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Africa Rising

The new gold in town: Why Kenya’s Real Estate firms are moving into agribusiness

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Welcome to Isinya; in the heart of Kajiado County, 58 kilometres south of Kenya’s capital Nairobi. Evidently, the area is sparsely populated majorly because it falls within Kenya’s pastoralism belt. But in the last four years, this area has witnessed an influx of real estate companies, as developers move away from the more expensive satellite towns.

By Brian Kithinji Muthuri

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“The goodness of this land is their location is closer to urbanised areas and with the growth of urbanisation in Kenya at 4.4 percent so the market is there,” explains Johnson Denge, A real estate manager at Cytonn Investments.

With these remote areas being sparsely populated, real estate investors are using agribusiness to attract potential homebuilders or buyers, and improve their profit margins in the medium to long term.

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“As an alternative to intended use of land, most of the land is bought so that eventually owners are able to settle on it and because they can’t get there and start construction, then agribusiness as an alternative makes sense, it brings alternative income rather than land idle. “ Johnson further explains.

 

The agribusiness model is implemented in partnership with agricultural companies, and individual investors.  In this case, Property Real Estate Company – PRC has partnered with Agri-Green, a fully-fledged Israeli agricultural firm.

prc-manager-abraham-muriithi-at-a-past-event

Abraham Muriithi, the manager of Property Real Estate Company,

According to Abraham Muriithi, the manager of Property Real Estate Company, a pioneer in this new model, the process of investing is simple and convenient, “The first thing is  you  need to  know that  you’re an investor, you have some money to spare and you want it to makes some money for you. So the first thing you do is to buy a property, we will give you a title for that. The second thing you need to buy a greenhouse which is also on top of the property. And now with the greenhouse in the first year we give all the inputs, we give you the inputs, we give you technical know how we give you the farming infrastructure and we give you the markets.”

For the individual farmers, most of whom are women working and living in urban areas, this kind of investment acts as a good source of passive income.

 

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“Majority of our customers are urbanized, employed, most of them, have full day jobs looking for a side hassle, what they found is a person who can basically hassle for them, instead of them going to set up their own farm, get their own greenhouse, get their own water, get their own market, get their own management, get to a place where they can invest. Age profile is between is between 25 and 40, 65% of them are women,” adds Abraham Muriithi.

For customers such as Lucy Wangari, this new model provided a welcome incentive in her bid to gain additional income, “Why I chose to do agribusiness is that I have always wanted to practice farming. I have done it individually before and have failed. So when I heard that PRC is venturing into agribusiness, I thought why not get a piece of land there and instead of leaving it to speculate, lay idle why don’t I get value for my own money.”

 

The agri-business projects have exceeded the expectations of the real estate companies, following a warm reception by individual investors. For PRC, this new line of business accounts for 25 percent of annual revenue.

An additional advantage of this model is the protection of farmers from middlemen and price fluctuations at the marketplace. The approach also gives impetus to mechanised small-scale farming in the country, setting the stage for future growth of agriculture as a sector.

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To curb price fluctuations that could impose losses on customers, real estate companies have taken various stringent measures. “We have been approached by certain people giving us purchase contracts so our prices are fixed so our control now is that our production is going to be driven by market demand. Price fluctuation will not be as high because it is not someone who comes today, tomorrow you find someone else. It is a yearlong contract; we are looking for these both internationally and locally.” PRC manager explained.

 

However, analysts warn that this new model faces many challenges which could hamper its sustainability in the future.  “You realise the good and best agricultural returns come with mechanisation, proper infrastructure, proper markets positioning. With this arrangement a person has an acre, two acres, how to harmonise so that you can have a consistent planting season and marketing in product positioning is the main challenge,” according to Mercyline Gatebi, a Senior Research Analyst at Kingdom Securities.

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Africa Rising

Sudhir soars despite takeover of Crane Bank Limited

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October 20, 2016, is the day when central bank took over the management of Crane Bank Limited and later sold to DFCU. Many wrote off the property mogul Mr Sudhir Ruparelia claiming that in few years he will be wiped out in Ugandan business.

Three years after the takeover, the city business man has since continued to soar. He has won three cases against the bank of Uganda.

What has helped Sudhir remain on top despite the Crane Bank setback is the art of diversification, and close supervision of all investments, and involving his now grown up children in the management of the business empire.

