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The Africa WeeklyEquity research | Pan-Africa | News & Analysis

African Alliance Securities is a leading African institutional-focused securities firm,and is able to transact for clients in 18 markets across Africa. We provide agency-onlyequity and bond trading, sales and in-depth, independent research to local, regionaland international clients. Key to our value proposition is an on-the-ground presencewith exchange membership licenses in 11 African countries which allows us to provideour clients with investment research and corporate access of the highest quality.Our award winning research includes fundamental research on most of Sub-SaharaAfricas leading listed companies and sectors, as well as market data & analysis andmarket news & information services that span the whole continent. African AllianceSecurities is part of the African Alliance Group, which provides investment bankingand related services across the African continent.

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Equity research | Pan-Africa | News & Analysis

Refer to important terms of use, disclaimers and disclosures on back page.

In this week's issue 20 May 2011

Regional

Emerging markets boost SABMiller; Africa set to be investment capital;Seychelles starts voting; S.Africa goes to the polls

Southern Africa

Angola: Emirates Airline to increase Dubai-Luanda flights; Alrosa may addmining projects as diamond prices advance; Investors wooed with law changes

Botswana: Govt faces spending crisis, not revenue; Power tariffs to rise bybetween 15% and 30% in June; Inflation eases 30bp to 8.2% in April

Lesotho: Lesotho looks to Malaysia for investments and expertise; Gem andLucara end merger talks

Malawi: Government adamant on devaluation; IMF boss toughens forex policytalk; General insurance deals by June-says NICO

Mauritius: Tourist arrivals rise in 1Q11; Sun Resorts 1Q11 profits down 8.9%;MCB profit rises 47% in 3Q11; New Freeport Piacenza revived

Namibia: Namibia April NCPI rose; NAAMSA Vehicle sales decreased; Namibiato introduce a minerals windfall tax

Swaziland: Swaziland in 'severe fiscal crisis'; Central Bank leaves ratesunchanged; Swaziland Electricity Company opens Maguga Hydro Power Station

Zambia: Miners to pay 30% more for electricity; Zambia to decide on oil blockawards in two months; Zambia Breweries profits soar to ZMK 45bn

Zimbabwe: Lafarge Cement in USD 3.3m facelift; Caledonia posts 1Q11 profit,expects to reach targeted output by 3Q11; SA banks feel heat in Zim

East Africa

Kenya: GDP expands 5.6% for 2010; SCB posts 13.8% y/y rise in 1Q11 PAT;Safaricom FY11 results show increased revenues

Rwanda: Central Bank targets inflation at below 7.5%; Bralirwa reports strongFY10 results; Rwandair launches Libreville, Gabon route

Tanzania: April inflation up to 8.6%; TRA loses bid on Barclays and CRDB Bank Uganda: Museveni says police, courts lax on protests; Nestl Foods to process

milk from Kenya and Uganda locally

West Africa

BRVM: IBM expands further, opens Senegal subsidiary; Cargill resumes cocoaoperations in Cte dIvoire; Newcrest to resume Cte dIvoire ops

Ghana: Policy rate down 50bp; Ghana records improved current accountbalance; Revenue for Road Fund up 33.8% y/y; WACS reaches Ghana

Nigeria: Consumers see compressed gas as alternative; Finance Ministry toagree budget by the end of the week; GT Bank set to float USD 500m bond issue

North Africa

Egypt: Ezz Steel's embattled chairman quits board; Orascom Telecomannounces new CEO; Orascom Telecom 1Q11 results

Morocco: Residential property prices rise by 5% y/y in 1Q11; Moroccan banks inCote dIvoire resume operations; Vehicle sales swell 20% y/y in April

Tunisia: Result of TELNET IPO; FDI fell by 24.5% in first four months of 2011;Obama to seek aid; AfDB forecasts 1.1% growth of GDP in 2011

MARKET MOVES WEEK % YTD %

Botswana -0.5 7.6Malawi 0.1 -1.0Mauritius -0.4 6.5Namibia 0.0 7.3Zambia -2.2 23.5Zimbabwe -1.2 6.2Kenya -0.1 -10.1Tanzania 0.5 2.3Uganda -2.6 -0.6

BRVM 0.2 -4.1Ghana 2.3 17.9

Nigeria -0.1 3.8Egypt 4.9 -26.5

Morocco 0.0 -5.1Tunisia 0.9 -19.0

MSCI EM ex SA 1.4 -12.4FTSE 0.2 1.0

Johannesburg 0.7 -0.6

Nikkei -1.0 -5.9S&P 500 -0.4 6.8

CURRENCY MOVES LEVEL* WEEK %

BWP 6.60 -0.20

MWK 150.80 -0.56MUR 28.20 0.38ZMK 4750.0 -0.31KES 86.15 -0.02TZS 1534.5 0.76UGX 2385.0 -0.08XOF 459.37 -0.51GHS 1.51 0.38NGN 156.63 -0.08EGP 5.95 0.30MAD 7.92 -0.42TND 1.38 -0.14EUR 0.70 -0.51GBP 0.62 0.59JPY 81.74 1.14

ZAR (NAD, SZL,LSL)

6.88 -0.41

* relative to USD

Randolph Oosthuizen CFAHead of Research

+27 11 214 [email protected]

Chris Blaine

Editor+27 11 214 8324 [email protected]

Rob Brownlee

Head of Group Sales+27 11 214 [email protected]

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2 | African Alliance Pan-African Securities Research 20 May 2011

TABLE OF CONTENT

Market Snapshot..................................................................................................................... 3

Market Commentary .............................................................................................................. 5

Company Results Summary ................................................................................................... 7

Inflation and Interest Rate Summary .................................................................................... 9

Regional ................................................................................................................................ 10

Nigeria ................................................................................................................................... 11Kenya ..................................................................................................................................... 16

Egypt ...................................................................................................................................... 20

Morocco................................................................................................................................. 25

Tunisia ................................................................................................................................... 28

Mauritius ............................................................................................................................... 30

Zimbabwe .............................................................................................................................. 32

Botswana .............................................................................................................................. 35

BRVM ..................................................................................................................................... 38

Ghana .................................................................................................................................... 40

Zambia................................................................................................................................... 43

Tanzania ................................................................................................................................ 46

Namibia ................................................................................................................................. 48

Malawi ................................................................................................................................... 50

Uganda .................................................................................................................................. 52

Rwanda .................................................................................................................................. 54

Swaziland .............................................................................................................................. 56

Angola ................................................................................................................................... 58

Lesotho.................................................................................................................................. 59

Recently Published Research .............................................................................................. 60

Regular Publications ............................................................................................................ 60

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MARKET SNAPSHOTWeekly market moves (%chg local)

Source: African Alliance database

MARKET INDEX NAME

Botswana DomesticCompanies

Mauritius Semdex (AllShare)

Malawi All Share

Namibia Local

Swaziland All Share

Zambia All Share

Zimbabwe Industrial

Kenya Top 20

Tanzania All Share

Uganda All Share

BRVM Composite

Egypt EGX 30

Ghana All Share

Morocco All Share

Nigeria All Share

Tunisia All Share

South Africa All Share

0.75%

-0.49%

South Africa

BotswanaNamibiaNamibia

-0.43%

Mauritius

0.01%Morocco

0.95%Tunisia

4.88%

Egypt

-0.14%

Kenya

-2.22%

Zambia

-2.55%Uganda:

Swaziland

Ghana

0.52%Tanzania

0.22%BRVM

0.12%Malawi

Zimbabwe

-1.20%

-0.07%

Nigeria

2.30%

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AFRICAN AND GLOBAL MARKETS HEAT MAP (%CHG LOCAL)

Date 08M 09M 10M 11M 12M 15M 16M 17M 18M 19M 12-May 19-May 01-Jan-11 19-May-11 %ch

Botswana 0.00.00.00.0 0.00.00.00.0 0.00.00.00.0 -0.1-0.1-0.1-0.1 -0.2-0.2-0.2-0.2 -0.2-0.2-0.2-0.2 -0.1-0.1-0.1-0.1 0.10.10.10.1 -0.2-0.2-0.2-0.2 -0.1-0.1-0.1-0.1 -0.2-0.2-0.2-0.2 -0.5-0.5-0.5-0.5 6,412.9 6,898.3 7.67.67.67.6

BRVM -2.8-2.8-2.8-2.8 - -0.4-0.4-0.4-0 .4 -0.3-0.3-0.3-0.3 -0.6-0.6-0.6-0.6 -0.5-0.5-0.5-0.5 - 0.30.30.30.3 - 0.40.40.40.4 -4.0-4.0-4.0-4.0 0.20.20.20.2 159.1 152.5 -4.1-4.1-4.1-4.1

Egypt -1.2-1.2-1.2-1.2 1.11.11.11.1 0.50.50.50.5 0.90.90.90.9 0.00.00.00.0 1.11.11.11.1 1.31.31.31.3 1.51.51.51.5 -0.3-0.3-0.3-0.3 1.21.21.21.2 1.41.41.41.4 4.94.94.94.9 7,142.1 5,249.1 -26.5-26.5-26.5-26.5

Ghana 0.60.60.60.6 1.11.11.11.1 -0.8-0.8-0.8-0 .8 -0.1-0.1-0.1-0.1 0.10.10.10.1 0.30.30.30.3 1.11.11.11.1 0.70.70.70.7 1.21.21.21.2 -0.9-0.9-0.9-0.9 0.90.90.90.9 2.32.32.32.3 1,000.0 1,178.5 17.917.917.917.9

Kenya 0.10.10.10.1 -0.0-0.0-0.0-0.0 -0 .7-0.7-0.7-0.7 0.10.10.10.1 -0.5-0.5-0.5-0.5 -0.1-0.1-0.1-0.1 -0.3-0.3-0.3-0.3 0.40.40.40.4 -0.1-0.1-0.1-0.1 -0.0-0.0-0.0-0.0 -1.0-1.0-1.0-1.0 -0.1-0.1-0.1-0.1 4,432.6 3,986.8 -10.1-10.1-10.1-10.1

Malawi -0.2-0.2-0.2-0.2 0.10.10.10.1 - 0.60.60.60.6 0.40.40.40.4 0.10.10.10.1 - - - 0.00.00.00.0 0.90.90.90.9 0.10.10.10.1 4,953.1 4,903.6 -1.0-1.0-1.0-1.0

