INVESTING IN GHANA STOCKS 17

FAN MILK OF GHANA


Ghanaian food products group Fan Milk, the star performer of the local stock exchange in 2009, expects a 20 percent increase in profits this year and further growth as oil output boosts the West African economy from 2011 onwards, its chief executive told Reuters.

"It is 20 percent growth in the bottom line versus 2009," Chief Executive Jesper B Jepessen said in an interview on the margins of an investor conference in the capital Accra.

Fan Milk saw its shares gain 23 percent over 2009 while the Ghanaian stock market as a whole fell 47 percent, the worst performing bourse in Africa. Fan Milk's share price stands at 7.05 cedis, up around 27 percent so far this year.

Fan Milk's net profit in 2009 was 15.156 million cedis.

The group, which produces beverages, ice cream, yoghurt and candies for an expanding consumer market, last week reported first-quarter net profit up 21 percent and Jepessen forecast further growth over the year.

Shares quoted on the Ghanaian stock exchange tend to suffer from a lack of liquidity because the bulk of the market is in the hands of SSNIT, a Ghanaian state pension trust which rarely shuffles its portfolio.

However Jepessen said liquidity had not been a special problem for the firm's listing.

Asked whether the group would consider a share split -- a move being mulled by some other companies on the exchange to help attract new investors -- he said: "It could be on the agenda, but I cannot make any commitment on this."
Ghana is due from late 2010 to join the club of oil-producing nations, a windfall which the central bank this week forecast would lead to 20 percent growth in gross domestic product next year -- one of the highest growth rates in the world.

"Any GDP growth will benefit our growth," said Jepessen. "We are expanding all the time."

He added group was in a strong enough financial position to fund current expansion plans while not ruling out recourse to some medium-term financing.

Mzee Kpoli,

(1) Please do me a favour, from your experience give me a graphic details of the process of opening a CDSC account in Uganda?
Is joint account allowed , as I would like to open a joint one with my wife just as the one we have in Kenya.

(2)Which Stock broker are you using ?

I am looking at Crane Stockbrokers .

I hope to do that next year, by then things would have stabilized

@Mzee Young,

Now it is much easier to open a CDS account in Uganda. The best brokers are African Alliance - They have offices in J'burg, Kenya, Uganda, Botswana, Zambia and possibly some other West African Countries.

Their contact is +256 414 253 753/4. Ask for Grace (never mind he is a man) or William. They will give all the details. I opened mine with a passport. I visited their offices about a week ago after attendning Stanbic Ug AGM.

They are fantastic people

@Young

Thanks I will browse the website for further info and work on a 5 Yr business plan to invest in Ghana. I am sure there will be stellar growth in that country.

Nice time..Talk to African Alliance then you can make a decision

@Young,


I will need to look at the annual accounts of Total Petroleum and anumber of listed companies. I hope they are easily available at the company's websites. Atleast for 5 years