HiPipo Money

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Mauritius has been ranked first in the Ibrahim Index of African Governance (IIAG) 2014 for the eighth consecutive year. Among the 52 countries rated by the Foundation, Mauritius scored the highest overall mark of 81.7 points. Cabo Verde was second with 76.6 points, with the average score for the continent being 51.5 points.
 
The Ibrahim Index of African Governance (IIAG) provides an annual assessment of the quality of governance in African countries. Compiled by combining over 100 variables from more than 30 independent African and global institutions, the IIAG is the most comprehensive collection of data on African governance.
 
Commenting on the ranking, Mr.DevManraj, Financial Secretary of the Republic of Mauritius said “It is indeed with great pride that we welcome the MO Ibrahim report on Governance and we are pleased that Mauritius again tops the ranking for the eight consecutive years. Today’s announcement shows that Mauritius continues to lead Africa in terms of its high governance standards and that we have significantly improved our performance in public management, on the business environment and in providing sustainable economic opportunities.  I am confident that this announcement will further enhance the position of Mauritius as a secure, transparent and trusted environment for FDI and also as an ideal platform for outward investments into Africa”.
 
According to Mo Ibrahim Foundation, Mauritius also ranked first in Africa for Sustainable Economic Opportunity business environment, a category which assesses whether the state provides the conditions necessary for the pursuit of economic opportunities that contribute to a prosperous and equitable society. It also measures the delivery of sound economic policies and the provision of a sustainable economic environment that is conducive to investment and the operation of a business.
 
Mauritius also ranked first in Human Development, a category which evaluates the success of the state in securing the well-being of all of its citizens. It measures the extent to which the government provides citizens with social protection, comprehensive education provision and a healthy life.
 
IIAG was established in recognition of the need for a robust, comprehensive and quantifiable tool for civil society to track government performance in Africa. It is Africa’s leading annual assessment of governance established to inform and empower the continent’s citizens and support governments, parliaments and the civil society to assess progress.

Tanzania was ranked in position 15, two places ahead of Kenya, while Uganda was listed in position 19.

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“The economic reforms that have taken place thus far are courageous, ambitious and impactful,” said El-Khazindar, “but they must be supplemented with a comprehensive vision that will set the framework for long-term growth”

Hisham El-Khazindar, Co-Founder and Managing Director of Qalaa Holdings (CCAP.CA on the Egyptian Exchange, formerly Citadel Capital), a leading African investor in infrastructure and industry, gave the opening keynote speech at Al Mal’s 10th annual Money & Finance Conference. 

“During the past three months we have witnessed the implementation of an ambitious set of long-overdue reforms that have already had a positive impact on the economy,” said El-Khazindar. “In the next period we can expect to see a gradual shrinking of the budget deficit which is an important early indicator for both local and international investors of where things are headed,” he added.

El-Khazindar also noted that the removal of energy subsidies and the  liberalization of the energy sector in general, which will allow private sector participation, was a particularly encouraging step that will be of benefit to the country on multiple levels. 

“Egypt’s production capacity has been suffering tremendously during the past period because of limited energy supplies. If we look at the cement sector as a case in point we can see that Egypt’s cement capacity went down from 50 million tons per annum to c. 30 million tons because factories did not have access to fuel,” said El-Khazindar. “Allowing the private sector to import coal and natural gas will improve the efficiency of our industrial sector across the board and that alone will translate into growth before we even begin to factor in the impact of new investments.”

The challenge according to El-Khazindar will be moving beyond the short-term growth that is largely the result of a rebound effect to sustainable long-term economic development that will result in a tangible improvement in the standard of living for all Egyptians. 

“Long-term growth will only be possible if we have an integrated vision with clearly communicated goals and a plan to minimize the negative impact of fiscal reforms,” said El-Khazindar. “Raising taxes was a must but the next step is coming up with a way to move the informal sector into the real economy so that they can start paying taxes. Putting a cap on public sector salaries was necessary but we have to keep in mind that without competitive salaries we compromise our ability to attract high caliber employees.”

Regarding the negative impact of energy subsidy removal, El-Khazindar noted that a proper social welfare system must be put in place whether it’s the further activation of smart cards or conditional cash transfers for those in need.

