Kenya to promote 35 state corporations as Africa seeks to jumpstart IPOs

NAIROBI, Nov 23 (Reuters) – Kenya’s President William Ruto mentioned on Thursday the federal government was poised to privatise 35 state corporations after enacting a legislation final month to information the method.

Kenya final privatised a state-owned firm in 2008 with an preliminary public providing (IPO) for 25% of the shares in telecommunications agency Safaricom (SCOM.NR).

“We’ve got recognized the primary 35 corporations that we’re going to provide to the non-public sector. We’ve got one other near 100 we’re working with monetary advisers on what to do,” Ruto mentioned in remarks on the opening ceremony of the African Inventory Exchanges Affiliation’s annual assembly in Nairobi.

Finance Minister Njuguna Ndung’u instructed Reuters that the names of the companies to be offered can be introduced at a later date.

The East African nation’s public funds have been pressured by the legacy of the COVID-19 pandemic and frequent local weather change-induced droughts and there may be uncertainty over its capacity to entry funding from monetary markets earlier than a $2 billion Eurobond matures in June

Whereas Ruto mentioned Kenya would now be capable of offload probably “profitable” corporations the place progress has been restricted by paperwork, Ndung’u denied the itemizing drive was meant to shore up authorities funds.

“One in all (the goals) is to encourage market exercise. Money is a secondary concern,” he mentioned.

Ruto mentioned Kenya revised its privatisation legislation final month to take away “pointless bureaucracies” and that the federal government’s new drive would enhance Africa’s pipeline of firm floatation.

Bourses on the continent have underperformed this 12 months as international traders shunned belongings perceived as dangerous, with a dearth of listings, an increase in international rates of interest and China’s financial struggles.

With 40 exchanges throughout the continent, Africa may have as many as 5 firm listings a day, Ruto mentioned, however there have been barely any, partly because of regulatory pink tape.

“If effectively harnessed, inventory exchanges will be the engine that transforms Africa into a world financial powerhouse and monetary centre of the world,” the president mentioned.

Thapelo Thseole, ASEA’s president who can also be CEO of the Botswana Inventory Alternate, mentioned regulatory adjustments in some nations had led to current IPOs, citing a itemizing in Uganda by telecoms agency Bharti Airtel (BRTI.NS).

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