Wazua
»
Investor
»
Stocks
»
Equity Bank Opening In DRC
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
mnandii wrote:watesh wrote:young farmer wrote:dunkang wrote:Social, political and economic stability of some of African nationas are areas that Mr. Mwangi needs to carefully be checking before investing.
A population that has been in war for +10 years tend to have a "haki yetu" mentality which is not good for business. A general may just pop up and decide to nationalise all companies. Mzungu can see untapped wealth in DRC all the way from Germany, but "Muafrika" see war.  umesema ukweli  @dunkang's sentiment needs to be taken seriously. You need to ask yourself why the mzungu is leaving now in the first place. Diversification is good at times. But diversification for the sake of it shows that we don't know what we are doing. Unfortunately for many wazuans in these counters they have fallen in love with the stocks they own! They therefore lack objectivity in assessing the risks and opportunities inherent in the stocks. Valid points. JM should consider more stable markets like SA, Ghana and Nigeria. In those markets you can have a small market share but still make money. DRC, Sudan, Somalia etc are very risky markets. Life is short. Live passionately.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
|
sparkly wrote:mnandii wrote:watesh wrote:young farmer wrote:dunkang wrote:Social, political and economic stability of some of African nationas are areas that Mr. Mwangi needs to carefully be checking before investing.
A population that has been in war for +10 years tend to have a "haki yetu" mentality which is not good for business. A general may just pop up and decide to nationalise all companies. Mzungu can see untapped wealth in DRC all the way from Germany, but "Muafrika" see war. umesema ukweli @dunkang's sentiment needs to be taken seriously. You need to ask yourself why the mzungu is leaving now in the first place. Diversification is good at times. But diversification for the sake of it shows that we don't know what we are doing. Unfortunately for many wazuans in these counters they have fallen in love with the stocks they own! They therefore lack objectivity in assessing the risks and opportunities inherent in the stocks. Valid points. JM should consider more stable markets like SA, Ghana and Nigeria. In those markets you can have a small market share but still make money. DRC, Sudan, Somalia etc are very risky markets. JM is smart. It is very hard to compete in SA, Nigeria and Ghana which have large established banks. SA - This is a mature market with lots of large (larger than KCB & Equity) banks. Perhaps Equity can cut a niche but it will not be easy. In addition, there are many micro-lenders in this market. Nigeria - The minimum capital requirement is high. Plus the Nigerian banks are huge vs Equity [or KCB]. I need to re-verify but I believe that each of the top 3 Nigerian banks is larger than all the KE listed bank combined. http://www.proshareng.com/news/7821
Ghana - Very competitive. Crazy high interest rates. Very expensive to do business. Lots of banks & MFIs. Lots of Nigerian banks present. Ecobank is huge there. DRC - Not highly banked. Volatile but lots of potential. Huge margins on transactions as I understand it. A lot of banking is done in or with Rwandan banks. Equity is present in Rwanda. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya
|
VituVingiSana wrote:sparkly wrote:mnandii wrote:watesh wrote:young farmer wrote:dunkang wrote:Social, political and economic stability of some of African nationas are areas that Mr. Mwangi needs to carefully be checking before investing.
A population that has been in war for +10 years tend to have a "haki yetu" mentality which is not good for business. A general may just pop up and decide to nationalise all companies. Mzungu can see untapped wealth in DRC all the way from Germany, but "Muafrika" see war. umesema ukweli @dunkang's sentiment needs to be taken seriously. You need to ask yourself why the mzungu is leaving now in the first place. Diversification is good at times. But diversification for the sake of it shows that we don't know what we are doing. Unfortunately for many wazuans in these counters they have fallen in love with the stocks they own! They therefore lack objectivity in assessing the risks and opportunities inherent in the stocks. Valid points. JM should consider more stable markets like SA, Ghana and Nigeria. In those markets you can have a small market share but still make money. DRC, Sudan, Somalia etc are very risky markets. JM is smart. It is very hard to compete in SA, Nigeria and Ghana which have large established banks. SA - This is a mature market with lots of large (larger than KCB & Equity) banks. Perhaps Equity can cut a niche but it will not be easy. In addition, there are many micro-lenders in this market. Nigeria - The minimum capital requirement is high. Plus the Nigerian banks are huge vs Equity [or KCB]. I need to re-verify but I believe that each of the top 3 Nigerian banks is larger than all the KE listed bank combined. http://www.proshareng.com/news/7821
Ghana - Very competitive. Crazy high interest rates. Very expensive to do business. Lots of banks & MFIs. Lots of Nigerian banks present. Ecobank is huge there. DRC - Not highly banked. Volatile but lots of potential. Huge margins on transactions as I understand it. A lot of banking is done in or with Rwandan banks. Equity is present in Rwanda. At least Equity Bank has a chance to be among the top banks in DRC. If this market remains stable it might be a goldmine...the major problem is the vast amount of land hence low population density which might hinder establishment of brick and mortar branches just like in Tanzania. But all in all am very positive....Early entry into Ethiopia would be the biggest hit for Equity
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
|
watesh wrote:VituVingiSana wrote:sparkly wrote:mnandii wrote:watesh wrote:young farmer wrote:dunkang wrote:Social, political and economic stability of some of African nationas are areas that Mr. Mwangi needs to carefully be checking before investing.