Qalaa Holdings executives Mohamed Shoeib, Managing Director and Head of the company’s Energy Division and Amr El-Garhy, Managing Director and Head of Agrifoods and the Corporate Finance and Investment Review Function also participated in panels on managing Egypt’s energy needs and tapping into new sources of financing. 

Qalaa Holdings has undergone a transformation process that has seen it develop from a private equity model to an investment holding company with a focus on the core industries of energy, cement, agrifoods, transportation & logistics, and mining. The new structure gives the company the leeway to hold investments longer and thus create more value for both shareholders and the regional economies in which it invests.

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MTN Uganda has successfully completed the Mobile Money upgrade. The system is currently being stabilized to handle the surge of traffic as customers were unable to transact during the period of the upgrade- this is causing intermittent service interruption to the system but will improve as the backlog is cleared.

We thank our customers for their continued patience during this period.

MTN Management

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Big Brother Hotshots

Housemate Profiles

Namibia

Permithias

Age: 25

Professional sushi chef Permithias unsurprisingly lists sushi as one of his favourite foods, alongside pizza. He doesn’t have a favourite book, but enjoys watching The Originals on TV. A fan of animation, Permithias’ favourite films are Turbo and Happy Feet, while he also likes the music of Chris Brown, James Blunt and Joe Tomas.

His mom is his role model, because she provided for the family with ‘nothing but blood, sweat and tears’. He is the eldest of five children; he has three sisters and a brother. Permithias says that becoming a chef is his greatest achievement so far, because it ‘opened a window’ for himself and his family.

He was inspired to enter Big Brother Hotshots because he’s been watching the show for years but won’t sell his soul or lose his self-worth in the process. Asked how he feels knowing that the whole continent will be watching him 24/7, he says: ‘scared, but it will all come together the way it should’. If he wins, he’ll take care of his Mom and open his own restaurant.

Permithias says he’s easy-going, open-minded and ‘down for whatever is fun’ and enjoys others who are also open-minded.

South Africa

Nhlanhla

Age: 24

Nhlanhla is from Witbank in South Africa, and is a Business Analyst, Actor and Model with an Honours degree in Information Systems. He loves fresh butternut soup, lamb shank & vegetables and cottage cheese pie. His favourite books include Animal Farm and The Great Gatsby and he enjoys Game of Thrones, Shameless, Suits and Heroes on TV. He lists Brad Pitt and Will Smith as two of his favourite actors.

His favourite place in South Africa is the Groenkloof Nature Reserve in Pretoria and the best things about the continent as a whole are the people and their strength & resilience. Amsterdam made a big impression on him at a young age when he went there and learnt a lot about himself and personal growth.

His mother is his role model, because she sacrificed a lot to get him where he is today and taught him a great many things. Together with his Grandmother, she has influenced his life a great deal because they were always strong-willed and gently guided him through life.

Nhlanhla entered Big Brother Hotshots because he’s been a fan ever since he saw his first season on DStv. ‘I just knew that I wanted to be on the show myself, and wanted to take the opportunity to have my personality spread all over the world’. He thinks having the continent’s eyes on him 24/7 will be ‘nerve-wracking’, but says it’s a great feeling knowing he’ll be watched by the continent and can influence the viewers.

He describes himself as ‘crazy, eccentric, narcissistic, energetic and spiritual’ and enjoys the fact that he’s always positive and optimistic, and always sees the beauty in others.

Zambia

Resa

Age: 25

Lusaka-born Resa is an Event Planner, MC and Public Speaker. She entered Big Brother Hotshots in the hope of winning the grand prize and being able to pay off her mother’s debts. ‘She has moved heaven and earth to ensure that I get my honours degree and in the process she has incurred debts,’ says Resa.

She’s ‘extremely nervous, but delighted at the same time’ at the prospect of having the continent’s eyes on her 24/7. She says the viewers can expect ‘realness’ from her. ‘No pretence, I’m an open book, I don’t hide my struggles because they’ve shaped me into who I am and I’ve used them as stepping stones,’ she says. ‘Also, lots of dancing and definitely lots of laughter!’

Resa describes herself as ‘unique, colourful, bubbly, random and hyper’, saying that her inquisitive nature means that she won’t suffer in silence. ‘I’m apologetic, my outspoken nature, I’m a go-getter, open-minded and spontaneous,’ she says.

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Emirates, a global connector of people and places, is offering Ugandan travellers up to 25 percent discount on Business and Economy Class fares to selected and exciting destinations around the world.

