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Stockbroking firm opens Africa for South African retail investors

SIMON REIDThe introduction of the retail investment service follows strong gains in several African equity markets

SIMON REIDThe introduction of the retail investment service follows strong gains in several African equity markets

12th July 2013

By: Joanne Taylor

  

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Illovo-based Imara SP Reid Stockbrokers has launched Africawide investment ser- vices to South African retail investors – previously the sole preserve of sophisticated international investors, fund managers and institutions.

The new service creates equity and bond investment opportunities across 17 African stock exchanges, from Cairo to Nairobi and from Windhoek to Harare. The introduction of the retail investment service follows strong gains in several African equity markets.

In the six months to the end of April, the Ghana Stock Exchange was up 61.31% and the Uganda exchange 28.81%. Kenyan shares showed similar gains, while Nigerian equities were up 25.06%. Zimbabwe’s Industrial Index showed a 24.45% gain for the period. Previously, retail investors largely missed out on oppor- tunities like these.

To benefit from the service, Africa-focused retail investors must first become clients of Imara SP Reid and complete the standard Financial Intelligence Centre Act require-ments and the Know Your Client processes. Clients’ invest- ment capital is then kept in the JSE Trustees Fund in high-yield money market instruments until the share or bond transaction is completed.

“Clearly, commitment to African markets carries investment risk and past performance is not indicative of future results; however, pent-up demand for exposure to African jurisdictions is huge. We know because we developed the retail service in response to individual requests from clients. In the six months to the formal launch of our ‘Africa Direct’ service, we received more than R150-million from retail investors eager to participate in the sizeable opportunities that are opening up to the north of the continent,” says Imara Africa Securities head Simon Reid.

Imara SP Reid Stockbrokers trades are executed, data-recorded and performance-tracked across the firm’s online trade and track system. The computer system driving Africawide transactions has successfully been bedded in over the last two years and many major institutional investors have enjoyed the benefit of diversification into the world’s last great investment growth opportunity.

Imara is an independent, Botswana-listed investment banking group that prides itself on objective decision-making in the service of its clients. The midsized company has offices in Angola, Botswana, South Africa and the UK, and associate offices in Malawi, Mauritius, Zambia and Zimbabwe.

Imara has also partnered with Chapel Hill Denham, in Nigeria, Sterling Bank, in Kenya, Namibia Equity Brokers and Mac Capital, in Dubai.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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