Investors update: February 27 2023 - Banking giant JP Morgan opens regional office in Nairobi

Banking giant JP Morgan opens regional office in Nairobi

Highlights

• JP Morgan, the world’s largest bank by market capitalization which is headquartered in New York, now has a regional office in Nairobi, Kenya. 
• This move further underscores the African ambitions of the American banking giant  as it is now present in Nigeria, Egypt, South Africa, and now Kenya
• The bank will now oversee its East African businesses and operations from the new office, as it moves to coordinate and expand its relationships in Africa, especially in Kenya and Ghana.  

Source: TechCabal

Our Takeaway

JP Morgan’s history in Nigeria and Egypt dates back to 1960  and 1979 respectively, while the bank recently debuted in South Africa. We consider the bank’s move into Kenya to be a significant boost to the country’s economy and its efforts to position itself as a hub for finance and investment in East Africa. More so, a new regional office in Nairobi is expected to create job opportunities and attract more foreign investment to the country.

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Large-cap stocks in Nigeria surged by about $1bn

Highlights

• The combined market capitalization of stocks worth over one trillion (SWOOTs) in Nigeria appreciated by 2.27% to close last week at N20.63 trillion, up from N20.17 trillion the previous week, reflecting growth of N458.19 billion (about $1 billion).  
• Stocks included in this classification are Airtel Africa, BUA Cement, Dangote Cement, BUAFoods, and MTN Nigeria Plc.
• Airtel Africa Plc ended the week as the most capitalized company on the exchange, leading the SWOOTS strongly, with MTNN, its competitor and second-most capitalized stock, far behind.

Source: Nairametrics

Our Takeaway

It’s the elections period in Nigeria, Africa’s largest economy and one of its biggest technology hubs. Historically, elections tend to create short-term volatility in financial markets as investors react to changing political conditions, but the Nigerian Exchange (NGX) ASI moved up last week, gaining 2.13% in the week. Still, we anticipate some market downturn this week as results of the Saturday presidential poll begin to trickle in.

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Kenya’s Roam partners with Hitachi to boost EVs in Africa

Highlights

• Kenyan-based electric vehicle manufacturer Roam has signed a partnership with Hitachi Europe Ltd—a technology leader that enables sustainable mobility in cities—to make electric transport accessible in Africa.
• The collaboration aims to focus on electrification in Kenya and will be geared towards increasing the number of electric motorcycles and buses available for public transport.
• For Africa’s nascent electric vehicle market, the partnership will enable a much-needed exchange of international knowledge and technical know-how.

Source: ABC

Our Takeaway

Globally, the acceptance of electric vehicles is gaining momentum with adoption estimated to have risen six-fold since 2015. In 2020, there were more than 11 million registered EVs including cars, buses, vans, and trucks globally, and the number is expected to hit 145 million by the end of the decade, suggesting a global transition from gas-powered vehicles is right on track. By continents, however, Africa lags behind its peers and has yet to show much progress so far. Electric cars remain rare in most of Africa but local initiatives like Roam offer a ray of hope that the region won’t be totally left behind.