Mauritius 0.50.50.50.5 0.30.30.30.3 0.90.90.90.9 0.90.90.90.9 -0.1-0.1-0.1-0.1 0.20.20.20.2 0.20.20.20.2 -0.1-0.1-0.1-0.1 -0.5-0.5-0.5-0.5 -0.3-0.3-0.3-0.3 2.62.62.62.6 -0.4-0.4-0.4-0.4 1,967.5 2,095.3 6.56.56.56.5

Morocco -1.3-1.3-1.3-1.3 0.30.30.30.3 0.10.10.10.1 -0.1-0.1-0.1-0.1 0.50.50.50.5 0.50.50.50.5 -0.8-0.8-0.8-0.8 0.70.70.70.7 0.10.10.10.1 -0.4-0.4-0.4-0.4 -0.5-0.5-0.5-0.5 0.00.00.00.0 12,655.2 12,009.0 -5.1-5.1-5.1-5.1

Namibia - - - - - - - - - - - - 172.7 185.4 7.37.37.37.3Nigeria 0.30.30.30.3 -0.2-0.2-0.2-0.2 0.70.70.70.7 0.20.20.20.2 1.01.01.01.0 0.30.30.30.3 0.00.00.00.0 -0.0-0.0-0.0-0.0 -0.1-0.1-0.1-0.1 -0.3-0.3-0.3-0.3 2.02.02.02.0 -0.1-0.1-0.1-0.1 24,770.5 25,717.7 3.83.83.83.8

Swaziland - - - - - - - - - - - - 224.3 224.3 -

Tanzania 0.10.10.10.1 - 0.00.00.00.0 - - - 0.20.20.20.2 0.10.10.10.1 0.20.20.20.2 - 0.10.10.10.1 0.50.50.50.5 1,163.9 1,190.2 2.32.32.32.3

Tunisia 0.30.30.30.3 -0.8-0.8-0.8-0.8 -0 .4-0.4-0.4-0 .4 -0.1-0.1-0.1-0.1 -0.7-0.7-0.7-0.7 0.00.00.00.0 1.01.01.01.0 -0.3-0.3-0.3-0.3 -0.6-0.6-0.6-0.6 0.80.80.80.8 -1.7-1.7-1.7-1.7 0.90.90.90.9 5,112.5 4,143.1 -19.0-19.0-19.0-19.0

Uganda 0.90.90.90.9 -0.1-0.1-0.1-0.1 -1 .2-1.2-1.2-1 .2 -2.1-2.1-2.1-2.1 - -2.5-2.5-2.5-2.5 0.40.40.40.4 -0.5-0.5-0.5-0.5 -0.4-0.4-0.4-0.4 0.60.60.60.6 -2.5-2.5-2.5-2.5 -2.6-2.6-2.6-2.6 1,188.1 1,181.0 -0.6-0.6-0.6-0.6

Zambia 1.81.81.81.8 -0.2-0.2-0.2-0.2 -0 .7-0.7-0.7-0.7 0.80.80.80.8 2.82.82.82.8 0.40.40.40.4 - -2.0-2.0-2.0-2.0 -0.2-0.2-0.2-0.2 -0.4-0.4-0.4-0.4 4.54.54.54.5 -2.2-2.2-2.2-2.2 3,303.9 4,079.8 23.523.523.523.5

Zimbabwe -0.4-0.4-0.4-0.4 -0.4-0.4-0.4-0.4 0.10.10.10.1 0.70.70.70.7 -0.1-0.1-0.1-0.1 0.40.40.40.4 0.20.20.20.2 -1.2-1.2-1.2-1.2 -0.6-0.6-0.6-0.6 0.00.00.00.0 -0.2-0.2-0.2-0.2 -1.2-1.2-1.2-1.2 151.3 160.6 6.26.26.26.2

South Africa 0.90.90.90.9 -0.8-0.8-0.8-0.8 1.51.51.51.5 -0.1-0.1-0.1-0.1 -1.2-1.2-1.2-1.2 0.90.90.90.9 0.60.60.60.6 -1.0-1.0-1.0-1.0 - 0.20.20.20.2 0.30.30.30.3 0.70.70.70.7 32,118.9 31,918.9 -0.6-0.6-0.6-0.6

FTSE 100 1.01.01.01.0 -0.6-0.6-0.6-0.6 1.31.31.31.3 -0.7-0.7-0.7-0.7 -0.5-0.5-0.5-0.5 -0.3-0.3-0.3-0.3 -0.0-0.0-0.0-0.0 -1.1-1.1-1.1-1.1 1.11.11.11.1 0.50.50.50.5 0.40.40.40.4 0.20.20.20.2 5,899.9 5,956.0 1.01.01.01.0

Nikkei 225 -1.4-1.4-1.4-1.4 -0.7-0.7-0.7-0.7 0.20.20.20.2 0.50.50.50.5 -1.5-1.5-1.5-1.5 -0.7-0.7-0.7-0.7 -0.9-0.9-0.9-0.9 0.10.10.10.1 1.01.01.01.0 -0.4-0.4-0.4-0.4 -2.9-2.9-2.9-2.9 -1.0-1.0-1.0-1.0 10,228.9 9,620.8 -5.9-5.9-5.9-5.9

S&P 500 0.40.40.40.4 0.50.50.50.5 0.80.80.80.8 -1.1-1.1-1.1-1.1 0.50.50.50.5 -0.8-0.8-0.8-0.8 -0.6-0.6-0.6-0.6 -0.0-0.0-0.0-0.0 0.90.90.90.9 0.20.20.20.2 1.01.01.01.0 -0.4-0.4-0.4-0.4 1,257.6 1,343.6 6.86.86.86.8Shanghai Composite -0.3-0.3-0.3-0.3 0.30.30.30.3 0.60.60.60.6 -0.2-0.2-0.2-0.2 -1.4-1.4-1.4-1.4 0.90.90.90.9 -0.8-0.8-0.8-0.8 0.10.10.10.1 0.70.70.70.7 -0.5-0.5-0.5-0.5 -1.0-1.0-1.0-1.0 0.50.50.50.5 2,808.1 2,859.6 1.81.81.81.8

MSCI World 0.30.30.30.3 -0.4-0.4-0.4-0.4 0.90.90.90.9 -0.7-0.7-0.7-0.7 -0.5-0.5-0.5-0.5 -0.6-0.6-0.6-0.6 -0.5-0.5-0.5-0.5 -0.5-0.5-0.5-0.5 1.01.01.01.0 0.30.30.30.3 -0.3-0.3-0.3-0.3 -0.4-0.4-0.4-0.4 1,280.1 1,345.7 5.15.15.15.1

MSCI EFM Africa ex ZA -0.5-0.5-0.5-0.5 -0.4-0.4-0.4-0.4 0.50.50.50.5 0.00.00.00.0 -0.2-0.2-0.2-0.2 0.40.40.40.4 0.70.70.70.7 0.70.70.70.7 -0.7-0.7-0.7-0.7 0.30.30.30.3 -0.7-0.7-0.7-0.7 1.41.41.41.4 647.1 566.7 -12.4-12.4-12.4-12.4

MSCI EM Index 0.10.10.10.1 -0.1-0.1-0.1-0.1 0.40.40.40.4 -0.1-0.1-0.1-0.1 -1.6-1.6-1.6-1.6 -0.3-0.3-0.3-0.3 -0.7-0.7-0.7-0.7 -0.3-0.3-0.3-0.3 0.80.80.80.8 -0.2-0.2-0.2-0.2 -1.2-1.2-1.2-1.2 -0.6-0.6-0.6-0.6 1,151.4 1,140.4 -1.0-1.0-1.0-1.0

Year-to-date changeYear-to-date changeYear-to-date changeYear-to-date changeWeekly chg (%)Weekly chg (%)Weekly chg (%)Weekly chg (%)Daily price changes (%) (08-May - 19-May 2011)Daily price changes (%) (08-May - 19-May 2011)Daily price changes (%) (08-May - 19-May 2011)Daily price changes (%) (08-May - 19-May 2011)

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MARKET COMMENTARY

In NigeriaNigeriaNigeriaNigeria, the market drifted marginally lower (-0.1%) despite a good start, as the

banking sector (-1.3%) saw some profit taking. Zenith Bank (-1.%), UBA (-3.6%), FCMB

(4.8%) and Access Bank (-4.1%) were particularly affected, with only FBN (+0.7%) and

Diamond Bank (+1.3%) being the only notable gainers. The financials pull back was largely

offset, however, by renewed interest in Guinness Nigeria which surged by 10.3% after

releasing its 3Q11 results last week; while Lafarge WAPCO climbed 3.6% at the expense of

its rivals (Ashaka down by 6% and Dangote Cement ending flat). The consumer sector was

mixed: PZ Cussons was up by 4.5% and Nestle Nigeria gained 1.3%, but Dangote Flour

Mills (-3.7%) and Dangote Sugar (-5.8%) were in the red.

In Kenya,Kenya,Kenya,Kenya, The NSE20 index continues to remain stagnant, and closed the week at 3,986.78,

down only 0.14%. Highly traded counters for the week included Equity Bank (flat), KPLC

(3.4%), and EABL (+2.0%). Safaricom was not highly traded as it usually is, despite

releasing its FY11 results during the week, which showed a 12.9% increase in revenue. It

however gained 1.3% to KES 3.90. Standard Chartered released its 1Q11 results reflecting

a 13.8% y/y increase in EPS. The share moved up slightly to KES 251.00 (+0.8%). Barclays

Bank also released its 1Q11 showing an 11.6% y/y increase in earnings. The counter

however remained flat at KES 66.00. NIC Bank's 1Q11 results showed a commendable

54.1% y/y increase in EPS. The share remained flat however at KES 46.00. The gainers for

the week included ARM, which closed at KES 179.00 (+8.5%), DTB also rose 6.8% to

KES 158.00. The top decliners included Pan Africa Insurance Holdings which closed at

KES 53.50 (-46.5%) after going ex-dividend and ex-bonus. The bonus was a 1 for 1 share

issue. CFC Insurance closed at KES 16.65 (-8.0%). EAPC was also among the week's top

decliners, closing at KES 85.00 (-7.6%).

