up to 7.5%, a senior central bank official said on Thursday. (Source: Reuters)

   Mozambique eyes int'l bond,            Mozambique is considering a debut international bond issue and is looking at setting up a
                 wealth fund              sovereign wealth fund to conserve expanding mineral wealth, a central bank official said
                                          on Thursday. Mozambique has a domestic bond market with maturities up to five years but
                                          may follow other sub-Saharan African countries in issuing an international bond, Antonio
                                          de Abreu, a board member of the country's central bank told Reuters in an interview.
                                          (Source: Reuters)




 8 | African Alliance Pan-African Securities Research                                                              03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis



                                          EGYPT
                                          Political and economic news

  182-day T-bill avg yield up to          The average yield on Egyptian 182-day Treasury bills rose a little to 9.808% at an auction
                           9.8%           on Sunday from 9.716% at last week's auction, the Central Bank of Egypt said. The central
                                          bank accepted bids worth EGP 2.5bn, the same amount that it was seeking. (Source:
                                          Reuters)

Current account deficit widens            Egypt's current account deficit widened to USD 802.2m in the July-Sept quarter from a
                 to USD 802m              deficit of USD 493.4m in the same quarter a year earlier, the central bank said on
                                          Tuesday. The balance of payments registered a surplus of USD 14.7m versus a surplus of
                                          USD 2.05bn in July-Sept 2009. Direct foreign investment during the quarter fell to
                                          USD 1.60bn from USD 1.73bn. (Source: Reuters)

Ruling party heads to sweeping            Egypt's ruling party won 209 seats of the 508 that were up for grabs in the first round of a
                     win in vote          parliamentary election while opposition parties took just five seats, an Egyptian
                                          newspaper reported on Wednesday. State-owned al-Akhbar cited results announced by
                                          the High Election Commission, confirming that President Hosni Mubarak's National
                                          Democratic Party (NDP) was cruising to a sweeping victory as expected. The opposition
                                          Muslim Brotherhood, which had controlled a fifth of seats in the previous lower house,
                                          earlier said none of its candidates had won seats outright in the first round. (Source:
                                          Reuters)

    Muslim Brotherhood 'quits             Egypt's main opposition movement the Muslim Brotherhood says it is withdrawing its
                    election'             candidates from the election run-off, reports say. The Islamist movement, which is
                                          banned but runs candidates as independents, failed to win a single seat in Sunday's first
                                          round. It claims the election was rigged in favour of President Hosni Mubarak's governing
                                          NDP party. The liberal Wafd opposition party is also said to be quitting the election.
                                          (Source: BBC)

   Egypt rejects US criticism of          Egypt on Wednesday sharply rejected US criticism of the way its parliamentary election
                        election          was conducted, calling it "unacceptable interference" in the country's domestic affairs.
                                          Foreign ministry spokesman Hossam Zaki said US statements on Sunday's poll only
                                          reinforced the view that Washington had adopted "negative and predetermined stances
                                          towards" the election. The US comments "contained clear misconceptions and claims"
                                          and were "an unacceptable interference in the country's domestic affairs," Zaki was
                                          quoted as saying by the official MENA news agency. The White House said Tuesday it was
                                          "disappointed" with how the elections were carried out and described as "worrying" the
                                          reports of numerous irregularities. (Source: ahramonline)

     Gas exports steady in 2010           Egypt's gas exports this year will be unchanged from 2009, as the low prices do not
               amid low prices            encourage further sales, the country's oil minister said on Wednesday. Egypt expects to
                                          export 21bn cubic meters (bcm), the same amount it sold abroad last year, Sameh Fahmy
                                          told reporters during his visit to Doha, capital of Qatar. (Source: Reuters)

                                          Company news

   Maridive says wins contract            Egypt's Maridive and Oil Services said on Monday it won a USD 117m contract to install
             with India' ONGC             offshore oil services for Indian state-run explorer Oil and Natural Gas Corp. The biggest
                                          oil services firm in the Middle East by fleet size said in a statement it would begin
                                          construction on the project in 2011. The project would be completed in the first half of
                                          2012. (Source: Reuters)

                                                                                                                     EGYPT
 9 | African Alliance Pan-African Securities Research                                                                03 December 2010
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   Alcotexa sells 420t cotton in          Egypt's Alexandria Cotton Exporters' Association (Alcotexa) committed to sell 420t of
                     past week            cotton in the week that ended on 27 November, an Alcotexa official told Reuters on
                                          Sunday. The sales comprised 270t of Giza 88 and 150t of Giza 86, the official said. (Source:
                                          Reuters)

     Amer Group shares debut              Trading in shares of Egyptian real estate firm Amer Group will begin on Tuesday after an
            Tuesday after IPO             IPO that was oversubscribed 5.8 times, Egypt's stock exchange said on Sunday. The firm
                                          priced shares sold in the initial public offering (IPO) at EGP 2.8 each, its advisor Beltone
                                          Financial said last week, valuing the company at EGP 5.7bn. (Source: Reuters)

   Citadel Capital 3Q10 net loss          Egypt's Citadel Capital on Monday said consolidated third quarter net loss after taxes
                            dips          narrowed to EGP 29.6m from EGP 94.8m in the second quarter. The Cairo-based private
                                          equity firm did not give a comparison figure for third quarter 2009 in its press release. It
                                          said its net assets under management rose to USD 4bn. The company invests mainly in
                                          the Middle East and East Africa. Citadel Capital said it will focus on improving the
                                          management of the companies it controls after it narrowed its losses in the third quarter.
                                          The Cairo-based firm controls 19 platform companies that in turn own stakes in other
                                          companies. (Source: Reuters)

SODIC studying USD 173m bond              Egyptian real estate firm SODIC is considering issuing EGP 1bn worth of bonds to help
                       issue              fund work on its main projects near Cairo, a newspaper reported on Tuesday. An executive
                                          confirmed the company was studying a bond issue, but said it had not taken a final
                                          decision. (Source: Reuters)

EFG-Hermes 3Q10 consolidated              Egyptian investment bank EFG-Hermes reported a 42% fall in third-quarter net income
        net income down 42%               and said it was working on a plan for USD 10m annual savings after its recent acquisition
                                          of a Lebanese bank. EFG-Hermes, which expanded into commercial banking when it
                                          bought a controlling interest in Credit Libanais in November, said on Tuesday it was
                                          finalising a corporate regorganisation to streamline business. (Source: Reuters)

   Egypt to amend law to solve            Egypt's government said on Tuesday it would seek to amend a public auctions law to
             TMG land dispute             resolve a legal wrangle that has threatened the country's biggest listed property
                                          developer's flagship project and rattled investors. The government had said it planned to
                                          change the laws to end ambiguity about land sales after parliamentary elections due to
                                          conclude on 5 December which were expected to hand the ruling National Democratic
                                          Party a crushing victory. The dispute centers upon the 2005 sale of public land to Talaat
                                          Moustafa Group (TMG) for its USD 3bn Madinaty residential and commercial project on
                                          Cairo's outskirts. (Source: Reuters)

    Ezz Steel posts 3Q10 profit,          Egypt's Ezz Steel said on Wednesday it posted a 3Q10 net profit, reversing a loss in the
                beats forecasts           same quarter a year ago and forecast that growing steel demand would push prices
                                          higher in 2011. Egypt's largest steelmaker 3Q10 a net profit was EGP 1.65m - beating
                                          analyst forecasts - compared with a loss of EGP 67m in the same quarter a year earlier.
                                          (Source: Reuters)

 Newly listed Amer nine-month             Newly listed Egyptian real estate company Amer Group said on Thursday nine-month net
              net profit up 7.5%          profit rose 7.5% to EGP 422m. Shares in the property conglomerate, which sells holiday
                                          homes on Egypt's coasts and elsewhere, began trading on the stock exchange on Tuesday
                                          following a heavily oversubscribed initial public offering (IPO). (Source: Reuters)




                                                                                                                     EGYPT
 10 | African Alliance Pan-African Securities Research                                                               03 December 2010
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                                         Market activity

                                            Egypt,
                                         In Egypt the EGX30 index shed 2.2% this week driven by poor performances in the
                                         building (-4.5%) and property (-2.9%) sectors, and industrials (-2.8%). Banks and
                                         consumers were the only sectors to report gains at 1.5% and 1.2% respectively. Amongst
                                         banks, Egyptian Abroad Investments (+9.4%) and National Societe (+7.3%) were the best
                                         performers. Orascom Construction fell 4.6% while Orascom Telecom declined 4.8%. The
                                         worst performing share was Helio Housings, which slid 35%. Banks accounted for 32% of
                                         value traded followed by Telecos at 23%.

                                         Egyptian Stock Exchange
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)                  % CHG     PRICE
                                         Al Baraka Bank                      15.6      9.46   Heliopolis Housing             -35.0     22.27
                                         National    Development              7.2      5.18   EL Shams Housing               -13.4      5.41
                                         Delta Sugar                          6.5     19.83   Orascom Telecom                 -4.8      4.20


                                         TOP TRADER                   EGP (M)       USD (M)   TOTAL TRADED                 EGP (M)   USD (M)
                                         Orascom Telecom                397.6          68.8   EGX 30                       2,873.5     497.1


                                         MARKET PERFORMANCE            LEVEL        EGP (%)                   USD (%) EGP/USD         % CHG
                                         EGX 30 (EGP)                   6,690         -2.16                        -2.36      5.79     -0.20
                                         Source: African Alliance database




                                                                                                                           EGYPT
11 | African Alliance Pan-African Securities Research                                                                      03 December 2010
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                                         NIGERIA
                                         Political and economic news

  Nigeria raises less from bill          Nigeria sold NGN 78.85bn in treasury bills at its latest auction, the central bank said on
            sale than planned            Friday, as it works to control money supply in the face of double-digit inflation. It sold
                                         NGN 30.53bn at 10.24% in 364-day treasury bonds, NGN 30.66bn at 9.75% in 182-day
                                         papers and NGN 17.65bn at 7.75% in the 91-day instruments at the auction on Thursday.
                                         The amount sold was less than the NGN 125bn initially advertised. (Source: Reuters)

  Amcon to sell USD 16.6bn of            The state-owned Asset Management Corp. of Nigeria, or Amcon, said it plans to sell
     bonds to fund purchase              NGN 2.5trn (USD 16.6bn) of three-year, zero-coupon bonds to finance the purchase of
                                         toxic debts from banks. The first tranche of the bonds will be sold by 31 Dec, the
                                         company’s managing director, Mustafa Chike-Obi, said in an interview in the commercial
                                         capital, Lagos, today. Most of the bonds will be sold by the end of March next year, he said.
                                         (Source: Bloomberg)

  Interbank rates fall on fresh          Nigerian interbank lending rates fell to 5.83% on average this week from 8.08% last week
                   cash inflow           after fresh cash inflows from government agencies raised liquidity in the system, traders
                                         said on Friday. (Source: Reuters)

     Regulator cautions banks            The regulator warned in a circular it would sanction any lender breaching rules that only
                                         forex acquired at the interbank market can be used to fund unconfirmed letters of credit.
                                         Those in breach could face suspension from the foreign exchange market or a fine, the
                                         central bank said. (Source: Reuters)

 Nigeria pays over USD 2bn in            Nigeria's state oil company has paid USD 2-2.5bn of fuel import debts but suppliers still
    fuel debts, delays remain            face up to seven months beyond normal credit terms to receive other outstanding
                                         payments, trade sources told Reuters. The state-owned oil company NNPC owed between
                                         USD 3-USD 6bn in fuel debts in September when the payment backlog stretched over 300
                                         days, or 10 months, trade sources said. (Source: Reuters)

 2009/10 cocoa exports rise to           Cocoa exports from Nigeria, the world's number four exporter, climbed 31% to 215,135t in
                    215,135t             the 2009/10 season from 164,230t the previous year, Federal Produce Inspection Service
                                         (FPIS) data showed on Tuesday. However, bean shipments for September, the final month
                                         of Nigeria's cocoa season, fell by 47% to 4,189t from 7,882t in the same month of the
                                         2008/09 season, the FPIS data showed. (Source: Reuters)

 Nigeria scraps ban on textile,          The Nigerian government said it would abolish import bans on goods including textiles
             furniture imports           and furniture, a decision that could help attract retailers to one of the world's largest
                                         untapped consumer markets. Finance Minister Olusegun Aganga said the bans,
                                         particularly on finished textiles, were meant to protect domestic industry but had
                                         encouraged corruption and hindered growth in the retail sector in Africa's most populous
                                         country. In an annual briefing on sub-Saharan Africa's second-biggest economy, he said
                                         import tariffs would be imposed instead. (Source: Reuters)

                                         Company news

  Flour Mills of Nigeria opens           Flour Mills of Nigeria opened its order book on Monday for the first series of a NGN 70bn
    books for USD 460m bond              debt issue, the first company outside the banking sector to launch a bond in recent years.
                                         Book building for the five-year, fixed-rate unsecured bonds, runs until 2 December.
                                         Nigeria's biggest flour and pasta maker said it would use the proceeds for refinancing
                                         existing loans and funding new ventures in its foods business. (Source: Reuters)

