South Central Africa

Top 30 Companies
(quarterly)

JUNE 2021

P R E PA R E D BY C H R I STO P H E R . H A RT L A N D - P E E L @ H A RT L A N D - P E E L .C O M
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA TOP 30 COMPANIES: JUNE 2021 July 15 , 2021

Prepared by: Christopher W. Hartland-Peel
This quarterly report as of June 2021 covers the Top 30 companies in South Central Africa
by market capitalisation. Key highlights:
Mkt cap
US$bn P/E Price/book ROE
Big Cap (10 companies) $4.3bn 16.3 4.13 29.5%
Mid Cap (20 companies) $3.4bn 11.2 3.49 22.2%
$7.7bn 14.0 3.85 26.3%
South Central Africa’s companies are the smallest in SSA ex SA with the largest company ranking
number 32 of the Top 30 companies in SSA ex SA. Company US$ graphs on pages 10-14.
Big Cap stocks in South Central Africa are far less profitable compared to West Africa and East
Africa whose companies have ROE’s of 54% and 34% respectively.
Dramatic price rises of some Zimbabwean stocks in the past year (page 5).
Of the Top 30 stocks, Botswana has 10, Zimbabwe 7, Malawi 7, Namibia 4 and Zambia 2.
Banks account for 12 stocks, food & beverage 6, telecoms 4, real estate 2 and others six.
SOUTH CENTRAL AFRICA - TOP 30 COMPANIES 30-Jun-21
(Ranked by market capitalisation)

L/C Issued Market capitalisation P/E Price ROE

-- Dec -- June Country Share shares US$ % of Trailing --- Dividend -- to book last 12
19 20 21 listed price million millions total 12 months yield cover value months
BIG CAP
2 2 1 FNB Botswana BOT 2.20 5,640 517 6.8% 9.4 6.4% 1.67 1.57 16.6%
3 7 2 FNB Namibia NAM 27.30 7,305 512 6.7% 9.7 5.3% 1.96 1.48 15.3%
4 5 3 Capricorn Group NAM 13.00 6,629 464 6.1% 10.5 3.8% 2.47 1.05 10.0%
5 4 4 Botswana Insurance BOT 17.50 4,941 453 5.9% 9.3 7.0% 1.54 1.66 17.8%
1 3 5 Namibian Breweries NAM 31.21 6,446 451 5.9% 56.4 3.5% 0.51 3.67 6.5%

- 8 6 Airtel Malawi MALAWI 32.53 11,000 445 5.8% 16.2 6.5% 0.96 14.85 91.7%
8 9 7 National Bank Malawi MALAWI 650.08 467 377 4.9% 13.5 4.3% 1.72 2.58 19.0%
15 11 8 Delta Corporation ZIM 72.36 1,235 365 4.8% 12.1 2.1% 3.99 11.31 93.5%
10 10 9 Standard Bank Malawi MALAWI 1,200.15 235 350 4.6% 11.9 3.9% 2.17 2.66 22.5%
6 6 10 ABSA Botswana BOT 4.42 3,767 345 4.5% 12.7 6.0% 1.31 1.61 12.7%
$4,279 56.0% 16.3 4.9% 1.80 4.13 29.5%

MID CAP
18 15 11 Econet Wireless ZIM 27.50 2,591 291 3.8% loss 0.1% n.a. 4.98 -27.9%
- 14 12 Standard Bank Namibia NAM 6.58 3,438 241 3.1% 8.2 5.3% 2.30 0.83 10.1%
14 16 13 Sefalana BOT 9.38 251 215 2.8% 10.5 4.0% 2.38 1.31 12.5%
11 13 14 Sechaba Brewery BOT 16.60 133 202 2.6% 14.2 1.5% 4.67 3.05 21.5%
7 12 15 TNM Malawi MALAWI 16.00 10,040 200 2.6% 20.8 2.5% 1.92 3.66 17.6%

21 18 16 Innscor Africa ZIM 86.22 542 191 2.5% 8.1 1.4% 8.89 8.25 102.3%
15 19 17 New African Properties BOT 3.25 1,964 180 2.4% 15.4 8.3% 0.79 1.37 8.9%
24 1 18 CBZ ZIM 83.99 522 179 2.3% 7.1 1.2% 12.06 3.96 55.6%
13 17 19 Press Corporation MALAWI 1,199.94 120 179 2.3% 40.2 2.6% 0.96 0.91 2.3%
9 18 20 Zambian Breweries ZAM 7.23 546 174 2.3% > 100.0 0.0% n.a. 3.98 0.6%

20 23 21 Letshego BOT 0.88 1,887 173 2.3% 3.3 13.9% 2.20 0.43 13.2%
- - 22 Cassava SmarTech ZIM 14.99 2,591 159 2.1% loss 0.0% n.a. negative n.m.
17 22 23 ENGEN Botswana BOT 10.13 160 148 1.9% 16.5 7.0% 0.86 2.78 16.9%
23 28 24 National Foods ZIM 520.01 68 145 1.9% 24.6 1.0% 3.97 20.02 81.4%
- 26 25 FDH Bank MALAWI 16.00 6,901 137 1.8% 7.9 2.7% 4.71 4.09 51.9%