The EgyptianEgyptianEgyptianEgyptian market was strong throughout the week, with an exception of Wednesday,

and the EGX index gained 4.9% for the week, with positive support coming from all

sectors, but specifically from building materials (+4.4%), property (+17.0%) and telecom

(+3.9%) sectors. Ezz Steel surged 18.3%, Orascom Construction was up by 3.2%, TMG

spiked 25.8% while Orascom Telecom gained 7.7% for the week. The banking sector was

mixed, with NSGB down by 1.3% while CIB managed to gain 2.3%.

MoroccoMoroccoMoroccoMorocco was flat for the week, with gains in the agricultural (+2.3%) and construction

(+1%) sectors negated by losses in banks (-1%) and breweries (-9.3%). Both Consumar

and Centrale Laitiere were up around 2.5%, and CGI was the star performed in theconstruction sector. Most banks ended the week lower, with Attijariwafa (-1.5%) and

BMCE (02.4%) leading the pack. Brasseries du Maroc (-13.1%) fell heavily in very thin

trading. Marco Telecom dominated trading (38% of weekly turnover), but it gained only

marginally, up by 16bp.

TunisiaTunisiaTunisiaTunisia ended on a positive note, up by 1%, as Poulina gained 4.5% and CarthageCement surged by 9.4% for the week, the latter in very active trading 42% of the

weekly turnover. Banks were up by 0.5% with good contributions from BT (+1.1%) and

Tunisie Leasing (+11.5%).

In MauritiusMauritiusMauritiusMauritius, despite the strong performance from MCB which gained 0.5% and wasthe top trader at 37% of the total turnover, the market was dragged lower by SBM

(0.5%) as well as the hotels sector (-2.5%, Naiade down 3.6%, NMH 2.8% lower andSun Resorts giving up 1.5%). The ALSI was down 0.4% as a result.

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The ZimbabweanZimbabweanZimbabweanZimbabwean market was pulled down 1.2% this week due to selling pressure inthe large cap stocks: Delta gave up 2.4%, CBZ was down 10.6% and Econet fell by

almost 5%. Only Barclays Bank Zimbabwe was a notable gainer, surging by 15.9%,

but this happened on very low volumes.

In BotswanaBotswanaBotswanaBotswana,,,, the Botswana DCI lost 0.5% on the back of price declines in BarclaysBotswana (2.5%), Letshego (-1.6%) and BIHL (-0.4%). Letshego was again the most

actively traded stock, accounting for around 69% of total turnover, which declined

21% on the local board this week. Cresta (+55.2%), Primetime (+10.1%), and RDCP

(4.9%) were the gainers for the week.

The BRVMBRVMBRVMBRVM composite index edged up 0.2% this week, as a result of gains in CIE(+7.5%), SAPH (+3.6%), BOA CI (+3.6%) and ETI (+2.2%). SAPH was the most actively

traded stock in a week which saw turnover dip around 10% from the previous week.

Bollore Africa Logistics CI (-14.2%) and PALM CI (-4.2%) were the most notabledecliners for the week.

GhanasGhanasGhanasGhanas GSE-CI gained 2.3% as nine equities recorded gains while three lost value.FML (+15.4%) led the gainers to close at a record high of GHS 3.00 and also recorded

the highest value of trades, pushing market turnover to a 10-week high of GHS 8.28m.

GCB reached an all-time high of GHS 3.03 during the week, but subsequently dropped

to GHS 3.00, representing a w/w gain of 9.5%. The other gainers were UTB (+6.7%),

SIC (+3.9%), BOPP (+3.7), UNIL (+3.4%), GGBL (+1.6%), TOTAL (+1.1%), and EBG

(+0.3%). On the losing side were GOIL (-3.2%), CAL (-3.3%), and Cocoa Processing

Company (-33.3%).

In Zambia,Zambia,Zambia,Zambia, The index shed 2.2% to close at 4,079.77. StanChart Zambia (-12.0%),Zambeef (-11.8%), and Investrust Bank (-5.9%) were behind the decline. Zambeef wasalso the most active stock, in a week in which turnover fell over 60% from the

previous week. A number of stocks however managed to post gains, including

Cavmont Capital Zambia (+20.0%), BAT (Zambia) (+18.5%), Bata Zambia (+9.7%),

ZANACO (+8.9%), and Farmers House (+8.0%).

The TanzanianTanzanianTanzanianTanzanian DSE gained 0.5% as a result of a 6.7% gain in the price of NMB and1.1% gain in TWIGA. There were no price declines for the week. CRDB Bank was the

most actively traded stock, followed by NMB; however turnover slumped compared to

last weeks unusually heavy trading week.

The NamibianNamibianNamibianNamibian local index was flat this week as no stocks registered price changes.FNB and TrustCo were the most active traders, as turnover improved marginally from

last week.

The MalawiMalawiMalawiMalawi all share index gained 0.1% due to a price gain in NITL (+8.9%). NITL wasalso the most actively traded stock, followed by NBM. Turnover more than doubled

from the previous week, and no stocks recorded price declines.

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In Uganda,Uganda,Uganda,Uganda, there was a slight decline in the weekly turnover by 2% to UGX 342.6mwith Stanbic generating the highest turnover, 36% of total turnover, followed by DFCU

which generated 31%. Demand for Stanbic has increased this week to average 2m

shares per session, while its price also rose mid-week from below UGX 265 to around

UGX 270. In terms of news around Stanbic, it is expected to announce a bonus share

issue soon. DFCU is still experiencing appetite from investors despite having hit a 12

month high of UGX 1,000 recently. The top gainer this week was NVL closing at UGX

810 which values it at a rolling PE of 28x. However, retail investors are still willing to

buy into NVL which is expected to announce higher FY11 profits in September. BATU

this week hit the UGX 1,000 mark from UGX 960 previously, though this was on low

volumes. The market is bullish on Stanbic, DFCU and NVL while its bearish following

announcement of a UGX 3.8bn loss for FY10. The market closed 2.6% lower for the

week.

In RwandaRwandaRwandaRwanda, Bralirwa gained a total of 8.8% to close at RWF 223, on the back ofRWF 77.1m in turnover.

There was no trading in SwazilandSwazilandSwazilandSwaziland this week.

COMPANY RESULTS SUMMARY

COMPANY COUNTRY SECTOR DATE PERIOD EPS CHANGE(%)

Turnstar Botswana Property May-11 FY11 -23

Ezz Dekheila Steel* Egypt Construction May-11 FY10 Flat

Orascom Telecom* Egypt Telco May-11 1Q11 +1,313

South Valley* Egypt Construction May-11 FY10 -66

Talaat Moustafa* Egypt Real Estate May-11 1Q11 -38

GGBL Ghana Breweries May-11 3Q11 +500

PBC Ghana Cocoa May-11 1H11 +86

BBK Kenya Financial May-11 1Q11 +12

DTB Kenya Financial May-11 1Q11 +60

NIC Bank Kenya Financial May-11 1Q11 +54

Safaricom Kenya Telco May-11 FY11 -13

SCB* Kenya Financial May-11 1Q11 +14Total Kenya* Kenya Energy May-11 1Q11 Flat

Illovo* Malawi Agriculture May-11 FY11 -10

Nico* Malawi Financial May-11 FY10 +22

Gamma Civic Mauritius Construction May-11 1Q11 Negative

Harel Mallac Mauritius Investments May-11 1Q11 -91

Ireland Blyth Mauritius Investments May-11 3Q11 +21

MCB Mauritius Financial May-11 3Q11 +26

MUA Mauritius Financial May-11 1Q11 -66

NMH Mauritius Tourism May-11 1H11 +15

Phoenix Beverages Mauritius Breweries May-11 3Q11 -4

Rogers Mauritius Investments May-11 2Q11 -70

Sun Resorts Mauritius Tourism May-11 1Q11 -7

Maroc Telecom* Morocco Telco May-11 1Q11 -7

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COMPANY COUNTRY SECTOR DATE PERIOD EPS CHANGE(%)Dangote Cement Nigeria Construction May-11 1Q11 +11

ETI* Nigeria Financial May-11 1Q11 +11

Ecobank Nigeria * Nigeria Financial May-11 1Q11 -60

Guinness Nigeria* Nigeria Breweries May-11 1Q11 +32

Bralirwa Rwanda Breweries May-11 FY10 +63

African Barrick* Tanzania Mining May-11 1Q11 -5

Uganda Clays* Uganda Construction May-11 FY10 Negative

Zambia Breweries* Zambia Breweries May-11 FY10 Positive

Source: Company filings; *PAT not EPS

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INFLATION AND INTEREST RATE SUMMARYCOUNTRY BOND RATE (%) MAT. DATE COMMENT PRIME (%) CPI (%) MONTH

Southern AfricaSouthern AfricaSouthern AfricaSouthern AfricaAngola 17.00 14.76 Mar

Botswana 7.95 Oct-18 BW005; 7.5yrs 11.00 8.20 Apr

Lesotho 9.00 Oct-15 LS000A1A1T16; 4.5yrs 11.83 3.30 Feb

Malawi 17.75 7.20 Mar

Mauritius 8.23 Jul-20 10 year; 9.3yrs 7.78 6.96 Apr

Namibia 8.01 Apr-15 GC15; 4.0yrs 9.75 4.80 Apr

South Africa 8.35 Jan-20 R207; 8.8yrs 9.00 4.20 Apr

Swaziland 8.00 Aug-13 SG009; 2.3yrs 9.00 5.53 Mar

Zambia 15.40 Feb 21 10 year; 9.8yrs 21.30 8.80 Apr

Zimbabwe 2.70 Mar

East AfricaEast AfricaEast AfricaEast Africa

Kenya 11.10 Oct-20 FXD2/2010/10Yr; 9.5yrs 6.00 12.05 Apr

Rwanda 11.12 Nov-15 FXD4/2010/5yr; 4.6yrs 6.00 4.98 Apr

Tanzania 14.59 8.60 Apr

Uganda 11.00 Aug-20 FXD 6/2010/10;7.3yrs 19.00 14.00 Apr

West AfricaWest AfricaWest AfricaWest Africa

BRVM average 4.10 Jan

Ghana 13.30 Oct-13 1191; 2.5yrs 13.00 9.02 Apr

Nigeria 12.61 Oct-19 6th FGN Series 4; 8.5yrs 12.80 12.80 Mar

NorthNorthNorthNorth AfricaAfricaAfricaAfricaEgypt 12.75 Feb-17 EGBGR00541F5; 6.8yrs 9.75 12.10 Apr

