Business & Money
Amsons Group Gets Comesa Approval for Bamburi Cement Buyout
The acquisition battle for Bamburi Cement underscores the intensifying competition in East Africa’s cement industry. If successful, Amsons’ entry into Kenya would boost its regional presence and provide valuable capital and synergies for Bamburi.
: Tanzania’s Amsons Group wins Comesa approval to acquire Bamburi Cement.
Competing bids and regional market growth add intrigue to the deal.
Tanzanian conglomerate Amsons Group has received regulatory approval from the Common
Market for Eastern and Southern Africa’s (Comesa) Competition Commission to acquire
up to 100% of Kenya’s Bamburi Cement.
The approval, confirmed on November 14, 2024, indicates the proposed acquisition does not
present any competition risks within the region. According to the commission, the transaction
aligns with Comesa’s public interest objectives and supports trade among member states.
“It is unlikely that the proposed merger will lead to the creation of a dominant
position that would enable the parties to engage in unilateral conduct in the market,” the commission stated.
The Committee Responsible for Initial Determinations (CID), a Comesa body, also
confirmed the transaction would not hinder competition.
“The CID determined that the merger is not likely to substantially prevent or lessen
competition in the Common Market or a substantial part of it, nor will it be contrary
to the public interest. The transaction is also unlikely to negatively affect trade
between Member States,” the statement added.
Competing Offers for Bamburi Cement
Amsons Group initially offered to acquire Bamburi Cement for KSh65 per share, valuing the
company at KSh23.59 billion. However, it faces competition from Savannah Clinker, owned
by businessman Benson Ndeta, which recently raised its offer to KSh76.55 per share, up from
its initial KSh70 per share bid in August 2024.
Strategic Expansion by Amsons
Amsons Group, a leading player in Tanzania’s manufacturing and energy sectors, is pursuing
the acquisition through its Kenyan subsidiary, Amsons Industries (K) Ltd. This move is part of
the Group’s strategy to establish a strong presence in the Kenyan market and enhance trade
across East Africa.
“The approval is a significant boost to our offer as we continue to engage investors
of Bamburi Cement and remain confident that our acquisition bid will be successful.
It presents a win-win scenario for investors and our two countries,” said Amsons
Group CEO Edha Nahdi.
The Group has appointed KCB Investment Bank as its transaction adviser, highlighting its
professional approach to entering the Kenyan market.
What’s Next?
The acquisition battle for Bamburi Cement highlights the growing competition in East Africa’s
cement industry. If successful, Amsons’ entry into Kenya would strengthen its regional presence while providing much-needed capital and strategic synergies for Bamburi.
However, Savannah Clinker’s improved bid signals a potential showdown as shareholders
evaluate which offer best aligns with their interests.
As Comesa emphasises trade integration and competition, the outcome of this acquisition will
likely have significant implications for Kenya’s industrial sector and the broader East African
market.
Business & Money
Ethiopia Attracts $53.5 Million in Q1 Investments, Creates 8,700 Jobs
: Ethiopia attracts $53.5M in Q1 investments, creating 8,700 jobs. Growth driven
by reforms, with a focus on service and manufacturing sectors.
The Addis Ababa Investment Commission (AAIC) announced a promising start to the
2023/24 fiscal year, with 612 investors registering a combined capital of Birr 2.93 billion
($53.5 million) in the first quarter.
This reflects a 13% growth compared to the same period last year, signalling sustained
investor confidence despite economic challenges.
Speaking at a press briefing on November 30, AAIC’s Director of Communication,
Meseret Woldemariam, credited the growth to policy reforms and enhanced investor
facilitation.
“Our efforts to streamline investment processes and resolve bottlenecks are yielding
results. We remain committed to ensuring investors thrive in Addis Ababa,” she said.
SECTORIAL CONTRIBUTIONS
The majority of the newly licensed investors are in the service and manufacturing
sectors. The service sector includes hotels, tourism, and IT ventures, while the manufacturing
investments span electrical products, steel, wood, and textiles.
These investments have generated 8,707 jobs, comprising 770 permanent and 490
temporary positions created by newly licensed entities.
The AAIC has also initiated field monitoring visits to ensure operational readiness. “Our
team works closely with new investors to address challenges promptly, enabling faster
project rollout,” Meseret added.
CHALLENGES AND REFORMS
Investors continue to face hurdles such as foreign currency shortages and workspace
availability. However, the commission highlighted progress due to macroeconomic reforms,
particularly improving foreign currency access.
“We are actively collaborating with the Mayor’s office to address workspace issues
through professional support in rental solutions and operational guidance,” Meseret
explained.
Recent reforms in the National Bank of Ethiopia’s foreign exchange policy have also
been pivotal. In October, the central bank announced a 30% increase in forex allocation to priority sectors, a move welcomed by stakeholders.
EXPANSION PLANS AND PROJECTIONS
The AAIC aims to capitalise on the momentum, targeting Birr 15 billion ($274 million) in
investments by the end of the fiscal year. A new digital investment portal, launched in November, promises to reduce registration times by 40% and improve transparency.
“We are confident these initiatives will not only attract more investors but also deepen
the trust of existing ones,” Meseret concluded.
INVESTOR SENTIMENT
Prominent business leader Ahmed Yusuf, who recently launched a $3 million IT hub in
Addis Ababa, praised the commission’s efforts.
“The improvements in investor services and forex allocation are encouraging. We hope
to see more streamlined processes for licensing and operations,” he remarked.
