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SPAR Group announces sale of majority stake in South Africa

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Global merchandising firm, SPAR Group, has announced selling a majority stake of its interest in South Africa.

In a statement announcing the sale, the provider of merchandising, marketing and distribution services, said it was shedding its majority share in South Africa’s Meridian Group to the minority shareholder, Lindicom, for R181 million and the sale of SGRP Brasil Participações Ltda for 58.9 million BRL to a minority shareholder.

The transactions, according to the statement, have been approved by the SPAR Board of Directors and are expected to close in the second quarter.

“We completed a robust evaluation of the Company’s operations and structure, paying special attention to the quality of earnings for each of our businesses within each segment,” the statement signed by SPAR Group CEO, Mike Matacunas, said.

“Our divestitures of China, Australia, and National Merchandising Services joint ventures, as well as the sales of South Africa and Brazil included as Subsequent Event disclosures in the Form 10-K filed today, reflect the actions and results of our larger plan.

“In working through the strategic alternatives over the last 18 months, it became clear that growing through joint venture partnerships is complex and the process of re-patriating related cash from them is even more complicated.

“To create long-term value for shareholders, we have taken actions to simplify SPAR Group’s operating structure, bring in cash for further growth and use our brand equity and capital on a strategy that maximizes opportunities in the market and return on invested capital.

“We are confident that streamlining the operations and finances at SPAR Group will allow us to accelerate growth and generate better returns for our shareholders.”

The CEO added that as part of the divestiture agreements, Australia and The Meridian Group have also entered into software as a service (SAAS) agreements with SPAR Group to continue the use of SPAR’s technology.

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Kenya’s Absa Bank launches ‘Change Your Story’ campaign to encourage digital banking

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Absa Bank Kenya has launched a new promo known as “Change Your Story” campaign aimed at encouraging customers to use digital channels and card payments.

Absa Bank Kenya Consumer Banking Director, Moses Muthui, who spoke during the launch of the campaign on Friday, said the initiative was part of the bank’s larger efforts to promote financial inclusion and improve user experience.

“The “Change Your Story” campaign is aligned to our brand promise and goes beyond rewarding our customers. It seeks to bridge the gap in digital banking among Kenyans, promoting a shift from cash heavy transactions to secure, convenient, and user-friendly digital and card transactions,” Muthui said.

“This initiative is one of many steps we are taking to support our customers’ stories by building a more inclusive financial ecosystem, where every transaction has the potential to transform lives. Through this, we are rewarding those who engage with us while simultaneously raising awareness of the benefits of card usage for both customers and non-customers.”

He added that the campaign which will run up to 31 December 2024, will feature grand prize draws, with three winners each walking away with KES 1 million.

“Additionally, there will be weekly draws offering shopping, dining, or weekend getaway vouchers throughout the campaign.

“As part of the campaign, customers will also win holidays to the Masai Mara, Ol Pejeta and Amboseli National Parks as well as trips to the Nairobi National Park and fine dining and fuel vouchers. The grand prize will be awarded monthly to three customers during the campaign.

“All current and prospective customers can participate by signing up for an Absa Card, and other digital channels and using them for their day-to-day transactions,” he said.

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Liquid Tech expands high-speed fibre connectivity across Kenya-Uganda corridor

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Liquid Intelligent Technologies has announced the expansion of its 1,300km high-speed fibre route connecting Kenya at the Mombasa point to Busia on the Ugandan border, which brings additional multi-terabit capacity and additional resilience to the region.

Adil El Youssefi, Chief Executive Officer of Liquid Intelligent Technologies, Rest of Africa, who made the announcement in a statement, said the high-speed route and the upgrades to the existing routes between Kenya and Uganda will enhance digital connectivity while supporting several other East African countries with greater efficiency and reliable regional connectivity.

“This expansion allows Liquid to offer 99.99% uptime availability of services between Mombasa and the Uganda border to its customers, further solidifying its role as a leader in the region’s digital transformation,” Youssefi said.

“This expansion is aligned with Liquid’s vision of a digitally connected Africa that leaves no one behind. The improved connectivity provided by this route, complementing our existing routes to the Uganda border, will support critical business sectors across the region, providing reliable, high-capacity networks essential for digital transformation and economic development.

Liquid’s investment also complements the Kenyan government’s digital transformation initiatives, contributing the infrastructure and connectivity needed to develop digital superhighways and digitise services.”

He noted that Kenya is emerging as a leading digital and connectivity hub in East Africa, with multiple undersea cable providers docking at the port of Mombasa.

“Liquid’s new fibre route complements its existing terrestrial fibre routes, rapidly expanding data traffic and further boosting the region’s connectivity capabilities.

“The new fibre route carries several terabits of data, making it a scalable option to meet the needs of Liquid’s retail, home, enterprise and wholesaler customers.

“It also positions Liquid’s East African operations well to support international hyperscalers entering the African market seeking to access the opportunities and growth that the continent has to offer.”

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