Morocco 3.85 Mar-16 5 year; 4.9yrs 3.25 2.00 Feb

Tunisia 5.61 Mar-19 10 year; 9.9yrs 4.62 2.91 Feb

Source: Central banks, statistical agencies

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REGIONALPan-Africa

Strong growth in the emerging markets of Africa, Asia and Latin America helped brewing

giant SABMiller beat forecasts with a 19% rise in annual earnings while Europe and North

America proved tougher. The world's second-largest brewer and maker of Miller Lite,

Peroni and Grolsch explained that as its emerging markets, which provide over 80% of its

earnings, recovered strongly while tough economies in mature markets held back any

upturn in beer sales. (Source: Fin24)

Resource-rich Africa is set to be the world's next investment destination thanks to an

array of reforms sweeping across many previously troubled countries, a former Nigerianleader noted. Olusegun Obasanjo, in office in Nigeria for eight years until 2007, noted that

after many years of stagnation the continent's economies saw a sharp growth in the past

decade. Real GDP increased by 5.2% annually, compared with 2.3% in the 1990s. "Thus

with political and social issues properly settled and put behind us, Africa is all set to

become the next big investment destination," Obasanjo explained. (Source: AFP)

Southern Africa

Voters in the Seychelles have begun casting their ballots in a presidential election in

which President James Michel is competing for a second full term at the helm of the

Indian Ocean islands. Michel has overseen a raft of economic reforms to liberalise the

economy after the palm-fringed archipelago faced an acute balance of payments crisis,boosting his popularity as he emerged from the shadow of his predecessor's 27-year rule.

Observers expect his re-election would mean continuity for those reforms, which include

the floating of the Seychelles rupee against major currencies, and pave the way for an

overhaul of the tax system. (Source: Reuters)

South Africas main opposition party consolidated its role as the only serious challenger to

the ruling African National Congress 17-year dominance, taking support away from all its

rivals in 18 May municipal elections. With 12.6m ballots counted, the ANC had 62.8% of

the vote, while the Democratic Alliance won 24.3% support, the Independent Electoral

Commission revealed. That compares with 65.9% and 16.6% respectively in the national

election in 2009. None of the other 119 parties that contested the poll received more than

4% of the vote. The Congress of the People, formed in 2008 by a group of ANC dissidents,

saw its share of the vote plummet to 2.3% from 7.4% in 2009, while that of the Inkatha

Freedom Party slid to 3.6% from 4.6%. The DA, backed mainly by white and mixed-race

voters, also took away support from the ANC in the countrys two biggest cities,

Johannesburg and Cape Town. (Source: Bloomberg)

Emerging markets boost

SABMiller

Africa set to be investment

capital

Seychelles starts voting

S.Africa goes to the polls

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NIGERIA

NIGERIAMacroeconomic data

Nigeria 2008 2009 2010 2011E 2012F 2013F

Current account balance % GDP 15.4 13.0 6.4 14.6 13.3 11.4Govt ross debt (% GDP) 11.6 15.2 16.4 16.2 18.5 21.1

Govt net debt (% GDP) -3.2 15.1 18.3 10.9 5.5 1.8

Nominal GDP (USDbn) 207.1 168.8 216.8 267.8 288.8 309.7

GDP growth (%, constant prices) 6.0 7.0 8.4 6.9 6.6 6.3

GDP per capita (USD) 1,401.2 1,111.7 1,389.3 1,670.0 1,753.1 1,829.3

Source: IMF WEO April 2011

Political and economic news

The cordial relationship between the Lagos State government and commercial banks

operating in the state may soon go sour, as the government is poised to demolish over

1,000 illegal structures serving as branches of the banks. Fielding questions from

newsmen in Lagos, the state commissioner for physical planning and urban development,

Mr. Francisco Abosede, revealed that out of 1,653 branches of banks operating in the

state, only 100 have approved building plan, while 1,325 are still undergoing evaluation.

Abosede, who claimed that the banks took the state physical planning laws for granted,

added that the state government would not hesitate to appropriately sanction any of the

affected banks. Sanctioning the erring banks [may] be misunderstood by the public andinternational community, but we urged management of the bank[s] that operate branches

that do not comply with the State Model City Development Law of 2009 and the State

Urban and Regional Planning Law of the state.

If we are to go after over a thousand bank branches that fail to comply with

developmental law in the state, what message would we be sending to the international

community? They will not look at it from the angle of enforcing the law, rather they would

look at it from an economic perspective. Abosede explained that the primary motive of

enacting the state planning laws of 2009 and 2010 was to firm up all extant regulations on

building control to ensure more professionalism on the part of staff, quality of building

and wilful compliance with physical planning and building control regulations throughout

the state.

He argued that since the introduction of these laws, the state had witnessed a better

planned environment, a healthier condition of living and an increase in life expectancy,

noting that more emphasis will be placed on the conduct of officials of the state Building

Control Agency and strict compliance with the development permit to ensure the aim of

the planning laws is not defeated. The commissioner added that 7,393 building

contraventions were detected across the state in 2010 alone, while 162 illegal structures

were demolished, adding that out of the 12,804 building permit applications received the

previous year, 7,600 had been processed and approved while 5,204 are still undergoing

processing for approval, even as 90 lay out plans submitted and 31 had been approved..

(Source: Leadershipeditors.com)

1,000 banks branches marked

for demolition

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The clamour for a safer and cheaper alternative fuel for cars and domestic appliances is

attracting more consumers to compressed natural gas (CNG) as source of fuel for their

vehicles. CNG is a fossil fuel comprising mostly of ethane, or natural gas under high

pressure with nearly zero emissions and is one of the cleanest burning alternative fuels

for vehicles and automobiles.

Since the Nigerian Independent Petroleum Company (NIPCO) Plc completed the

construction of its multi-billion naira CNG plant in Benin City, Edo State, over 200 vehicle

owners and taxi cab operators have turned up for the free conversion kits that would

enable their vehicles ply on the alternative fuel.

To encourage more vehicle owners embrace the new fuel, NIPCO announced it has

commenced a free conversion programme that would see about 500 vehicles more being

converted to CNG before the end of September. (Source: 234next.com)

The management of the Nigerian Stock Exchange (NSE) says it is considering the

introduction of a certification process that would help determine the level of compliance

with established corporate governance and operational rules and regulations in the

countrys capital market. NSE director general, Oscar Onyeama, who did not give details

about when the proposed process would take off, announced that it would be an annual

exercise, as part of efforts to restore the integrity of the capital market.

In order to ensure compliance and ensure that on a year-in year-out basis firms are

actually complying with their corporate governance standards, we will have a certification

process, so that on an annual basis companies would be certified that they have met the

policies and procedures they have subscribed to, Mr Onyeama announced.

Though he acknowledged the negative activities of some operators in the recent past has

taken a toll on the integrity of the stock market, the NSE boss argued that the starting

point towards restoration would be to look inwards and take steps to establish and

enforce proper corporate governance standards and operational efficiency by the

regulator.

Once that is done, one would have the moral high ground to go to the listed companies

and broker dealers to let them appreciate the new standards, which they must buy in

within an agreed time frame. Once everybody has bought into that idea about good

corporate, good governance standards, we will be on our way, because we can actually

use corporate governance as a competitive tool, which is good for business, (Source:

234next.com)

The Nigerian Liquefied Petroleum Gas Association (NLPGA) says its members will soon

set up assembly plants for gas cylinders in major cities in the country. President of the

association, Auwalu Ilu, announced in Lagos this week that the aim was to increase the

number of gas cylinders in circulation by about 100%.

As soon as the market is saturated with cylinders, operators will embark on

enlightenment campaigns on the use of gas as better means of cooking.

Mr. Ilu announced that the investment, which would worth about NGN 12bn, would

commence in 4Q11. According to him, the association is appealing to the Federal

Government to make the sector more investor-friendly by removing the Value Added Taxon LPG. (Source: 234next.com)

Consumers see compressed

gas as alternative

Stock exchange to introduce

corporate certification for

operators

Gas operators to establish gas

cylinder plants

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The Bureau of Public Enterprises (BPE) spokesperson, Mr. Chukwuma Nwoko, announced

this week that the agency has not commenced any investigation the sale of the Lagos head

office building of the Nigeria Telecommunications Limited (NITEL).

As far as I know, we did not issue any release stating that we are investigating anything.

Mr. Nwoko, however, informed the press that the issue was in court already and that

solution to the lingering crisis was in place.

The liquidator of the NITEL/MTEL Pension Fund, Olusola Adekanola, had claimed that the

board of NITEL approved the sale of the head office building. Mr Adekanola, in a statement

by his media and communication consultant, Kazie Uko, two weeks ago, revealed that the

list of NITELs non-core assets, which were transferred to NITEL/MTEL Staff Pension

Fund, was prepared by a team of professionals working with NITEL management.

The list of such non-core assets was prepared for the BPE by a professional team that

worked in conjunction with NITEL Management, and was approved by NITELs Board

before being handed over to me (liquidator), the statement added. (Source: 234next.com)

The consortium of Niger Delta E&P and Petrolin is in the final stages of talks to buy one of

the Nigerian oil blocks Shell has up for sale, the CEO of one of the company's told Reuters

on early this week. "We are still in talks and we are hopeful," announced Layi Fatona,

chief executive of the local Nigerian firm Niger Delta Exploration and Production. The

company bid in partnership with African-focused energy firm Petrolin for block OML 34

which has oil reserves of around 200m barrels, Fatona claimed. Many of the other oil

companies bidding for Shell's Nigerian assets have already been informed that they were

unsuccessful. (Source: Reuters)

Nigeria's government is expected to agree on an amended 2011 budget with parliament by

the end of this week. The minister of finance announced that the new version will have

tighter spending plans than the proposal lawmakers set out last month. Once both houses

of parliament are happy with the budget it will be sent to President Goodluck Jonathan for

assent.

"The executive and the national assembly have been engaging on the budget in the last

two weeks, trying to come out with a budget that is workable and that both are happy

with," Olusegun Aganga told Reuters following a weekly cabinet meeting in Abuja.