Those wanting to visit some of these destinations, whether for business, leisure or to visit family and friends, can now do so with discounts of up to 25 percent travelling from Entebbe. Economy Class tickets via Dubai to Thailand start from just USD 916, London USD 896, New York from USD 1317, Beijing from USD 1269 and Ahmedabad from USD 569.

Business Class fares to Thailand start from just USD 2137, London USD 2671, New York from USD 3597, Beijing from USD 2938 and Ahmedabad from USD 2100.

To take advantage of this limited period offer, customers must purchase their tickets between 18^th and 27^th September 2014 and travel between 18^th September and 2^nd December 2014. Tickets are for valid for return travel only, with a minimum stay of three days and a maximum stay of one month.

“Emirates is all about offering value for money. This offer with up to 25% off for a limited time offers even greater value, and the opportunity to travel on Emirates to one of a number of destinations in its global network, with just one convenient and comfortable stop in Dubai. “What’s more, some of the destinations included in this offer, such as New York are serviced by Emirates’ iconic A380 aircraft, which offers a unique travel experience,” said Thani Alansari, Emirates’ Country Manager for Uganda.

Emirates services the daily Entebbe-Dubai route with a Boeing 777-300ER, which features eight First Class suites, 42 lie-flat Business Class seats and 310 spacious Economy Class seats. Customers on board the aircraft can experience Emirates’ famous hospitality and service from its multi-national cabin crew, enjoy more than 1600 channels of on-demand audio and visual entertainment on its ice entertainment system, gourmet cuisine and generous baggage allowances. Economy Class customers get 30 kg, Business Class get 40 kg and First Class customers 50kg.

Emirates flies to more than 140 destinations in 81 countries across six continents, and it’s the world’s largest operator of Boeing 777 and A380 aircraft. Emirates flight EK 794 departs Entebbe at 1800hrs, and arrives in Dubai at 0510hrs the next day, while the return flight EK 793 departs Dubai at 1005hrs and arrives in Entebbe at 1500hrs.

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For the 3rd time, Airtel Uganda has once again partnered with The India Women’s Association to organize the India Independence celebrations in Uganda.

Airtel has been partnering with the Indian Women Association to sponsor the annualIndia Independence day celebrations. The monetary sponsorship usually ends up supporting a social cause like cancer, malaria or torture against certain vulnerable groups. Last year’s sponsorship was to fight against breast cancer. Similarly, this year’s event will focus on raising funds to continue the fight against cancer. This is a noble cause that Airtel would like to continue associating with.

The sponsorship covers a charity run to fundraise for Cancer on 19th October 2014

This year’s events will include a high profile performance by reknown Bollywood artist Sunidhi Chauhan who will be performing at Kampala cricket oval.
 

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Six-fold increase in EBITDA quarter-on-quarter in 2Q14 underscores impact of operational improvements at core units; company targets significant expansion of EBITDA in coming four years, on-course with its disposal program and remains open to very carefully targeted acquisitions in core industries.

Qalaa Holdings Financial & Operational Highlights of the First Half of 2014

·         Total Revenuesrose 33% year-on-year¹ to EGP 2,927.5 million.

·         Gross Profitaccordingly rose 93% from 1H13 to EGP 664.4 million.

·         EBITDAfor the period closed at EGP 210.2 million in 1H14, a decisive improvement from a negative EGP 141.5 million a year ago driven by the impact of improved revenues and a sustained emphasis on revenue growth and cost control across the board.

·         Net Losses After Minority Interestwidened 11%, reflecting the negative impact of discontinued operations, MENA Malls (Designopolis) losses, as well as higher interest and foreign exchange charges in the period.

·         Top contributors to revenuesinclude cement (41%) and energy (26%) on the back of standout performances from units of ASEC Cement as well as TAQA Arabia. In the agrifoods division, Dina Farms and sister companies ICDP (fresh milk) and ACST (retail) also turned in strong financial and operational results.

·         Total bank debtof EGP 11.6 billion vs. total equity of EGP 13.2 billion.

Qalaa Holdings (CCAP on the Egyptian Exchange, formerly Citadel Capital) released today its consolidated financial results for the six months ending 30 June 2014, reporting revenues of USD 409297.49, up 33% compared with the pro-forma results of the same period last year.