- 24 26 BancABC BOT 1.98 1,436 131 1.7% 15.4 3.4% 1.91 1.22 7.9%
25 21 27 Hippo Valley Estates ZIM 140.03 192 110 1.4% 6.5 0.9% 17.83 5.69 87.6%
18 25 28 Turnstar Holdings BOT 2.00 1,144 105 1.4% 14.1 9.5% 0.75 0.70 4.9%
- - 29 Lafarge Zambia ZAM 11.73 200 104 1.4% 6.5 17.0% 3.99 1.43 22.2%
20 27 30 Icon Properties MALAWI 12.13 6,680 101 1.3% 9.4 1.9% 2.17 1.00 10.6%
$3,366 44.0% 11.2 3.8% 3.33 3.49 22.2%

Total/weighted average $7,645 100.0% 14.0 4.4% 2.47 3.85 26.3%

= P/E <10.0, Dividend yield > 5.0%, Price/Book < 1.50, ROE > 25%
Sources: Country stock exchanges, company annual and earnings reports. Exchange rates from the Financial Times, London

1
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA STOCK MARKETS: 1990-2021

SOUTH CENTRAL AFRICA STOCK MARKETS

US$ INDEX 1990 = 100 Key Points
2,250
Malawi close to its all
2,000 time high.
1,750 A decade long bear
market for Botswana,
1,500 Zambia and Zimbabwe.
1,250 Namibia weak in 2020
on account of Covid-19.
1,000
750 <--- Botswana

500 <--- Malawi

250 <--- Zambia

<--- Namibia
0 <--- Zimbabwe
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

BOTSWANA MALAWI ZAMBIA NAMIBIA ZIMBABWE

Sources: Country stock exchanges. Exchange rates Financial Times, London.

SOUTH CENTRAL AFRICA STOCK MARKETS: JUNE 2021

--- Market cap ---- P/E ---- Dividend ---- Price/ Market ------------------------------- US$ returns ----------------------------
Jun-21 US$ bn % Historic yield cover book ROE 2021 Q2 2021 2020 2019 2018 2017 2016

Botswana 3.2 28.6% 10.5 5.9% 1.67 1.48 12.3% (4.8%) (2.1%) (10.1%) (3.2%) (18.8%) 2.5% (6.7%)
Zimbabwe 2.6 23.7% 32.7 0.9% 10.51 n.m. 40.8% 92.2% 10.1% 159.1% (67.7%) (50.2%) 33.1% 25.8%
Malawi 2.3 21.2% 14.1 3.7% 2.05 4.79 31.7% (0.8%) 0.4% 12.4% 9.6% 30.4% 56.0% (16.3%)
Namibia 1.8 16.4% 20.7 4.8% 1.77 1.77 10.4% 0.1% (2.7%) (29.2%) 2.1% (11.2%) 21.0% 24.5%
Zambia 1.1 10.0% 8.2 4.9% 0.92 4.43 5.9% 1.3% 8.8% (38.9%) (31.2%) (17.3%) 26.0% (18.9%)
South Central Africa 11.0 100.0% 18.0 4.0% 3.79 2.18 13.5% 8.5% 7.5% (7.5%) (18.4%) 22.4% (22.4%)

P/E < 10.0 times, Dividend yield > 5%, Price/book < 1.5 times > 20% US$ return in year

Sources: Country stock exchanges. Exchange rates Financial Times, London.

2
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA: EXCHANGE RATES

The Achilles heel for investors
SOUTH CENTRAL AFRICA US$ EXCHANGE RATES
South Central Africa currency weakness, 1990 = 100
100.000
excluding South Africa and Botswana, has
been on-going and chronic. It is one of the 10.000
biggest risks that investors face.
1.000
Currency devaluation/(revaluation):
CAGR pa 5 yr 10 yr 20 yr 0.100
Zimbabwe 200% 246% n.m.
Botswana 0.1% 5.3% 3.3% 0.010
Up = Apreciating against US$
Namibia (0.5%) 7.7% 2.9% Down = Depreciating against US$
Malawi 2.5% 18.2% 12.7% 0.001
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
Zambia 17.7% 16.7% 9.5% ZIMBABWE BOTSWANA NAMIBIA
Sources: IMF, FT MALAWI ZAMBIA

BOTSWANA: PULA/US$ EXCHANGE RATE

Botswana’s currency is linked with the SA 12.00
Rand (45%) and IMF Special Drawing Up = Pula depreciating vs US$
10.00
Rights (55%). Down = Pula appreciating vs US$
8.00
The currency has depreciated:
6.00
0.1% compound over the past 5 years.
5% compound over the past 10 years. 4.00

2.00
Inflation has averaged 3.5% annually over
the past 10 years. 0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
Source: IMF, Financial Times