"We are getting to the stage of finalising it now. If things move as we expect that by Friday

it should be ready." (Source: Reuters)

Company news

As part of the efforts to consolidate its position in the Nigerian banking industry, Guaranty

Trust Bank Plc has concluded plans to float a five-year USD 500m issue under its USD 2bn

global medium term note program.

The unsecured notes have been assigned a long term rating of B+ (Stable) by both

Standard & Poors and Fitch, carry a coupon rate of 7.5% and will mature on 19 May-16.

The proposed issue will mark the third time that GT Bank will be raising funds from the

international capital markets.

Conflict over NITEL building

sale lingers

Local firm closes in on Shell

Nigerian oil block

Nigerian Finance Ministry

expects to agree budget by the

end of the week

GT Bank set to float USD 500m

bond issue

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NIGERIA

The bank had in Jul-07, became the first Nigerian company and first African bank to be

listed on the main market of the London Stock Exchange (LSE) with the listing of its

USD 750m Global Depository Receipts (GDR).

This came on the heels of a USD 350m Eurobond issue in Jan-07, which made the financial

institution, the first Nigerian company to issue a Eurobond and also, the first Nigerian

institution to venture into the international capital markets without a sovereign guarantee

or credit enhancement from any international financial institution.

The securities will be listed on the LSE, and the proceeds from the placement will be used

partly to refinance the Banks USD 350m Eurobond maturing in Jan-12 and partly for

general corporate purposes. (Source: Thisdayonline)

Market activity

In NigeriaNigeriaNigeriaNigeria, the market drifted marginally lower (-0.1%) despite a good start, as the

banking sector (-1.3%) saw some profit taking. Zenith Bank (-1.%), UBA (-3.6%), FCMB

(4.8%) and Access Bank (-4.1%) were particularly affected, with only FBN (+0.7%) and

Diamond Bank (+1.3%) being the only notable gainers. The financials pull back was largely

offset, however, by renewed interest in Guinness Nigeria which surged by 10.3% after

releasing its 3Q11 results last week; while Lafarge WAPCO climbed 3.6% at the expense of

its rivals (Ashaka down by 6% and Dangote Cement ending flat). The consumer sector was

mixed: PZ Cussons was up by 4.5% and Nestle Nigeria gained 1.3%, but Dangote Flour

Mills (-3.7%) and Dangote Sugar (-5.8%) were in the red.

Nigerian Stock ExchangeTOP GAINER(S) % CHG PRICE TOP LOSER(S) % CHG PRICE

Honeywell Flour Mills 10.7 5.07 Unity Bank -8.8 1.03

Guinness Nigeria 10.2 226.01 Ashaka Cement -6.0 25.20

GSK Consumer Nig. 10.0 27.18 Dangote Sugar Refinery -5.8 13.50

TOP TRADER NGN (M) USD (M) TOTAL TRADED NGN (M) USD (M)

Zenith Bank 2,098.7 13.4 NIG ALSI 14,028.8 89.5

MARKET PERFORMANCE LEVEL NGN (%) USD (%) NGN/USD % CHG

NIG ALSI (NGN) 25,718 -0.07 0.00 156.63 0.08


Dividends (NGN)

COMPANY YEAR TYPE AMOUNT LAST CUM

Conoil Plc 2011 Final 2.00 06-Jun-11Lafarge Cement W 2011 Final 0.25 09-May-11Skye Bank Plc 2011 Regular 0.40 27-Apr-11Berger Paints 2011 Final 0.70 08-Jun-11Custodian And Al 2011 Final 0.17 23-May-11Greif Nigeria Pl 2011 Final 0.30 03-May-11Dangote Sugar Re 2011 Final 0.60 04-May-11Guaranty Trust 2011 Final 0.09 04-May-11Continental Rein 2011 Final 0.08 11-Jul-11

Ag Leventis & Co 2011 Final 0.12 09-May-11United Bank Afr 2011 Final 0.04 27-Apr-11Rt Briscoe Plc 2011 Final 0.08 27-Apr-11Portland Paints 2011 Final 0.16 31-May-11

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NIGERIA


First Bank Nig 2011 Final 0.60 09-May-11Total Nigeria Pl 2011 Final 6.00 09-May-11Mobil Nigeria 2011 Regular 9.60 29-Apr-11Fidelity Bank 2011 Final 0.14 27-Apr-11Chemical And All 2011 Final 1.00 29-Apr-11Uac Of Nigeria 2011 Final 1.10 23-May-11Nigerian Aviatio 2011 Final 0.40 N.A.Dangote Cement 2011 Final 2.25 04-May-11Prestige Assuran 2011 Final 2.00 26-Jul-11Unilever Nigeria 2011 Final 1.10 11-Apr-11Uacn Property De 2011 Final 0.55 16-May-11Okomu Oil Palm 2011 Final 0.50 16-May-11Tantalizers Plc 2011 Final 0.02 N.A.Oando Plc 2011 Final 2.40 03-May-11Capital Hotel 2011 Final 0.08 06-Jun-11Diamond Bank 2011 Final 0.15 20-Apr-11Julius Berger 2011 Final 2.00 24-Jun-11Trans Natwde Exp 2011 Final 0.05 18-Jul-11First City Monum 2011 Final 0.35 02-May-11Presco Plc 2011 Final 0.20 18-Jul-11Boc Gases Nigeri 2011 Final 0.36 24-May-11Stanbic Ibtc Ban 2011 Final 0.39 08-Apr-11Zenith Bank Plc 2011 Regular 0.85 06-Apr-11Access Bank Plc 2011 Final 0.30 11-Apr-11Guaranty Trust 2011 Final 0.60 07-Apr-11Glaxosmithkline 2011 Final 1.20 28-Apr-11

Source: Company filings

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KENYA

KENYAMacroeconomic data

Kenya 2008 2009 2010 2011E 2012F 2013F

Current account balance % GDP -6.7 -5.6 -7.9 -9.3 -7.9 -7.9Govt ross debt (% GDP) 46.2 49.4 50.5 52.3 50.9 49.6

Govt net debt (% GDP) 41.2 44.3 45.5 47.2 45.9 44.5



GDP per capita (USD) 801.4 761.5 809.3 874.8 964.8 1,049.7



Kenyas real GDP expanded by 5.6% in 2010 (2009: 2.6%). All sectors recorded positive

growth. Financial intermediation led this growth at +8.8% followed by wholesale and retail

trade (+7.8%) and transport and communication (+6.9%). Among the factors that

influenced growth in 2010 were improved weather conditions, low inflationary pressure,

low interest rates and increased credit to the private sector. The average annual inflation

was 4.1% in 2010 down from a high of 10.5% recorded in 2009. The Central Bank Rate was

lowered twice in 2010, with a view of lowering the cost of credit.

The overall balance of payments deteriorated from a surplus of KES 75.2bn in 2009 to a

surplus of KES 12.2bn in 2010. This deterioration was on account of decreased net capitalinflows coupled with deterioration in the current account balance. For 2011, the domestic

economy is likely to maintain a positive growth but at a decelerated rate of between 3.5-

4.5%. Growth in 2011 is likely to be a challenge on the back of high international oil prices

- which could remain high for the rest of the year (due to instability in the Middle East and

North Africa), fluctuations in the exchange rate and inadequate rainfall. (Source: Kenya

National Bureau of Statistics)

Company news

Standard Chartered Bank Kenya posted a 13.8% y/y (+52.8% q/q) rise in 1Q11 PAT, owing

to increased loans and advances. The bank's PAT climbed to KES 1.64bn (USD 19.8m)

from KES 1.4bn in 1Q10. EPS was also up 7.8% y/y (+46.0% q/q) to KES 5.71. Net interestincome was up 7.9% y/y (-2.2% q/q) to KES 2.21bn. Loan book was up 41.5% y/y (+13.6%

q/q) to KES 68.5bn, while net non-performing loans dropped 60% y/y to KES 86m. NIM was

however below sector average as corporate loans dominate the bank's loan book. NIM

was at 7.5% (-50bp q/q). The bank's total assets rose 17% to KES 145.2bn. There was

strong q/q recovery for 1Q11. This was driven mainly by growth in NIR (+42.3% y/y; +52.1%

q/q) and a dip in operating costs and provisioning. Operating costs were down to KES

1.3bn (+37.3% y/y, -7.6% q/q). The share currently trades at a PE of 11.16x, against the

sector PE of 9.8x.

SCB remains focused on servicing its corporate clients and middle to high income retail

market. Its lean model (service provision mainly driven by IT platform) is expected to

continue delivering below sector CTI. CTI declined by 1,100bp q/q, but rose 40bp y/y to40.6%. To enhance its retail offering, SCB issued its first credit cards in the Kenyan

market in February 2011. (Sources: African Alliance Research; Reuters)

GDP expands 5.6% for 2010

SCB posts 13.8% y/y rise in

1Q11 PAT

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KENYA

Standard Chartered Bank Kenya

3M TO MARCH (KES M ) 1Q10 1Q11 % CHG

Net interest income 2 046 2 207 -4.0Operating expenses -505 -243 -51.9Profit before bad debt 2,151 2,448 13.8Bad debt charge -77 -135 76.4Profit/(loss) after tax 1,441 1,639 13.8

Source: Company report

Barclays Bank of Kenya (BBK) released its 1Q11 reporting EPS growth of 11.6%y/y

(2%q/q) to KES 1.13. EPS growth was mainly driven by growth in fee income and

continued cost containment. For the first quarter since 1Q09, BBK delivered positive

growth in net loans and customer deposits (+4.1% and +4.3% q/q respectively).

Management targets to grow its loan book through the mortgage and SME sectors.

According to management, the recent removal of ATM transaction fees will have minimal

impact on fee income. Management also guide that sustained cut in costs will have no

direct impact on future earnings growth. While BBK has gradually been easing its

exposure to the mass retail market, it has successfully built a strong franchise in the

middle income segment mainly supported by its credit card business (BBK is the largest

distributor of credit cards). (Source: African Alliance Research, Company filing)

Barclays Bank of Kenya


Net interest income 4 366 3 862 -11.5

Operating expenses -3708 -3,433 -7.4Profit before bad debt 2,361 2,760 16.9Bad debt charge -359 -354 -1.4Profit/(loss) after tax 1,372 1,532 11.6


Safaricom FY11 results (12m to Mar-11) reflected lower than expected earnings with

revenue being in line, EPS of KES 0.33 down 12.9% y/y (29.5% h/h). Overall, total revenue

grew at a faster rate than subscriber market share, which was positive. The weak

performance was driven by higher than expected increase in operating expenses. DPS

unchanged at KES 0.20. Total revenue climbed 12.9% to KES 94.8bn. Voice revenue

declined 1.7% to KES 63.5bn outperforming our estimate of a 2.2% decline. Subscriber

numbers rose to 17.2m, an 8.8% y/y increase against our estimate of 8.1%. Blended ARPU

declined 4.8% to KES 437. Non-voice revenue contributed 33.0% of total revenuecompared to our estimate of 35.5%.

