Latest news with #StanbicBank
Zawya
18-07-2025
- Business
- Zawya
Uganda's Quality Chemicals proposes $51mln debt refinancing deal
Uganda's Quality Chemical Industries Ltd is fronting a $51 million debt refinancing deal to its shareholders, inspiring some kind of stock market enthusiasm in an electioneering season in the country. This credit facility comprises a $36 million loan meant to finance the construction of a second pharmaceutical plant in Kampala City and a $15 million working capital loan intended to plug short-term cash flow gaps in the company's operations. Stanbic Bank Uganda is to provide the facility, subject to approval by the company's shareholders at the upcoming annual general meeting (AGM), according to regulatory disclosures filed by the listed drug manufacturer.'The borrowing will fund the construction of a new factory, significantly enhancing our production capacity. This expansion will support increased output of existing products, the introduction of new product lines, and alignment with evolving treatment preferences, particularly injectables,' reads a statement by Quality Chemicals. Calvin Bateme, an equity analyst at Crested Capital, said the move could benefit from the fact that the firm won't suffer exchange rate losses -- for now -- given the Uganda shilling has been fairly stable.'It would be a good idea to provide a foreign currency hedging tool against its dollar loan facilities. There is also new competition to contend with in the local pharmaceutical market. Though the company's dividend policy has improved and the share price has registered steady gains, its share price might not hit more than Ush100 ($0.028) this year, because of limited information flow between the company and its investors,' Mr Bateme said. Coming in an elections campaign season, however, foreign currency risks are likely due to jitters, significant capital flight, shilling depreciation, and higher import inflation, which often arise during electioneering seasons. Uganda goes to the General Election in January 2026. Presidential nominations are scheduled for October 2025, according to the Independent Electoral Commission (IEC) calendar. Weak credit ratings suffered by Uganda's economy last year means credit is still expensive for government and local companies seeking such facilities in the international market. On May 17, 2024, Moody's credit rating agency downgraded Uganda's sovereign rating from B2 to B3 and revised the outlook from negative to stable. This downgrade was attributed to the country's weakened debt affordability, driven by an increased reliance on higher-cost sources of financing.'The resulting rise in borrowing costs widened Uganda's debt affordability gap relative to its peers. Following the downgrade, the Ugandan Shilling experienced significant depreciation, weakening from UGX 3,760 to UGX 3,830 by Monday, May 20, 2024…' reads an excerpt from the Uganda Bankers Association Annual Report for 2024. Quality Chemical Industries's total sales revenues increased from Ush265 billion ($73.4 million) in March 2024 to Ush267 billion ($73.9 million) in March 2025. The company's total cost of sales rose from Ush175.9 billion ($48.7 million) in March 2024 to Ush158.6 billion ($43.9 million) in March 2025.'The macroeconomic factors may be important, but the microeconomics of this market does affect Quality Chemical's performance a lot more. Will the new drugs produced at the new plant enjoy mass market appeal? Are the product unit prices sufficient to protect the company's target profit margins? Business expansion is good, but revenues must back it to justify it to investors,' said a senior executive at Xeno Uganda, who requested anonymity, citing confidentiality rules. The company's share price rose from Ush52 ($0.014) recorded at the end of June 2024 to a record high of Ush90 ($0.025) posted in the first half of 2025. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Reuters
10-07-2025
- Business
- Reuters
AFRICA-FX-Nigerian and Ghanaian currencies among those seen stable
ABUJA, July 10 (Reuters) - The Nigerian, Ghanaian, Ugandan, Kenyan and Zambian currencies are expected to be stable against the dollar in the next week to Thursday, traders said. Nigeria's naira is seen broadly unchanged on both the official and parallel markets, supported by central bank interventions and foreign portfolio inflows. The unit was quoted at 1,524 naira to the dollar in intraday trading on Thursday, versus a closing quote of 1,527 naira a week earlier. The currency was changing hands at 1,570 naira to the dollar in street trading on Thursday. "The naira is expected to remain relatively stable in the coming week largely due to continued inflows from portfolio investors drawn by high yields that are boosting market liquidity," a trader said. Ghana's cedi is forecast to remain stable as interbank market activity is subdued. LSEG data showed the cedi trading at 10.30 to the dollar, unchanged from a week ago. "The cedi continued to hold its ground against the dollar this week, supported by sustained central bank intervention amid a slowdown in interbank activity," said Chris Nettey, head of trading Stanbic Bank Ghana. "We expect a similar trend to persist in the coming sessions," he added. Andrews Akoto, head of trading Absa Bank Ghana, also said he expected the dollar/cedi pair to stay range-bound. Uganda's shilling is also seen little changed as mid-month tax payments due in local currency limit corporate foreign-currency demand. Commercial banks quoted the shilling at 3,579/3,589 to the dollar, compared to last Thursday's close of 3,582/3,592. "(Dollar) demand will be a little soft because of mid-month tax obligations," a trader said, adding that the shilling was likely to swing in the 3,550-3,580 range. Kenya's shilling is seen holding steady in quiet trade. Commercial banks quoted the shilling at 128.90/129.40 per dollar, compared with last Thursday's closing rate of 129.00/50. "It has been relatively stable. We expect this stability to continue as we usually have minimal activity mid-month," a trader said. Zambia's kwacha is expected to be trade around its current levels, but some analysts said it could gain further out as the economic outlook improves. On Thursday the kwacha was quoted at 24.39 per dollar from 24.45 a week ago. Fintech company Ebury said in a report that it was upbeat on the outlook for the kwacha. "Zambia appears to be largely overcoming its debt challenges and drought-related economic disruptions," the report said.