As Ethiopia seeks to position itself as a regional investment hub, sustained efforts in
addressing investor concerns and enhancing infrastructure will be critical.
Business & Money
Ethiopia Eyes December Debt Restructuring After IMF Review
: Ethiopia’s December IMF review may unlock long-awaited debt restructuring,
crucial for economic reforms and stalled projects like the Koysha Hydroelectric
Dam.
Ethiopia’s much-anticipated debt restructuring prospects could gain clarity this
December, as the country awaits the second review under its four-year International
Monetary Fund (IMF) program.
The Extended Credit Facility (ECF), launched in August 2023, remains central to
Ethiopia’s economic reform and debt relief efforts.
Progress Toward Debt Treatment
Last week, Ethiopian authorities reached a staff-level agreement with the IMF tied to the
second review. A comprehensive report on this review is set for release in December, a month many stakeholders, including the National Bank of Ethiopia (NBE), view as pivotal for
advancing debt treatment plans.
“Debt restructuring stands at the centre of our reform agenda. With the report’s release,
we expect rescheduling talks to gain momentum,” said Habtamu Workneh, Director of
External Economic Analysis & International Relations at the NBE.
He added that discussions are focusing primarily on extending maturity dates for Ethiopia’s debts.
IMF Support and Engagements with Creditors
The IMF has provided Ethiopia with USD 2.5 billion under its current fiscal program,
offering critical support to the country’s macroeconomic stabilisation efforts.
In parallel, Ethiopian authorities have engaged with Eurobond holders and the Official
Creditors Committee (OCC).
A debt restructuring proposal was submitted to Eurobond holders in July 2024, following
key discussions in December 2023 and May 2024.
Additionally, a global investor update held on October 1, 2024, highlighted the nation’s
ongoing economic challenges and progress in creditor negotiations.
Shifting Debt Landscape
The government has reported improvements in its debt profile. Planning and Development Minister Fitsum Assefa (PhD) announced that Ethiopia had ceased relying on commercial loans and direct borrowing from the central bank.
She noted a significant drop in the external debt-to-GDP ratio to 13.7 per cent, though
the IMF’s Debt Sustainability Analysis, published in July 2024, pegged the ratio at 18
per cent as of June 2023.
External debt accounts for 45 per cent of Ethiopia’s total public and publicly guaranteed
debt, the report stated.
Financing Challenges Persist
Despite these reforms, Ethiopia’s financing challenges remain acute.
The government is seeking nearly USD 1 billion to complete the Koysha Hydroelectric
Dam project, which has stalled at two-thirds completion due to funding shortfalls.
The project is a critical component of Ethiopia’s development strategy, but its delays
underscore the broader fiscal pressures the country faces.
Expert Views on Economic Outlook
While Ethiopian officials are optimistic about the December review as a turning point,
analysts caution that real progress hinges on creditor consensus and the government’s
ability to implement reforms.
Critics have also raised concerns about inflated GDP growth figures, which they argue
may distort Ethiopia’s true debt sustainability.
Looking Ahead
The IMF review, coupled with Ethiopia’s active engagement with creditors, could mark a
a significant step forward in its quest for debt relief.
December will likely be a defining month for the country’s economic future, with broader
implications for its ability to attract investment and complete critical infrastructure
projects.
Business & Money
KCB Group Surpasses Equity with US$ 342.31 Million Nine-Month Profit
: KCB Group reports Sh44.5B ( US$ 342.31) nine-month profit, outpacing
Equity Bank. Learn about its 49% growth, challenges, and stock performance this
year.
KCB Group Plc has outperformed Equity Bank to cement its position as Kenya’s leading
lender, posting a net profit of Sh44.5 billion for the nine months ending September
This represents a 49% year-on-year growth, surpassing Equity Bank’s Sh37.5
billion profit during the same period.
Profit Growth Driven by Core Business Performance
The remarkable profit growth was fueled by higher earnings from both interest and non-
interest income streams. KCB’s diverse revenue base has been pivotal in maintaining
its dominance in the competitive banking sector.
Non-Performing Loans a Key Concern
Despite the impressive profit growth, KCB’s non-performing loan (NPL) ratio rose to
18.5%, compared to 16.5% last year. This increase highlights persistent challenges in
managing credit risk, with Chief Financial Officer Lawrence Kimathi acknowledging it as
a “pain point” for the bank.
KCB Stock Outshines Peers on NSE
KCB’s strong financial performance has translated into exceptional stock market results.
The bank’s stock has risen 78.8% year-to-date, making it the best-performing banking
stock on the Nairobi Securities Exchange (NSE).
Plans to Sell National Bank of Kenya
Earlier this year, KCB announced plans to sell its struggling subsidiary, National Bank of
Kenya (NBK), to Nigeria’s Access Bank. While Nigerian regulators have approved the
deal, it is still awaiting clearance from Kenya’s Central Bank. The sale aims to
streamline KCB’s operations and address losses at NBK.
CEO Paul Russo Optimistic About Year-End Performance
“The journey has not been without its hurdles, but our ability to walk alongside our
customers has driven our success,” said KCB CEO Paul Russo. He expressed
confidence in closing the year on a high note, leveraging improving economic conditions
across the region.
Key Figures at a Glance
● Net Profit: Sh44.5 billion (+49%)
● Non-Performing Loan Ratio: 18.5% (up from 16.5%)
● Stock Performance: +78.8% year-to-date
KCB’s strong performance underscores its resilience in navigating challenges and its
commitment to sustaining growth in Kenya’s banking sector.
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