A population that has been in war for +10 years tend to have a "haki yetu" mentality which is not good for business. A general may just pop up and decide to nationalise all companies. Mzungu can see untapped wealth in DRC all the way from Germany, but "Muafrika" see war. umesema ukweli @dunkang's sentiment needs to be taken seriously. You need to ask yourself why the mzungu is leaving now in the first place. Diversification is good at times. But diversification for the sake of it shows that we don't know what we are doing. Unfortunately for many wazuans in these counters they have fallen in love with the stocks they own! They therefore lack objectivity in assessing the risks and opportunities inherent in the stocks. Valid points. JM should consider more stable markets like SA, Ghana and Nigeria. In those markets you can have a small market share but still make money. DRC, Sudan, Somalia etc are very risky markets. JM is smart. It is very hard to compete in SA, Nigeria and Ghana which have large established banks. SA - This is a mature market with lots of large (larger than KCB & Equity) banks. Perhaps Equity can cut a niche but it will not be easy. In addition, there are many micro-lenders in this market. Nigeria - The minimum capital requirement is high. Plus the Nigerian banks are huge vs Equity [or KCB]. I need to re-verify but I believe that each of the top 3 Nigerian banks is larger than all the KE listed bank combined. http://www.proshareng.com/news/7821
Ghana - Very competitive. Crazy high interest rates. Very expensive to do business. Lots of banks & MFIs. Lots of Nigerian banks present. Ecobank is huge there. DRC - Not highly banked. Volatile but lots of potential. Huge margins on transactions as I understand it. A lot of banking is done in or with Rwandan banks. Equity is present in Rwanda. At least Equity Bank has a chance to be among the top banks in DRC. If this market remains stable it might be a goldmine...the major problem is the vast amount of land hence low population density which might hinder establishment of brick and mortar branches just like in Tanzania. But all in all am very positive....Early entry into Ethiopia would be the biggest hit for Equity Equity 3.0 is not reliant on Brick and Mortar but will ride on Airtel's infrastructure. I expect the push will be for agents & Mobile Banking for the 'wananchi' but a few Brick & Mortar branches for corporate clients. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya
|
VituVingiSana wrote:watesh wrote:VituVingiSana wrote:sparkly wrote:mnandii wrote:watesh wrote:young farmer wrote:dunkang wrote:Social, political and economic stability of some of African nationas are areas that Mr. Mwangi needs to carefully be checking before investing.
A population that has been in war for +10 years tend to have a "haki yetu" mentality which is not good for business. A general may just pop up and decide to nationalise all companies. Mzungu can see untapped wealth in DRC all the way from Germany, but "Muafrika" see war. umesema ukweli @dunkang's sentiment needs to be taken seriously. You need to ask yourself why the mzungu is leaving now in the first place. Diversification is good at times. But diversification for the sake of it shows that we don't know what we are doing. Unfortunately for many wazuans in these counters they have fallen in love with the stocks they own! They therefore lack objectivity in assessing the risks and opportunities inherent in the stocks. Valid points. JM should consider more stable markets like SA, Ghana and Nigeria. In those markets you can have a small market share but still make money. DRC, Sudan, Somalia etc are very risky markets. JM is smart. It is very hard to compete in SA, Nigeria and Ghana which have large established banks. SA - This is a mature market with lots of large (larger than KCB & Equity) banks. Perhaps Equity can cut a niche but it will not be easy. In addition, there are many micro-lenders in this market. Nigeria - The minimum capital requirement is high. Plus the Nigerian banks are huge vs Equity [or KCB]. I need to re-verify but I believe that each of the top 3 Nigerian banks is larger than all the KE listed bank combined. http://www.proshareng.com/news/7821
Ghana - Very competitive. Crazy high interest rates. Very expensive to do business. Lots of banks & MFIs. Lots of Nigerian banks present. Ecobank is huge there. DRC - Not highly banked. Volatile but lots of potential. Huge margins on transactions as I understand it. A lot of banking is done in or with Rwandan banks. Equity is present in Rwanda. At least Equity Bank has a chance to be among the top banks in DRC. If this market remains stable it might be a goldmine...the major problem is the vast amount of land hence low population density which might hinder establishment of brick and mortar branches just like in Tanzania. But all in all am very positive....Early entry into Ethiopia would be the biggest hit for Equity Equity 3.0 is not reliant on Brick and Mortar but will ride on Airtel's infrastructure. I expect the push will be for agents & Mobile Banking for the 'wananchi' but a few Brick & Mortar branches for corporate clients. I have always seen brick and mortar as an easier way to attract more customer sign ups to bank accounts and agents work better after sign ups. It more formal and trustable for the new customers but more expensive to run than an agent. The 3.0 strategy is still brilliant though
|
|
|
Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
|
What awaits Equity in DRC as Germans leaveQuote:So just how viable is this acquisition? It will prove viable, only if Equity’s shareholders are willing to wait just a little longer. It’s definitely going to be the proverbial ‘fly trying to move the dung uphill’ story. Life is like playing a violin solo in public and learning the instrument as one goes on.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
|
watesh wrote:VituVingiSana wrote:watesh wrote:VituVingiSana wrote:sparkly wrote:mnandii wrote:watesh wrote:young farmer wrote:dunkang wrote:Social, political and economic stability of some of African nationas are areas that Mr. Mwangi needs to carefully be checking before investing.