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Today, we bring you the over 20 companies under the Ruparelia bag that have kept this group flying despite the turbulence that hit their then high-flying flashship brand, Crane Bank, which at the time of its closure was Uganda’s number two financial service facility. Sudhir has divested in various sectors over the years in banking, insurance, hospitality, conventions and leisure centres, education, real estate and floriculture. Most of these companies are leading players in their respective areas.

1. PROPERTY DEVELOPMENT AND MANAGEMENT

Crane Management and Meera Investments, are two companies that have made Sudhir and his family Uganda’s largest private property owners, managers and developers for commercial and private real estate. The companies invest in office buildings, retail centres, industrial facilities, residential units, development projects among others.

CRANE MANAGEMENT SERVICES which has been in existence since 1996 is a professional property management company which manages a large portfolio of properties within Kampala and in towns like Jinja, Mbale, Mbarara to name a few. It manages all kinds of properties from commercial, industrial, residential to office blocks.

“C.M.S. is responding to the need of professional management services in the real estate sector at a time when Uganda is experiencing spectacular development within the real estate management industry,” says the group’s website.

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On the other hand, MEERA INVESTMENTS was established in 1994. Its niche is innovative ideas in real estate, particularly in property development and construction.

“Meera Investments LTD, embraces effective and efficient solutions in all aspects of property development from design to finish, to achieve maximum usage and productivity, which makes us the biggest landlord and the leading property developer.” Says the group’s website.

2. INSURANCE

Ruparelia Group’s Gold Star Insurance Company is a significant player in the Ugandan insurance market. The Company began operations as early as 1996 when the Ugandan populace by choice did not insure their property and the regulatory body was still in its infancy. This however did not deter the company’s growth and development into a leading insurance company in the country.

3. HOSPITALITY, CONVENTIONS AND LEISURE

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The Ruparelia Group runs some of Uganda’s largest and finest hotels and resorts serving both the luxury and budget market. The Group offers the ultimate in luxury accommodation, leisure facilities and the finest conference and business meeting venues in Uganda, along with related businesses including a rafting company.

All Ruparelia Group hotels and resorts are situated in the most strategic locations and offer an array of luxury services, intense hospitality, modern amenities and business facilities.

Munyonyo Commonwealth Resort is the front-runner in the Ruparelia Group Leisure and Hospitality business.

This leading 5-star resort is set on 90 acres in the Speke Resort complex, close to business, shopping and entertainment centres. The comfort and convenience offered by the Resort has attracted several high-profile visitors, from heads of state and foreign dignitaries to international celebrities.

Ruparelia Group’s Leisure and Hospitality business also features Kabira Country Club, an exquisite facility in Kampala that combines short and long-term residential accommodation and conference facilities with the most prestigious health, fitness and leisure complex in Uganda.

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Tourist Hotel features a modest blend of all Ruparelia Group’s deluxe accommodation, conference and leisure facilities into an economically mindful package, with no compromise to service, convenience and comfort. The hotel is located in a busy business centre in Kampala and offers a choice of 70 comfortable rooms to the discerning businessperson and tourist at budget prices.

Speke Hotel, another in the Ruparelia Group line, is one of Kampala’s oldest hotels and offers all the charms of bygone days complimented by efficient, modern services and facilities. Speke Hotel is located in the heart of Kampala, close to banks and business centres. Dolphin Suites and Speke Apartments offer overnight accommodation and holiday apartments to travellers in Kampala for rent on a daily or monthly basis.

Others are: Forest Cottages in Bukoto and Speke Resort Bujagali Falls.

4. EDUCATION

Ruparelia Group’s undertakings in education are substantially influential in Uganda’s education sector.

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With schools at the elementary and high school level, all the way up to the local and international University level, the group has offered world-class education services in all disciplines to students of multiple nationalities and backgrounds. These include Kabira International School, Kampala Parents’ School and Victoria University.

5. MEDIA

88.2 SANYU FM

Sanyu FM is the pioneer private FM radio station in East and central Africa, broadcasting with a footprint of 100 KM radius around Kampala, on the frequency of 88.2 Mhz, and another 100KM footprint around Mbale, on the frequency of 96.4 Mhz.

The Station has over its 20-year existence maintained its position as a leading radio station in Uganda with its strength rooted from the unique, clearly differentiated mix of music, top-notch presenters and hourly news updates.

