HSBC begins coverage of African telecoms

HSBC has begun coverage of Kenyan telecoms, confirming our view that these markets will continue to attract attention despite the global slowdown. Safaricom Ltd., and Celtel Zambia Plc were rated “underweight”. AccessKenya Group Ltd., the only publicly traded Internet company in the Kenya, was rated “overweight”.

HSBC notes that handsets are becoming more affordable and that the roll out of fiber optic cables will drive internet broadband penetration.