SOUTH AFRICA/NAMIBIA: US$ EXCHANGE RATE

Namibia’s currency is linked one-to-one 20.00
with the SA Rand. Currency depreciation 18.00
increased from 2012 during the corruption 16.00
tainted Zuma presidency of 2009-18. 14.00
12.00
The currency has depreciated: 10.00

0% compound over the past 5 years. 8.00

7% compound over the past 10 years. 6.00

4.00

Inflation has averaged 5% over the past 10 2.00

0.00
years. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

MALAWI - US$ EXCHANGE RATE

Malawi is a small economy but with a 900

successful stock market. The currency 800

was weak during the period 2012-16 losing 700

75% of its value. 600

500
The currency has depreciated: 400
3% compound over the past 5 years. 300
18% compound over the past 10 years. 200
100

Inflation has averaged 16% over the past 0

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21
10 years although 9% over the past 5 years.

3
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA: TOP 30 COMPANIES

VALUATIONS: PRICE/BOOK vs ROE
ROE’s generally exceed the cost of capital and inflation
Higher ROE’s are rewarded with higher valuations
SOUTH CENTRAL AFRICA TOP 30 COMPANIES - FINANCIAL
ROE vs PRICE/BOOK South Central Africa:
(ROE'S BASED ON LAST 12 MONTHS EARNINGS) Banks & Finance
4.50
Investors reward high ROE’s
4.00
FDH Bank handsomely with a strong correlation
CBZ of ROE and Price/Book value.
3.50 Our observations regarding outliers:
Zimbabwean banks are difficult to
3.00
value on account of high inflation.
Standard Bank Malawi
2.50
National Bank Malawi FDH Bank in Malawi has a high
ROE primarily on account of its
2.00 high non-interest income.
ABSA Botswana FNB Botswana
Letshego, with a 13% ROE, is at
1.50 a big discount to its regional
FNB Namibia
BancABC
Capricorn Group peers.
1.00
Standard Bank Namibia
0.50
Letshego

0.00
0% 10% 20% 30% 40% 50% 60%

PRICE/BOOK RATIO (Vertical axis ) ROE (Horizontal axis)

ROE'sderived
ROE's derivedfrom
fromcompany
companylatest
latest1212month
mothfinancials
financials
Sources: Price/book ratios and ROE’s derived from market capitalisation data and the last 12
month earnings.

SOUTH CENTAL AFRICA TOP 30 COMPANIES: NON-FINANCIAL

ROE vs PRICE/BOOK South Central Africa;
(ROE'S BASED ON LAST 12 MONTHS EARNINGS)
16.00
Industrial & Commercial
Companies
Airtel Malawi
14.00 As with banks, investors reward high
ROE’s handsomely with a strong
12.00
correlation of ROE and Price/Book
value.
Delta Corporation
10.00 Our observations regarding the
companies:
8.00
Innscor Africa Zimbabwean companies are
difficult to value on account of
6.00 the sustained inflation.
Econet Wireless Namibian Breweries Hippo Valley Estates Brewers have been hit by Covid-
4.00 19 restrictions and lockdowns.
Zambian Breweries
ENGEN Botswana
TNM Malawi
Sechaba Brewery
The Outliers: Airtel Malawi
2.00
Lafarge Zambia
appears overvalued. Sefalana
Sefalana
Press Corporation
(Botswana - retailing) appears
Icon Properties
0.00 undervalued and Press Corp
-40% -20% 0% 20% 40% 60% 80% 100% 120% (Malawi) looks to have a big
PRICE/BOOK RATIO (Vertical axis ) ROE (Horizontal axis) conglomerate discount and,
ROE's sderived
ROE' derivedfrom
fromcompany
companylatest
latest1212month
monthfinancials
financials further, has low profitability.

Sources: Price/book ratios and ROE’s derived from market capitalisation data and the last 12
month earnings.

4
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA TOP 30 COMPANIES

US$ SHARE PRICE PERFORMANCE
L/C Mkt cap US$ share price performance
Country Share US$ -------------------------- up/(down) ----------------------------
Rank listed price millions 1 month 3 months 1 year 2 years 5 years
BIG CAP
1 FNB Botswana BOT 2.20 517 -1% 4% -1% -22% -36%
2 FNB Namibia NAM 27.30 512 5% 18% 5% -23% -41%
3 Capricorn Group NAM 13.00 464 -6% 1% 13% -20% -23%
4 Botswana Insurance BOT 17.50 453 -3% 1% 8% -3% 5%
5 Namibian Breweries NAM 31.2 451 -3% 4% 9% -36% 26%

6 Airtel Malawi MALAWI 32.53 445 -2% 13% 49% not listed not listed
7 National Bank Malawi MALAWI 650.08 377 -1% -3% 8% 69% 123%
8 Delta Corporation ZIM 72.36 365 14% 45% 41% -20% -54%
9 Standard Bank Malawi MALAWI 1,200.15 350 -1% -3% 39% 83% 121%
10 ABSA Botswana BOT 4.42 345 -2% 2% -12% -18% -5%
$4,279 0% 8% 15% -2% 7%

