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Johannesburg Stock Exchange launches Beef Futures

Johannesburg Stock Exchange launches Beef Futures

With a national count of 13 million cattle with about 2.2 million butchered annually the Johannesburg Stock Exchange (JSE) launched this week the Beef Futures as a commodity for chilled beef carcasses.
Following recent talks between Meatco and the JSE in South Africa on ongoing consultation with players in the beef industry, Manager of Commodity Derivatives (JSE) Raphael Karuaihe said that industry players like Meatco, as a major buyer of livestock and processor of beef can use the beef carcass contract listed on the JSE for price risk management purposes.
The beef instruments being proposed are derivative instruments given by the listing on the JSE. The launch of the Johannesburg Beef Futures contract could help reduce risk for the Namibian beef industry as the Namibian Stock Exchange (NSX) does not have a derivatives market, only an equities market.
The commodity will consist of two sides per carcass, graded as A2/A3 and having conformation of 2, 3, 4 or 5, a damage class of not more than 1 on either the buttock, loin or fore-quarter, and no measles, in terms of the national beef grading guidelines.
Namibia and South Africa have similarities in prices for A2 and A3 grade carcasses thereby making it favourable for meat processors to gain prices in their favour and managing their exposure to changing prices by listing beef contracts to help stakeholders manage their price risk.
Carcasses must comply with minimum dressing standards and must be fit for human consumption. For the purposes of this contract, de-boned carcasses shall be considered only in instances where it is possible to work back the original carcass price.
One contract will equal a contract size of 1000 kg. Expiry dates and time will be the second Wednesday of the expiry month at 12h00.
The four main hedging months will serve as the contract months, namely March, June, September and December.
“If you are a big player you can take multiple contracts,” Karuaihe said. The minimum price price movement/quotations – 5 cents per kg and quoted in Rand/kg.
Director of Commodities at the JSE, Chris Sturgess said that the performance of the beef carcass contract is encouraging. “By their very nature, futures are intended to manage price risks. As the JSE, we are excited to introduce this product to the market to bring together buyers and sellers to effectively manage price volatility of this underlying commodity,” he added.
Furthermore, the JSE will provide workshops for role players wanting to learn more about the Beef Futures Contract.

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.