                                                                                                                   NIGERIA
12 | African Alliance Pan-African Securities Research                                                               03 December 2010
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      Nigeria summons Shell,             Nigeria's anti-corruption police said on Tuesday they wanted to interview the country
       Halliburton executives            heads of Shell and U.S. oil services firm Halliburton as part of investigations into two
                                         separate bribery cases. The Economic and Financial Crimes Commission (EFCC) briefly
                                         detained 10 Halliburton staff for questioning last week in relation to a USD 180m bribery
                                         case involving the U.S. firm's former unit KBR. The companies split in 2007 and
                                         Halliburton has said it is not connected with the case. The Shell executive had been invited
                                         for questioning in relation to a separate USD 240m case settled by the oil major and the
                                         Swiss logistics firm Panalpina in the United States earlier this month, officials said.
                                         (Source: Reuters)

  Starcomms says nine month              Nigerian telecoms firm Starcomms said on Tuesday its nine month pre-tax loss had
         pre-tax loss widens             widened fractionally to NGN 4.85bn from NGN 4.80bn a year ago. Turnover fell to
                                         NGN 23.96bn from NGN 25.62bn, Nigeria's largest CDMA provider said in a filing to the
                                         Nigerian Stock Exchange. (Source: Reuters)

FCMB bank gets USD 70 m IFC              The private sector arm of the World Bank has said it will provide USD 70m of funding for
                       loan              Nigeria's First City Monument Bank and help it finance the potential acquisition of a
                                         distressed rival. The International Finance Corporation (IFC) said the funding would
                                         consist of a USD 50m long-term senior loan and a USD 20m convertible loan to support
                                         FCMB's growth and help it lend to small and medium-sized businesses. It said it had also
                                         signed an agreement with the Nigerian bank outlining areas for future partnership.
                                         (Source: Reuters)

Etisalat Nigeria buys local firm         The Nigerian arm of UAE-based Etisalat said on Thursday it had bought a local telecoms
                with 3G licence          firm with a 3G licence to help it develop its data and broadband services and compete with
                                         other GSM operators.Nigeria is one of the world's fastest growing mobile markets, and
                                         Etisalat faces stiff competition from South Africa's MTN Group, India's Bharti Airtel and
                                         local rival Globacom, all of which already operate 3G services. (Source: Reuters)

    Bharti’s Nigerian unit cuts          Bharti Airtel Ltd.’s Nigerian unit cut its mobile-phone call rate by 50% in a bid to attract
   mobile-phone call rate 50%            customers from rivals six months after entering Africa’s biggest telecommunications
                                         market. The move is in line with the company’s policy to reduce costs for customers,
                                         Rajan Swaroop, chief executive officer of Airtel Nigeria, said in an e-mailed statement late
                                         yesterday. The rate was cut to NGN 12 (USD 0.08) a minute from NGN 24, according to
                                         information on its website. (Source: Bloomberg)

                                         Market activity

                                         The Nigerian market gained 1.7% this week. All sectors with the exception of industrials
                                         were positive. Failed banks continued to post strong gains, primarily Interconti (+9.5%),
                                         Bank PHB (+10.1%) and Oceanic (+10.4%). Amongst the healthy banks, Access was the
                                         best performer at 5.5% up. Banks also dominated trade, accounting for 61% of weekly
                                         value traded, mostly in Zenith and Guaranty Trust Bank. In other sectors, Dangote Cement
                                         gained 2.4% for the week on the back of light trading, while Nigerian Breweries and
                                         Ashaka Cement were up 4.0% and 10.1% respectively.




                                                                                                                  NIGERIA
13 | African Alliance Pan-African Securities Research                                                               03 December 2010
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                                         Nigerian Stock Exchange
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)                   % CHG      PRICE
                                         Oceanic Bank Intl                   10.4      2.66   Honeywell Flour Mills             -9.6      4.79
                                         Ashaka Cement                       10.1     26.10   UACN                              -6.2     38.00
                                         Bank PHB                            10.1      1.97   Mobil Oil Nig                     -5.0    144.88


                                         TOP TRADER                  NGN (M)        USD (M)   TOTAL TRADED                  NGN (M)    USD (M)
                                         Guaranty Trust Bank           1,444.3         9.58   NIGSE                          9,642.1      63.9


                                         MARKET PERFORMANCE            LEVEL        NGN (%)                    USD (%) NGN/USD          % CHG
                                         NIGSE (NGN)                   24,942           1.7                           1.3    151.07      -0.36
                                         Source: African Alliance database




                                                                                                                            NIGERIA
14 | African Alliance Pan-African Securities Research                                                                        03 December 2010
 The Africa Weekly

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                                          TUNISIA
                                          Political and economic news

GDP growth forecasted at 5.4%             Tunisia aims to achieve 5.4% economic growth in 2011, up from a projected 3.7% in 2010,
                      in 2011             restoring growth to levels before the global financial crisis, its prime minister said on
                                          Saturday. (Source: Reuters)

          State budget for 2011           The draft State budget for 2011 will be implemented in concomitance with the
                                          achievement of objectives of the 12th Development Plan (2010-2014). The amount of
                                          resources of the general State budget for 2011 was set at TND 19,192m, a rise of
                                          TND 920m (+5%), compared to the updated results for 2010. Budget resources are
                                          essentially generated by own resources at TND 15,240m, i.e. 80.3% and loan resources
                                          estimated at TND 3,772m, i.e. 19.7%. (Source: Tap Info)

    STEG wins USD 70m power               State-run Tunisian Electricity and Gas Company (STEG) has won a TND 100m contract to
               deal in Rwanda             connect 50,000 households to Rwanda's power grid, its chairman said on Friday. STEG will
                                          build in early 2011 the electricity network for 50,000 households in Rwanda's eastern
                                          area, Othman Ben Arfa said at a press conference. (Source: Reuters)

 New measures to regulate the             The structures responsible for the poultry industry have recently taken measures to
              poultry market              regulate the market which is experiencing, during this period, lower producer prices, and
                                          an increase of world prices of feed for poultry farming inputs. The costs of slaughter will
                                          increase from TND 0.350 to TND 0.487 per kilogram while the costs of storage will go
                                          from TND 0.05 to TND 0.056 per kilogram. (Source: Tap Info)

    Trade between Tunisia and             On the ocacsion of TunisMed Franchise 2010, Mr.Mustafa Aydin, President of the Turkish
    Turkey reaches USD 647m               Association Franchise said that the amount of the trade between Tunisia and Turkey
                                          reached USD 647m in 2010 against USD 220m in 2003. This increase is mainly due to the
                                          free trade agreement signed in 2005 between the two countries. (Source: Businessnews)

  2010 production of phosphate            Phosphate production will rise to 8.1mt in 2010 against 7.2mt in 2009 according to a
            increases of 12.5%            statement reported by Mr Afif Chelbi, Minister of Industry and Technology in the
                                          parliamentary debate on 1 December. He also announced that industrial exports will
                                          increase by 20% in 2010 compared to 2009 to reach TND 19bn. (Source:
                                          webmanagercenter)

                                          Company news

        Orange Tunisia invest             According to the North Africa Telecommunications 4Q10 Report, Orange Tunisia will
  USD 689m for its 3G network             invest TND 689m by 2015 for the development of its 3G network. This report contains
                                          forecasts for growth over five years for the markets for fixed and mobile telephony and
                                          internet subscriptions in the following countries: Algeria, Libya, Morocco and Tunisia. The
                                          operator expects to achieve network coverage ratio of 98% of the population by the end of
                                          2011. (Source: Businessnews)

 Orascom Telecom deal will be             The transaction for the redemption of 50% of Orascom Telecom Tunisia (Tunisiana) will
        finalized on 2 January            take place on 2 January 2011, said Orascom Telecom Holding, which owns those 50%,
                                          assigned to the consortium of Qatari operator Qtel and Tunisian Zaytouna Telecom.
                                          (Source: Businessnews)

      Net profit of the Tunisian          The revenues of Tunisian Navigation Company fell by 11% between 2008 and 2009 from
Navigation Company drops 85%              TND 279m to TND 249m. Meanwhile, operating expenses were compressed and reduced

                                                                                                                   TUNISIA
 15 | African Alliance Pan-African Securities Research                                                              03 December 2010
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                                         by 5% from TND 273m to TND 260m. CTN net income comes out positive, but falls by 85%
                                         from TND 16m to TND 2.5m. (Source: Businessnews)

         Marriott Group makes            During his recent work visit to Morocco, Mr. Slim Tlatli, Tourism Minister held a working
                     comeback            session with Mr. Jean Marc Grosfort, CEO of American hotels Group Marriott for the
                                         Maghreb and Middle East region. He said that Marriott will set up in Tunisia as of January
                                         2011 and that in addition to Tunis and its suburbs, the group is planning to invest in other
                                         regions, including on the island Of Djerba. (Source: Tunisiaonlinenews)

Air Liquide Tunisia doubles its          Air Liquide Tunisia announced, on Wednesday, the start of a new unit for the production of
           production capacity           oxygen and liquid nitrogen, housed in the industrial area of Borj Cédria, south of Tunis,
                                         where Air Liquide is already operating a unit of separation of air gases from oxygen and
                                         liquid nitrogen, along with other production units of CO2, nitrous oxide and hydrogen. The
                                         new unit, with a production capacity of approximately 70t per day, has doubled production
                                         capacity at the site. (Source: African Manager)

                                         Market activity

                                         The Tunisian market was mostly unchanged (-0.06%) for the week. However, sector
                                         performance was mixed; investment trusts fell 1.6% while transport gained 3.3%. Worst
                                         performers were Electrostar (-5.7%) and Sotetel (-6.3%) while best performers were
                                         Tunisair (+4.7%) and Sotumag (+3.8%). Banks accounted for 60% of total value traded.

                                         Tunis Stock Exchange
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)              % CHG     PRICE
                                         Tunisair                             4.7      2.25   SOTETEL                     -6.3     19.03
                                         Air Liquide                          2.4    296.98   SOTUVER                     -5.4      8.45
                                         STAR                                 2.2    182.00   Tunisie Lait                -4.9      4.85


                                         TOP TRADER                   TND (M)       USD (M)   TOTAL TRADED             TND (M)   USD (M)
                                         Amen Bank                           7.88      5.47   TUNIS Index                 32.0      22.2


                                         MARKET PERFORMANCE            LEVEL        TND (%)                  USD (%) TND/USD      % CHG
                                         TUNIS Index (TND)              5,266         -0.06                    -1.01      1.45     -0.95
                                         Source: African Alliance database




                                                                                                                       TUNISIA
16 | African Alliance Pan-African Securities Research                                                                   03 December 2010
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 Equity research | Pan-Africa | News & Analysis



                                          KENYA
                                          Political and economic news

Government to begin regulating            Oil marketers face new changes under the new government pricing schedule for
                   oil markets            petroleum products to be published this week. The schedule will put a ceiling on the
                                          mark-up that petroleum companies can load on each fuel product. This measure is likely
                                          to bring out efficiency among oil companies, but down-plays the supply chain slip-ups
                                          through the government-run infrastructure and high taxes— key factors behind the
                                          disconnect between international oil prices and domestic prices. Details of the pricing
                                          structure contain maximum wholesale and retail pump prices. The Petroleum Price
                                          Regulations 2010 also factor in the average weighted cost, pipeline and processing tariffs,
                                          estimated losses from the refinery and during transportation, storage charges and taxes
                                          upon delivery at a Nairobi storage-facility. The regulator proposes that marketers make a
                                          margin of KES 6 per litre at the wholesale level and KES 3 at retail outlets. Energy
                                          permanent secretary said that the regulations would be published on (Friday) 3 December
                                          2010. According to the Energy Regulatory Commission, the maximum prices for
                                          November are KES 95 for petrol, KES 77 for kerosene and KES 88 for diesel. The costing is
                                          based on October’s international crude oil prices at USD 81.5 per barrel (159 litres) and
                                          the average landed cost for petrol at USD 812 per tonne and diesel at USD 731 a tonne.
                                          (Sources: Business Daily; African Alliance Research)

          5-year Treasury Bond            The Central Bank of Kenya had offered a 5-year Treasury bond for a total amount of up to
         oversubscribed by 51%            KES 12bn. The bond was oversubscribed by 51%. Total number of bids received amounted
                                          to KES 18.2bn. The market determined coupon rate was 6.671% with the cutoff rate at
                                          7.09%. The highest bid rate was 10.74% and the lowest was 4.75%. Bids accepted
                                          amounted to KES 12bn. (Source: Central Bank of Kenya)

                                          Company news

   Tea growers record doubled             Tea growers Williamson Tea Ltd and Kapchorua Tea Ltd more than doubled their profits in
              first-half profits          1H11 on the back of good weather and higher deliveries by smallholder growers,
                                          according to the firms. Williamson Tea’s PAT moved to KES 442m (+109.5%), while
                                          Kapchorua’s profits rose 105% to KES 131.78m. The good profits are attributable to the
                                          weather which has been favourable and their continued partnership with smallholders
                                          which continues to flourish with increased deliveries of green leaf to the factories.
                                          Earnings per share jumped to KES 50.50 (+100%) for Williamson Tea. Kapchorua's EPS
                                          also more than doubled to KES 23.58 from KES 11.45 previously. Kenya is the global
                                          leader in black tea exports and has been enjoying good weather for growing tea this year,
                                          and expects to produce more than 350m kg of the leaf. (Source: Reuters)