Notably, EBITDA (before one-off charges) moved to a positive USD34m 1H14 from a negative USD20m million in the first half of 2013 primarily due to significant operational improvements at core assets. Meanwhile, net loss after minority interest for the period widened 11% to USD 57.4m, primarily on the back of non-operational factors including increases in amortization, interest expenses and foreign exchange losses.

On a second-quarter basis, Qalaa Holdings reported revenues of USD200.000 in 2Q14, a 58% y-o-y rise. Notably, 2Q14 EBITDA moved to a positive EGP 181.2 million, up from a negative USD200.000in the same period of last year.

Management moreover notes that EBITDA rose more than six-fold q-o-q from USD400M in the first quarter of this year. Notably, 2Q14 is also the first quarter the company has reported a positive EBIT figure at EGP 61.8 million, while its Net Loss After Minority Interest narrowed from US$ 32.4M in 1Q14 to EGP 178.7 million in 2Q14.

“Our results in the second quarter were underpinned by strong operational results from companies including TAQA Arabia, cement division units ASEC Minya and MisrQena Cement, and Dina Farms in our agrifoods division, among others. Simultaneously, we continued the build-out of Egyptian Refining Company’s US$ 3.7 billion greenfield refinery and reported critical progress at Nile Logistics — on the back of increased stevedoring and the introduction of container transshipment — at the same time as ASCOM, our mining unit, landed a high-profile contract for work on the New Suez Canal. We also expect to see improved performance at Africa Railways over the next 12 months,” said Ahmed Heikal, Chairman and Founder of Qalaa Holdings.

“On the divestment front, we will continue to push forward with our disposal program throughout the year and beyond. We also made a strategic decision to shut down our discontinued operations either through sale or liquidation,” Heikal added. “Our view is that any new capital deployments should be directed to proven winners, of which we have an abundance, rather than risky turnarounds,” he explained.

Also new in the quarter, the company’s financial results now reflect the consolidation of Tawazon, a leading Egyptian solid waste management company and leading player in the alternative fuels sector on the strength of its refuse-derived fuels (RDF) business. All of Qalaa Holdings’ core companies are now consolidated with the exception of themining unit, ASCOM (which is separately listed on the Egyptian Exchange under the ticker ASCM).

“We expect continued improvements in EBITDA in the second half and heading into 2015 amid a continued emphasis on both revenue growth and cost control in a business climate that we expect will continue to move in favor of our core investment theses,” said Qalaa Holdings Co-Founder and Managing Director Hisham El-Khazindar. “In particular, the sustainability of this improvement will be bolstered by continued action on the state’s recently inaugurated program to reform Egypt’s inefficient energy subsidy system.”

Below the EBITDA line, profitability was impacted in 1H14 by a 25.0% y-o-y rise in interest expenses to USD59M from USD47.5 million. This includes interest expenses consolidated from ASEC Minya (a greenfield cement plant in Egypt), where interest expenses were capitalized in 1H13 while the plant was under construction, but are now recognized as expenses following its start of production last fall.

“Our stated goal of having Qalaa Holdings debt-free and to push debt to the level of operating companies by the end of 2019 is an achievable goal,” said Heikal.

The divestment of Sphinx Glass at an equity value of US$ 114.2 million closed in 3Q14 as planned. The sale price implies an enterprise value of c. US$ 180 million after deducting debt and liabilities which are to be assumed by the buyer. Qalaa Holdings held a 73.3% stake in Sphinx Glass, resulting in cash proceeds to Qalaa of around US$ 71 million (EGP 508 million) after the estimated capital gains tax. Capital gains realized from the transaction will be recorded in the company’s third-quarter financial statements.

Going forward, Management expects growth to be driven by existing investments — both currently operational and those set to come onstream in the coming period — and is increasingly mindful of opportunities to drive growth through very carefully targeted financially accretive acquisitionsin our core industries should the right opportunities present themselves.

“We continue to be extra-focused on our core assets (including microfinance),” concluded Heikal.

Highlights of Qalaa Holdings’ 2Q and 1H 14 results, along with management’s analysis of the company’s performance and detailed overviews of performance of operational companies in each of Qalaa’s core industries, and complete financials are available for download on ir.qalaaholdings.com.

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Airtel Uganda visited Nanfugaki Primary School, one of its adopted schools, and handed over new furniture and text books to the school administration.