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6. FLORICULTURE

Ruparelia Group has had far-reaching success in the floriculture market in Uganda and the companies have made a name for themselves as front-runners in the industry. The farms not only excel in the production of a multitude of premium high-quality rose varieties but also in exports, commanding over 35% of the rose-export market in Uganda.

PREMIER ROSES

Premier Roses — located in Entebbe, Uganda —produces the highest quality of exclusive roses in the world while maintaining its status as top exporter of cut roses in the country.

Focused on meeting the high standards of Good Agricultural Produce (GAP), and placing great importance on economic, social and environmental sustainability, Premier Roses aims to achieve improved efficiency of natural resources and environmental conservation, reduced use of agrochemicals, and conservation of existing environmental habitats.

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ROSEBUD

Based in Entebbe, Uganda, Rosebud Ltd is the country’s largest exporter of roses commanding around 35% of Uganda’s rose-export market.

Utilizing ultramodern equipment, the company’s highly skilled employees use their intimate knowledge and love for roses to produce at a mass scale with a watchful eye for the quality and delicacy of the crop.

The greenhouses cover a total of 42 hectares producing and exporting over 9 million stems per month.

7. PREMIER RECRUITMENT LIMITED

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Premier Recruitment is located on the 1st Floor of Crane Chambers and is a recently incorporated company licensed for external recruitment. The agency is also part of UAERA.

Premier Recruitment has a commitment to helping decrease the high level of Ugandan unemployment by providing opportunities for Ugandans here in Uganda and abroad.

8. RUPARELIA FOUNDATION

You can say this is one SPEND project for the Group. One which gives back to the community. The Ruparelia Foundation works to improve and promote health, education, sports, general welfare, poverty eradication, improve livelihoods, support the welfare of wildlife and preservation of the environment by fostering partnerships among businesses, corporations, with the government, non-governmental organisations and individuals.

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Africa Rising

Bank and partners prioritise the African Education Fund

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The African Development Bank (ADB), the Association for the Development of Education in Africa and the African Union are recommending the establishment of the African Education Fund to address the challenges of education and skills development in Africa.

A joint declaration in support of the African Education Fund was produced after a workshop organised in Abidjan.

“The African Education Fund is a vision many education stakeholders in Africa have had but could not put into practice. It is no longer just a vision – it is a reality,” Oley Dibba Wadda, the Bank’s Director of human capital, youth and skills development, told more than 50 attendees representing 12 African governments, 4 regional economic communities and other development partners specialising in finance, skills development, and education.

Workshop organisers sought inputs from regional member countries on the structure of the African Education Fund and highlighted the need to strengthen its position as a ‘go to’ resource for financing education across the continent.

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“The AEF is a unique, Africa-initiated and continental mechanism for resourcing post-secondary education in Africa” said Albert Nsengiyumva, Executive Secretary of the Association for the Development of Education in Africa.

Beatrice Njenga, Head of the Education Division at the African Union Commission, reminded workshop participants that the Fund was not intended to be a substitute for existing funding mechanisms. “The African Education Fund complements these mechanisms at national and international levels”.

Côte d‘Ivoire’s Minister of education and technical, vocational education and training, Kandia Camara, opened the workshop, emphasizing the need for countries to be accountable and to take ownership of Africa’s education and training. Camara also encouraged participants to pay special attention to supporting girls and people with disabilities in the structure of the fund.

The two-day series of presentations, discussions and group sessions explored strategies for financing projects intended to contribute to human capital and skills development across Africa under the banner of the African Education Fund.

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Africa Rising

Uganda’s movie on Genocide “ 94 Terror” scoops 18 nominations in Golden Movie Awards Africa

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By Our Reporter

Uganda is doing well in the 2019 Golden Movie Awards Africa (GMAA) after a film on Rwandan Genocide ‘94 Terror’ received at least 18 nominations in this year’s Awards edition.

The film that was released last year is also set to compete in the best movie category with ‘Azali’ which also has 18 nominations, ‘Levi’, ‘Diamonds in the Sky’, ‘Sylvia’ and ‘Adoma’.

Some of 18 categories in which the movie is nominated include best costume and screenplay among others.  The movie consists of an only Ugandan cast with actors like Ms. Jojo Nitah, Ms. Ronah Ninsiima Solidad, and Mr. Smith Mateega among others who were also nominated in different categories. Mr. Rwamusigazi Kyakunzire who did Cinematography for the film was also nominated for best cinematography.