                                          Williamson Tea Ltd
                                          6M TO SEPTEMBER KES 000                            1H11             1H10              % CHG
                                          Turnover                                      1,513,183        1,000,548              51.2%
                                          Profit from Operations                          595,205          290,979             104.6%
                                          Profit/(loss) before tax                        652,772          312,890             108.6%
                                          Taxation                                      (195,990)          (93,667)            109.2%
                                          Profit/(loss) after tax                         442,169          211,768             108.8%
                                          Source: Company report




                                                                                                                      KENYA
 17 | African Alliance Pan-African Securities Research                                                                03 December 2010
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                                          Kapchorua Tea Ltd
                                          6M TO SEPTEMBER KES 000                                       1H11            1H10                 % CHG
                                          Turnover                                                   603,952         427,820                 41.2%
                                          Profit from Operations                                     121,923           68,405                78.2%
                                          Profit/(loss) before tax                                   131,777           63,982                 106%
                                          Taxation                                                   (39,533)        (19,195)                 106%
                                          Profit/(loss) after tax                                      92,224          44,788                 106%
                                          Source: Company report

Essar acquires full control of Yu         Shareholder structure in Kenya’s fourth mobile telecoms operator Essar is set to change.
                                          Local shareholders that Essar has retained in its books for the past three years to comply
                                          with telecoms company ownership rules are selling their stake to the Indian firm having
                                          failed to contribute to ongoing recapitalisation of the company. Essar Kenya is using
                                          commercial law firm Anjarwalla and Khanna to buy out the Kenyan shareholders, who
                                          have a 20% stake in it. If successful, the deal should leave India’s Essar and the law firm
                                          Anjarwalla and Khanna as the only shareholders in the company. Essar is also known to
                                          be hunting for a strategic investor with the ability to pump in money to execute its
                                          expansion plan. Safaricom, Airtel and Orange have announced plans to expand or upgrade
                                          their networks. (Source: Business Daily)

                                          Market activity

                                          In Kenya this week, equity turnover continued to slide on the back of minimal local
                                          investor participation. After reduced activity in the segment over the past two weeks,
                                          banking stocks dominated trading in the week (led by KCB and Equity Bank). EABL and
                                          Safaricom were the week’s other top traders with the former ending the week 3.7% lower,
                                          following active trading by foreign investors. Safaricom edged up 1.1% on thin volumes.
                                          The NSE 20 share index recorded one of its largest weekly losses, to close the week 3.1%
                                          lower. Standard group was the week’s top gainer up 2.8%. As investors continued to react
                                          to the company’s recent profit warning, Sameer Africa slid 15.4% to lead the list of top
                                          losers. Following the commencement of trading of its rights on Wednesday, KPLC’s
                                          shares slid closing the week 12.6% lower. Trading of the rights closes on 15 December.

                                          Nairobi Stock Exchange
                                          TOP GAINER(S)              % CHG          PRICE           TOP LOSER(S)         % CHG            PRICE
                                          Car & General                       4.2       50.00       Sameer                       -15.4         5.75
                                          Standard Group                      2.8       45.25       KPLC                         -12.6        24.25
                                          Access Kenya                        2.6       16.05       EA Cables                      -9.4       15.50


                                          TOP TRADER                   KES (M)        USD (M)       TOTAL TRADED             KES (M)        USD (M)
                                          EABL                           256.5              3.19    NSE 20                      1,651.8           20.6


                                          MARKET PERFORMANCE            LEVEL         KES (%)                      USD (%) KES/USD           % CHG
                                          NSE 20 (KES)                   4,388              -3.09                    -2.93       80.27            0.16
                                          Source: African Alliance database




                                                                                                                                KENYA
 18 | African Alliance Pan-African Securities Research                                                                          03 December 2010
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                                          MOROCCO
                                          Political and economic news

      Morocco budget in red as            Morocco’s government budget ran a deficit close to MAD 20 bn (USD 2.4bn) over the first
              subsidies surge             nine months of 2010. That equates to just under 2.7% of the GDP and compares to a
                                          surplus of MAD 6.7bn in 2009 according to Bank al-Maghrib. The finance ministry has
                                          forecast a deficit of 4% of GDP for this year. Spending stood at MAD 165.5bn by end
                                          September, 17.4% above its level a year earlier and above the MAD 162.3bn initially
                                          budgeted for 2010. The y/y rise stemmed mainly from subsidies which increased to
                                          MAD 20bn from MAD 8.2bn. While the subsidies system makes several goods including
                                          fuel, cooking gas, wheat flour, sugar and edible oil affordable for a population of close to
                                          31m, analysts say it could be enhanced by making sure it benefits those who need it most.
                                          (Source: Reuters)

Airport body to issue USD 238m            Morocco's airports authority plans to raise MAD 2bn (USD 238m) from the sale of a 10-
                          bond            year bond in December 2010 to help finance the upgrade and expansion of the kingdom's
                                          airports infrastructure. Office National des Aeroports (ONDA) is offering a 5.38% coupon
                                          on the bond. Only Moroccan institutional investors are allowed to buy into the bond, for
                                          which subscription will close on 6 December 2010. This will be ONDA's first ever bond
                                          issue. The coupon includes a 120bps spread over a 4.18% rate for 10-year Moroccan
                                          treasury bills. ONDA plans to invest MAD 6.8bn over the 2010-2012 period to mainly
                                          upgrade the first terminal of the kingdom's main hub Casablanca airport and raise the
                                          passenger handling capacity at Fes, Marrakesh, Oujda and Rabat airports. (Source:
                                          Reuters)

       Gulf SWFs back Morocco             Three Gulf Arab sovereign wealth funds and UAE-based property developer, Al Maabar,
                  tourism fund            have raised MAD 15bn for a tourism fund that aims to put Morrocco among the world's top
                                          20 destinations. According to state-controlled Moroccan Touristic Engineering Company’s
                                          (SMIT) head, the four investors are: Bahrain's Mumtalakat, the Kuwaiti Investment
                                          Authority (KIA), Qatar Investment Authority (QIA) and Al Maabar of the United Arab
                                          Emirates. The contribution of the four partners is at least MAD 15bn and they are
                                          committed to support Morocco for the next 10 years. The fund aims to attract MAD 100bn
                                          in investment. The fund will finance resort developments in Morocco that aim to more
                                          than double tourism receipts to MAD 150bn by 2020. The tourism minister told reporters
                                          that the Moroccan government would contribute MAD 15bn to the new fund, adding that
                                          Moroccan authorities could consider bond issues to raise another MAD 70 bn. Morocco
                                          sold a 10-year EUR 1bn bond in September which was very successful and after the issue,
                                          (which was Morocco's biggest ever), the finance minister said that the country would issue
                                          Eurobonds more frequently. (Source: Reuters)

                                          Company news

        OCP to launch USD 7bn             Moroccan phosphate group: Office Chérifien des phosphates (OCP), has announced the
             expansion project            launch of a major investment program to expand its production of Diammonium
                                          Phosphate (DAP) and Monoammonium Phosphate (ADP). This program will involve the
                                          construction of four identical new production (DAP and ADP) plants, each with a capacity
                                          of 1mtpa. This significant expansion will increase Morocco's capacity to produce DAP/ADP
                                          from the current 3mtpa to more than 9mtpa, making Morocco large supplier of phosphate
                                          rock, phosphoric acid and DAP/ADP. This new investment is part of a broader and ongoing
                                          investment program, totalling USD 7bn over seven years, the group underlined. (Source:
                                          Agence Maghreb Arabe Presse)



                                                                                                                  MOROCCO
 19 | African Alliance Pan-African Securities Research                                                               03 December 2010
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                                         Market activity

                                         The Moroccan market closed 1.4% up this week, on the back of increases in banks (3.1%),
                                         telecoms (1.1%), and agri stocks (3.7%). Attijariwafa (+7.0%), MMCI (+1.1%) and Salafin
                                         (+3.4%) were the best performing banking shares. Central Laitiere (+5.9%) was the best
                                         performing agri share. Maroc Telecom closed the week up 1.1% for the week, accounting
                                         for 11% of weekly value traded. Banks accounted for 45% of value traded followed by
                                         building stock at 24%.

                                         Casablanca Stock Exchange
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)              % CHG     PRICE
                                         Lesieur Cristal                     13.9     1,469   RISMA                       -6.6    266.05
                                         Attijariwafa Bank                    7.1    360.00   Atlanta                     -4.4     79.84
                                         Managem                              6.5    619.00   SMI                         -3.1     1,755


                                         TOP TRADER                  MAD (M)        USD (M)   TOTAL TRADED             MAD (M)   USD (M)
                                         Attijariwafa Bank              298.5          35.5   MASI                       823.4      98.0


                                         MARKET PERFORMANCE            LEVEL        MAD (%)                  USD (%) MAD/USD      % CHG
                                         MASI (MAD)                    12,361           1.4                     0.49      8.44     -0.94
                                         Source: African Alliance database




                                                                                                                       MOROCCO
20 | African Alliance Pan-African Securities Research                                                                   03 December 2010
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                                         MAURITIUS
                                         Political and economic news

     Nine months trade deficit           According to official data, trade deficit in Mauritius widened by a quarter in the nine
           widens on imports             months to September 2010. This was on the back of an increased imports bill. The Central
                                         Statistics office said the deficit grew by 25% to MUR 47bn against the same period last
                                         year. Exports rose by 8.8% to MUR 49.1bn while imports were up 16.1% at MUR 96.1bn.
                                         Based on trends for previous years and actual data for 2010 till September, total exports
                                         for the year 2010 are expected to be of the order of MUR 66.5bn against imports of
                                         MUR 136bn. The trade deficit would therefore be around MUR 69.5bn. Britain was the
                                         main buyer of goods from Mauritius, accounting for 22% of exports, while India supplied
                                         22% of the island's imports. (Source: Reuters)

 Manufacturing to grow 2% in             According to the Industry Minister Showkutally Soodhun, Mauritius' manufacturing sector
                        2010             is expected to grow by 2% this year but it must seek new markets beyond the euro zone to
                                         protect itself better from external shocks. A more fragile recovery than expected in the
                                         euro zone and Britain, Mauritius's main export markets, has crimped growth on the
                                         island, although the economy is still expected to expand by around 4.1% this year. Despite
                                         the crisis, the manufacturing sector registered a positive growth rate of 1.1% in 2009. The
                                         manufacturing sector includes textiles, once an economic pillar and still a major
                                         employer, as well as other industries such as seafood canning and jewellery. Overall,
                                         manufacturing accounts for some 19% of gross domestic product. (Source: Reuters)

 Export sector reaches record            Despite the turbulent economic climate, Mauritius exports raked in a record MUR 39bn in
            MUR 39bn in 2010             2010. This statement was made by Minister of Industry Showkutally Soodhun at the
                                         opening of the annual global United Nations Industrial Development Organization (UNIDO)
                                         at the Maritim Hotel, last Monday. Exports in 2008 declined to MUR 35bn as compared to
                                         MUR 37.8bn in 2007 but grew in 2009 to reach MUR 36bn. In 2010, a 10% increase is
                                         expected in the export sector and will help to make employment permanent.

                                         The minister also spoke about export-oriented enterprises and said that for more than
                                         four decades companies have developed and successfully resisted the various economic
                                         crises and external shocks. Those enterprises successfully developed an edge in difficult
                                         export markets, built their competitiveness in quality, competitive prices and export time.
                                         However, he said the industrial sector had to take the step to the next level of
                                         development. The country faced decades where the lack of skilled workers was deeply felt
                                         including a high cost of labour. To counter these effects on the sector, Soodhun said the
                                         government is focusing on a business model based on technology and market
                                         diversification. Thus, a strategic plan for the industrial sector for 2010 – 2013 requires
                                         concrete steps to facilitate the transition to an industrial sector based on knowledge and a
                                         number of initiatives in that direction. The new strategy will allow a maximum number of
                                         enterprises, including small and medium ones, to have the opportunity to meet foreign
                                         buyers and communicate directly with them. (Source: The Independent Daily)

      MUR 27 bn MID projects             The Maurice Ile Durable (MID) project remains an important issue for the government. In
                     take off            the 2011 budget, the government has provided MUR 27bn to fund several MID projects.
                                         Moreover, MUR 3bn has already been planned for 2011 for solid waste management,
                                         sewage and drainage systems. Some 65,000 people will benefit from these projects and
                                         the government will invest MUR 1.3bn in 2011 for wastewater services. Three major
                                         projects in the area of Grand Bay, the west coast and Guibies will soon be underway. For
                                         buildings that are considered to be the largest consumers of energy, the government will
                                         develop from April 2011, a national policy, guidelines and a rating system for sustainable


                                                                                                                MAURITIUS
21 | African Alliance Pan-African Securities Research                                                               03 December 2010
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                                         buildings and construction. A total of MUR 30m has been earmarked for the development
                                         of three eco-villages. Moreover, the government wants to promote the production of paper
                                         bags, which is more suitable for the environment. (Source: The Independent Daily)

                                         Market activity

                                         Mauritius saw some positive sentiment creep back into the market following the previous
                                         week’s lackluster performance; SEMDEX ALSI rose by 1.0%. Banks and hotels were
                                         mostly responsible for this outcome; MCB and SMB increased 1.3% and 2.3% respectively
                                         while NMH (+1.8%) and Sun Resorts (+2.8%) also managed to reverse their losses from
                                         last week. The best performer was Mauritius Leasing (+10.0%) while the worst performer
                                         was Mauritius Stationary (-12.6%). Banks accounted for 33% of value traded followed by
                                         investment trusts at 31%.

