An Africa anecdote
Comment of the Day

May 22 2013

Commentary by Eoin Treacy

An Africa anecdote

Eoin Treacy's view The Treacy family were at dinner at a local restaurant on Saturday and we got chatting to the couple at the table next to us. They were in Ireland for a holiday before moving to Kenya where he would work on a computer system for a local bank that when ready would be rolled out to 14 neighbouring countries.

Despite the fact that Africa has become the buzz word for frontier investors over the last couple of years, there is very real progress being made on the ground. A number of Sub-Saharan Africa countries are among the world's fastest growing economies albeit rising from a very low base. Veteran subscribers will also be familiar with my accounts of trips to China where I have met a considerable number of African entrepreneurs sourcing cheap consumer goods for their respective home markets.

The company building the IT network was IBM and the bank with such aggressive expansionary plans is South Africa's Standard Bank,

IBM fulfils every criterion for Autonomy-hood. The share broke out of a decade long base in 2010 and lost momentum from early 2012. It has been ranging with a mild upward bias and is currently rallying from the lower boundary. Provided it continues to hold above $180, the benefit of the doubt can be given to the upside. .

Standard Bank's revenue is concentrated on South Africa but 10.5% was generated from the rest of Africa in 2012. The share has been ranging with an upward bias since 2007 and is currently firming from the region of the 200-day MA. A sustained move below ZAR10,800 would be required to question medium-term scope for continued upside.

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