Last week, Information and Communications permanent secretary Bitange Ndemo said the planned ground breaking ceremony would silence doubters.

South Africa's Oldest Private Equity Firm Sees East Africa Deals

Ethos Private Equity Ltd., South Africa’s oldest private equity firm, is targeting investments in the continent where oil-driven economic growth and a rising middle class are boosting demand for goods and services.

The Johannesburg-based firm, which said yesterday it raised $800 million for a sixth fund, expects to deploy the cash in the next three to four years in countries such as Kenya and Tanzania, Chief Executive Officer Andre Roux said in a telephone interview from the South African city yesterday.

Nokia Expected to Suspend Dividend

Finnish mobile phone maker Nokia is expected to propose suspending its annual dividend payment for the first time in over 20 years, as it aims to save cash amid falling sales.

The move, which it is set to announce with fourth-quarter results on Thursday, is likely to make many investors cautious about increasing their bets on a recovery at Nokia, which has fallen behind in the smartphone race against rivals Samsung and Apple.

Somali Al Shabaab Threatens to Kill Kenyan Hostages 

Somali insurgents linked to al Qaeda have demanded that Kenya release all Muslims held on terror charges within three weeks, failing which they said they would kill their Kenyan hostages.

Al Shabaab said it killed French hostage Denis Allex last week to avenge what it called France's growing persecution of Muslims and its military operations against Islamists, including in Mali.

CIC Insurance Can Now Handle Your Pension Funds

The Retirement Benefits Authority (RBA) has licensed CIC Asset Management Limited, a subsidiary of CIC Insurance Group Ltd, to manage pension funds. CIC Asset Management Managing Director, Mr. Preter Mwaura told the media during the CIC Insurance Group Independent Insurance Agents Awards in Nairobi that company will leverage partnerships with co-operatives and chamas across the country to grow the business.

High Interest Rates to Blame for High Rent

Failure by commercial banks to lower mortgage rates is stalling development of new houses as investors keeps off the credit market, which funds the largest portion of the real estate. In a report detailing construction activities for 2012, Hass Consult says majority of players in the real estate sector are blaming high interest rates for the slowdown.