                                         Stock Exchange of Mauritius
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)                    % CHG     PRICE
                                         Mauritius Leasing                   10.0      4.95   Mauritius Stationery             -12.6     17.40
                                         United Docks                         7.1    120.00   Automatics Systems                -4.0    120.00
                                         Caudan Development                   5.4      1.95   Mauritius Oil Refineries          -3.2     27.10


                                         TOP TRADER                  MUR (M)        USD (M)   TOTAL TRADED                   MUR (M)   USD (M)
                                         MCB                                 33.9      1.11   MAUR                             173.1      5.68


                                         MARKET PERFORMANCE            LEVEL        MUR (%)                     USD (%) MUR/USD         % CHG
                                         MAUR (MUR)                     1,924           1.0                          -0.68     30.75     -1.68
                                         Source: African Alliance database




                                                                                                                             MAURITIUS
22 | African Alliance Pan-African Securities Research                                                                         03 December 2010
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                                          ZIMBABWE
                                          Political and economic news

      “Why not indict Bush and            Zimbabwean President Robert Mugabe on Tuesday asked why the International Criminal
                        Blair?”           Court (ICC) is not indicting Tony Blair and George W. Bush for war crimes instead of
                                          prosecuting Sudan's leader. Mugabe, speaking at a joint summit of the European Union
                                          and African states, said the ICC was applying a double standard by indicting Sudanese
                                          President Omar Hassan al-Bashir on charges of war crimes and genocide. (Source:
                                          Reuters)

  WikiLeaks document reveals              Mugabe (Pictured) is ruthless, obsessive and deeply ignorant about economics; Morgan
         US view of Zimbabwe              Tsvangirai is indecisive; Arthur Mutambara is a lightweight. These are just some of the
                                          sentiments of the former US ambassador to Zimbabwe, Christopher Dell, revealed this
                                          week by WikiLeaks. An analysis of the Zimbabwean situation, entitled The end is nigh and
                                          written by Christopher Dell as he was leaving his post in July 2007, is among the 250,000-
                                          plus confidential and secret documents gradually being released by Wikileaks. (Source:
                                          The Zimbabwean)

      2011 budget angers labor            Zimbabwe’s largest labor movement, economic empowerment advocates and civil
                       groups             servants have reacted angrily to Finance Minister Tendai Biti’s 2011 budget saying it does
                                          not meet their expectations. Chibhebhe said the majority of workers are next year
                                          expected to be still earning salaries that are far below the breadline. Biti increased the
                                          tax-free income threshold from the current USD 175 to USD 225 and revised upwards the
                                          tax-free bonus threshold from USD 400 to USD 500. He set aside USD 1.4bn for civil
                                          service remuneration, almost twice the USD 773m allocated in this year’s budget. (VOA
                                          News)

Zim threatens to sue Kimberley            Zimbabwe has threatened to sue Kimberley Process Chairman Boaz Hirsch, accusing him
     Chairman over export ban             of unilaterally barring Harare from exporting diamonds from the Marange field in the east
                                          of the country where human rights and other abuses have been alleged. Hirsch recently
                                          issued a statement saying the Kimberley Process maintained a de facto ban on the sale of
                                          Marange diamonds in response to news that the Kimberly monitor for Zimbabwe, South
                                          African Abbey Chikane, had certified diamonds for export sale though the industry
                                          watchdog had not concluded an internal discussion on the matter. (VOA News)

     40% water hike for Harare            Harare residents should brace for increases in water charges of up to 40% after council
                                          yesterday unveiled a USD 260m budget for next year. Last year’s budget was USD 230m,
                                          which council admitted residents had failed to fund. The city is owed USD 132m for water
                                          and other services and has resorted to borrowing to pay salaries. Presenting the budget
                                          proposals yesterday, finance committee chairperson Councillor Ruth Kuvhunika said they
                                          wanted to raise USD 260.4m against expenditure of USD 258.8m, leaving a surplus of
                                          USD 1.6m. (Source: Herald)

Zim exports remain depressed              Zimbabwe’s exports levels have remained depressed for the year as the country recorded
                                          a decline in trade with one of its major partners, South Africa. "Levels of exports remain
                                          depressed; in terms of export markets Zambia continues to be the leading export
                                          destination.”Interesting to note is the drop in market share of South Africa, and a
                                          considerable increase in market share to Mozambique, from 5% in 2009 to 11% in 2010,"
                                          said CZI. Zambia remained the leading export destination for the year, although there was
                                          a slight decline from last year from 31% to 30%. (Source: Herald)




                                                                                                                ZIMBABWE
 23 | African Alliance Pan-African Securities Research                                                             03 December 2010
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                                          Company news

LonZim raises USD 7.9m ahead              AIM-listed LonZim Plc, Lonrho’s Zimbabwe investment vehicle, Monday announced it had
                of ZSE listing            raised GBP 5.0m or USD 7.9m for working capital from a private placement of 17.8m new
                                          ordinary shares with new and existing institutions and shareholders at a price of 28 pence
                                          per share. The money will be ploughed into its existing operations in Zimbabwe where it
                                          plans to raise a further USD 5m for capital expenditure through a rights issue expected
                                          this year. (Source: News Day)

African Sun halves loss, misses           Zimbabwean hotelier Africa Sun halved its full-year loss on Thursday, but fell short of its
                          target          goal to break even, hurt by higher fixed costs and lower occupancy at some of its
                                          operations. Zimbabwe's largest hotel group said it was hit by higher utility rates and
                                          property costs, as well as slower demand, at its businesses outside of Zimbabwe. The
                                          company, which also manages hotels in South Africa, Ghana and Nigeria, posted a basic
                                          loss per share of USD 0.36 cents in the 12 months to end-September, half of the USD 0.72
                                          cents loss per share it posted a year earlier. (Source: Reuters)

                                          Market activity

                                          The Zimbabwe industrial index ticked down steadily over the course of the week, to close
                                          weaker by 1.3%. The decline was largely attributable to declines in building stocks
                                          (Lafarge Zimbabwe down 9.1%) and hotels (-6.1%). Econet dominated trading activity,
                                          accounting for 34% of the week’s trade followed by Innscor at 15%.

                                          Zimbabwe Stock Exchange
                                          TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)                 % CHG     PRICE
                                          Border Timbers                      70.0      0.85   Radar Holdings                -25.9      0.20
                                          Edgars Zimbabwe                     14.1      0.05   Zimplow                       -17.9      0.06
                                          Kingdom Meikles Africa              10.0      0.55   African Sun                   -13.2      0.02


                                          TOP TRADER                   USD (M)       USD (M)   TOTAL TRADED                USD (M)   USD (M)
                                          Econet Wireless                     2.31      2.31   ZSE Ind                        6.53      6.53


                                          MARKET PERFORMANCE            LEVEL        USD (%)                    USD (%) USD/USD       % CHG
                                          ZSE Ind (USD)                 153.09         -1.32                      -1.32       1.00      0.00
                                          Source: African Alliance database




                                                                                                                          ZIMBABWE
 24 | African Alliance Pan-African Securities Research                                                                      03 December 2010
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                                          BOTSWANA
                                          Political and economic news

Mobile market swells by 24,000            The country’s three mobile telephone companies took up more than 24,300 clients
     customers in four months             between the months of November 2009 and March of 2010, this showing a growth rate of
                                          mobile services in Botswana. According to the Communications Regulators' Association of
                                          Southern Africa (CRASA) country report on Botswana, the number of mobile phone
                                          subscribers rose by 60% between March 2008 and March 2009. The mobile subscriber
                                          base grew by 26.1% to 2.36m users between March 2009 and 2 March 2010. According to
                                          estimates by The Botswana Telecommunications Authority (BTA) by March 2010, Mascom
                                          Wireless accounted for approximately 57% or 1.35m subscribers, Orange Botswana 37%
                                          or 874,462, and be Mobile 141,804. Prepaid subscribers have continued to dominate the
                                          mobile market, accounting for 98% share of the markets, as at March 2009, and the post-
                                          paid subscribers make up only 2%. (Source: Mmegi)

                                          Company news

   BIFM offloads AfLife shares            Botswana Insurance Fund Management (BIFM) is reported to have made an undisclosed
                                          offer to Menel Management Services that will see the Zambian empowerment consortium
                                          retaining a majority shareholding in African Life. This will help to end the shareholding
                                          dispute between BIFM and Zambian authorities which required the fund manager to slim
                                          down its shareholding to meet Zambian foreign ownership statutes. Currently Menel owns
                                          30% of AfLife, while BIFM holds a larger share. According to the Chief Executive Officer
                                          for BIFM, the company has submitted documents to the industry regulator, indicating how
                                          they would sell off the 21% shares to Menel as a way to comply with the revised Pension
                                          Scheme Regulations Act 1996. The CEO mentioned that they found it right to make an offer
                                          of 21% shares to Menel since the two companies have been working together since their
                                          establishment. This transaction however is expected to take a bit of time as regulatory
                                          issues have to also be taken into consideration. (Source: Botswana Guardian)

    Discovery Metals receives             Discovery Metals Limited has announced that the Department of Environmental Affairs in
3mtpa environmental approval              Botswana has approved the capacity upgrade from 2mtpa to 3mtpa for the company's
                                          100% owned Boseto copper project located in northwest Botswana. About the 3mtpa
                                          environmental approval, the Managing Director for Discovery Metals indicated that the
                                          approval of the increased capacity is not just a milestone for Discovery Metals, but also
                                          reflects the efficiency of the government of Botswana and demonstrates the high standing
                                          of the country as a mining-friendly jurisdiction. (Source: Company website)

        African Copper secures            African Copper has announced that it has secured a loan of USD 7.5m from the company’s
              USD 7.5m funding            key shareholder, ZCI Limited. The announcement indicates that the purpose of this loan is
                                          to enable exploration drilling on the company’s Matsitama Exploration Project as well as
                                          Mowana North deposit and to complete the scoping study for the Makala deposits
                                          including plant enhancements. According to the news release, the Matsitama project
                                          includes the highly prospective Matsitama Schist Belt, and consists of four licenses,
                                          totalling 2,276km2 in extent. (Source: Company Website)




                                                                                                               BOTSWANA
 25 | African Alliance Pan-African Securities Research                                                            03 December 2010
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                                         Market activity

                                         Excluding Letshego, activity in Botswana was low across the board, with only BWP 1.9m
                                         worth of shares changing hands on the market during the week. Letshego (down 2.6% for
                                         the week) saw a signification trade of BWP 40m on Wednesday which meant that it
                                         accounted for 97% of total value traded for the week. The DCI spent four sessions
                                         marginally in the red, closing flat only on Thursday and ending the week 0.4% weaker. The
                                         index was largely dragged down by the banks as Barclays (-3.4%) ended in negative
                                         territory in all five sessions in the week, and Stanchart (-11.1%) further extended its 15.8%
                                         decline from the previous week. Elsewhere, FNB Botswana (+2.0%), G4S (+10.7%) and
                                         RPC Data (+5.3%) were the only ones to record gains.

