Welcome to the 2nd issue of The Weekly Brief by The Kenyan WallStreet, a new newsletter that goes out every Monday morning at 9 am (EAT).

The second week of November is here, and we might just decide to pop into Rwanda for a break. Because it’s now visa free for Africans. A visa free future on the continent is good for all, although lately questions of customs and taxes at Nairobi’s main airport have put a damper on travel.

Perhaps Kenya is insistent on taxes because its prepping for a demographic shift, which will raise pensions (for the elderly) and all the expensive things (that the young need to do).

British Royals Conclude State Visit to Kenya

On Friday, King Charles and Queen Camilla concluded a four-day state visit to Kenya, which was peppered with discussions about Britain's colonial legacy. This visit held significance as it was Charles' first to a former British colony since he ascended to the throne in September 2022, after his mother, Queen Elizabeth II, who was once Queen of Kenya, died.

The visit primarily centered on the two nations' collaborative efforts concerning economic development, climate change, and security issues. During the visit, King Charles expressed his "deepest regret" for the violence that Kenyans endured during their struggle for independence.

But, he did not issue the formal apology that many victims and their descendants had been calling for. In Tanzania, the German leader visiting a former colony (mainland Tanzania, once known as Tanganyika, a German colony until the end of WWI) did.

Rwanda is Now Visa Free

Rwanda announced Thursday that it will allow Africans to travel visa-free to the country, becoming the latest nation, fourth so far, on the continent to announce such a measure aimed at boosting free movement of people and trade.

This comes barely a week after President William Ruto announced that Kenya is to end visa requirements to all African visitors by the end of the year. Visa-free travel within the continent has been a goal of the African Union (AU) for the past decade.

While there are regional deals and bilateral arrangements, progress towards no restrictions has been slow. Only Seychelles, The Gambia and Benin offer entry to all African citizens without a visa.

Headlines To Know This Week

• Less than a month since changing its structure and name, Shelter Afrique Development Bank (ShafDB) Board, headquartered in Nairobi, has approved a line of credit worth US$12 million to Conakry-based Vista Bank Guinee SA.

• Owners who bought apartments in a luxury apartment complex in one of Nairobi’s most expensive neighbourhoods are up in arms about a post-sale lease agreement that ties them to the developer in perpetuity, and at a cost. Read more about that here.

• Last week Dr. Yvonne Maingey introduced us to the world of carbon credits and warned us that was just the beginning. This week, she writes in this second part of a series on this key subject, this time about carbon certifiers (1, mostly), problems (3, to start with), and brokers (number unknown, growing) in the voluntary carbon market.

• The prestigious Angaza Awards program has once again opened its call for entries for the “2024 Top 10 Women to Watch” list, which aims to recognise and celebrate women making significant contributions to the financial services sector in Africa. Submit your entry at http://angazaawards.com/2024entry 

• After the free plan ended at the start of November, Netflix members in Kenya can still relish their favorite entertainment by upgrading to one of the paid subscription plans tailored for the Kenyan market. Here is how to Pay for Netflix in Kenya

Pan African VC Fund Norrsken22 raises $205 million

Norrsken22, the Pan African venture capital firm, has successfully concluded the final close of its African Tech Growth Fund, surpassing its initial $200 million target by reaching $205 million. Founded by Niklas Adalberth, Klarna's founder, and Hans Otterling, the firm boasts an experienced investment team with a deep track record in African investments, featuring Natalie Kolbe, Ngetha Waithaka, and Lexi Novitske, who have significant venture capital experience in Nigeria, Kenya, and South Africa.

The fund has attracted notable limited partners, including over 30 startup founders with valuations exceeding $1 billion, such as Olugbenga Agboola of Flutterwave, Niklas Zennström, the co-founder of Skype, and other prominent figures from the tech industry.

In Listed Companies Last Week

• Ekaterra Tea, formerly Unilever, obtained a court order allowing it to continue occupying a contested parcel of land in Kericho town, pending the conclusion of an ownership dispute. Ekaterra Tea is 52% owned by listed Limuru Tea Plc

• Carbacid Investments, a carbon dioxide manufacturer, is planning to establish three solar power generation plants as part of its strategy to reduce dependence on expensive and unreliable electricity supply from Kenya Power

• Car & General (C&G), a diversified trading firm, has issued a profit warning for the 15-month period ending in December. The company is alerting investors to anticipate a decrease in earnings of at least 25 percent

Kenya Preps For Demographic Shifts

Kenya is at the cusp of a demographic shift exemplified by an increasing population of the elderly and the youth, presenting the country with a mix of challenges and opportunities.

The country’s population of older persons increased by about 41 per cent from 1.94 million in 2009 to 2.74 million in 2019 while the youth population increased from 11.08million to 13.18 million in the same decade. The youth population grew from 3.20 million in 1989 to 13.18 million in 2019, and is expected to increase to 18.97 million by 2035.

According to National Treasury and Economic Planning Cabinet Secretary Prof. Njuguna Ndung’u, this demographic shift presents anxiety due to lack of commensurate job opportunities, and the expected high demand for social protection services.

“The youth bulge presents the country with significant economic and social opportunities but also challenges concerning health, education, skills training, labour market needs, employment, and digital addiction,” notes Prof. Ndung’u in the 2023 State of Kenya Population Report. Read More

Ageing Anxiety

The anxiety around Kenya’s increasing number of ageing persons include income insecurity and social protection, health concerns and insurance, violence, abuse, digital exclusion, property inheritance anxiety and disability.

“To enhance the well-being of senior citizen, the government should mainstream ageing in the budgetary process through an analysis of budget allocations to assess if expenditure is equitably allocated between different age groups,” the report’s authors said.

2024 Africa Fintech Summit is Coming to Nairobi

The 11th edition of the Africa Fintech Summit will be held in Nairobi, Kenya in 2024, Zekarias Amsalu, co-founder announced at the just concluded 10th edition of the summit in Lusaka, Zambia.

On the sidelines of the just concluded Summit in Lusaka, The Kenyan Wall Street team caught up with the Flutterwave Team to discuss the current state of fintech in Africa.

Upcoming Events

• Safaricom Half Year Financial Results Announcement (1H24): November 9.

• Africa Week 2023 by Norrsken: Kigali, Nov 8-9.

• Launch of the State of Inclusive Instant Payment Systems in Africa 2023 Report: Addis Ababa, Nov 8, 2023.

• Africa Tech Festival: Cape Town, Nov 13-16.

• The Inaugural Supply Chain Disruption week: Nairobi, Nov 6-8

• Annual Tax Conference: Nairobi, Nov 23-24.

• The MSGBC Oil, Gas & Power 2023: Nouakchott, Nov 21-22.

  Podcast of The Week

Interview of the Week; Norrsken22's General Partner, Lexi Novitske talks about investment opportunities in Africa.

Have a great week!

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