CAIRO, JULY 20, 2017 – EFG-Hermes Holding SAE, the Cairo-based investment bank expanding into frontier markets, plans to begin operations in Kenya early next week after the country’s market regulators awarded it brokerage and trading licenses.
The company targets a market share of 5 percent in its first year of operation and up to 15 percent by the third year, Ali Khalpey, the chief executive officer of EFG-Hermes Frontier, said by phone from London. EFG-Hermes will begin offering research for Kenyan and sub-Saharan African banks and consumer stocks by September and plans to expand its research coverage afterward.
Slow growth in many developed and emerging markets spurred EFG-Hermes to hire Khalpey in January and build a unit focused on frontier markets. In six months, Khalpey’s team has opened in Pakistan and produced its first piece of research on Vietnam. It has also bought a 50 percent stake in Frontier Investment Management Partners.
EFG-Hermes hired 10 people in its Nairobi office and is looking to recruit two more, Khalpey said. It targets starting investment banking operations in Nigeria next year and Vietnam, Bangladesh and Latin America in 2019.