Businessmen who have ceded their shareholding in local telecom firms

Strive Masiyiwa

Often referred to as the “Bill Gates Of Africa, ”Zimbabwean national Strive Masiyiwa broke into the Kenyan business scene in 2003, when it emerged he was the driving force behind a successful bid for the country’s third mobile operator.

As founder and chief executive of Econet Wireless, he has pursued his ambition of creating a truly African multinational business, spinning a web that spans seven countries, more than 25 million customers and which generates an estimated $3 billion in annual revenues.

Econet’s prolonged battles with its local shareholders delayed the launch of the mobile operator and resulted in the entry of Indian owned conglomerate Essar in 2008. Essar bought 49 per cent of Mr Masiyiwa’s 70 per cent holding in the operation.

Early this year, the remaining stake was purchased by Essar, marking the quiet exit of the man who fought for nearly half a decade to have his brand in Kenya.

Naushad Merali

Naushad N. Merali is the chief architect of the astonishing success that is the Sameer Group, a collection of companies that operate in the agricultural, technology, manufacturing and export processing industries.

His vision and astute business sense may have helped build one of the largest economic forces in Kenya, but the changing business environment has seen Mr Merali sell off or downsize operations.

Over the last year, Mr Merali has drastically decreased his holdings in technology interests, selling significant chunks of his shareholding in Zain Kenya, Kenya Data Networks and Swift Global.

On average, his various stakes in all three companies have decreased by 40 per cent, with his interest in Zain Kenya standing at just 5 per cent down from 40 per cent in 2005.

Jimnah Mbaru

Jimnah Mbaru is an internationally renowned investment banker who has made a remarkable contribution to the development of capital markets in Africa.

He has been associated with the development of financial institutions including the Nairobi Stock Exchange (NSE), which he served as chairman for 10 years and Africa Stock Exchanges Association, which he launched as a founder chairman in 1993.

Currently, he is chairman and director of several companies, including Dyer & Blair Limited, a leading stockbroking firm.In 2007, he joined a consortium of owners known as East Africa Capital Partners to buy a 100 per cent stake in the Wananchi Group.

This week, he and his partners allowed Emerging Capital to take over 50 per cent of that holding.

James Gachuhi

James Gachuhi has enjoyed a full career mostly in the oil business, rising from being a trainee at the Kenya Refinery to a businessman of note who has been able to participate in the growth of several of Kenya’s most successful businesses.

He is currently involved in business in Kenya and is Chairman of Trans-Century and Jimana Ltd.

He is also Director of Rift Valley Railways, East African Cables, Chase Bank, Kewberg Cables and Braids, and Metal Fabricators Zambia.

Mr Gachuhi is said to have a soft spot for the technology industry and as the chairman of Wananchi he steered the company through the Internet bubble of 2005 and engineered its current restructurisation that saw it benefit from a $50 million fund from the Africa Telecoms Media and Technology Fund.

Like Mr Mbaru, he was part of East African Capital Partners who ceded part of their ownership to the American based Emerging Capital Partners this week.

Peter Kibiriti

A former journalist, Peter Kibiriti now owns Enterprise Africa, a financial services firm that also specializes in entrepreneurship education and development, policy analysis and research.

The company executes medium and large-scale projects for public and private clients, as well as international development agencies. The company publishes Enterprise Africa, a quarterly journal that profiles Africa’s entrepreneurial successes and challenges.

Not much is known about Mr Kibiriti, who until earlier this year, owned part of a 30 per cent stake in Kenya’s third mobile operator Essar.

Alongside fellow shareholder Jos Konzolo, he has emerged as one of the last locals to hold a stake in the company, however his stake in the company has now been downsized after he proved unable to match demands for funding from majority shareholder Essar.

Jos Konzolo

Jos Konzolo courts controversy. Early this year, the stock-broker was forced to resign as the chairman of the Stockbrokers Association after he was charged with conspiring to defraud Barclays Bank of Sh100 million.

Now the Managing Director of Reliable Securities, a stock brokerage firm, Mr Konzolo has had a colourful past in the Kenyan business community
Together with Mr Kibiriti, Mr Konzolo is linked to a trio of firms that collectively own 20 per cent of Essar Kenya.

The two retain control of Capital Africa, which owns a two per cent stake in EWK, and have also been linked to Crosslink, another vehicle which has against its name another two per cent of the firm’s shares. A residual 26 per cent stake is the property of Starnet, a firm also associated with both men.

Both are at risk of losing the remaining 20 per cent if they can not provide funds.