Nanfugaki Primary School located in Jinja is the third school under the Airtel Adopt-A-School Corporate Social Responsibility Program. It was adopted at a ground breaking event held at the school attended by government officials, district officials and the Uganda Cranes team who handed over soccer equipment to the school on 12th December last year.

Airtel’s Adopt-A-School initiative is an initiative practiced in all Airtel Africa countries where the company chooses a needy school, adopts it and starts refurbishing it.This program ensures access to quality education for all children, in particular the underprivileged ones from disadvantaged and marginalized communities, so as to realize immense significance for overall development of the country.At present, this program, across Africa and India, exists in over 300 schools.

Speaking at the handover ceremony, Mrs. Charity Bukenya, the head of Corporate Social ResponsibilityatAirtel Ugandathanked all the Airtel Uganda staff members who contributed to this noble cause. “At Airtel, we believe that to achieve the best quality education, students have to have the best facilities possible.” “We hope these students will find value in reading the text books and also utilize the furniture given to the school,” she added.

The items donated by Airtel Uganda include;

• 90 classroom desks
• 5 tables
• 5 chairs
• 10 book shelves
• 12 Staffroom desks

The Guest of Honor and Jinja District LCV Vice Chairman Mr. Paul Balidawa, commended Airtel Uganda for fulfilling their initiative. “We thank Airtel Uganda for coming back to Nanfugakito repair and maintain our school as they promised last year when they adopted us.” In his remarks, he also pledged to work hand in hand with the school administration to ensure that there is no vandalism of the property that had been donated.

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As part of its Corporate Social Responsibility (CSR) drive MTN Uganda Foundation has commissioned two community projects in the western region; a classroom block in Kashuro in Mbarara district and a clean and safe water project in Gisorora, Kisoro district.

The classroom block constructed at Kashuro Primary school is complete with two water tanks of 10,000 liters each, furniture, plastic gutters and drainage pipes worth Ushs250 million.

MTN’s General Manager Corporate Services Anthony Katamba who represented the MTN Uganda CEO- Brian Gouldie, handed over the block to the school administration and local authorities on Wednesday 17^th September 2014 before heading South West to Kisoro to commission the water project in Kisoro.

The Gisorora water project was a response to the communities out cry for lack of safe and clean water that has led to high cases of water borne diseases caused by the unsafe water. On Thursday 18^th September 2014,MTN Uganda Foundation in partnership with Kisoro district local council commissioned the clean and safe water project in Gisorora parish, Nyakabande sub county in Kisoro district.

The Gisorora waterproject was implemented using Ushs 50 million shillings that MTN Uganda Foundation contributed towards the cause which will now see a total of 264 homesteads. The safe water was brought closer to the homesteads by a distance of 3kms in partnership with Compassion Uganda and National Water and Sewerage Corporation (NWSC) which conducted additional activities such as extension of the existing water lines deep to the communities. Water verification tests were done and also the institution and training of the water committee to manage sanitation.

The ceremony was presided over by District LC5 Chairman Mr. Milton Bazanyemaso who officiated at the event as Guest of honour.

Speaking during the event, Katamba said MTN Uganda will continue working with other partners to help making a difference in areas that matter most to the different communities in Uganda. We will focus more on the rural communities who need more of these life changing projects.

“MTN Uganda and our partners are committed to enhancing development in the communities in which we do business, not just by providing universal access to communication, but also through consistent contribution to provide basic and essential necessities such as clean and safe water, promotion of good hygiene and sanitation practices and supporting education in Uganda,”. He said MTN Foundation‘s decision to commit funds on the project stemmed from a feasibility study which indicated that Gisorora area had a severe water shortage challenge. This had affected food production and also children were dropping out of school. 

Katamba further reiterated that MTN Uganda is committed to partnerships with both the public and private sector to continue driving the national development of Uganda.

Kisoro district is located in the southwestern part of the country bordering Democratic Republic of Congo and Rwanda. The district has a population of 239,000 people. Over 1,219school going children are expected to benefit from the project which saw Kisoro district contribute 10 million.

Speaking at the event, the Guest of Honour Mr. BaznyemaasocommendedMTN Ugandafor consistently investing in life changing initiatives. He recognized MTN as a responsible Corporate citizen and a worthy developmental partner for the Government of Uganda.