The film that features Shema a Hutu and Mutesi a Tutsi shows a story of peers from rival tribes who they brave a risky journey to escape to Uganda amidst 1994 Rwanda genocide despite their tribal differences.

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The Golden Movie Awards seek to honor outstanding achievement in the African television, digital media and film industries and is administered by the expert in the Cinema & Television, the Awards recognize film Excellence in a variety of categories for an international appeal. They are going to be held on August 24 at the Movenpick Ambassador Hotel in Accra.

See full nomination list below;

GOLDEN ACTOR IN DRAMA

RAMSEY NOAH –  LEVI

JOHN DUMELO  –     OUT OF BOUNDS

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YASIN LUBOWA    – EXTRA TIME

CHRIS ATTOH     –   SYLVIA

MATEEGA SMITH    – 94 TERROR

ADJETEY ANANG   –  AZALI

GOLDEN SCREENPLAY DRAMA

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WANDA QUARTEY   – AZALI

MULINDWA RICHARD –   94 TERROR

LINDA OKYERE    – ADOMA

BETH ROGERS  –   LEVI

TUNDE BABALOLA –  DIAMONDS IN THE SKY

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GOLDEN ACTRESS IN DRAMA

NINSIMA RONAH  –  94 TERROR

ASANA ALHASSAN  – AZALI

MATILDA MOZIA –  OUT OF BOUNDS

ZAINAB BALOGUN  –  SYLVIA

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CHRISTABEL EKEH –  ADOMA

NANCY ISIME  –   LEVI

GOLDEN SUPPORTING ACTRESS DRAMA

AGABA JOAN –  94 TERROR

OMOWUNMI DADA  –  DIAMONDS IN THE SKY

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JASMIN BAROUDI   –  ADOMA

AKOFA EDJEANI  –   AZALI

SELASSIE IBRAHIM  – OUT OF BOUNDS

INI DIMA OKOJIE –  SYLVIA

OGUNMOLA BOLAJI  –  LEVI

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GOLDEN SUPPORTING ACTOR DRAMA

MUGEWA RAJJ – 94 TERROR

JEFFERY NORTEY -ADOMA

KAYODE OLAIYA –  DIAMONDS IN THE SKY

MOHAMMED HAFI  –  AZALI

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STAN EZE   –   TIMELINE

DEYEMI OKANLAWON – LEVI

GOLDEN MOVIE DRAMAKWABENA GYANSAH    AZALI

MULINDWA RICHARD –   94 TERROR

ABDUK SALAM MUMUNI –  ADOMA

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OKECHUKWU OKU –   LEVI

PASCAL AMANFO  – TIMELINE

EKENE SOM MEKWUNYE –  SYLVIA

GOLDEN ACTOR COMEDY

KELECHI UDEGBE  – BEDROOM POINTS

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OSCAR PROVENCAL  –  BIGMAN WAHALA

KUMI OBUOBISA –  LUCKY

CHRIS ATTOH –   BAD LUCK JOE

FIIFI COLEMAN –  GETTING MARRIED

OLAROTIMI FAKUNLE  – RUN

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GOLDEN ACTRESS IN COMEDY

KIKI OMEILI  –  RUN

YVONNE DODOO   – BIGMAN WAHALA

OMOWUNMI DADA  – BEDROOM POINTS

SIKA OSEI –  BAD LUCK JOE

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JANE AWINDOR  – LUCKY

GOLDEN SUPPORTING ACTRESS COMEDY

MOYO LAWAL  – BEBROOM POINTS

KABUKI AKINWUNMI  – LUCKY

RHODA AMPENE – BIGMAN WAHALA

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MICHELLE ATTOH  – BAD LUCK JOE

CHRISTABEL EKEH  – GETTING MARRIED

GOLDEN SCREENPLAY COMEDY

KIKI OMEILI  –  RUN

CHIJIOKE ONONIWU  – BEDROOM POINTS

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JOEWACKLE J. KUSI   – LUCKY

DANIEL ADJOKATCHER  – BIGMAN WAHALA

FOLAKE AMANFO –   JACOB

GOLDEN SUPPORTING ACTOR IN COMEDY

SOLOMON FIXEN  – LUCKY

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JOHN TIJANI  – BIGMAN WAHALA

