Investors update: December 20 2022

IMF clears $447m for Kenya to address debt, reforms

Highlights

• The International Monetary Fund has agreed to lend Kenya about $447 million to help shore up its finances and boost its dwindling reserves.
• That’s according to a statement from the Washington-based lender released Monday after the executive board completed a review of its loan programs.
• The money includes an augmentation of about $216 million and brings the cumulative disbursements to Kenya under existing arrangements to about $2.4 billion. 

Source: Bloomberg

Our Takeaway

Prior to the latest IMF loan, Kenya’s public debt had begun to “level off” due to fiscal consolidation progress. President William Ruto’s government, which took over in September, plans to cut expensive commercial borrowing in favor of cheaper sources like the World Bank to reduce the debt servicing pressure on revenue. In June, the government canceled the planned issuance of a Eurobond due to a surge in bond yields. Kenya’s economy is expected to expand by 5.3% this year.

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Mobility solutions provider Zeda Limited lists on JSE

Highlights

• Integrated mobility solutions provider, Zeda Limited, listed its shares on the main board of the Johannesburg Stock Exchange (JSE) on Monday.
• Zeda has long-term license agreements to operate the leading car rental brands Avis and Budget, with a presence in 11 African markets.
• The company is listed on the JSE as the only provider of tailored short-, medium- and long-term car rental and vehicle fleet leasing services from within one service provider. Its listing gives investors an opportunity to add to their portfolios a regional mobility leader.

Source: ABC

Our Takeaway

Zeda’s listing has increased the number of listed companies on the bourse to 305 with an overall market capitalization of over R21.84 trillion (US$1.2 trillion). After the JSE introduced a raft of amendments to its listing regulations to cut red tape and improve efficiency, the bourse has seen a significant increase in the number of issuers that have listed securities such as equities, Exchange Traded Funds (ETFs), and sustainability bonds. Meanwhile, Zeda operates in Botswana, Ghana, Lesotho, Mozambique, Namibia, Zambia, and South Africa, its home market.

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Egypt-based healthtech CheckMe acquires DoctorOnline

Highlights

• Egyptian healthtech platform CheckMe has acquired a majority stake in DoctorOnline, a doctor appointment booking app.
• The deal was facilitated through Exists.Me, an acquisitions and mergers (M&A) advisory firm, and brings CheckMe’s valuation to $20 million.
• Founded in 2020, CheckMe provides on-demand medical lab services. Meanwhile, DoctorOnline is a telemedicine platform that enables users to consult doctors via video conferencing or a call.

Source: Wamda

Our Takeaway

The CheckMe-DoctorOnline deal is an indication of the continued growth of healthtech in Africa, especially in telemedicine, r-pharmacy, and e-diagnostic, which have rapidly increased since the outbreak of Covid-19. With the post-pandemic ushering increasing attention to health and physical well-being, and a widespread adaption of healthtech in several sectors, Healthtech companies in the Middle East and North Africa region specifically have reached a combined value of $1.5 billion, a 22x increase since 2016.