                                         Botswana Stock Exchange
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)                  % CHG     PRICE
                                         G4S                                 10.7     33.75   Stanchart Botswana             -11.2      9.68
                                         RPC Data                             5.3      0.20   Barclays Botswana               -3.4      5.94
                                         Cresta                               2.9      1.40   Letshego                        -2.6      1.85


                                         TOP TRADER                  BWP (M)        USD (M)   TOTAL TRADED                 BWP (M)   USD (M)
                                         Letshego                            43.1      6.46   BSE DCI                         44.6      6.69


                                         MARKET PERFORMANCE            LEVEL        BWP (%)                  USD (%) BWP/USD          % CHG
                                         BSE DCI (BWP)                  7,119         -0.37                        -0.10      6.67      0.27
                                         Source: African Alliance database




                                                                                                                           BOTSWANA
26 | African Alliance Pan-African Securities Research                                                                       03 December 2010
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                                         BRVM
                                         (Mali, Burkina Faso, Benin, Guinea Bissau, Togo, Côte d’Ivoire, Senegal, Niger)


                                         Political and economic news

Cocoa arrivals seen at 412,000t          Cocoa arrivals at ports in top grower Ivory Coast reached around 412,000t by 28
               by 28 November            November, exporters estimated on Monday, compared with 382,537t in the same period of
                                         the previous season. Exporters estimated around 80,000t of beans were delivered to the
                                         West African state's two ports between 22-28 November, up from 59,794t in the same
                                         week a year ago. (Source: Reuters)

 Tense Ivory Coast awaits first          Ivory Coast's electoral commission was expected to announce partial results of a close
                  poll results           presidential election on Monday in an increasingly tense atmosphere with sporadic
                                         outbreaks of violence. Residents in parts of Abidjan reported gunfire overnight as
                                         ambassadors launched a flurry of diplomatic activity to encourage incumbent President
                                         Laurent Gbagbo and rival Alassane Ouattara to accept the results of Sunday's run-off vote.
                                         (Source: Reuters)

   Interbank Electronic Group            The Director of Exploration and Electronic Banking at the Interbank Electronic Group
  wants e-banking popularized            (GIM), Boukary Zongo, has said that electronic banking, including the payment of money
                                         through the automated banking machines, should be popularized in member States of the
                                         West African Economic and Monetary Union (WAEMU). 'In the WAEMU region, a little less
                                         than 2,000 people use the automated teller machine (ATM) cards despite the fact that the
                                         electronic payment system is alread y in use in the eight-member zone,' Zongo said here
                                         Thursday at a seminar for bankers and other economic operators as well as journalists in
                                         Guinea Bissau. (Source: Afrique en ligne)

West Africa bloc gives Guinea-           Guinea-Bissau will receive USD 6m from the West African regional bloc to boost
 Bissau USD 6m for electricity           electricity supplies in the country, according to a statement from the group. The Economic
                                         Community of West African States will give the money as part of USD 22m in emergency
                                         funding, adding to a USD 12m grant from the World Bank and USD 4m from the West
                                         African Monetary Union, according to a statement e-mailed by the Abuja-based bloc today.
                                         (Source: Bloomberg)

   Togo tries to attract foreign         The government of the West African country of Togo is hoping to attract foreign mining
            mining companies             companies to invest in its mining industry, having entered into a programme that boosts
                                         transparency in the sector. Announcing this development here, energy and mines minister
                                         Noupokou Dammipi said “There are certainly potential investors who want to come to
                                         Togo and invest in the mining industry, but they may be scared.” (Source: Miningreview)

 Benin’s Cotonou port receives           Imports of goods to Benin’s main port of Cotonou increased 27% to 7mt this year after the
            27% more imports             harbor underwent renovations to enable it to handle more traffic. The West African nation
                                         hopes to increase the volume of imported goods to 9mt in 2011. (Source: Bloomberg)

Abu Dhabi to give USD 19m for            Abu Dhabi will give about USD 19m to Mali for building a dam and a 25MW power
             Mali dam project            generating unit, it was announced Monday. Acting director general of the Abu Dhabi Fund
                                         for Development (ADFD), Mohammed Saif Al Suwaidi, and Mali's minister in charge of
                                         budget Lassina Bouare, signed an agreement in Mali for financing the Taoussa Dam
                                         project. Al Suwaidi said: 'The project includes the construction of the dam and a 130km
                                         road leading to it.' (Source: Sigynews)

 Business slow in Ivorian trade          Banks were shut and port activity slow in Ivory Coast's economic capital Abidjan on Friday
             hub after poll row          after a bitter dispute over the outcome of the presidential election prompted authorities to


                                                                                                                           BRVM
27 | African Alliance Pan-African Securities Research                                                                      03 December 2010
 The Africa Weekly

 Equity research | Pan-Africa | News & Analysis


                                          shut all international borders. The world's top cocoa grower faces growing uncertainty
                                          after provisional results handing victory to challenger Alassane Ouattara were dismissed
                                          late on Thursday by the constitutional council, whose chief is close to incumbent president
                                          Laurent Gbagbo. (Source: Reuters)

   Ivory Coast president wants            President Laurent Gbagbo's party has asked the top legal body in Ivory Coast and the
                vote cancelled            election commission to cancel still unpublished results from a poll it says rebels rigged
                                          for rival Alassane Ouattara. Allies of Ouattara, a northerner who denies links with the
                                          rebellion that split the country in two, say Gbagbo is stalling the publication of results
                                          because he knows he has lost and that taking complaints to the Constitutional Council
                                          after blocking the electoral commission from releasing them would be illegal. (Source:
                                          Reuters)

                                          Company news

Iamgold’s Burkina Faso mine to            Production at Iamgold Corp.’s Essakane mine in Burkina Faso is expected to reach
       produce 131,000 ounces             131,021 ounces of the precious metal by the end of the year, Langis St- Pierre, operations
                                          manager at the mine, said. The company has invested USD 452m in the project, St- Pierre
                                          told reporters in Ouagadougou, the capital, today. (Source: Bloomberg)

                                          Market activity

                                          The BRVM composite index shed 0.2% this week. Sonatel, which accounted for 71% of
                                          value traded, was unchanged. Most sectors were flat with the exception of consumers,
                                          which declined 5.3% owing to a 7.5% fall in the price of Nestle CI.

                                          Bourse Regionale des Valeurs Mobilieres
                                          TOP GAINER(S)                 % CHG        PRICE    TOP LOSER(S)             % CHG      PRICE
                                          FILTISAC CI                         7.5     3,500   Nestle CI                   -7.5    53,650
                                          Bank of Africa CI                   3.6    29,000   SIVOA CI                    -5.8     8,005
                                          SICable                             2.2    23,000   CFAO CI                     -4.5    19,100


                                          TOP TRADER                   XOF (M)      USD (M)   TOTAL TRADED             XOF (M)   USD (M)
                                          Sonatel SN                     517.5         1.05   IC Comp                    733.2      1.48


                                          MARKET PERFORMANCE            LEVEL       XOF (%)                  USD (%) XOF/USD      % CHG
                                          IC Comp (XOF)                 156.81        -0.23                    -1.51    497.68     -1.28
                                          Source: African Alliance database




                                                                                                                        BRVM
 28 | African Alliance Pan-African Securities Research                                                                 03 December 2010
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                                         GHANA
                                         Political and economic news

  Oil production to start on 15          The Jubilee partners have announced that the Jubilee field, offshore Ghana, is scheduled
                    December             to produce its first oil on 15 December 2010. The Jubilee oil field was discovered in June
                                         2007 and the start of production marks three and half years of intensive work by
                                         government and the Jubilee partners. A trial production was conducted on 28 November
                                         2010 in preparation of the commissioning of the processing systems and facilities ahead
                                         of the start of production. The field is expected to produce up to 55,000bpd and increase to
                                         120,000bpd as new wells are completed over next three to six month. The Jubilee partners
                                         are Tullow Oil plc, Anadarko Peroleum Corp, Kosmos Energy, Ghana National Petroleum
                                         Corporation, Sabre Oil and Gas and the EO Group. (Source: Company Release)

       Contract to improve rail          The Government of Ghana has signed a USD 6bn contract with the Chinese National
             transport signed            Machinery Import and Export Corporation (CMC) for the construction of railway
                                         infrastructure in Ghana. The project is expected to connect the Eastern, Ashanti,
                                         Northern, Upper East and the Upper West regions of Ghana. The first and the second
                                         phases of the project will commence in September 2011 and June 2014, respectively. The
                                         Vice-President of CMC, Mr Zhao Jun, signed for CMC while the Board Chairman of the
                                         Ghana Railway Development Authority, Mr Daniel K. Markin, signed the contract on behalf
                                         of Ghana (Source: Daily Graphic)

     ADVANCE to boost maize              The Agricultural Development Value Chain Enhancement (ADVANCE) programme, funded
                 production              by the United States Agency for International Development (USAID), has started a four
                                         year project to boost maize production through modern technology and innovations. As
                                         part of the project, five maize demonstration fields have been established in the Ashanti
                                         and Brong Ahafo regions to introduce new maize hybrids and improved planting
                                         technology. Produce from these farms will be purchased by Akate Farms, a poultry feed
                                         producing company which hither-to imported 60% of its maize the production of poultry
                                         feed. The project is expected to increase the income of farmers, contribute to economic
                                         growth and reduce poverty. Ghana currently imports maize worth USD 100m pa. (Source:
                                         Daily Graphic)

PURC to re-introduce the AAF             The Public Utilities Regulatory Commission (PURC) will re-introduce the Automatic
                                         Adjustment Formula (AAF) which was last used in 2006, in January 2011 to address any
                                         adverse movement of external factors that affect utility tariffs. The AAF allows tariffs to be
                                         adjusted periodically taking into account the foreign exchange rate and other factors that
                                         affect tariff adjustment. The PURC is currently organising training and education of utility
                                         providers and consumers ahead of the reintroduction of the AAF. (Source: Business Week)

Denmark supports budget with             The Government of Denmark has signed an agreement with Ghana to provide USD 70m to
                   USD 70m               support the economy through the Multi-Donor Budget Support Programme (MDBS) and to
                                         assist the Ghana Integrated Financial Management Information System (GIMFIS),
                                         expected to run from 2010 to 2014. GIMFIS is intended to strengthen fiscal discipline,
                                         monitoring of commitments and expenditures, and enhance the accountability and
                                         transparency of government financial operations using modern information technology,
                                         while the MDBS is intended to support the government implement its medium-term
                                         development policy framework, the Ghana Shared Growth and Development Agenda.
                                         Denmark has also signed a second agreement for GHS 32.5m towards the rehabilitation of
                                         the Takoradi-Agona junction road project as part of the country’s overall support to
                                         Ghana’s development. (Source: Business & Financial Times)



                                                                                                                     GHANA
29 | African Alliance Pan-African Securities Research                                                                03 December 2010
 The Africa Weekly

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Parliament approves resolution            Parliament on 1 December approved Ghana’s resolution to invest USD 50m in the Africa
               to invest in AFC           Finance Corporation (AFC). The AFC, headquartered in Nigeria, invests in infrastructure
                                          and industrial projects based in Africa. The AFC is a pan-African financial institution
                                          owned by Nigeria, Sierra Leone, Guinea-Bissau, Guinea, Liberia, Gambia and now Ghana.
                                          AFC is the lead investor in Cenpower Generation Company Ltd which is implementing the
                                          USD 450m Kpone IPP project, a 340MW combined cycle gas turbine power plant located at
                                          in Ghana. AFC is also the main African participant in a seven-year USD 1.1bn syndicated
                                          reserve base lending facility to develop the Jubilee Oil Field and is also an investor in the
                                          Main One fibre optic cable, an underwater fiber-optic cable off the coast of West Africa.
                                          (Source: Africa Finance Corporation)


                                          Company news

 Tullow postpones its listing on          Tullow Oil Plc (Tullow) has postponed its listing on the Ghana Stock Exchange (GSE) to
               the GSE to 2011            2011. The decision was taken as a result of time constraints in securing the necessary
                                          approvals from the Securities and Exchange Commission (SEC). Also, the company wants
                                          to focus its attention on the events leading to the production of first oil from the Jubilee
                                          field, although the company wanted its listing to coincide with the production of first oil.
                                          The company plans on issuing 4m new shares in Ghana. Tullow has its primary listing on
                                          the London Stock Exchange and secondary listing on the Irish Stock Exchange with a
                                          market capitalisation of GBP 10.26bn as of 30 November 2010. (Source: Myjoyonline)

  Valco to start operations next          The Volta Aluminium Company Ltd (Valco), an aluminium smelter with a capacity of
                            year          200,000tpa will resume operations in 2011 after it was shut down in March 2007 as a
                                          result of weak metal prices and power shortages caused by low water levels in the
                                          Akosombo Dam. Cabinet has approved the re-opening of two potlines of the aluminium
                                          smelter next year, gradually increasing the number of potlines to six (full capacity). This is
                                          in line with an effort to create an integrated aluminium industry as world prices increase.
                                          Valco is currently negotiating with utility companies on power requirement and tariffs. The
                                          company is wholly owned by the Government of Ghana after it purchased the shares of
                                          Kaiser Aluminium (90%) and Alcoa (10%) in 2004 and 2008 respectively. Ghana currently
                                          produces 2,085MW of electricity against peak period demand of between 1,300MW to
                                          1,400MW of electricity. (Source: Graphic Business)

 AYTRN changes its accounting             To conform to the financial year of its parent company, Adcock Ingram of South Africa,
                         year             Ayrton Drugs Manufacturing Company (AYRTN) has announced the change if its
                                          accounting year. The accounting year will change from January - December to October –
                                          September. Consequently, the financial statement for 2010 shall be for nine months,
                                          ending 30 September 2010. (Source: Company filing)




                                                                                                                      GHANA
 30 | African Alliance Pan-African Securities Research                                                                03 December 2010
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  AYTRN releases its full year           Ayrton Drug Manufacturing Ltd (AYRTN) released its FY10 results to 30 September,
             financial report            reporting a 19.7% decline in turnover to GHS 12.46m compared with the FY09. The
                                         company’s selling and distribution costs and administrative expenses declined by 1.1%
                                         and 7.2% to GHS 1.11m and GHS 1.57m respectively, resulting in an operating profit of
                                         GHS 2.83m versus GHS 3.61m for FY09. The company recorded a finance income of
                                         GHS 283,225 for the period compared to GHS 116,754 for FY09, resulting in a profit after
                                         tax of GHS 2.32m versus GHS 2.85m for FY09. AYRTN’s FY10 results are for the nine
                                         months ended 30 September. (Source: Company filing)

                                         Ayrton Drug Manufacturing Ghana Ltd
                                         12 MTHS TO SEP (GHS 000)                                 FY09                FY10              % CHG
                                         Turnover                                               15,514               12,455              -19.7
                                         Gross profit                                            6,310                5,502              -12.8
                                         Operating profit                                        3,606                2,828              -21.6
                                         Profit/(loss) before tax                                3,720                3,108              -16.4
                                         Profit/(loss) for the year                              2,848                2,324              -18.4
                                         EPS                                                    0.0132               0.0108              -18.4
                                         Source: Company report

                                         Market activity

                                            Ghana,
                                         In Ghana, the GSE ALSI regained part of the loses recorded during the previous week to
                                         end the week under review up 0.78%, closing at 6,990.50 points on the back of price
                                         changes in 13 equities comprising seven gainers and six losers. A block trade in Fan Milk
                                         resulted in the company being the most traded equity by value, accounting for 24.5% of the
                                         market turnover of GHS 2.41m compared with GHS 3.27m for the previous week. Fan Milk
                                         was the top gainer (+12.6%), while Benso Oil Palm Plantation emerged the biggest price
                                         loser (-12.2%) for the week under review.