Reuters
03-07-2025
- Business
- Reuters
Kenya private sector activity slows in June, slowest level in a year
NAIROBI, July 3 (Reuters) - Kenya's private sector activity slowed in June with its biggest contraction in close to a year, driven by slower consumer spending and the impact of protests during the month, a business survey showed on Thursday. The Stanbic Bank Kenya Purchasing Managers' Index fell to 48.6 from 49.6 in May. Readings above the 50.0 mark indicate expansion in business activity while those below show contraction. The contraction was the sharpest in 11 months, the survey showed. "Weaker conditions were primarily driven by a solid contraction in business activity. Survey respondents attributed this decline to lower customer spending, challenging economic conditions and operational disruptions from protests," Stanbic Bank said in comments accompanying the survey. In the last week of June, thousands of Kenyans participated in protests, initially called to mark the anniversary of anti-government protests last year, but then amplified by public anger over the death during the month of a blogger in police custody. Interior Minister Kipchumba Murkomen said at least 10 people had been killed during one day's unrest when youth-led demonstrations were followed by looting and arson in Nairobi and other cities. The rights group Amnesty Kenya said at least 16 people were killed, all by gunshot, which it said was suspected to have been fired by police. "The dip in activity was due to output and new orders contracting because of weaker consumer spending, challenging economic conditions, and social protests reappearing in June," Christopher Legilisho, Economist at Stanbic Bank.
Zawya
30-06-2025
- Sport
- Zawya
Stanbic Bank, National Basketball Association (NBA) Africa and Luol Deng Foundation Tip Off Second Season of Jr. NBA League in South Sudan
NBA Africa ( Stanbic Bank and the Luol Deng Foundation tipped off the second season of the Stanbic Jr. NBA League for boys and girls ages 16 and under at Nimra Talata Basketball Stadium in Juba, South Sudan last Saturday. The league, featuring 28 boys and girls' teams, will play regular season games through September, which will be followed by the second edition of playoffs and finals in October. Prior to the season's tip-off, a league draw was held at St. Mark's Orthodox School on Thursday, where participating school teams selected jerseys of NBA teams which they will represent throughout the season. This was followed by a basketball clinic for 40 coaches and educators on Friday. The inaugural season's finals took place at Nimra Talata Basketball Stadium in Juba last August with two-time NBA All-Star Luol Deng and 1995 NBA All-Star Cedric Ceballos in attendance. Juba One 76ers were crowned the inaugural season's champions. The Jr. NBA/Jr. WNBA is the league's global youth basketball program for boys and girls that teaches the fundamental skills and core values of the game – teamwork, respect, determination and community – at the grassroots level in an effort to help grow and improve the youth basketball experience for players, coaches and parents. The Jr. NBA/Jr. WNBA program has been launched in 19 African countries, reaching more than 350,000 youth from across the continent last year. Distributed by APO Group on behalf of National Basketball Association (NBA).
Zawya
26-06-2025
- Business
- Zawya
Tanzania: Stanbic Bank appoints Lugemela as CFVO
Stanbic Bank Tanzania, one of the country's leading commercial banks and a member of the Standard Bank Group of South Africa, has appointed Derick Lugemela as its new Chief Finance and Value Officer. Lugemela, an accomplished finance professional with over a decade of experience in financial strategy, analysis and reporting, will oversee the bank's financial operations and value-driven initiatives. He has previously worked with Stanbic Bank Tanzania in various capacities, including as head of finance for corporate and investment banking (CIB) and as global market / treasury product control manager, giving him an in-depth understanding of the bank's objectives. Lugemela has a proven track record in senior leadership roles. Until his new appointment, he was the general manager of finance at Bank of Africa Tanzania for three years, where he led critical financial strategies and transformation programmes. Previously, he held posts at Tanzania Agricultural Development Bank, where he was the director of finance, and at KPMG East Africa, where he worked as an audit in-charge. He is a certified public accountant, with credentials from the Board of Accountants and Auditors in Tanzania, and is also ACCA qualified. © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
