Saturday, July 13

Banking

Kenya's Bilateral loans
  • Kenya’s bilateral loans data show that the Asian giant is still a major lender to Kenya mainly for the development of roads rails and port infrastructure.
  • The country’s debt as of March 2024 comprised of $80.9 billion (Sh10.4trillion) comprising $40.5 billion (Sh5.2 trillion) domestic and same amount in external loans.
  • In the past three months the strong shilling has come in handy in helping the state reduce its debt.

Kenya owes China $7.2 billion (Sh920.52 billion) in loans making it the leading lender by country rankings, even as President William Ruto looks west for more financing and trade cooperation.

Official data shows the Asian giant is still a major lender to Kenya mainly for the development of roads rails and port infrastructure.

It is the second biggest majorl lender after the World Bank, whose credit line to Kenya is currently at an estimated $14 billion (Sh1.8 trillion)

The country’s debt …

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The World Bank.
  • The World Bank has approved a $2.25 billion loan for Nigeria to shore up revenue and support economic reforms.
  • $1.5 billion of the loan will help protect millions who have faced growing poverty since a year ago.
  • $750 million, the bank said, will support tax reforms and revenue and safeguard oil revenues threatened with limited production caused by chronic theft.

Nigerian President Tinubu’s economic reforms, including ending decades-long but costly fuel subsidies and unifying the multiple exchange rates have resulted in surging inflation that is at a 28-year high.

Under growing pressure from citizens and workers protesting the hardship, Tinubu’s government said that it was seeking the loan to support its long-term economic plans.

The government said it was also taking steps to boost foreign investment inflows which fell by 26.7 per cent from US$5.3 billion in 2022 to US$3.9 billion in 2023, according to the Nigerian Economic Summit Group

British International Investment
    • The transaction marks the successful outcome of BII and I&M’s equity partnership for over 7 years as AfricInvest takes over.
    • The institution said that the sale to a like-minded investor is one of the most significant transactions in East Africa in recent years and represents a vote of confidence in the region’s financial services sector.
    • It is listed on the Nairobi Securities Exchange, and the Rwandan subsidiary I&M Bank Rwanda PLC is listed on the Rwanda Stock Exchange.

    British International Investment (‘BII’)

  • British International Investment (‘BII’), the UK’s development finance institution and impact investor, has sold its 10.1 per cent stake in I&M Group PLC, the Eastern African banking group, to AfricInvest, a leading Pan-African Asset Management platform.

    The acquisition was made through East Africa Growth Holding, a special-purpose vehicle owned by AfricInvest.

  • I&M Group PLC is a leading banking group in Eastern Africa with a presence in Kenya,
UAE Banks Federation
  • The UAE Banks Federation (UBF) has committed to mobilize $270 billion in sustainable finance by 2030.
  • His Excellency Abdulaziz Al-Ghurair, Chairman of the UAE Banks Federation, announced the pledge at an event jointly organized by the Central Bank of the UAE and the COP28 Presidency, aiming to support and facilitate global climate finance solutions and progress towards a sustainable future.
  • UBF has been working closely with its partners on sustainability efforts to accelerate and advance sustainable development goals.

The UAE Banks Federation (UBF), the sole representative and unified voice of banks in the UAE, has committed to mobilize $270 billion in sustainable finance by the year 2030. His Excellency Abdulaziz Al-Ghurair, Chairman of UBF, announced the pledge at an event jointly organized by the Central Bank of the UAE and the COP28 Presidency, aimed at supporting and facilitating global climate finance solutions and progress towards a sustainable future.

“The pledge …

acquisitions Zimbabwe's banking sector
  • CBZ Holdings, FBC Holdings, and ZB Financial Holdings have all played a pivotal role in shaping Zimbabwe’s banking sector this year.
  • One of the most notable transactions in 2023 involves CBZ’s acquisition of a 36.35 per cent stake in First Mutual Holdings Limited.
  • 2023 saw FBC Holdings execute a strategic move by acquiring Standard Chartered Bank Zimbabwe Limited. 