Costs came in higher, pushing EBITDA margin down to 37.7% from 43.6% in 2010.

Operating expenses rose 25.3% to KES 45.8bn. However, selling, general and

administrative expenses grew slower at KES 13.3bn. Depreciation came in a lot higher at

16.3bn. CAPEX rose +46.1% to KES 25.5bn with a CAPEX intensity rising to 26.9% up from

20.8%. Going forward, management will be looking to maintain voice revenue and grow

non voice revenue. Costs will become an important area of focus but operating costs could

still increase further as the company improves quality of service. Depreciation will

increase in view of the higher CAPEX but this is inevitable due to the need to grow data

revenue and enhance capacity with the higher minutes of use on voice. (Source: African

Alliance Research)

BBK records 11.6% growth in

earnings

Safaricom FY11 results show

increased revenues

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KENYA

Safaricom Ltd


Revenue 83 961 94 832 12.9Operating expenses -36,554 -45,795 25.3Operating Profit 22,611 19,390 -14.2Profit/(loss) before tax 20,967 18,361 -12.4Profit/(loss) after tax 15,148 13,159 -13.1


Market activity

In Kenya,Kenya,Kenya,Kenya, the NSE20 index continues to remain stagnant, and closed the week at 3,986.78,

down only 0.14%. Highly traded counters for the week included Equity Bank (flat), KPLC

(3.4%), and EABL (+2.0%). Safaricom was not highly traded as it usually is, despitereleasing its FY11 results during the week, which showed a 12.9% increase in revenue. It

however gained 1.3% to KES 3.90. Standard Chartered released its 1Q11 results reflecting

a 13.8% y/y increase in EPS. The share moved up slightly to KES 251.00 (+0.8%). Barclays

Bank also released its 1Q11 showing an 11.6% y/y increase in earnings. The counter

however remained flat at KES 66.00. NIC Bank's 1Q11 results showed a commendable

54.1% y/y increase in EPS. The share remained flat however at KES 46.00. The gainers for

the week included ARM, which closed at KES 179.00 (+8.5%), DTB also rose 6.8% to

KES 158.00. The top decliners included Pan Africa Insurance Holdings which closed at

KES 53.50 (-46.5%) after going ex-dividend and ex-bonus. The bonus was a 1 for 1 share

issue. CFC Insurance closed at KES 16.65 (-8.0%). EAPC was also among the week's top

decliners, closing at KES 85.00 (-7.6%).

Nairobi Stock Exchange

TOP GAINER(S) % CHG PRICE TOP LOSER(S) % CHG PRICE

Athi River Mining 8.5 179.00 Pan Africa Insurance -46.5 53.50

Diamond Trust 6.8 158.00 EA Portland Cement -7.6 85.00

CFC Stanbic 6.2 60.00 EA Cables -7.6 13.40

TOP TRADER KES (M) USD (M) TOTAL TRADED KES (M) USD (M)

Equity Bank 402.1 4.67 NSE 20 2,078.5 24.1

MARKET PERFORMANCE LEVEL KES (%) USD (%) KES/USD % CHG

NSE 20 (KES) 3,987 -0.14 -0.12 86.15 0.02


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Dividends (KES)


Housin Finance 2011 Final 0.7 30-Ma -11Diamond Trust Bank 2011 Final 1.6 23-May-11Scangroup Ltd 2011 Final 0.7 24-May-11CFC Stanbic Holdings Ltd 2011 Final 0.8 25-May-11Athi River Mining 2011 Final 1.75 26-May-11Nation Media Group 2011 Final 4 2-Jun-11Kakuzi Ltd 2011 Final 2.5 2-Jun-11Total Kenya Ltd 2011 Final 1.05 9-Jun-11Jubilee Holdings Ltd 2011 Final 4.5 10-Jun-11Kenya Re Ltd 2011 Final 0.35 15-Jul-11TPS Eastern Africa Ltd 2011 Final 1.25 20-Jun-11

Safcom 2011 Final 0.2 08-Sep-11Source: Company filings

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EGYPTMacroeconomic data

Egypt 2008 2009 2010 2011E 2012F 2013F

Current account balance % GDP 0.5 -2.3 -2.0 -2.7 -2.3 -2.0Govt ross debt (% GDP) 74.7 75.6 73.8 74.9 73.7 70.9

Govt net debt (% GDP) 60.0 61.4 60.6 63.1 63.5 62.0






President Barack Obama is set to unveil an economic aid program for Egypt and Tunisia

as part of a broad effort to support democratic reform in the Middle East and North Africa,

U.S. officials reported. Senior advisers to Obama, previewing parts of his speech,

announced the United States would offer debt relief totaling roughly USD 1bn over a few

years to Egypt through a debt swap mechanism that would invest the money to boost

youth employment and support entrepreneurs. Washington would also loan or guarantee

loans totaling up to USD 1bn for Egypt to finance infrastructure development and boost

jobs through the Overseas Private Investment Corp (OPIC), the officials told reporters. The

administration would also seek to foster trade in the region and encourage private sector

investment, they added. "We think these initiatives will help Egypt and Tunisia as theyundertake the twin challenges of economic transformation and democratization," one

official said. (Source: Reuters Africa)

Egypt's anti-graft agency opened a new corruption investigation into ousted President

Hosni Mubarak's former chief of staff, the day after a court ordered his release on bail,

state media reported. Assem el-Gohari, the head of the Illicit Gains Authority, ordered that

Zakaria Azmi return to detention after questioning him for about four hours, the state

news agency MENA said. Investigators were questioning Azmi following reports by

watchdog groups about additional and previously undisclosed wealth believed to have

been accumulated unlawfully. Azmi, one of Mubarak's closest aides, was ordered

released on bail of EGP 200,000 (USD 33,640) earlier in the week after nearly six weeks in

detention. The decision came after Azmi's lawyer filed an appeal for his client's release.The anti-graft agency said it had informed the prosecutor it would appeal the ruling at the

criminal court. (Source: Reuters Africa, MENA)

Egypt's ruling military council dismissed speculation it would pardon former President

Hosni Mubarak, who is under investigation for graft and abuse of power, and said it does

not interfere in judicial affairs. Mubarak, 83, is detained in a hospital in the Red Sea resort

of Sharm el-Sheikh after officials said he had heart problems. His wife, Suzanne, who also

fell ill when ordered detained, was freed after giving up assets but faces a graft probe. The

timing of the illnesses of Mubarak and his wife meant neither joined other officials in jail

and has fuelled talk they were getting special treatment by the army. "The Supreme

Council of the Armed Forces affirms that there is absolutely no truth in what was

published by the media about the council moving to pardon the former president Hosni

Mubarak and his family," it stated in a communiqu on its Facebook page. The council

"does not intervene in any way in legal matters and particularly in holding to account

Obama to offer debt relief to

Egypt

Former Mubarak aide faces

new corruption probe

Egypt's army has no plans to

pardon Mubarak

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symbols of the previous regime", it noted, adding that legal steps were for the judiciary to

handle and such "rumours" were aimed at dividing the nation. (Source: Reuters Africa)

Egypt and Iraq are close to a deal on compensation estimated at USD 1bn for Egyptian

workers who were not paid remittances during Iraq's 1990-1991 invasion of Kuwait,

officials from both sides stated. Iraq had been in financial crisis then as it could not sell

oil, its only export, according to Iraqi Labour Minister Nassar Rubaie. The two countries

have been trying to resolve the issue involving about 900,000 Egyptians since Saddam

Hussein was toppled in 2003. The row focuses on about USD 544m in interest on an

original USD 408m owed to Egyptian workers. "We are close to reaching a solution to the

issue of Egyptian compensation in Iraq," said Egyptian Manpower Minister Ahmed Hassan

el-Borai after Rubaie held talks in Cairo. "We have set up a technical committee which will

visit Iraq soon to sign an agreement in this regard," he added. Egypt says Iraqi banks

withheld hundreds of millions of dollars in remittances earned before and just afterBaghdad's invasion. It says banks stopped transferring the wages on 2 August 1990, the

day of the invasion. Rubaie said Iraq wanted to speed up the workers' payments and that

Prime Minister Nuri al-Maliki had invited his Egyptian counterpart, Essam Sharaf, to visit

Iraq to discuss the matter. "The problem relates to the interest, which requires dialogue

and talks on the technical issues between the two countries. A visit will resolve many of

the problems related to the interests of the Egyptian workforce in Iraq," Rubaie added.

(Source: Reuters Africa)

Egypt's central bank accepted EGP 8.21bn (USD 1.38bn) in seven-day repurchase

agreements in the money market CBES, less than the EGP 10bn it had asked for. The

central bank introduced weekly repo offerings on 5 April 2011 to keep short-term interest

rates under control after the political and economic unrest earlier in the year. (Source:Reuters Africa)

Egypt's general prosecutor referred former housing minister Ibrahim Soliman and four of

his deputies to trial for squandering public funds, the state news agency reported.

Soliman, the second housing minister to face trial, was minister from 1993 to 2005 and

has come under fire for his role in several controversial deals with real estate firms.

Former SODIC chairman Magdi Rasekh stepped down from SODIC's board last week,

adding to a list of resignations at property firms scrambling to distance themselves from

the country's deposed president. SODIC, says all its land deals have been fair and legal.

No charges have been brought against the firm. MENA reported that according to the

charges, Soliman gave unwarranted privileges to business executives, in violation of

contracts and financial commitments, and enabled Rasekh to make EGP 907.7m

(USD 153m) profit in a single land purchase. Soliman is further accused of relieving

Rasekh from paying EGP 13.8m in fees that would be due to the government. Rasekh was

also given the right to sell a plot of land, in violation of regulations, the agency added.