MID CAP
11 Econet Wireless ZIM 27.50 291 7% 12% 55% -44% -46%
12 Standard Bank Namibia NAM 6.58 241 -4% -15% 192% not listed not listed
13 Sefalana BOT 9.38 215 -3% 1% 12% 7% -30%
14 Sechaba Brewery BOT 16.60 202 -3% -4% -17% -21% -43%
15 TNM Malawi MALAWI 16.00 200 -1% -5% -41% -47% 140%

16 Innscor Africa ZIM 86.22 191 1% 11% 89% 25% 104%

17 New African Properties BOT 3.25 180 -2% 2% 9% -2% 10%
18 CBZ ZIM 83.99 179 -4% 7% 31% 453% 203%
19 Press Corporation MALAWI 1,199.94 179 -1% 3% -21% -18% 99%
20 Zambian Breweries ZAM 7.23 174 -1% -3% -23% -71% -46%

21 Letshego BOT 0.88 173 3% 29% 36% -41% -65%

22 Cassava SmarTech ZIM 14.99 159 -10% 1% -14% -71% not listed
23 ENGEN Botswana BOT 10.13 148 -3% 1% 6% -5% 26%
24 National Foods ZIM 520.01 145 57% 52% 392% 171% 1%
25 FDH Bank MALAWI 16.00 137 -3% -5% 0% not listed not listed

26 BancABC BOT 1.98 131 -3% 1% 7% -6% not listed

27 Hippo Valley Estates ZIM 140.03 110 -9% -31% 137% 147% 244%
28 Turnstar Holdings BOT 2.00 105 -3% 2% -23% -32% -39%
29 Lafarge Zambia ZAM 11.73 104 85% 134% 114% 47% -81%
30 Icon Properties MALAWI 12.13 101 -1% -3% -3% 17% not listed
3,366 3% 6% 37% 16% 17%

Total/weighted average $7,645 1% 7% 25% 6% 12%

= >25% US$ return

Sources: Country stock exchanges. Exchange rates Financial Times, London.

Share price all time high refers to month end share price in US$ terms.

5
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA: TOP 30 COMPANIES

EARNINGS RELEASES AND US$ EARNINGS
L/C Mkt cap -------- Latest Earnings Announcements ------
Country Share US$ Earnings US$m %
Rank listed price millions ROE Period 2019 2020 change

12 month earnings
4 Botswana Insurance BOT 17.50 453 17.8% Dec-20 41 49 19%
6 Airtel Malawi MALAWI 32.53 445 91.7% Dec-20 22 29 33%
7 National Bank Malawi MALAWI 650.08 377 19.0% Dec-20 23 29 25%
8 Delta Corporation ZIM 72.36 365 93.5% Mar-21 18 33 85%
9 Standard Bank Malawi MALAWI 1,200.15 350 22.5% Dec-20 22 31 43%
10 ABSA Botswana BOT 4.42 345 12.7% Dec-20 49 27 -44%
12 Standard Bank Namibia NAM 6.58 241 10.1% Dec-20 44 29 -35%
14 Sechaba Brewery BOT 16.60 202 21.5% Dec-20 17 14 -17%
15 TNM Malawi MALAWI 16.00 200 17.6% Dec-20 20 10 -51%
18 CBZ ZIM 83.99 179 55.6% Dec-20 35 30 -14%
19 Press Corporation MALAWI 1,199.94 179 2.3% Dec-20 4 5 28%
20 Zambian Breweries ZAM 7.23 174 0.6% Dec-20 19 0.3 -99%
21 Letshego BOT 0.88 173 13.2% Dec-20 59 53 -9%
23 ENGEN Botswana BOT 10.13 148 16.9% Dec-20 12 9 -26%
25 FDH Bank MALAWI 16.00 137 51.9% Dec-20 11 18 70%
26 BancABC BOT 1.98 131 7.9% Dec-20 12 9 -23%
28 Turnstar Holdings BOT 2.00 105 4.9% Jan-21 11 7 -30%
29 Lafarge Zambia ZAM 11.73 104 22.2% Dec-20 (1) 17 n.m.
30 Icon Properties MALAWI 12.13 101 10.6% Dec-20 10 11 13%
$4,409 $428 $412 -4%

6 month earnings
1 FNB Botswana BOT 2.20 517 16.6% Dec-20 40 30 -25%
2 FNB Namibia NAM 27.30 512 15.3% Dec-20 44 38 -14%
3 Capricorn Group NAM 13.00 464 10.0% Dec-20 36 26 -29%
5 Namibian Breweries NAM 31.21 451 6.5% Dec-20 23 12 -49%
11 Econet Wireless ZIM 27.50 291 -27.9% Aug-20 (66) (23) n.a.
13 Sefalana BOT 9.38 215 12.5% Oct-20 8 10 25%
16 Innscor Africa ZIM 86.22 191 102.3% Dec-20 26 17 -33%
17 New African Properties BOT 3.25 180 8.9% Jan-21 9 7 -21%
22 Cassava SmarTech ZIM 14.99 159 n.m. Aug-20 (7) (15) n.a.
24 National Foods ZIM 520.01 145 81.4% Dec-20 13 3 -77%
27 Hippo Valley Estates ZIM 140.03 110 87.6% Sep-20 18 29 63%
$3,236 $145 $135 -7%

$7,645

= >25% ROE

Sources: Country stock exchanges. Exchange rates Financial Times, London.