A population that has been in war for +10 years tend to have a "haki yetu" mentality which is not good for business. A general may just pop up and decide to nationalise all companies. Mzungu can see untapped wealth in DRC all the way from Germany, but "Muafrika" see war. umesema ukweli @dunkang's sentiment needs to be taken seriously. You need to ask yourself why the mzungu is leaving now in the first place. Diversification is good at times. But diversification for the sake of it shows that we don't know what we are doing. Unfortunately for many wazuans in these counters they have fallen in love with the stocks they own! They therefore lack objectivity in assessing the risks and opportunities inherent in the stocks. Valid points. JM should consider more stable markets like SA, Ghana and Nigeria. In those markets you can have a small market share but still make money. DRC, Sudan, Somalia etc are very risky markets. JM is smart. It is very hard to compete in SA, Nigeria and Ghana which have large established banks. SA - This is a mature market with lots of large (larger than KCB & Equity) banks. Perhaps Equity can cut a niche but it will not be easy. In addition, there are many micro-lenders in this market. Nigeria - The minimum capital requirement is high. Plus the Nigerian banks are huge vs Equity [or KCB]. I need to re-verify but I believe that each of the top 3 Nigerian banks is larger than all the KE listed bank combined. http://www.proshareng.com/news/7821
Ghana - Very competitive. Crazy high interest rates. Very expensive to do business. Lots of banks & MFIs. Lots of Nigerian banks present. Ecobank is huge there. DRC - Not highly banked. Volatile but lots of potential. Huge margins on transactions as I understand it. A lot of banking is done in or with Rwandan banks. Equity is present in Rwanda. At least Equity Bank has a chance to be among the top banks in DRC. If this market remains stable it might be a goldmine...the major problem is the vast amount of land hence low population density which might hinder establishment of brick and mortar branches just like in Tanzania. But all in all am very positive....Early entry into Ethiopia would be the biggest hit for Equity Equity 3.0 is not reliant on Brick and Mortar but will ride on Airtel's infrastructure. I expect the push will be for agents & Mobile Banking for the 'wananchi' but a few Brick & Mortar branches for corporate clients. I have always seen brick and mortar as an easier way to attract more customer sign ups to bank accounts and agents work better after sign ups. It more formal and trustable for the new customers but more expensive to run than an agent. The 3.0 strategy is still brilliant though Yes, and the B&Ms are NOT being 'replaced' but the primary mode of transactions will be through agents & Mobile Banking. So B&Ms are here to stay. Equity may even increase the number of B&Ms. Most of the transactions will be 'outsourced' from queues in B&Ms to Agents, ATMs and Mobile Banking. So one doesn't queue at a B&M but queues at agents, ATMs & on their phones. I have a feeling that Equity is looking for more TRANSACTIONAL income vs interest (lending) income in DRC. Why risk lending money when you can simply charge a fee for moving 'electronic' money from Jean in Kinshasa to Pierre in Goma? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 7/22/2008 Posts: 2,721
|
I think one of the biggest attractions for equity in DRC is going to be USD deposits. The US dollar is the unofficial currency in DRC and if Equity can get enough deposits in USD it will have an upper hand on all other Kenyan banks as far as Forex trading is concerned. If they are able to offer better Forex deals they will make a lot of money on these transactions.
|
|
|
Rank: Elder Joined: 2/26/2012 Posts: 15,980
|
Three European investors are likely to own up to 2.3 per cent of Equity Bank Group in exchange for a majority stake in Congolese lender ProCredit Bank, an analysis of the transaction, which is underway, shows. http://www.businessdaily.../-/1101cf6z/-/index.html"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
|
|
|
Rank: Veteran Joined: 11/21/2006 Posts: 1,590
|
Equity have structured this deal very smartly. There is lots of upside, but little downside as Procredit only accounts for 5% of Equity's balance sheet [quote=murchr]Three European investors are likely to own up to 2.3 per cent of Equity Bank Group in exchange for a majority stake in Congolese lender ProCredit Bank, an analysis of the transaction, which is underway, shows. http://www.businessdaily...-/1101cf6z/-/index.html[/quote] Sehemu ndio nyumba
|
|
|
Wazua
»
Investor
»
Stocks
»
Equity Bank Opening In DRC
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|