(Source: Reuters Africa)

Company news

Ahmed Ezz quit the board of Ezz Steel and its Ezz Dekheila Steel unit as he fights graft

charges from prison, and has been replaced by managing director Paul Chekaiban, the

company announced. Ezz, a top official in ousted Egyptian president Hosni Mubarak's

party, is charged with illegally taking control of subsidiary Ezz Dekheila Steel which then

supplied parent company Ezz with steel at reduced prices. Ezz has also resigned from the

board of Ezz Dekheila Steel. A judicial source stated Ezz was also charged withmonopolising Egypt's steel market. Ezz stated in a letter sent to media from jail that the

charges against him were unfounded and a fair trial will prove his innocence. The

Iraq, Egypt near USD 1bn deal

on worker compensation

Egypt cbank accepts repos

worth EGP 8.2 bn

Egypt refers former housing

minister for trial

Ezz Steel's embattled

chairman quits board

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company's shares have tumbled 56% this year as a crisis in the property industry saps

demand for its products and investors speculate that the charges against Ezz may damage

the company's business or force him to sell his holdings.

Orascom Telecom Holding (OTH) announced the appointment of Mr. Ahmed Abou Doma to

the position of Chief Executive Officer reporting to Mr. Khaled Bichara, who is nominated

to the position of Executive Chairman to ensure the smooth transition of the company

within the newly formed VimpelCom merged entity, while overlooking the companys

continued implementation of its strategy. In his new capacity as President and Chief

Operating Officer of VimpelCom Ltd., the company created through the combination of

VimpelCom Ltd. and WIND TELECOM SPA., Mr. Khaled Bichara, will also be focused on

executing VimpelCom synergy roadmap and achieving the targets for technology

procurement and commercial development, a key benefit resulting from the merger to

OTH and its minority shareholders. Naguib Sawiris, Executive Chairman of OTHcommented: I am pleased to welcome Ahmed Abou Doma in this new position. Ahmed

has been with the group for thirteen years and has spearheaded the transformation of our

operation in Bangladesh to where it is today, and he will be a great value for OTH while

embarking on a new era of growth and development under the VimpelCom umbrella.

(Source: Company Press Release)

In related news, Orascom Telecom reported first quarter results for 2011. Highlights

included subscribers surpassing 104m, an increase of 16% over the same period last year,

the sale of the shareholding in Orascom Tunisia Holding and Carthage Consortium

through which OTH owned 50% of Orascom Telecom Tunisia, and Earnings per GDR

reaching USD 0.78/GDR.

Commenting on the results Khaled Bichara, Executive Chairman said the eventful year of

2010 had been exceeded by a solid first quarter for 2011, meeting expectations for

performance despite the difficulties we encountered in some of our operating countries.

He added that political circumstances in Egypt had a noticeable impact on the

performance for Egyptian subsidiary Mobinil, where the forced shut-down of voice and

data services for several days led to declining ARPU and usage. In addition, OTH, which is

based in Cairo witnessed business interruptions during the period of unrest, and

continues to remain resilient and optimistic in light of the resulting country-wide

economic and political pressures. Tension in Algeria continues to hinder the growth for

Djezzy; restrictions on foreign currency transfers, import bans and advertising bans on

government-owned television have been countered to the extent possible by effective cost

management in the Algerian business unit. Nevertheless, subscribers still witnessed an

increase capturing over 58% of the market in Algeria. Revenues showed a 6% growth

compared to the first quarter of 2010, while EBITDA grew by 14%.

Bichara noted some of the positives as well, emphasising that other operations displayed

impressive growth for the quarter. North Korean business Koryolinks strong growth in

customer base translated into solid revenue growth. In keeping with the high subscriber

growth trend, OTHs Bangladeshi operation increased its customers by 42% compared to

the previous year, and achieved revenue growth of 27% YoY. Mobilink remains as the

market leader in Pakistan, growing its base by 4% compared to 1Q10. In Canada, WIND

Mobile subscribers have exceeded a quarter of a million by the end of the first quarter of

2011, proving a testament to the uptake of the operations innovative plans and offers by

the Canadian customers.

Orascom Telecom announces

new CEO

Orascom Telecom 1Q11

results

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The company focuses its efforts on developing its operations to the fullest in order to fulfil

its promise to maximize shareholder value. With EPS now reaching USD 0.78/GDR, a

remarkable increase compared to 1Q10, OTH still upholds its aim to develop further

growth through the opportunities offered by the combination of its parent company, WIND

TELECOM, and VimpelCom Ltd. (Source: Company Press Release)

Orascom Telecom Holdings

3M TO MARCH (USD 000) 1Q10 1Q11 % CHG

Revenue 901 574 949 249 5.3EBITDA 392,875 436,600 11.1Operating Income 203,551 239,522 17.7Profit/(loss) before tax 59,777 128,906 115.6Profit from continuing operations* 15,022 67,342 348.3

Profit/(loss) after tax 58,158 821,761 1,313.0Source: Company report, *Gains from consolidation of Mobinil (1Q10) and Orascom Tunisiana (1Q11)

Egypt's Ezz Dekheila Steel, a unit of Ezz Steel, announced its unaudited 2010 net profit

was unchanged from a year earlier at EGP 724m (USD 122m). The firm reported in a brief

statement to the stock exchange that its revenues rose 21% in the year to EGP 9.86bn.

Talaat Moustafa Group released first quarter results for 2011. TMG posted a first quarter

net profit of EGP 169.4m (USD 28.5m), a 48% slide from a year earlier. The firm made net

profit of EGP 324.1m in the same period a year earlier, a statement posted on the stock

exchange's website noted.

Talaat Moustafa Group

3M TO MARCH (EGP 000) 1Q10 1Q11 % CHG

Revenue 1,606,637 1,377,279 -14.3EBITDA 485,299 247,804 -48.9

Operating Income 407,850 222,727 -45.4

Profit/(loss) before tax 421,855 170,976 -59.5

Profit/(loss) after tax 345,185 151,474 -38.2

Profit/(loss) after tax and minorities 324,104 169,437 -47.7


Market activity

The EgyptianEgyptianEgyptianEgyptian market was strong throughout the week, with an exception of Wednesday,

and the EGX index gained 4.9% for the week, with positive support coming from allsectors, but specifically from building materials (+4.4%), property (+17.0%) and telecom

(+3.9%) sectors. Ezz Steel surged 18.3%, Orascom Construction was up by 3.2%, TMG

spiked 25.8% while Orascom Telecom gained 7.7% for the week. The banking sector was

mixed, with NSGB down by 1.3% while CIB managed to gain 2.3%.

Ezz Dekheila Steel unaudited

2010 net profit

Talaat Moustafa Group first

quarter results

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Egyptian Stock Exchange


TMG Holdin 25.8 4.24 Elswed Cables -3.3 38.67

Palm Hills Development 23.6 1.94 Sinai Cement -0.8 44.93

El Ezz Steel 18.3 10.29 HandD Bank -0.5 18.44

TOP TRADER EGP (M) USD (M) TOTAL TRADED EGP (M) USD (M)

CIB Egypt 361.2 60.8 EGX 30 2,318.0 390.0

MARKET PERFORMANCE LEVEL EGP (%) USD (%) EGP/USD % CHG

EGX 30 (EGP) 5,249 4.9 4.6 5.95 -0.30


Dividends (EGP)


Oriental Weavers 2011 Cash 2.00 26-May-11

El Nasr Co For T 2011 Cash 0.09 14-Jun-11

Minapharm 2011 Cash 0.58 26-May-11

Pharaoh Tech For 2011 Cash 0.28 29-May-11

Gharbia Islamic 2011 Cash 0.70 30-May-11

Engineer Indust 2011 Cash 0.40 26-May-11


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MOROCCO

MOROCCOMacroeconomic data

Morocco 2008 2009 2010 2011E 2012F 2013F


Govt net debt (% GDP) 47.5 47.0 49.2 52.1 53.1 53.3






Residential property prices increased 1.2% q/q in 1Q11 and by 5% y/y. However, the

volume of transactions continued to decline given the difficult environment. (Source:

Integra Bourse)

Moroccan sugar beet farmers are threatening to boycott the delivery of next years crop to

Consumar in a move intended to press the sole sugar refiner for better terms. If the

boycott goes through the company, which has an annual refined sugar output of 1.2mt,

could be forced to increase its raw sugar imports, which are mainly from Brazil. The

grievances raised by three sugar beet farmers are focused on the amount Consumar pays

for beet and the mechanisms by which the payment is calculated. Farmers are demandinga price increase, a minimum payment regardless of the sucrose content in their beet,

more transparency about the cost of inputs supplied by Consumar, and an end to the

refiners monopoly. The farmers involved in the protest are unanimous about the boycott if

the refiner fails to meet their demands. Driss Ghezlaoui, a farmer from the Doukkala

region and one of those leading the protests indicated that some 12,000 farmers from

Doukkala and Abda regions of Morocco are participating in the protest, and that between

them they produced 1mt of beet this year.

Consumar, which is controlled by the National Investment Co. (SNI) an investment

holding company in which Moroccos ruling family is the biggest shareholder, did not

make reference any reference to any boycott in its statement. The company however

acknowledged that there had been a disagreement over remuneration with farmers in theBoukkala region, which it highlighted accounted for 39% of Moroccos beet harvest in

2010. The company further indicated that this was the only region where there was

problem, and that the issue had now been resolved. (Source: Reuters)

Moroccan banks operating in Cote dIoire have resumed their operations after a forced

closure following the political turmoil that marked the country. A subsidiary of Bank of

Africa, which is owned by BMCE is one of the banks that resumed operations. The bank

has a healthy portfolio in relation to claims on the state, which were especially guaranteed

by the Central Bank of the States of West Africa. (Source: Integra Bourse)

The association of Moroccan vehicle importers, AIVAM, has published April figures

pointing to an economic rally. According the association, vehicle sales shot up 20% y/y at

9.748 units. A total of 36,376 units were sold in 1Q11. Car sales rose by 24% y/y at 8,757

during April, but utility vehicle sales slid 4.6% to 991 units. (Source: Integra Bourse)

Residential property prices

rise by 5% y/y in 1Q11

Farmers boycott delivery of

beet to sugar refiner

Moroccan banks in Cote

dIvoire resume operations

Vehicle sales swell 20% y/y in

April

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Company news

NYSE listed Lear Corporation has announced that it will officially open a new electronics

facility in Rabat, Morocco. The company is a leader in developing complete electrical

power management systems that support a full range of vehicle features. The company

indicated that the new facility supplies world-class electronics such as battery charges

and gateway modules to European carmakers including BMW, Renault and Volkswagen.

