• The South African Reserve Bank has established South Africa’s first deposit insurance body, the Corporation for Deposit Insurance (CODI) to protect bank depositors and bring confidence to a resilient financial sector.
• The CODI became a legal entity as of March 24, 2023, as set out in the commencement schedule published by Finance Minister Enoch Godongwana.
• CODI’s primary responsibilities are to establish, maintain and administer a deposit insurance fund.

South Africa’s first deposit insurance institution, the Corporation for Deposit Insurance (CODI), has been established by the South African Reserve Bank. This move aims to protect bank depositors and increase confidence in the country’s financial sector, especially in the aftermath of the Silicon Valley Bank collapse in the United States of America, which caused a financial crisis due to liquidity risk. As a result, more regulators have moved to secure depositors’ money.

The CODI has been tasked with establishing, maintaining, and managing …

• HF Group has posted $1.9 million in the 2022 full year results from a loss of $5 million recorded in 2021 representing a 939 percent increase. 
• Management attributes the turnaround to improved performance by the Group’s banking subsidiary, HFC.
• The group’s  performance reflects the relentless focus they have put on their business transformation strategy.

HF Group has posted a profit of $1.9 million in the 2022 full year results from a loss of $5 million recorded in 2021, representing a 939 percent increase. 

Management attributes the turnaround to improved performance by the Group’s banking subsidiary, HFC, whose profit after tax grew by 147 per cent to $1.2 million from a loss of $2.8 million in 2021.

Net interest income grew by 18 percent to $16 million from $13.8 million same period 2021 while non-funded income grew by 63 percent to $6.6 million compared to reported $4 million the same period …

• Small and Medium enterprises (SMEs) are the backbone of the world economy, accounting for most businesses across nearly every region.
• In Africa, SMEs provide an estimated 80 percent of jobs across the continent, representing an important driver of economic growth.
• Credit constraints are a serious challenge for SMEs. Without reliable sources of working capital, SMEs are unable to make investments needed for growth, leading to stagnation.

According to the World Bank, Small and Medium enterprises (SMEs) are the backbone of the world economy, accounting for most businesses across nearly every region. In Africa, SMEs provide an estimated 80 percent of jobs across the continent, representing an important driver of economic growth.

The global lender says Sub-Saharan Africa alone has 44 million Micro, Small and Medium Enterprises (MSMEs) , almost all of which are micro.

“For these businesses to grow, create more jobs, and generate economic growth, they need access to …

• Usable foreign exchange were recorded at USD 6.56 billion last week, which is equivalent to 3.66 months of import cover.
• The shilling has continued to weaken against the US Dollar to a record 130 units to a dollar.
• The country has witnessed a dollar shortage in recent months.

The Kenyan government has put in place a number of measures to tame the country’s dwindling forex reserves and a biting dollar shortage that is being witnessed in the market.

The East African Community (EAC) economic powerhouse is also grappling with a weakening shilling that has dropped by about 12 per cent against the US dollar, the highest in two decades.

It has breached the 130 mark to a dollar, which is a record high. Importers are however accessing the dollar at Ksh145 to the dollar, which has impacted on the cost of imports and commodity prices.

Usable foreign exchange was recorded …

• Economic experts are of the view that the banking crisis that spooked investors and sent shockwaves around the world could ultimately be beneficial for global financial markets.
•  DeVere Group CEO Nigel Green says banking crisis could ultimately prove to be beneficial for global markets. 
•  The emergency lifelines being thrown to banks by regulators and governments, among others, appear to have now halted contagion within the sector.

The banking crisis that spooked investors and sent shock waves around the world could ultimately be beneficial for global financial markets.

This is according to Nigel Green, the CEO and founder deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations who says the banking crisis could trigger a vital intervention from governments to stabilise the markets.

Green says the emergency lifelines being thrown to banks by regulators and governments, among others, appear to have now halted contagion within …