Share price all time high refers to month end share price in US$ terms.

6
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

Set out below are the Top 30 South Central Africa companies as of June 2021 by sector:
SOUTH CENTRAL AFRICA - TOP 30 COMPANIES 30-Jun-21
(Ranked by market capitalisation)

L/C Issued Market capitalisation P/E Price ROE

Country Share shares US$ % of Trailing --- Dividend -- to book last 12
listed price million millions total 12 months yield cover value months
BANKING & FINANCE
FNB Botswana BOT 2.20 5,640 517 6.8% 9.4 6.4% 1.67 1.57 16.6%
FNB Namibia NAM 27.30 7,305 512 6.7% 9.7 5.3% 1.96 1.48 15.3%
Capricorn Group NAM 13.00 6,629 464 6.1% 10.5 3.8% 2.47 1.05 10.0%
Botswana Insurance BOT 17.50 4,941 453 5.9% 9.3 7.0% 1.54 1.66 17.8%
National Bank Malawi MALAWI 650.08 467 377 4.9% 13.5 4.3% 1.72 2.58 19.0%
Standard Bank Malawi MALAWI 1,200.15 235 350 4.6% 11.9 3.9% 2.17 2.66 22.5%
ABSA Botswana BOT 4.42 3,767 345 4.5% 12.7 6.0% 1.31 1.61 12.7%
Standard Bank Namibia NAM 6.58 3,438 241 3.1% 8.2 5.3% 2.30 0.83 10.1%
CBZ ZIM 83.99 522 179 2.3% 7.1 1.2% 12.06 3.96 55.6%
Letshego BOT 0.88 1,887 173 2.3% 3.3 13.9% 2.20 0.43 13.2%
FDH Bank MALAWI 16.00 6,901 137 1.8% 7.9 2.7% 4.71 4.09 51.9%
BancABC BOT 1.98 1,436 131 1.7% 15.4 3.4% 1.91 1.22 7.9%
12 Companies $3,879 50.7% 10.2 5.3% 2.47 1.80 18.4%

FOOD, BEVERAGE & TOBACCO

Namibian Breweries NAM 31.21 6,446 451 5.9% 56.4 3.5% 0.51 3.67 6.5%
Delta Corporation ZIM 72.36 1,235 365 4.8% 12.1 2.1% 3.99 11.31 93.5%
Sechaba Brewery BOT 16.60 133 202 2.6% 14.2 1.5% 4.67 3.05 21.5%
Innscor Africa ZIM 86.22 542 191 2.5% 8.1 1.4% 8.89 8.25 102.3%
Zambian Breweries ZAM 7.23 546 174 2.3% > 100.0 0.0% n.a. 3.98 0.6%
National Foods ZIM 520.01 68 145 1.9% 24.6 1.0% 3.97 20.02 81.4%
6 Companies $1,530 20.0% 24.8 2.0% 3.21 7.58 47.7%

TELECOMS
Airtel Malawi MALAWI 32.53 11,000 445 5.8% 16.2 6.5% 0.96 14.85 91.7%
Econet Wireless ZIM 27.50 2,591 291 3.8% loss 0.1% n.a. 4.98 -27.9%
TNM Malawi MALAWI 16.00 10,040 200 2.6% 20.8 2.5% 1.92 3.66 17.6%
Cassava SmarTech ZIM 14.99 2,591 159 2.1% loss 0.0% n.a. negative n.m.
4 Companies $1,094 14.3% 10.4 3.1% 0.74 8.03 33.0%

REAL ESTATE
New African Properties BOT 3.25 1,964 180 2.4% 15.4 8.3% 0.79 1.37 8.9%
Turnstar Holdings BOT 2.00 1,144 105 1.4% 14.1 9.5% 0.75 0.70 4.9%
2 Companies $285 3.7% 14.9 8.7% 0.77 1.12 7.4%

AGRICULTURE
Hippo Valley Estates ZIM 140.03 192 110 1.4% 6.5 0.9% 17.83 5.69 87.6%
1 Companies $110 1.4% 6.5 0.9% 17.83 5.69 87.6%

OTHER
Sefalana BOT 9.38 251 215 2.8% 10.5 4.0% 2.38 1.31 12.5%
Press Corporation MALAWI 1,199.94 120 179 2.3% 40.2 2.6% 0.96 0.91 2.3%
ENGEN Botswana BOT 10.13 160 148 1.9% 16.5 7.0% 0.86 2.78 16.9%
Lafarge Zambia ZAM 11.73 200 104 1.4% 6.5 17.0% n.a. 1.43 22.2%
Icon Properties MALAWI 12.13 6,680 101 1.3% 9.4 1.9% 1.92 1.00 10.6%
5 Companies $747 9.8% 18.1 5.8% 1.35 1.48 12.0%

30 Top companies $7,645 65.1% 14.0 4.4% 2.42 3.85 26.3%

= P/E <10.0, Dividend yield > 5.0%, Price/Book < 1.50, ROE > 25%

Sources: Country stock exchanges and company annual reports. Aggregate ratios are market cap weighted of Top 30 companies.
End month exchange rates from Financial Times, London.