The 14,340sqm plant employs 130 employees and is expected to employ over 230

employees by 2011. Its location is expected to enable easy shipment to the European

market, which reduces travel time and costs, increases flexibility and allows for quicker

response to customer preferences. (Source: News Bites)

Credit du Maroc has lauched a private bank, which was inaugurated during the week. The

bank will have 20 wealth advisers and three asset managers dedicated to working withclients to manage their portfolios. A minimum portfolio of MAD 1m (USD 125k) is required

to open an account. (Source: Integra Bourse)

Indian conglomerate, Gujarat Fluorochemicals, plans to invest USD 8m in a mining project

in the northern region of Taourirt. According to the companys Director General, Dinesh

Sardana, the company plans to build an integrated unit for extraction and transforming

fluorosis acid, a key ingredient for making steel as well as optical flint, especially extra

low dispersion lenses used for cameras and telescopes. The project caters for the

production of 40,000t of this substance and the creation of over 150 direct jobs. The works

of the project will start next September, and it falls within the framework of a recently

signed memorandum of understanding. Ongoing feasibility studies amount to USD 200k.

(Source: MAP)

Market activity

MoroccoMoroccoMoroccoMorocco was flat for the week, with gains in the agricultural (+2.3%) and construction

(+1%) sectors negated by losses in banks (-1%) and breweries (-9.3%). Both Consumar

and Centrale Laitiere were up around 2.5%, and CGI was the star performed in the

construction sector. Most banks ended the week lower, with Attijariwafa (-1.5%) and

BMCE (02.4%) leading the pack. Brasseries du Maroc (-13.1%) fell heavily in very thin

trading. Marco Telecom dominated trading (38% of weekly turnover), but it gained only

marginally, up by 16bp.

Casablanca Stock ExchangeTOP GAINER(S) % CHG PRICE TOP LOSER(S) % CHG PRICE

CIH 8.6 288.00 Brasseries Dumaroc -13.1 1,950

CGI 6.8 1,420 Maroc Leasing -10.3 384.05

Afriquia Gaz 5.6 1,670 Holcim (Maroc) -4.6 2,360

TOP TRADER MAD (M) USD (M) TOTAL TRADED MAD (M) USD (M)

Maroc Telecom 166.4 21.0 MORALSI 432.7 54.5

MARKET PERFORMANCE LEVEL MAD (%) USD (%) MAD/USD % CHG

MORALSI (MAD) 12,009 0.01 0.43 7.92 0.42


NYSE listed Lear Corp. opens

electronics plant in Morocco

Credit du Maroc launches a

private bank

Indian firm invest USD 8m in a

mining project

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Dividends (MAD)


Ban ue Marocaine 2010 Re ular 25.00 23-Ma -11Aluminium Du Mar 2010 Regular 120.00 N.A.Unimer 2010 Regular 3.00 N.A.Maghrebail 2010 Regular 50.00 23-Jun-11Alliances Develo 2010 Regular 8.00 N.A.Eqdom 2010 Special Cash 50.00 N.A.Holcim 2010 Regular 131.00 N.A.Lydec 2010 Regular 22.50 N.A.Credit Immob Hot 2010 Regular 6.00 23-May-11Zellidja Sa 2010 Special Cash 20.00 15-Jun-11Compagnie Genera 2010 Regular 18.00 N.A.

Snep 2010 Regular 13.00 20-Jun-11Colorado 2010 Regular 4.50 14-Jul-11Timar 2010 Regular 3.00 N.A.Stokvis N Afriq 2010 Regular 2.00 16-Jun-11Realis Mecanique 2010 Regular 15.00 N.A.Disway 2010 Regular 21.00 28-Jun-11Banque Marocaine 2010 Regular 3.00 30-Jun-11Scepc 2010 Regular 15.00 N.A.Douja Prom Addoh 2010 Regular 2.00 N.A.Berliet Maroc 2010 Regular 8.00 11-Jul-11Compagnie Minier 2010 Regular 100.00 20-May-11Oulmes Etat 2010 Special Cash 60.00 N.A.Lesieur Cristal 2010 Regular 5.50 N.A.

Auto Hall 2010 Regular 3.50 N.A.Delattre Levivie 2010 Special Cash 18.00 N.A.Salafin 2010 Special Cash 13.00 N.A.Promopharm 2010 Regular 45.00 N.A.Soc Metallurgic 2010 Regular 100.00 N.A.Credit Du Maroc 2010 Regular 30.00 N.A.Microdata 2010 Regular 57.00 N.A.Maghreb Oxygene 2010 Regular 18.00 20-Apr-11Delta Holding Sa 2010 Regular 3.00 N.A.Agma-Lah Tazi 2010 Regular 200.00 N.A.Soc Des Brasser 2010 Regular 100.00 N.A.Ctm 2010 Regular 22.50 N.A.Acred 2010 Regular 23.00 N.A.

Branoma 2010 Regular 80.00 N.A.Fenie Brossette 2010 Regular 15.00 21-Jun-11Atlanta 2010 Regular 3.00 N.A.Managem 2010 Regular 12.00 N.A.Cnia Saada Assur 2010 Regular 22.00 N.A.Wafa Assurance 2010 Regular 70.00 02-Jun-11Banque Centrale 2010 Regular 8.00 N.A.Centrale Laitier 2010 Regular 59.00 N.A.Ciments Du Maroc 2010 Regular 30.00 06-Jun-11Cosumar 2010 Regular 86.00 N.A.Ib Maroc.Com 2010 Regular 18.00 N.A.Auto Nejma 2010 Regular 55.00 N.A.Sothema 2010 Regular 23.33 N.A.


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TUNISIA

TUNISIAMacroeconomic data

Tunisia 2008 2009 2010 2011E 2012F 2013F


Govt net debt (% GDP) - - - - - -






The African Development Bank (AfDB) has predicted a GDP growth rate of 1.1% for Tunisia

in 2011, as the country seeks to recover after the 14 January revolution. At a meeting

recently held in the Tunisian capital, Tunis, by the AfDB on the theme: "Tunisia's post-

revolution: What is the economic outlook?" AfDB's Vice President and Chief Economist

Mthuli Ncube remarked that Tunisia had potentials in small and medium enterprises

(SMEs) that will enable the country to acquire a strong background in the field of

technology. (Source: African Manager)

US President Barack Obama will use his speech to the Arab world to call for billions of

dollars in financial assistance to Egypt and Tunisia as part of a comprehensive approachto the Arab Spring movement that he hopes will boost democratic reforms and America's

reputation in the region. The aid package, which would unfold over two to three years,

would include an estimated USD 1bn in debt cancellation, USD 1bn in loan guarantees and

several billion more in financing from multilateral institutions such as the World Bank,

according to three senior administration officials who briefed reporters on the condition of

anonymity under ground rules set by the White House. (Source: The Sacramento Bee)

Foreign Direct Investment (FDI) declined by 24.5% at the end of the first four months of

2011, falling to TND 448.8m compared with TND 594m in the same period of 2010,

according to statistics of the Foreign Investment Promotion Agency (FIPA). Investments

are shared out as follows: TND 426.8m of foreign direct investment (FDI) and TND 21.6m

in portfolio, compared with TND 569.3m and TND 24.7m, respectively in 2010. (Source:babnet)

Corporate action

TELNETs IPO result shows that the Offer was subscribed 3.3 times and asked by

approximately 3,950 applicants. (Source: Tustex)

AfDB forecasts 1.1% growth of

GDP in 2011

Obama to seek aid

FDI fell by 24.5% in first four

months of 2011

Result of TELNET IPO

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Market activity

TunisiaTunisiaTunisiaTunisia ended on a positive note, up by 1%, as Poulina gained 4.5% and Carthage Cement

surged by 9.4% for the week, the latter in very active trading 42% of the weekly turnover.

Banks were up by 0.5% with good contributions from BT (+1.1%) and Tunisie Leasing

(+11.5%).

Tunis Stock Exchange


Tunisie Leasing 11.5 27.20 Attijari Leasing -7.0 39.00

Tunisie Lait 10.4 4.45 SPDIT -3.4 5.99

Carthage Cement 9.4 2.90 Tunis Re -3.0 9.89

TOP TRADER TND (M) USD (M) TOTAL TRADED TND (M) USD (M)

Carthage Cement 7.40 5.35 TUNIS Index 20.0 14.4

MARKET PERFORMANCE LEVEL TND (%) USD (%) TND/USD % CHG

TUNIS Index (TND) 4,143 0.9 1.1 1.38 0.14


Dividends (TND)


Soc Tunsienne D' 2011 Re ular 1.80 N.A.Adwya 2011 Regular 0.20 08-Jun-11

Soc Accum Tunis 2011 Regular 0.37 N.A.Cie Intl De Leas 2011 Regular 0.75 N.A.Soc Industrielle 2011 Regular 0.07 N.A.Cie D'assur-Astr 2011 Regular 1.60 01-Jun-11Gif Filter 2011 Regular 0.15 N.A.


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MAURITIUS

MAURITIUSMacroeconomic data

Mauritius 2008 2009 2010 2011E 2012F 2013F


Govt net debt (% GDP) 44.0 47.8 50.5 51.4 52.1 50.4






The proposed construction of a New Cargo and New Freeport Zone SSR International

Airport slow to take off. Airports of Mauritius Co Ltd (AML) in conjunction with the Board

of Investment (BOI) had yet initiated the first steps for this important project to take off

quickly. However, the tendering exercise to identify a Master Developer has not delivered

the expected results. The objective was to find a company willing to invest and finance the

entire project. The folder is now the office of Prime Minister. The idea is to find a solution

to this situation as soon as possible. For the latest indications, major developments are

expected by next week. (Source: LeMatinal)

Tourist arrivals in Mauritius increased in the first quarter, data released by the CentralStatistics Office showed. The number of tourists visiting the country grew 5.1% y/y to

262,626 in the first quarter. There was a 29.2% surge in arrivals from the Asian market,

while the number of tourists from Africa and Europe increased 7.5% and 2.3%,

respectively. (Source: RTT News

africa weekly 20052011

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