                                         Ghana Securities Exchange
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)                    % CHG     PRICE
                                         Fan Milk                            12.6     10.55   Benso Oil Palm                   -12.2      0.65
                                         Ghana Commercial                     3.6      2.33   Enterprise Insurance              -5.0      0.57
                                         SG-SSB                               3.5      0.59   Home Finance                      -4.3      0.45


                                         TOP TRADER                   GHS (M)       USD (M)   TOTAL TRADED                 GHS (M)     USD (M)
                                         Fan Milk                            0.59      0.41   GSE ALSI                          2.42      1.67


                                         MARKET PERFORMANCE            LEVEL        GHS (%)                   USD (%) GHS/USD           % CHG
                                         GSE ALSI (GHS)                 6,990           0.8                          0.8        1.45      0.00
                                         Source: African Alliance database




                                                                                                                              GHANA
31 | African Alliance Pan-African Securities Research                                                                         03 December 2010
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                                         ZAMBIA
                                         Political and economic news

        Zambia’s GDP exceeds             Zambia’s Gross Domestic Product (GDP) growth is expected to reach 7% by the end of
                  projections            2010, exceeding the projected growth because of increased investment in key productive
                                         sectors, Commerce, Trade and Industry Minister Felix Mutati has said. In an interview in
                                         Lusaka, Mr Mutati said the Government would exceed the projected growth of 6.6% as a
                                         result of improved local and foreign investments. Mr Mutati said the strong positive
                                         growth was what the country needed to reduce poverty significantly. (Source: Times of
                                         Zambia)

                                         Company news

   Konkola Copper Mines LSE              London-listed Indian miner Vedanta has delayed an initial public offer (IPO) of its Zambian
              listing delayed            copper business until next year, citing stock market volatility. It is the first big European
                                         IPO to fall victim to a renewed wave of financial market turbulence brought on by the Irish
                                         debt crisis. Kishore Kumar, chief executive of Konkola Copper Mine’s holding company
                                         Konkola Resources, had told Reuters the London listing was expected next month, while a
                                         source close to the deal had said final pricing was expected in mid-December 2010. The
                                         company said on Tuesday the listing was not expected before next year. (Source: Reuters)

 Farmers house to issue 3.9m             Farmers House Plc says it will issue over 3.9m corporate bonds that were not taken up
                       bonds             after a successful corporate bond rights offer closed on 12 November 2010. The company
                                         is seeking to raise USD30m in form of equity and bond issue for its commercial and
                                         residential property development projects. According to a notice made available by
                                         Lusaka Stock Exchange on 29 October, 2010, the bonds will be sold into the market as and
                                         when opportune to investors as additional properties arise for acquisition. This action
                                         bears no cost, will have no effect on Farmer’s House shareholders or corporate bond
                                         holders, and will enable Farmer’s house to dispose of the corporate bonds when market
                                         conditions allow. (Source: Zambia Daily Mail)

                                         Market activity

                                         In Zambia the LuSE index gained 1.9% during the week, on the back of strong gains in
                                         Zambrew (+13.6%), BAT Zambia (+10.0%), BP Zambia (+21.6%) and Copperbelt Energy
                                         (+10.9%). Zanaco declined 5.1% on a single large trade. Zambeef was the most active,
                                         accounting for 71% of weekly value traded.

                                         Lusaka Stock Exchange
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)                  % CHG      PRICE
                                         BP Zambia                           21.6    450.00   ZANACO                          -5.1     797.00
                                         Zambian Breweries                   13.6     2,500   National Breweries             -0.03      6,500
                                         AEL Zambia                          12.1     1,800   --


                                         TOP TRADER                  ZMK (M)        USD (M)   TOTAL TRADED                 ZMK (M)    USD (M)
                                         Zambeef                       4,172.0         0.87   LuSE ALSI                     5,588.8      1.17


                                         MARKET PERFORMANCE            LEVEL        ZMK (%)                   USD (%) ZMK/USD          % CHG
                                         LuSE ALSI (ZMK)                3,306           1.9                        -0.24     4,836      -2.09
                                         Source: African Alliance database



                                                                                                                           ZAMBIA
32 | African Alliance Pan-African Securities Research                                                                       03 December 2010
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                                         TANZANIA
                                         Political and economic news

  Tanzania in partnership with           Tanzania is in a partnership with Brazil to build a power plant estimated to cost USD 2bn
        Brazil for power plant           that could transform the country into a net exporter of electricity. Foreign Affairs Minister
                                         and other officials held talks with their Brazilian counterparts in Sao Paolo in September
                                         on the construction of the proposed 2,100MW Stiegler's Gorge hydro-power station. The
                                         project would involve the installation of three giant underground turbines, each with the
                                         capacity of producing 700MW of electricity. Tanzania has energy demand close to 900MW,
                                         but produces less than 800MW. 14% of its 40m people are hooked to the grid, while
                                         demand grows by 10-15% annually.

                                         The plant would be a source of cheap, abundant energy at a cost of around USD 0.02 per
                                         kilowatt hour. It would also help control flooding in the Rufiji area and create a reservoir
                                         with a total capacity of 34bn cubic metres to supply the commercial capital Dar es Salaam
                                         and other regions. If implemented immediately, the feasibility study can be updated in
                                         2011 and the first turbine installed in 2012. By 2015, the project should be fully completed
                                         according to the director general of the Rufiji Basin Development Authority. (Source:
                                         Reuters)

Tobacco and gold exports rise            On an annual basis, the value of traditional exports went up by 5% to USD 492.3m in
                                         September 2010, largely due to increases in both export volumes and unit prices of
                                         tobacco and tea. According to the bank, the good performance of tobacco exports is
                                         largely due to increase in the export unit prices following the improved quality of
                                         Tanzanian tobacco. Gold exports rose by 59.2% in the year to September 2010 due to an
                                         increase in both export volumes and gold prices on the world market, according to the
                                         Central Bank. The report says gold export values increased 65.5% y/y to USD 1.5bn and
                                         export volumes also increased 18.7% to 36.8t upon commencement of export by the
                                         Buzwagi Gold Mine. The prices of gold, according to the report, increased by 29.1% y/y to
                                         USD 1,157.9 per troy ounce in September 2010. Tanzania is Africa's fourth largest gold
                                         producer after South Africa, Ghana and Mali. (Source: The Citizen)

Korea pledged USD 3.5m grant             The Government of the Republic of Korea has pledged a USD 3.5m grant to support the
                      to TRA             Tanzania Revenue Authority (TRA) in the implementation of the first phase of the Tanzania
                                         Customs Administration Modernization project. A statement issued by the Korean
                                         Embassy in Dar es Salaam on Sunday said Korea, through its International Cooperation
                                         Agency (KOICA) will do the business process reengineering/ information strategy planning
                                         analysis, develop cargo management and risk management systems, provide equipment,
                                         dispatch experts and provide training for Tanzanian customs officers in Korea. The project
                                         to be implemented for one year effective in 2011 is aimed to improve the business
                                         environment which will in turn create a more conducive and beneficial foreign investment
                                         environment, simplify clearance procedure and thereby increase tax revenue. (Source:
                                         Daily News)




                                                                                                                  TANZANIA
33 | African Alliance Pan-African Securities Research                                                               03 December 2010
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                                         Company news

 Orca Exploration to drill new           Toronto-listed Orca Exploration says it plans to drill a new well in 2011 to boost natural
             natural gas well            gas production at the Songo Songo field in Tanzania amid growing local energy demand.
                                         According to Orca’s CEO, in 3Q10, gas sales from the field averaged 81.3m cubic feet per
                                         day against an installed infrastructure capacity of 90m cubic feet. Orca said in April that it
                                         planned to raise daily natural gas production at the Songo Songo field which has 490.2bn
                                         cubic feet of proven and probable gas deposits by 60% by the end of 2012 to 144m cubic
                                         feet. The company has working capital of USD 48m following a fully-subscribed rights
                                         offering that raised USD 18.9m. (Source: Reuters)

                                         Market activity

                                         The Tanzanian DSE index was flat (+0.04%) for the week. Tanzania Cigarette (+0.9%) was
                                         the only stock to register any price move for the week. Trade was dominated by CRDB,
                                         Tanga Cement and Nicol.

                                         Dar es Salaam Stock Exchange
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)              % CHG      PRICE
                                         Tanzania Cigarette                   0.9     2,220   No losers
                                         --                                                   --


                                         TOP TRADER                   TZS (M)       USD (M)   TOTAL TRADED              TZS (M)   USD (M)
                                         CRDB Bank                           67.5      0.05   DSE                         191.3      0.13


                                         MARKET PERFORMANCE            LEVEL        TZS (%)                  USD (%)   TZS/USD     % CHG
                                         DSE (TZS)                      1,162          0.04                    -0.16      1,486     -0.20
                                         Source: African Alliance database




                                                                                                                       TANZANIA
34 | African Alliance Pan-African Securities Research                                                                   03 December 2010
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                                          NAMIBIA
                                          Political and economic news

           Uranium mining legal           The Ministry of Mines has started with the process of getting a legal framework to
         framework in progress            regulate uranium mining. The ministry held a uranium stakeholders’ conference to pave
                                          the way for legislation governing the exploration, mining and milling of uranium. Nuclear
                                          energy was also on the agenda. Opening the conference, Mines Minister Isak Katali said
                                          Namibia has no legal framework that specifically deals with uranium. The Minerals Act
                                          does not really provide for all the statutory obligations and international standards
                                          pertaining to uranium, thus making it difficult to effectively regulate and monitor the
                                          sector, he said. (Source: The Namibian)

            NAD 683m for SOEs             The Ministry of Finance provided subsidies to the tune of NAD 682.6m to a number of
                                          state-owned enterprises. Air Namibia received a subsidy of NAD 176.5m, while bank
                                          guarantees to the value of NAD 378.5m were provided for the company. NamPower
                                          received a subsidy of NAD 170m for infrastructure development and power line upgrades,
                                          while NamWater received NAD 50m for rural water supply. The Development Bank and
                                          Agribank each received subsidies of NAD 100m and TransNamib NAD 83.9m. According to
                                          the Deputy Minister of Finance, Calle Schlettwein, these subsidies will contribute towards
                                          poverty alleviation and economic growth. (Source: Republikein)

        Nuclear power plant for           Namibia wants to use its rich uranium resources to develop a nuclear power plant that
                      Namibia             would fuel economic development in the world’s fourth-largest uranium producer, Mines
                                          and Energy Minister Isak Katali has said. Katali said that, it is the expressed decision of
                                          the Namibian government to seriously consider the development of nuclear power in
                                          order to complete the national energy mix and provide sufficient energy mix and provide
                                          sufficient energy for development. Katali further added that, the uranium and nuclear
                                          policy to be developed will cover the entire nuclear fuel cycle. The policy document and
                                          draft are expected to be finished by the middle of next year, according to Mining
                                          Commissioner, Erastus Shivolo. (Source: The Namibian)

     No plans to privatise SOEs           Government has ruled out the possibility of commercialising or privatising loss making
                                          State-Owned Enterprises (SOEs) which continue to receive hundreds of millions of dollars
                                          of tax payers’ money in bail outs at a time when the government deficit is on the increase.
                                          Reacting to questions from the Economist after government signed subsidy agreements
                                          worth NAD 682.6m with seven SOEs, Festus Nghifenwa, director of Economic Policy
                                          Advisory Services in the Ministry of Finance said there were no plans at the moment to
                                          privatise or commercialise any parastatals. (Source: Namibia Economist)

