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RenCap Business News

Nigeria’s Biggest Banks to Extend Market Lead, Renaissance Capital (RenCap) Says; 2nd Wave of Banking Consolidation Eminent

Nov 5

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Renaissance Capital PartnersNigeria’s four largest banks will boost their domestic market share, leaving smaller rivals behind, following an audit by the Central Bank of Nigeria (CBN) of lenders operating in the country, Renaissance Capital (RenCap) said.

First Bank of Nigeria Plc, Zenith Bank Ltd., United Bank for Africa Plc (UBA) and Guaranty Trust Bank Plc (GTBank) may emerge from the crisis with a combined 54% market share “over the next couple of years” from 35%, Kato Mukuru, RenCap’s Lagos-based Banking Analyst, said in a note to clients. Read the rest of this entry »

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Nigeria’s GDP to Exceed South Africa’s in 2011, Exceed $1 Trillion by 2020, Says Renaissance Capital (RenCap); Nigeria’s Vision 2020 Realizable

Sep 9

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Renaissance Capital PartnersRenaissance Capital (RenCap), a leading investment bank that focuses on the emerging markets of sub-Saharan Africa, Russia, Ukraine, and Kazakhstan, estimates that Nigeria’s GDP will be greater than South Africa’s in 2011 and rise in excess of $500 billion by 2014 and $1 trillion by 2020. Renaissance Capital (RenCap) also marked up Nigeria’s 2009 growth expectation to 6%.

Matthew Pearson, Head of EPG and Research, Renaissance Group Africa, said that Nigeria’s economy has regained some ground following the decisiveness of the Governor of the Central Bank of Nigeria (CBN), Lamido Sanusi, on the banking sector loan and credit crisis. Matthew Pearson expects to see the banking sector recover significantly by the fourth quarter of this year. Read the rest of this entry »

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Ratings of Intercontinental Bank, Union Bank, and Oceanic Bank Suspended at Renaissance Capital (RenCap)

Aug 18

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Renaissance Capital PartnersIntercontinental Bank Plc, Oceanic Bank Plc, and Union Bank of Nigeria Plc had their ratings suspended at Renaissance Capital (RenCap), after the Central Bank of Nigeria (CBN) fired their CEOs and the CBN halted trading of their shares.

Nigeria’s central bank Governor Lamido Sanusi on Aug. 14 dismissed the CEOs of these three banks, along with those of Afribank Nigeria Plc and Finbank Plc, after an audit found the lenders were in a “grave situation” and their management had acted in a manner “detrimental to the interests of depositors and creditors.” The Nigerian Stock Exchange (NSE) suspended trading in the five banks’ shares yesterday. Read the rest of this entry »

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Zimbabwe Stock Exchange May Gain 500% in 2009, Renaissance Capital (RenCap) Says

Jul 29

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Stock ExchangeThe market value of Zimbabwe stocks may rise to $5 billion by the end 2009, a 500% gain from an estimated $1 billion in February, when trading resumed after a three-month closure, according to Renaissance Capital.

The market capitalization of shares on the Zimbabwe Stock Exchange has a 10% chance of reaching $5 billion by the end of this year and a 60% possibility of increasing to $4.5 billion, from $4.08 billion yesterday, analysts led by Harare-based Dzika Danha wrote in a research note today.

Reserve Bank of Zimbabwe Governor Gideon Gono ordered the shutdown of the Zimbabwe Stock Exchange in November, alleging some traders were engaged in fraud, as President Robert Mugabe blamed pressure from western countries for pushing the economy toward collapse. The Zimbabwe Stock Exchange resumed trading in U.S. dollars on Feb. 19, a week after a new coalition government was sworn in under a power-sharing agreement between Mugabe and opposition leader Morgan Tsvangirai. Read the rest of this entry »

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VIDEO: Exaggerated Risks of Doing Business in Africa – ECP & RenCap

Jun 9

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“The perceived risks of doing business in Africa are far greater than the actual risks … Nigeria is a very important country for us. There [are] a lot of headlines today about the Niger Delta but I think we should point out that that’s just one piece of Nigeria. Nigeria is a lot more than the Niger Delta, it’s a lot more than the Oil industry. We have actually managed to generate significant returns doing business [on] the continent, tapping into sectors that are domestically-focused like Telecommunications, Transportation, Agribusiness, Utilities, etc., and I think that those opportunities will continue to be present for the foreseeable future” – Genevieve Sangudi, Managing Director, Emerging Capital Partners

“If you look at what’s happening in Nigeria: 10 years ago, 350,000 telephone lines; today, 60 million. Huge opportunities” – Rotimi Oyekanmi, CEO, West Africa, Renaissance Capital Partners

This video shows a discussion of the risks of doing business in Africa, with Genevieve Sangudi, Managing Director at Emerging Capital Partners, and Rotimi Oyekanmi, Managing Director at Renaissance Capital.

There are risks associated with doing business anywhere in the world, Africa included. Sometimes, the risks associated with doing business in Africa are exaggerated. Doing business in Africa, like anywhere in the world, requires taking sufficient and well-informed steps to manage the risks, as well as adapting the business plan to accommodate the potentially higher costs. Generally speaking, the higher returns one would experience in Africa outweigh the associated increase in risk. Read the rest of this entry »

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