7
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

Set out below are the Top 30 South Central Africa companies as of June 2021 by country:

L/C Issued Market capitalisation P/E Price ROE DOE

Share shares US$ % of Trailing --- Dividend -- to book last 12 last 12
price million millions total 12 months yield cover value months months

BOTSWANA
FNB Botswana 2.20 5,640 517 6.8% 9.4 6.4% 1.67 1.57 16.6% 10.0%
Botswana Insurance 17.50 4,941 453 5.9% 9.3 7.0% 1.54 1.66 17.8% 11.5%
ABSA Botswana 4.42 3,767 345 4.5% 12.7 6.0% 1.31 1.61 12.7% 9.7%
Sefalana 9.38 251 215 2.8% 10.5 4.0% 2.38 1.31 12.5% 5.3%
Sechaba Brewery 16.60 133 202 2.6% 14.2 1.5% 4.67 3.05 21.5% 4.6%
New African Properties 3.25 1,964 180 2.4% 15.4 8.3% 0.79 1.37 8.9% 11.3%
Letshego 0.88 1,887 173 2.3% 3.3 13.9% 2.20 0.43 13.2% 6.0%
ENGEN Botswana 10.13 160 148 1.9% 16.5 7.0% 0.86 2.78 16.9% 19.6%
BancABC 1.98 1,436 131 1.7% 15.4 3.4% 1.91 1.22 7.9% 4.1%
Turnstar Holdings 2.00 1,144 105 1.4% 14.1 9.5% 0.75 0.70 4.9% 6.6%
10 Companies $2,469 32.3% 11.3 6.5% 1.80 1.61 14.6% 9.3%

ZIMBABWE
Delta Corporation 72.36 1,235 365 4.8% 12.1 2.1% 3.99 11.31 93.5% 23.4%
Econet Wireless 27.50 2,591 291 3.8% loss 0.1% n.a. 4.98 -27.9% 0.0%
Innscor Africa 86.22 542 191 2.5% 8.1 1.4% 8.89 8.25 102.3% 11.5%
CBZ 83.99 522 179 2.3% 7.1 1.2% 12.06 3.96 55.6% 4.6%
Cassava SmarTech 14.99 2,591 159 2.1% loss 0.0% n.a. negative n.m. 0.0%
National Foods 520.01 68 145 1.9% 24.6 1.0% 3.97 20.02 81.4% 20.5%
Hippo Valley Estates 140.03 192 110 1.4% 6.5 0.9% 17.83 5.69 87.6% 0.0%
7 Companies $1,441 18.8% 8.0 1.0% 5.45 7.92 53.4% 10.1%

MALAWI
Airtel Malawi 32.53 11,000 445 5.8% 16.2 6.5% 0.96 14.85 91.7% 95.9%
National Bank Malawi 650.08 467 377 4.9% 13.5 4.3% 1.72 2.58 19.0% 11.0%
Standard Bank Malawi 1,200.15 235 350 4.6% 11.9 3.9% 2.17 2.66 22.5% 10.4%
TNM Malawi 16.00 10,040 200 2.6% 20.8 2.5% 1.92 3.66 17.6% 9.1%
Press Corporation 1,199.94 120 179 2.3% 40.2 2.6% 0.96 0.91 2.3% 2.4%
FDH Bank 16.00 6,901 137 1.8% 7.9 2.7% 4.71 4.09 51.9% 11.0%
Icon Properties 12.13 6,680 101 1.3% 9.4 1.9% 1.92 1.00 10.6% 5.5%
7 Companies $1,788 23.4% 16.7 4.1% 1.81 5.63 38.0% 30.6%

NAMIBIA
FNB Namibia 27.30 7,305 512 6.7% 9.7 5.3% 1.96 1.48 15.3% 7.8%
Capricorn Group 13.00 6,629 464 6.1% 10.5 3.8% 2.47 1.05 10.0% 4.0%
Namibian Breweries 31.21 6,446 451 5.9% 56.4 3.5% 0.51 3.67 6.5% 12.8%
Standard Bank Namibia 6.58 3,438 241 3.1% 8.2 5.3% 2.30 0.83 10.1% 4.4%
4 Companies $1,668 21.8% 22.3 4.4% 1.76 1.86 10.7% 7.6%

ZAMBIA
Zambian Breweries 7.23 546 174 2.3% > 100.0 0.0% n.a. 3.98 0.6% 0.0%
Lafarge Zambia 11.73 200 104 1.4% 6.5 17.0% n.a. 1.43 22.2% 0.0%
2 Companies $278 3.6% 2.4 6.4% 0.00 3.03 8.6% 0.0%

30 Top companies $7,645 100.0% 14.0 4.4% 2.42 3.85 26.3% 13.7%

= P/E <10.0, Dividend yield > 5.0%, Price/Book < 1.50, ROE > 25%

Sources: Country stock exchanges and company annual reports. Aggregate ratios are market cap weighted of Top 30 companies.
End month exchange rates from Financial Times, London.