This year has proven to be a transformative period for Zimbabwe’s banking sector, witnessing significant acquisitions that have reshaped the landscape. In particular, three major players, CBZ Holdings Limited (CBZ), FBC Holdings Limited (FBC), and ZB Financial Holdings (ZB), have played a pivotal role in these developments.

These acquisitions signify a dynamic shift in Zimbabwe’s banking sector, with key players strategically positioning themselves for growth and market dominance.

Acquisitions shaping Zimbabwe’s banking sector

One of the most notable transactions in 2023 involves CBZ’s acquisition of a 36.35 per cent stake in First …

Verto
  • Fintech Verto has partnered with UBA Bank to launch a cross-border payment solution in East Africa, starting with Kenya. 
  • Verto’s suite of products, spanning foreign bank accounts, instant currency exchange, and international money transfers, is now accessible to individuals and businesses in Kenya.
  • This strategic partnership with UBA Bank marks a pivotal moment for East Africa, positioning the company as a catalyst for overcoming the challenges associated with cross-border trade.

Fintech Verto, a London-based company, has partnered with UBA Bank to launch a cross-border payment platform in East Africa, starting with Kenya.

The platform offers a comprehensive solution, enabling startups, SMEs, and large corporations to effortlessly send, receive, and exchange money in over 190 countries. With the capability to hold funds in Verto accounts across 51 currencies, the platform is a game-changer for businesses seeking global expansion.

Verto’s suite of cutting-edge products

“By aligning with UBA Bank, Verto is strategically …

Financial professionals

Financial professionals must be fit to lead Africa’s inclusive sustainable growth and economic recovery, ensuring the continent’s place in the global arena. This call by the Association of Chartered Certified Accountants (ACCA) comes as the global economic landscape undergoes dynamic shifts. The ACCA emphasizes the importance of accountants being well-equipped to lead this charge and secure Africa’s standing in the international arena.
Their advocacy underscores the integral role that financial professionals play not only in shaping the economic landscape of individual nations but also in fostering a collective, continent-wide approach to sustainable development.…

AFAWA Finance Initiative
  • The AFAWA initiative seeks to increase women’s access to finance in the continent by bridging the $42 billion financing gap for women-led and owned small and medium enterprises.
  • Since its inception just over two years ago, the AFAWA initiative has already approved $1.2 billion in funding for women-led enterprises in 32 African countries.
  • Previous AFAWA Finance Series have been held in Tanzania, the Democratic Republic of the Congo, Ghana, Angola and Nigeria.

The African Development Bank through its Affirmative Finance Action for Women in Africa (AFAWA) initiative, in partnership with African Guarantee Fund (AGF) and in collaboration with the Office of the President’s Advisor on Women’s Rights, have inaugurated the 6th edition of the AFAWA Finance Series in Nairobi, Kenya.

In a three-day event themed “Enhancing Financial Inclusion for Women”, that ended on 23rd November, the initiative seeks to revolutionise the financial landscape and foster an enabling environment for women …

US dollar notes used in Money Laundering
  • Economic experts have a bearish forecast on the US dollar, citing that it is  likely to “consistently weaken” throughout 2024 as the US Federal Reserve winds up its aggressive stance.  
  • The prediction comes despite the ongoing big dollar sell off where asset managers are selling the currency at the fastest pace in a year. 
  • This is positive news for emerging and frontier markets, as they can start to see global funds and investors redirect capital back to these markets which have been starved of inflows for months. 

Economic experts are making a bearish forecast against the US dollar, predicting that it is likely to “consistently weaken” throughout 2024 as the US Federal Reserve concludes its aggressive interest rate hiking agenda.

Nigel Green, CEO of the DeVere Group, states that this prediction persists despite the ongoing significant dollar sell-off, where asset managers are selling the currency at the fastest …

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