BoN approves establishment of             Following discussions with relevant stakeholders, the Bank of Namibia (BoN) announced
                    SME Bank              that it has agreed to provisionally approve the application to establish an SME Bank in
                                          terms of the Banking Institutions Act, 1998 (Act No.2 of 1998, as amended). The approval is
                                          subject to certain conditions intended to ensure that the SME Bank can be structured in
                                          the best way to realise the desired developmental objectives. When the BoN reviewed the
                                          bank licence application for an SME Bank in November 2010, it set
                                          conditions/requirements that increased significant Government ownership in the
                                          proposed SME Bank. This is necessary to reflect developmental objective of the institution
                                          and to commit to further capital injection into the SME bank as and when the situation so
                                          demands. (Source: New Era)

      Mining to drive electricity         Growth in the Namibian electricity market will be driven by the expansion of the mining
                         market           industry particularly that of uranium, a new report from industry analysts Frost & Sullivan


                                                                                                                  NAMIBIA
 35 | African Alliance Pan-African Securities Research                                                              03 December 2010
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Equity research | Pan-Africa | News & Analysis


                                          revealed. This will be buttressed by increasing demand for electricity across other
                                          industrial sectors. New analysis from Frost & Sullivan - 2010 Updated Overview of the
                                          Namibian Electricity Industry - finds that the industry generated USD 222.0m in 2009 and
                                          estimates this to reach USD 790.4m in 2014. The mining industry is the major end user of
                                          electricity in Namibia. Electricity demand from the mining industry is set to grow by
                                          approximately 3%pa due to augmented investments in the mining sector. (Source: INet
                                          Bridge)

                                          Company news

    Namibia Resources widens              Alluvial diamond miner Namibia Resources further widened its loss to GBP 223.7m in the
                      losses              six months ended 31 August 2010, while it continues to try and raise capital to upgrade its
                                          mining operations in Southern Africa. The Aim-listed company, whose subsidiary
                                          Sonnberg Diamonds mines diamonds on behalf of Namdeb in the Sperrgebiet area,
                                          recorded a net loss of GBP 192.6m in the six months ended August 2009. Production for
                                          the six months amounted to 184.5 carats, while output for the financial year to
                                          6 November 2010, amounted to 42,777 carats. (Source: The Namibian)

 O&L’s pension dispute makes              Progress has been made in the never ending dispute between a group of former Namibia
                    progress              Breweries Limited employees and the breweries mother company Ohlthaver and List
                                          (O&L), after a 21-year-old stand-off. After years of protest that saw the former workers
                                          sometimes spending days sleeping outside the High Court and even at O&L headquarters,
                                          Namfisa has finally decided to investigate the matter. Namfisa deputy CEO Lilly Brandt
                                          said the decision to investigate came after Namfisa could not obtain the relevant
                                          information about the pension pay-out of the workers from O&L and their pension fund
                                          administrators Alexander Forbes. (Source: The Namibian)

      Bannerman seeking for a             Bannerman Resources has started the search for a project partner to assist in the
              project partner             development of its Etango uranium project in Namibia. The ASX- and TSX- listed company
                                          said that a number of parties have already visited the site, and conducted due diligence on
                                          the feasibility study work, which had been completed to date. In a related story,
                                          Bannerman Resources Limited updated the feasibility study on its Etango Uranium
                                          Project in Namibia. It highlighted that Etango is one of the world's largest undeveloped
                                          uranium deposits comprising Measured and Indicated resources of 149m pounds of U3O8
                                          and Inferred resources of 64m pounds of U3O8. Based on the feasibility study estimates,
                                          the Etango Project is expected to produce an average of 5-7m pounds of U3O8 per year
                                          over a +20 year mine life at an estimated average life-of-mine cash cost of USD42 per
                                          pound U3O8. (Source: The Namibian)

Areva donates infrastructure to           The provision of reliable electricity supply in the Erongo Region received a massive boost
                    NamPower              with the donation of transmission infrastructure to NamPower worth NAD 600m. As part
                                          of NamPower’s drive to improve its transmission networks, especially in the mining hub of
                                          the Erongo Region, Areva Resources Namibia handed over ownership, maintenance and
                                          operations of several substations and transmission lines paid by and built for Areva.
                                          NamPower contributed NAD 100m to the first phase of the NAD 700m project, which is
                                          aimed at connecting Areva’s Trekkopje mine to a strengthened transmission system and
                                          supply power to its desalination plant at Wlotzkasbaken. (Source: The Namibian)

    Trustco announces interim             Trustco directors announced that the Board of Directors has passed a resolution, on
                     dividend             01 December 2010 to pay an interim dividend of 1.5cps for the financial period ended
                                          30 September 2010. (Source: INet Bridge)




                                                                                                                  NAMIBIA
 36 | African Alliance Pan-African Securities Research                                                              03 December 2010
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                                         Market activity

                                         The Namibian local index was flat with Namibian Breweries the only share to record a
                                         price change (+0.12%). Namibian Breweries accounted for 42% of value trade out of a total
                                         of NAD 0.63m.

                                         Namibian Stock Exchange
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)                % CHG     PRICE
                                         Namibia Breweries                    0.1      8.01   No losers
                                         --                                                   --


                                         TOP TRADER                  NAD (M)        USD (M)   TOTAL TRADED             NAD (M)     USD (M)
                                         Namibia Breweries                   0.26      0.04   NMB LOCAL                     0.53      0.08


                                         MARKET PERFORMANCE            LEVEL        NAD (%)                   USD (%) NAD/USD       % CHG
                                         NMB LOCAL (NAD)               171.63          0.06                      2.4        6.89       2.4
                                         Source: African Alliance database

                                         Dividends (NAD)
                                         COMPANY                                       YEAR          TYPE        AMOUNT       LAST CUM
                                                                                                                                DATE
                                         Truscto                                       2010         Interim       0.015       07-Jan-11

                                         Source: Company filings




                                                                                                                       NAMIBIA
37 | African Alliance Pan-African Securities Research                                                                     03 December 2010
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                                          MALAWI
                                          Political and economic news

 Govt tells farmers to continue           Government officials have advised Malawian farmers to continue growing burley tobacco,
               growing tobacco            arguing that production of the leaf is still allowed internationally until 2012 when a final
                                          decision will be made on the anti-tobacco protocols being proposed by the World Health
                                          Organisation (WHO). Deputy minister of agriculture Margaret Mauwa and Secretary for
                                          agriculture Andrew Daudi told an annual tobacco seminar in Mangochi that
                                          implementation of articles nine and 10 of the Framework Convention for Tobacco Control
                                          (FCTC), which effectively bans additives to tobacco including burley, will not take effect
                                          until 2012 to allow more time for their clarification. She however admitted that Malawi is
                                          under serious pressure from FCTC saying the country should now take an immediate
                                          transition process out of tobacco and take full advantage of the delay in adoption of the
                                          FCTC protocols. She disclosed that government is looking at the greenbelt initiative,
                                          mining and diversification of crops such as pigeon peas as areas that should be promoted
                                          as an exit strategy out of tobacco. (Source: Daily Times)

  MIPS to flush out unqualified           Malawi Institute of Procurement and Supply (MIPS) says it will ensure that all unqualified
         procurement officers             and unregistered procurement officers are flushed out of the market to reduce corruption
                                          and protect the industry’s image. Deputy director of public procurement Isaac Chilima
                                          said most people practicing procurement are not trained and have no knowledge about
                                          procurement ethics and standards. He further disclosed that the institute is lobbying for a
                                          Procurement Bill which, when passed, would empower it to clean up the industry.
                                          (Source: Nation)

    Government optimistic on              Ministry of finance says it is optimistic that the IMF executive board meeting on 6
outcome of IMF board meeting              December 2010 will give a positive outcome of the fund’s programme in Malawi and
                                          maintain the country’s credibility with other donors and financiers. Finance minister Ken
                                          Kandodo said the IMF has already given a positive indication to the donors indicating that
                                          they need not withhold disbursements pending the outcome of the IMF board meeting. He
                                          disclosed that Malawi had met targets for the review period up to June 2010 and was on
                                          track to meet the targets for December 2010. (Source: Daily Times)

          External debt rises to          Malawi’s total public external debt rose USD 0.9m (MWK 136.8m) to USD 833m in
                     USD 833m             September 2010 according to the Reserve Bank of Malawi (RBM) economic report for
                                          September 2010. The report says the increase resulted from disbursements made in July
                                          and August 2010 which were reconciled in September. The report discloses that total
                                          external debt stock as a percentage of GDP for September 2010 was recorded at 17.4%;
                                          which, according to the RBM debt analysis, is sustainable when compared to a 40%
                                          threshold under the Debt Sustainability Framework for low income countries. The report
                                          further says Malawi’s domestic debt stock as at September 2010 declined 2.1% to
                                          MWK 162.9bn, thanks to repayments of Ways and Means advances during the month.
                                          (Source: Nation)

Tea sales plunge as September             Malawi tea is experiencing persistent falls in sales volumes as trading at the regional
           volumes drop 50.7%             auction market continues in Mombasa, Kenya. Latest statistics from the Reserve Bank of
                                          Malawi (RBM) indicate that during the month of September 2010, tea volumes dropped by
                                          50.7% y/y to 740,000kg due to falling demand at the Mombasa auction. The report further
                                          says the average price of the commodity during the month was USD 1.51 per kg compared
                                          to USD 1.82 per kg in 2009. Total turnover realised in September 2010 amounted to
                                          USD 1.1m, representing a 59.3% drop on the previous year. (Source: Daily Times)



                                                                                                                   MALAWI
 38 | African Alliance Pan-African Securities Research                                                               03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis


   New airline operator on the           Government may issue a licence to African Flying Boats Limited to operate domestic,
                         cards           international and cargo air services. In a statement published by minister of transport and
                                         public infrastructure, Sidik Mia, government is inviting any representation or objection
                                         regarding the application by the airline. The statement further says the airline has five
                                         aircrafts, a Grumman Albatross, Gill, two B 1900,s and two Cessna C206 planes. (Source:
                                         Nation)

                                         Company news

          NBS Bank donates               NBS Bank donated MWK 500,000 to St. Joseph’s hospital for the rehabilitation of its store
      MWK 500,000 to hospital            room that was blown off by wind three months ago. NBS Bank deputy chief executive
                                         officer, Gilford Kadzakumanja said the bank cherishes its partnership with Catholic
                                         University where they jointly run banking at campus service, hence the decision to bail out
                                         its partner. (Source: Nation)

                                         Market activity

                                         The Malawi index closed up 0.05%, pushed up by the gain in NITL (+5.1%), which
                                         accounted for 3% of the week’s activity. FMB Malawi was the most actively traded stock
                                         (67% of total value traded), but closed flat.

                                         Malawi Stock Exchange
                                         TOP GAINER(S)                 % CHG          PRICE    TOP LOSER(S)                % CHG        PRICE
                                         NITL                                 5.1     14.50    No losers
                                         --                                                    --


                                         TOP TRADER                  MWK (M)        USD (M)    TOTAL TRADED               MWK (M)     USD (M)
                                         FMB Malawi                          34.5      0.23    MSE ALSI                       51.5       0.34


                                         MARKET PERFORMANCE            LEVEL        MWK (%)                    USD (%) MWK/USD         % CHG
                                         MSE ALSI (MWK)                 4,920          0.05                        0.00     151.95       -0.05
                                         Source: African Alliance database

                                         Dividends (MWK)
                                         COMPANY                                              YEAR         TYPE      AMOUNT          LAST CUM
                                                                                                                                         DATE
                                         NITL MW                                              2010         Final          0.45   17-Dec-10
                                         PIM MW                                               2010         Final          0.12        TBA

                                         Source: Company filings




                                                                                                                          MALAWI
39 | African Alliance Pan-African Securities Research                                                                      03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis



                                         UGANDA
                                         Political and economic news

  Umeme plans to hike power              Umeme, the only electricity distributor, have applied for a 15% tariff rise in the first three
                      tariffs            months of 2011. In its latest tariff application to the Electricity Regulatory Authority (ERA)
                                         for 2011, Umeme wants domestic consumers to pay UGX 462.4 per unit, up from
                                         UGX 385.6. Commercial use will cost UGX 455.36, up from the current UGX 358 per unit.
                                         Small and medium industrial consumers will pay UGX 457, up from UGX 333 a unit. Large
                                         industrial consumers will pay UGX 321.14 down from the current UGX 330 per unit.
                                         Umeme attributed the increment partly to debt service obligations in the lease payment to
                                         Uganda Electricity Distribution Company (asset holder) and increase in the Umeme
                                         investments. It is anticipated that Government subsidies will continue to be availed and
                                         applied against the power supply price in order to maintain the end-user tariff for
                                         domestic consumers at UGX 385.6. (Source: The New Vision)

 Low exports, euro zone woes             The UGX, which has been under pressure from the dollar in recent months, is expected to
                   hit shilling          fluctuate within the current range until the end of December, mainly driven by global
                                         outlook and the balance of payment position. The projections are that coffee proceeds will
                                         improve next year, ensuring that the exchange rate doesn’t continue depreciating. Bank of
                                         Uganda said it’s not looking to cap the UGX at UGX 2,300, but is more interested in
                                         reducing volatility. The UGX on Friday crossed the UGX 2,300 key resistance level,
                                         prompting the Central Bank to intervene and sell dollars. (Source: The New Vision)