ADENIJI JOHNSON –  BEDROOM POINTS

OLAROTIMI FAKUNLE –  RUN

JOHN DUMELO  –  GETTING MARRIED

GOLDEN MOVIE COMEDY

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LAWRENCE ADJEI-OKYERE

KUSI ADU-AMANKWAH

LUCKY

JUDITH AUDU  –  BEDROOM POINTS

DANIEL ADJOKATCHER  –  BIGMAN WAHALA

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KIKI OMEILI   –  RUN

ABDUL SALAM MUMUNI –  GETTING MARRIED

GOLDEN DIRECTOR

KWABENA GYANSAH –  AZALI

OKECHUKWU OKU – LEVI

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MULINDWA RICHARD –  94 TERROR

PASCAL AMANFO  – OUT OF BOUNDS

MAXWELL AKOVI AMUWI –  ADOMA

GOLDEN CINEMATOGRAPHY

WILLIAM K. AGBETI –  AZALI

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RWAMUSISAZI KYAKUNZIRE –  94 TERROR

OKECHUKWU OKU  –   LEVI

TOKA MCBAROR  –   DIAMONDS IN THE SKY

WILLIAM NTIAMOAH SEFA   –  GETTING MARRIED

GOLDEN MOST PROMISING ACTOR

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NINSIMA RONAH    –   94 TERROR

ASANA ALHASSAN –  AZALI

MANUEL AMANFO – TIMELINE

FLORENCE AGYEI –  ADOMA

ADOMA AGYEMANG –   BAD LUCK JOE

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GOLDEN DISCOVERY ACTOR

MANUEL AMANFO    TIMELINE

ASANA ALHASSAN    AZALI

NINSIMA RONAH   94 TERROR

FLORENCE AGYEI    ADOMA

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ESI HAMMOND ACCRA HUSTLERS

ILYAS ELJHANI    BURNOUT

GOLDEN EDITOR VIDEO

WILLIAM KOJO AGBETI   AZALI

MULINDWA RICHARD   94 TERROR

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OKECHUKWU OKU   LEVI

TOKA MCBAROR   DIAMONDS IN THE SKY

JUDE CHIDEBE    SYLVIA

GOLDEN SOUND EDITOR

WILLIAM KOJO AGBETI      AZALI

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OKECHUKWU OKU     LEVI

MULINDWA RICHARD    94 TERROR

GOLDEN EFFECTS STUDIO

DIAMONDS IN THE SKY

BERNIE ANTI

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ADOMA

MICHEAL OGUNLADE

SYLVIA

GOLDEN ART DIRECTOR

ALBERT ADJEI   AZALI

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MULINDWA RICHARD   94 TERROR

NKALUBO RHONNIE ABRAHAM

BASELYN86  LEVI

AGUNDA SUNDAY   OUT OF BOUNDS

ADOMA  MY NAME IS RAMADAN

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GOLDEN MAKEUP ARTIST

ADOMA

SUMU

AZALI

94 TERROR

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HASHTAG

OUT OF BOUNDS

GOLDEN COSTUME

GIFTY SOSSAVI MAWUENA      AZALI

NALUBEGA RASHIDAH     94 TERROR

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FAUZIA YAKUBU     ADOMA

LOLA AWE    DIAMONDS IN THE SKY

SUEDY KACHENJE    SUMU

GOLDEN INDIGENOUS MOVIE

KWABENA GYANSAH  AZALI

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KOBI RANA   MY NAME IS RAMADAN

MULINDWA RICHARD   94 TERROR

HASHIR KHALFAN   SUMU

MOUSTAPHA SAWADOGO  DUGA, THE SCAVENGER

GOLDEN SOUNDTRACK

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ELLY ARKIS

94 TERROR

GOMEZ TITO

AZALI

GOLDEN EFFECTS STUDIO

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DIAMONDS IN THE SKY

BERNIE ANTI

ADOMA

TIMELINE

ABIOLA TAIWO

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LEVI

GOLDEN SHORT FILM

DANIELLE ATAKORA

RISING STAR

PETER FADA

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A LIFE CALLED TEARS

JUDITH AUDU

#THEFOURTHSIDE

YEMOH IKE

VAGABONDS

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AUGUSTE WIBGHA

LE BANC SUR LE RIVAGE DU LAC

OVERALL GOLDEN MOVIE

KWABENA GYANSAH – AZALI

MULINDWA RICHARD  –  94 TERROR

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OKECHUKWU OKU  – LEVI

FEMI ADEBAYO –  DIAMONDS IN THE SKY

ABDUL SALAM MUMUNI  – ADOMA

EKENE SOM MEKWUNYE –  SYLVIA

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