8
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

COMMODITIES
OIL PRICES - BRENT CRUDE
US$ PER BARREL
$140

$120
South Central Africa is an oil importer.
$100

$80 Falling oil prices in 2020 resulted in

$60 improved terms of trade.
$40
This is now reversed.
$20

$0
88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: IMF, Financial Times

COPPER

$11,000
US$ PER TONNE Zambia is a major copper producer
$10,000 together with Katanga province of the
$9,000 DRC.
$8,000
$7,000
$6,000
Copper mining is a capital intensive
$5,000 industry and is an important
$4,000 contributor to government revenue.
$3,000
$2,000
However, we believe that the rising
$1,000
$0
copper price has come too late to
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 rescue Zambia from its sovereign debt
Source: LME crisis.
Source: LME
GOLD PRICE
US$ PER OUNZE
$2,000
$1,800
Gold at $380
Zimbabwe is a gold producer and
$1,600 much is artisanal.
$1,400
$1,200
$1,000
The rising gold price from 2018 will
$800 have benefitted Zimbabwe. The fall in
$600 2021 is modest at 11%.
$400
$200
$0
85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21

Source: IMF, Financial Times.

GOLD, PLATINUM AND PALLADIUM PRICES

REBASED: 1990=100
2,500 Zimbabwe has major Platinum group
metals resources, notably Zimplats,
2,000
listed in Australia.
1,500
The rising palladium price from 2016
1,000 and rhodium (not shown) will have
benefitted Zimbabwe.
500

0
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

PALLADIUM GOLD PLATINUM

Source: LME.

9
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA TOP 30 COMPANIES:

US$ SHARE PRICE GRAPHS
FNB BOTSWANA FNB NAMIBIA
SHARE PRICE: US$ SHARE PRICE: US$
$0.60 $4.00

$3.50
$0.50
$3.00
$0.40
$2.50

$0.30 $2.00

$1.50
$0.20 Listed
$1.00 1996
$0.10 $0.50

$0.00 $0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: BSE. End month exchange rates from Financial Times. Source: NSE. End month exchange rates from Financial Times.

CAPRICORN GROUP BOTSWANA INSURANCE HOLDINGS

SHARE PRICE: US$ SHARE PRICE: US$
$1.60 $3.50
$1.50
$3.00
$1.40
$1.30 $2.50
$1.20 $2.00
$1.10
$1.50
$1.00
$0.90 $1.00
Listed
$0.80 2013 $0.50
$0.70
$0.00
$0.60
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
Source: NSE. End month exchange rates from Financial Times. Source: BSE. End month exchange rates from Financial Times.

NAMIBIA BREWERIES AIRTEL MALAWI

SHARE PRICE: US$ SHARE PRICE: US$
$4.00 $0.05

$3.50

$3.00 $0.04

$2.50

$2.00 $0.03

$1.50

$1.00 $0.02
Listed 1996 Listed 2020
$0.50

$0.00 $0.01
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: NSE. End month exchange rates from Financial Times. Source: MSE. End month exchange rates from Financial Times.
10
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA: TOP 30 COMPANIES:

US$ SHARE PRICE GRAPHS
NATIONAL BANK OF MALAWI DELTA CORPORATION
SHARE PRICE: US$ SHARE PRICE: US$
$0.90 $2.00

$0.80 $1.80
$1.60
$0.70
$1.40
$0.60
$1.20
$0.50
$1.00
$0.40 $0.80
$0.30 $0.60
$0.20 Listed 2000 $0.40
$0.10 $0.20
$0.00
$0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
Source: MSE. End month exchange rates from Financial Times. Source: ZSE. Exchange rates from Financial Times & OM implied FX rates.

STANDARD BANK MALAWI ABSA BANK BOTSWANA

SHARE PRICE: US$ SHARE PRICE: US$
$1.60
$1.80

$1.60
$1.40
$1.40
$1.20
$1.20
$1.00
$1.00
$0.80
$0.80
$0.60
$0.60
$0.40
Listed 1998 $0.40
$0.20
$0.20
$0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 $0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
Source: MSE. End month exchange rates from Financial Times. Source: BSE. End month exchange rates from Financial Times.

ECONET WIRELESS STANDARD BANK NAMIBIA

SHARE PRICE US$ SHARE PRICE: US$
$0.80 $0.60

$0.70 $0.50
$0.60
$0.40
$0.50

$0.40 $0.30

$0.30 Listed
$0.20
$0.20 2019
Listed 1998 $0.10
$0.10

$0.00 $0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: ZSE. Exchange rates from Financial Times & OM implied FX rates. Source: NSE. End month exchange rates from Financial Times.