                                         Company news

  Standard Chartered bank to             Standard Chartered Bank is to issue a UGX 40bn bond (USD 17.5m) which will be listed on
        issue UGX 40bn bond              the Uganda Securities Exchange. Standard Chartered Bank announced that it has received
                                         approval from the Capital markets Authority to establish a medium term note programme
                                         to support its issuance of notes denominated in UGX which it hopes to launch on 2nd
                                         December .Although commercial banks have been actively investing in government
                                         securities, the central bank said that the banks are becoming more active in currency
                                         swaps. (Source: The daily Monitor)

Italian giant Eni still wants oil        Italian oil giant is still interested in venturing into Uganda’s oil fields. The Milan and New
                           fields        York listed firm is expecting to meet President Museveni to restore their interest to play a
                                         significant role in the development of the oil sector in Uganda. Eni was the first to enter
                                         into a sales and purchase agreement for the acquisition of Heritage’s 50% interest in
                                         blocks 1 and 3A at USD1.35bn. However, Eni had to withdraw from the transaction after
                                         another UK firm, Tullow, a 50% co-owner of the blocks pre-empted the deal. Eni’s
                                         interest, however, is not limited to this block, but also to any other unlicensed exploration
                                         blocks competent authorities see as fitting their hydrocarbons development intentions.
                                         (Source: The New Vision)




                                                                                                                    UGANDA
40 | African Alliance Pan-African Securities Research                                                                03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis


                                         Market activity

                                         In Uganda this week, BATU was the top gainer closing at UGX 1,679 having opened the
                                         week UGX 1,250 which was a 34.3% change in just one week. This was due to very high
                                         demand at the maximum price of a given session. On Thursday the market closed with
                                         outstanding demand of over 800,000 BATU shares. Stanbic traded the biggest volume this
                                         week of over UGX 400m which was 53% of the total market turnover with most shares
                                         changing hands at UGX 265 and a few at UGX 270, indicating a possible price rise from
                                         UGX 265 to UGX 270 in the near future.

                                         Uganda Stock Exchange
                                         TOP GAINER(S)                 % CHG         PRICE    TOP LOSER(S)              % CHG     PRICE
                                         BAT (Uganda)                        34.3     1,679   Uganda Clays                -3.8     50.00
                                         Bank of Baroda                       4.2    500.00   New Vision                  -0.8    640.00
                                         Stanbic Uganda                       0.8    267.00   --


                                         TOP TRADER                   UGX (M)       USD (M)   TOTAL TRADED             UGX (M)   USD (M)
                                         Stanbic Uganda                 402.8          0.18   USE ALSI                   757.3      0.33


                                         MARKET PERFORMANCE            LEVEL        UGX (%)                  USD (%) UGX/USD      % CHG
                                         USE ALSI (UGX)                 1,195         -1.50                    -1.46     2,291      0.04
                                         Source: African Alliance database




                                                                                                                       UGANDA
41 | African Alliance Pan-African Securities Research                                                                  03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis



                                          RWANDA
                                          Political and economic news

  Central Bank lists RWF 3.5bn            The Central Bank has issued a 5 year Treasury bond worth RWF 3.5bn, the seventh bond
                         bond             to be issued this year. The bond is part of a wider program to issue government securities
                                          regularly in order to revitalise capital market operations. While the Central Bank is
                                          working on establishing an Electronic Central Depository System, the governor noted that
                                          the legal framework is now in place to support the development of the Capital Market. The
                                          Electronic Central Depository will provide safe custody and facilitate transfer of securities
                                          when trading transactions take place. (Source: New Times)

Mineral exports to hit USD 60m            Rwanda’s mineral exports are expected to fetch approximately USD 60m in revenue in
   amid legislation challenges            2010 compared to USD 54.6m earned in 2009, on account of increased prices in the
                                          international market. Central Bank’s 1Q10 statistics indicate that the mining sector grew
                                          by 23.4% this year with a turnover of RWF 9.29bn from RWF 7.53bn in 1Q09 as a result of
                                          increase in international prices of minerals, mostly tin. According to the Rwandan
                                          government, if the prices continue to improve, 2011 will see better production and returns
                                          in terms of dollars. A key challenge for the sector is the recently enacted (July) American
                                          legislation on ‘Conflict Minerals’. The key minerals produced in Rwanda (cassiterite,
                                          wolframite, coltan and gold) all fall under the category of ‘conflict minerals’. The
                                          American legislation requires that within nine months from July, companies buying
                                          metals from Rwanda should be able to verify the source up to the mine level. While
                                          government had already put in place measures to ensure that all the minerals originating
                                          from the country are accounted for and mined with international good practice, the time-
                                          frame given under the legislation is not sufficient according to the ministry. (Source: New
                                          Times)

Govt targets clean water for all          The State Minister for Energy and Water has said that 100% of the Rwandan population
                       by 2015            will have treated water and have access to sanitation facilities by 2015. She revealed this
                                          saying that Rwanda has committed itself to reach very ambitious targets in water supply
                                          and sanitation, with the vision to attain 100% service coverage by 2015. The importance of
                                          adequate water supply and sanitation services as drivers for social and economic
                                          development, poverty reduction and public health, is fully acknowledged in Rwanda's
                                          flagship policy documents and political goals. She noted that within the implementation
                                          period of the Economic Development and Poverty Reduction Strategy (2008-2012)
                                          (EDPRS), the sector aims to increase the proportion of the population accessing safe
                                          water from 64% to 86%, and the proportion and sanitation services from 38% to 65%.
                                          Currently 76% of Rwandans have access to clean water while 56 % have access to
                                          sanitation. (Source: New Times)

                                          Market activity

                                          This week the Rwanda OTC market had a total turnover of RWF 1,811,400 from KCB
                                          10,700 shares traded in four transactions between RWF 169 and RWF 174. The share price
                                          of KCB closed RWF 2 lower from the previous week. The NMG counter did not record any
                                          transactions and its share price remained unchanged for the week. KCB shares closed at
                                          RWF 172 and NMG shares closed at RWF 1,200.




                                                                                                                    RWANDA
 42 | African Alliance Pan-African Securities Research                                                               03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis



                                          ANGOLA
                                          Political and economic news

Taiwan's CPC buys at least 2m             Taiwan's CPC Corp bought at least 2m barrels of West African crude via tender for
                       barrels            February arrival, two trading sources said on Friday. CPC bought 1m barrels of Angolan
                                          Cabinda from Unipec and the same amount of Nemba from Conoco, the sources said. CPC
                                          may have taken another Cabinda from Sonangol, which would bring the total to 3m
                                          barrels, they said. (Source: Reuters)

      Watchdog calls for more             The role of Angola's state-owned oil firm, Sonangol should be scaled back and an
  transparent Angola oil sector           independent regulator created to monitor Angola's energy industry, a corruption
                                          watchdog said. London-based Global Witness called on President Jose Dos Santos'
                                          government to reduce the influence Sonangol wields in the southern African nation, and
                                          allow it to concentrate on generating income for the state from oil and gas. (Source:
                                          Reuters)

  Oil accounts show USD 8.6bn             Angola, the second largest crude producer in sub-Sahara Africa, has gaps in its 2008 oil
           discrepency in 2008            accounts amounting to billions of dollars and millions of barrels, according to a London-
                                          based anti-corruption group. There is an USD 8.55bn discrepancy between data published
                                          by the ministries of finance and petroleum, said a report published today by Global
                                          Witness. Sonangol, the state oil company, issued a third amount that was between the
                                          two. (Source: Bloomberg)

     Argentina wants to double            The counsellor minister of the Argentina Embassy to Angola, Alfredo Gabriel Rullán,
              business volume             Thursday in Luanda, assured that his country will double the volume of business, in
                                          coming years in Angola, currently estimated at USD 200m. "Business volume before the
                                          opening of our embassy in Angola is set at between USD 200-250m per year and we want
                                          to increment it", he said to Angop, during a meeting with Argentinean businessmen from
                                          the provinces of Entre Rios, aimed at outlining strategies to enter the Angolan market.
                                          (Source: AngolaPress)

Over 2m passengers processed              The 4 de Fevereiro International Airport in Luanda, Angola, dealt with over 2m passengers
            at Luanda airport             ion the first half of 2010, the airport’s managing director, Joaquim Cunha said Saturday in
                                          Luanda. According to Cunha the figures can be compared to those seen before the
                                          airport’s terminal was refurbished and extended, when it processed around 1.8m
                                          passengers per year. (Source: macauhub)

                                          Company news

  KBR plans to open operating             KBR, an international construction and engineering firm, said Monday it plans to open an
                       center             operating center in Luanda, Angola as it looks to expand its services in the country. The
                                          center will offer engineering, project management and construction management
                                          services. (Source: Bloomberg)




                                                                                                                   ANGOLA
 43 | African Alliance Pan-African Securities Research                                                              03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis



                                         LESOTHO
                                         Political and economic news

 World Bank vice president for           World Bank Vice President for the Africa Region, Obiageli K. Ezekwesili visited Lesotho, to
         Africa visits Lesotho           discuss Lesotho’s economic priorities and visit World Bank-financed development
                                         projects. Ezekwesili met with King Letsie III and Queen Masenate; Prime Minister
                                         Pakalitha Mosisili; Minister of Finance and Development Planning Timothy Thahane;
                                         members of the cabinet responsible for education, health, tourism; Lesotho’s
                                         development partners; business leaders; and civil society members. The discussions
                                         focused on Lesotho’s development priorities, and how it can overcome the constraints of
                                         being landlocked. Lesotho has been hit hard by the financial crisis. Revenue from the
                                         Southern African Customs Union (SACU), which accounts for over 60% of the
                                         government’s revenue base, is declining, threatening to exacerbate macroeconomic risks
                                         to the economy. Furthermore, loss of textile markets due to the slowdown in the United
                                         States and decline in diamond trade are posing new challenges. Minister Thahane and
                                         Ezekwesili reviewed policy work covered by the World Bank, including developing
                                         alternate sources of revenue, increasing trade, and taking advantage of being close to
                                         Africa’s largest economy, South Africa. Key focus areas include improving the business
                                         climate, increasing effectiveness of public spending, and boosting competitiveness.
                                         During her visit, Ezekwesili took the opportunity to visit development projects financed by
                                         the World Bank and Lesotho’s development partners, including. (Source: World Bank)

                                         Company news

SAFDICO buys Lets’eng special            Gem Diamonds has sold two large rough white diamonds from its Letšeng mine in
     diamonds for USD 22.7m              Lesotho for a total of USD 22.7m, or USD 59,833 per carat. The stones weighing 196-carat
                                         and 184-carat respectively were sold at tender to Johannesburg-based SAFDICO, which is
                                         partly owned by Laurence Graff, Brian Gutkin and Johnny Kneller. SAFDICO has bought a
                                         number of Letšeng’s special stones, including the 478-carat 'Leseli la Letšeng’ and the
                                         603-carat Lesotho Promise. Gem Diamonds, reported that the world’s leading
                                         diamantaires participated in the tender, which closed in Antwerp on 24 November
                                         2010.The company further reported that its November tender achieved an average price of
                                         USD 2,341 per carat, excluding the 196-carat and 184-carat sales. The sale was the
                                         second that the company hosted in-house as part of its new marketing strategy, and
                                         represents a continued strength in Letšeng prices after its October tender achieved an
                                         average USD 2,422 per carat. Sales during the third quarter indicated an average price of
                                         USD 1,680 per carat. The November sale included a 4.68-carat rough blue diamond, which
                                         sold for USD 155,000 per carat, the highest price per carat achieved for a Letšeng rough
                                         diamond to date. (Source: Gem Diamonds)




                                                                                                                 LESOTHO
44 | African Alliance Pan-African Securities Research                                                              03 December 2010
The Africa Weekly

Equity research | Pan-Africa | News & Analysis



                                         RECENTLY PUBLISHED RESEARCH

                                             Orascom Telecom Holding Valuation Update                                   02 December
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                                             Dangote Cement FV update                                                   29 November
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                                             Celtel Zambia Offer to minorities - what to do?                            25 November
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                                             Bralirwa Initial Public Offering Prospectus                                24 November
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                                             Sechaba 1H11 Results Flash                                                 18 November
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                                             Primetime Holdings FY10 Results Flash                                      15 November
                                             Engen Botswana 1H11 Results Flash                                          15 November

                                             Bralirwa Initial Public Offering Custody Update                            12 November
                                             Delta Corporation 1H11 Results Flash                                       12 November

                                             Safaricom Limited 1H11 Results Flash                                       11 November
                                             Nigeria Banking Sector News - AMCON Press Release                          10 November
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                                             Safaricom Limited 1H11 Results Preview                                     8 November
                                             Benso Oil Palm Plantation Ltd 3Q10 Results Flash                              29 October
                                             Unilever Ghana Ltd 3Q10 Results Flash                                         29 October
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45 | African Alliance Pan-African Securities Research                                                              03 December 2010
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