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EFG-Hermes to offer institutional trading and research in East Africa’s hub

The company will begin by offering institutional trading and research, Ali Khalpey, the chief executive officer of EFG-Hermes Frontier said

East African nation Kenya will be delighted to host EFG-Hermes Holding SAE as it looks forward to open its unction of function in the country. The Cairo-based investment financial institution, however, is waiting for its licence to be approved by the regulators.

The company will begin by offering institutional trading and research, Ali Khalpey, the chief executive officer of EFG-Hermes Frontier said.

 “The first step is a brokerage license and as we establish our presence on the ground we will expand into investment banking,” Khalpey said. “We are talking to people about recruitment, but we will wait for the license to become active. We are looking at a 10 to 15 person office. We would love to grow that as we add new products.”

EFG-Hermes is seeking to tap demand from an increasing number of institutional investors allocating funds to frontier markets because of slow growth in many developed and emerging markets. Kenya’s economy expanded 5.8 percent in 2016, the fastest pace in five years, while the nation’s bourse is seeking to boost trading and liquidity by adding single-stock futures, currency derivatives and exchange traded funds.

“We are looking at Kenya as a hub for East Africa given the proximity to Tanzania, Uganda, and Rwanda,” Khalpey said.

The country also has big banking and telecommunications industries and newer market-opportunities in fintech and mobile-phone app developments that could result in initial public offerings and share sales, he said.

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