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Banking
- AfDB asks policymakers to put in place an orderly and predictable way of dealing with Africa’s $824Bn debt pile.
- According to AfDB, Africa’s ballooning external debt reached $824 billion in 2021.
- AfDB president says there is urgent need for increased concessional financing, particularly for low-income countries.
Africa’s immense economic potential is being undermined by non-transparent resource-backed loans that complicate debt resolution and compromise countries’ future growth, African Development Bank (AfDB) President Dr Akinwumi Adesina has said.
Adesina at the Semafor Africa Summit taking place on the sidelines of the International Monetary Fund and World Bank 2024 Spring Meetings, highlighted the challenges posed by Africa’s ballooning external debt, which reached $824 billion in 2021, with countries dedicating 65 per cent of their GDP to servicing these obligations.
He said the continent would pay $74 billion in debt service payments this year alone, a sharp increase from $17 billion in 2010. “I …
- Remittance inflows for March grew to $407.8 million, up from $385.9 million in February, with the US maintaining its lead as the top source for Kenya’s remittances.
- This was also higher by 14.2 percent compared to the $357.0 million sent in the same month last year (March 2023), according to official data by the Central Bank of Kenya (CBK).
- The cumulative inflows for the 12 months to March 2024 totaled $4.4 billion compared to USD 4 billion in a similar period in 2023, an increase of 10 percent.
Kenyans living and working abroad sent home more money in March, boosting the country’s forex reserves and supporting families and friends.
Remittance inflows for March grew to $407.8 million, up from $385.9 million in February, with the US maintaining its lead as the top source for Kenya’s remittances.
This was also higher by 14.2 per cent compared to the $357.0 million sent …
- Zimbabwe is phasing out ZWL as it ushers a new gold-backed currency, ZiG, starting today, Monday, 8 April 2024.
- The ZiG is anchored by 2.5 tonnes of gold in the central bank’s vault and a basket of foreign currencies held as reserves.
- Zimbabwe’s new Central Bank Governor has announced sweeping reforms as the new currency enters everyday use.
Zimbabwe launched a new currency on Friday, 5 April 2024, called the Zimbabwe Gold or the ZiG. The launch of the new currency occurred during the announcement of the country’s latest Monetary Policy Statement (MPS) in an event presided over by newly appointed central bank governor John Mushayavanhu.
The MPS introduced measures and interventions to anchor the local currency and ensure exchange rate and price stability. The old currency, the ZWL, had depreciated to its lowest against the US dollar, roughly ZWL 32,000. It lost over 90 per cent of its …
- Equity Bank dividend payout of $0.03 (KES4) per share will amount to a 36 per cent payout of the regional lender’s $331.6 million net profit.
- Customer numbers grew to 19.6 million, translating to an increase in deposits, which hit $10.6 billion in 2023.
- Loan books also increased to $6.7 billion (KES887.4 billion) from KES706.6 billion in 2022.
Equity Group’s profits saw a five per cent decline to $331.6 million (KES43.7 billion) for the financial year ending in December 2023, down from $349 million (KES46 billion) the previous year. However, despite the drop, Equity Group’s dividend payout has hit record …
- BRICS’ owned New Development Bank (NDB) was set up in 2015 by Brazil, Russia, India, China, and South Africa.
- The multilateral lender is planning to disburse about $5 billion in loans this year.
- The bank has an initial verified capital of $100 billion and a subscribed capital of $50 billion.
Emerging economies could give the superpowers a run in the lending sector with the the BRICS alliance planning to disburse about $5 billion in loans this year. This was announced by the bloc’s New Development Bank (NDB) Vice President Zhou Qiangwu on Tuesday, March 26.
As China, one of Africa’s closest trade …
- Ecobank’s new appointments have combined the commercial and the consumer businesses under the leadership of Anup Suri.
- Martin Miruka joins Ecobank as the Group Executive for Transformation, Enablement, and Customer Experience.
- Abena Osei-Poku was appointed as the Regional Executive for Anglophone West Africa.
Pan-African lender Ecobank has appointed key senior executives to bolster its leadership team and spearhead the implementing its new Growth, Transformation, and Returns (GTR) strategy.
Ecobank’s new appointments are crucial when the lender aims to solidify its position as a preferred bank and a pioneer in providing responsive, innovative, and cost-effective financial solutions across Africa.
The latest appointments have seen Abena Osei-Poku appointed as the Regional Executive for Anglophone West Africa and will also serve as the Managing Director of Ecobank Ghana.
With a wealth of experience in the financial sector, Osei-Poku brings strategic insights and leadership skills that will be instrumental in driving growth and fostering …
- East Africa’s banking giant KCB Group reports heightened operational expenses, which surged to $627 million in 2023, up from $447.9 million in 2022.
- The costs are associated with the consolidation of its subsidiary in the Democratic Republic of Congo, Trust Merchant Bank (TMB),
- Additional expenditures were related to a voluntary retirement scheme as well as litigation fees.
KCB Group, one of East Africa’s banking giants, has reported a net profit decline to $282 million for the year ending December 2023, from $307 million in 2022.
The bank has attributed this decline to increased operational costs and higher provisions for bad loans as primary reasons for the downturn in profitability.
In a period marked by economic challenges and strategic expansions, KCB Group faced heightened operational expenses, which surged to $627 million in 2023, up from $447.9 million in 2022.
DRC-based Trust Merchant Bank consolidation costs
This increase was largely due to …
- In Kenya, the level of bank clients running two bank accounts stood at 53% in 2023 compared to 48.2% in the 2022 survey.
- Industry survey ranks Cooperative Bank as the best overall lender in customer experience in the country followed by regional giant NCBA.
- The results show that the respondents had an overwhelmingly positive view of their banks.
The competition within Kenya’s banking sector is driving an increasing number of customers to diversify their relationships, opting to hold accounts with multiple institutions, a practice commonly referred to as multi-banking, in order to tap into a range of benefits.
In a 2023 survey, the Kenya Bankers Association (KBA) says 53 per cent of bank customers maintain more than one bank, in a trend that highlights a growing desire for customized convenience in services and products among bank customers.
Growth of multi-banking in Kenya
According to the Banking Industry Customer Satisfaction Survey…
- Emuwa brings to Africa Finance Corporation a wealth of experience over three decades.
- He has been a part of AFC’s Board since 2015, previously serving as the Board Risk and Investment Committee Chairman.
- AFC, with its partners, is the biggest investor in renewable energy in Africa
Africa Finance Corporation (AFC), the continent’s leading instrumental infrastructure solutions provider, has appointed Emeka Emuwa as Chairman of its Board of Directors.
Emuwa brings a wealth of experience spread over three decades, leading and transforming banking institutions across Africa.
After completing a 25-year career with Citibank, where he left as the Country Officer and Managing Director of Citibank in Nigeria, he went on to serve as the Group Managing Director and Chief Executive Officer of Union Bank of Nigeria.
In this role, he led the bank’s transformation. He worked successfully with the new shareholders to transform and restore one of …
