By Ntokozo Nkambule
“Inala Capital’s investment portfolio is valued at E 57.2 million, up E 0.9 million or 1.6% on the results of 31 December 2021 due to interest accrued on the fixed income assets” This is according to the investment holding company’s Interim Financial Statements for the six months ended 30th June 2022.
Inala Capital Limited is an investment holding company that provides investors with attractive long-term returns. The Eswatini Stock Exchange (ESE) listed company focuses on investing in companies, which demonstrate solid fundamentals and good growth prospects, and focuses on investments in agriculture, food processing, and food retailing.
The investment holding company has made sizable investments in companies like; Alliance Foods (the sole franchisee for the KFC brand in Eswatini under a franchisee agreement with KFC Limited). The company has also invested in General Africa Foods Eswatini as an OBC Chicken and Meat Butchery franchisee, among other investments.
Despite the company’s strong portfolio valuation, it made a loss before tax in this reporting period. “In summary, Inala Capital Limited made a loss before tax of E 542 thousand. Overall, the Net Asset Value was stable at E 62.0 million resulting in a Net Asset Value per share of E 0.86, a decrease of E 0.01 from E 0.87 on 31 December 2021”
The investment company cites the ongoing Russia-Ukraine war as one of the factors that have led to them facing challenges. “There are economic headwinds (disruption to the trade of goods and services, the rising fuel and food prices and general inflation) propagated by the Russian invasion of Ukraine in February 2022, that will permeate the economy”
In the future, Inala Capital believes the Russia-Ukraine war will continue to cause major disruption in the trade of goods and services, and Eswatini is not exempt from the adverse effects of this war. The company notes that Eswatini has already shown signs of a rise in fuel and food prices, inflation, and interest rates, which will slow Eswatini’s momentum in recovering from the post-COVID-19 pandemic and make economic growth even more challenging.
“As Inala Capital holds assets in the real economy, these assets will not be exempt from the prevailing economic headwinds. However, the businesses are built on a strong foundation and will be resilient to the difficult trading conditions, ensuring stable operations and where possible, capitalizing on opportunities for growth and improvement”.