11
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA: TOP 30 COMPANIES:

US$ SHARE PRICE GRAPHS
SEFALANA SECHABA BREWERY
SHARE PRICE: US$ SHARE PRICE: US$
$1.40 $3.50

$1.20 $3.00

$1.00 $2.50

$0.80 $2.00

$0.60 $1.50

$0.40 $1.00

$0.20 $0.50

$0.00 $0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: BSE. End month exchange rates from Financial Times. Source: BSE. End month exchange rates from Financial Times.

TNM MALAWI INNSCOR AFRICA

SHARE PRICE: US$ SHARE PRICE: US$
$0.04 $0.70

$0.60
$0.03
$0.50

$0.40
$0.02
Listed 2008 $0.30

$0.01
$0.20
Listed 1997
$0.10

$0.00 $0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
Source: MSE. Month end exchange rates from Financial Times. Source: ZSE. Exchange rates from Financial Times & OM implied FX rates.

NEW AFRICAN PROPERTIES COMMERCIAL BANK OF ZIMBABWE

SHARE PRICE: US$ SHARE PRICE US$
$0.34 $0.50

$0.32 $0.45
$0.40
$0.30 $0.35
$0.28 Listed 2011 $0.30
$0.25
$0.26
$0.20
$0.24 $0.15
$0.10
$0.22 Listed 1998
$0.05
$0.20 $0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: BSE. End month exchange rates from Financial Times. Source: ZSE. Exchange rates from Financial Times & OM implied FX rates.

12
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA: TOP 30 COMPANIES:

US$ SHARE PRICE GRAPHS
PRESS CORPORATION ZAMBIAN BREWERIES
SHARE PRICE: US$ SHARE PRICE: US$
$2.00 $1.00
$1.80 $0.90
$1.60 $0.80
$1.40 $0.70
$1.20 $0.60
$1.00 $0.50
$0.80 $0.40
$0.60 $0.30
$0.40 Listed 1998 $0.20
Listed 1997
$0.20 $0.10
$0.00 $0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20
Source: MSE. End month exchange rates from Financial Times. Source: LuSE. End month exchange rates from Financial Times.

LETSHEGO CASSAVA SMARTECH

SHARE PRICE: US$ SHARE PRICE US$
$0.40 $0.25

$0.35 Listed 2019

$0.20
$0.30

$0.25 $0.15
$0.20

$0.15 $0.10

$0.10
Listed 2002 $0.05
$0.05

$0.00 $0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: BSE. End month exchange rates from Financial Times. Source: ZSE. Exchange rates from Financial Times & OM implied FX rates.

ENGEN BOTSWANA NATIONAL FOODS

SHARE PRICE: US$ SHARE PRICE US$
$1.20 $4.50
$4.00
$1.00
$3.50

$0.80 $3.00
$2.50
$0.60
$2.00
$0.40 $1.50
$1.00
$0.20
$0.50
$0.00 $0.00
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: BSE. End month exchange rates from Financial Times. Source: ZSE. Exchange rates from Financial Times & OM implied FX rates.

13
 Address: 1 High Silver, Loughton, Essex IG10 4EL, UK
Hartland-Peel Web site: www.hartland-peel.com
Africa Equity Research E-mail: christopher.hartland-peel@hartland-peel.com
(Established 1990) Telephone: +44 (0) 20 35 36 35 84
Mobile: +44 (0) 7780 70 5000

SOUTH CENTRAL AFRICA TOP 30 COMPANIES:

US$ SHARE PRICE GRAPHS
FDH BANK BancABC
SHARE PRICE: US$ SHARE PRICE: US$
$0.025 $0.20

$0.19 Listed 2018

$0.020
$0.18

Listed 2020 $0.17

$0.015

$0.16

$0.010 $0.15
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: MSE. End month exchange rates from Financial Times. Source: BSE. End month exchange rates from Financial Times.

HIPPO VALLEY ESTATES TURNSTAR HOLDINGS

US$ SHARE PRICE SHARE PRICE: US$
$1.80 $0.36
$0.34
$1.60
$0.32
$1.40 $0.30
$1.20 $0.28
$1.00 $0.26
$0.24
$0.80
$0.22
$0.60
$0.20
$0.40 $0.18
Listed 2003
$0.20 $0.16
$0.00 $0.14
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: ZSE. Exchange rates from Financial Times & OM implied FX rates. Source: BSE. End month exchange rates from Financial Times.

LAFARGE CEMENT ZAMBIA ICON PROPERTIES

SHARE PRICE: US$
SHARE PRICE: US$
$4.50 $0.018

$4.00 $0.017
$3.50 $0.016
$3.00
$0.015
$2.50
$0.014
$2.00
$1.50 $0.013
Listed 2019
$1.00 $0.012

$0.50 $0.011
$0.00
$0.010
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Source: LuSE. End month exchange rates from Financial Times. Source: MSE. End month exchange rates from Financial Times.

14
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