21 January 2011

Afrinvest (West Africa) Limited acknowledges that the Firm’s trading privileges were suspended at the opening of business on January 18th 2011 by the Nigeria Stock Exchange (“NSE”) due to non-compliance with minimum capital requirements. Afrinvest wishes to inform all stakeholders that steps to resolve capital inadequacy which led to the suspension were already well underway prior to January 18th. The Firm is proceeding with all due speed and diligence to finalize these steps and restore trading privileges.  

 

As a result of the suspension, the Firm has been unable to execute any trades instructed to it by clients since January 18th. However, the Firm has made arrangements to re-direct outstanding and future transactions of clients to another member firm in good standing with the NSE.

 

Furthermore, Afrinvest assures our clients that in accordance with regulations and best international practice, client monies are held in specially segregated accounts and shares are in the custody of the Central Securities Clearing System. As such, our clients’ funds and investments are secure. The Firm’s liquidity position has also not been challenged by its auditors, the regulators or any clients.

 

Afrinvest is the manager of the Afrinvest Equity Fund (“AEF”) and the Nigeria International Debt Fund (“NIDF”). Incidentally, both AEF and NIDF are holding their annual general meetings tomorrow Thursday January 20th at Jade Palace, Victoria Island, Lagos. Investors in these funds and any other interested parties are welcome to attend and satisfy themselves that their investments are secure based on the records of UBA Trustees Limited, the trustee to both funds.

 

Finally, Afrinvest has continuously informed both the NSE and the Securities and Exchange Commission of its capital position, our intention to rectify the shortfall, and the steps which are being taken to that end. Please address any questions, concerns or correspondence on this subject to the Afrinvest Compliance Officer on 01 270 1680 or http://www.afrinvest.com/news.php.

 

 

Management

Afrinvest West Africa Limited