• Uganda has issued first Islamic Banking License after a 20-year wait. On its part, Kenya has issued the first Islamic Bond to finance affordable housing agenda.
• The performance of Sukuk bonds in the continent is revealing untapped demand that could finance development projects.
• Estimates show global Islamic finance assets could reach $3.8 trillion by 2024.

Islamic Finance is on an exponential growth trajectory across Africa, garnering momentum by the day broadening the continent’s financial landscape. African countries are making significant steps towards bolstering access to shariah-compliant financial instruments and services, to cater to the largely financially, excluded Muslim population. This comes as figures from the Islamic Development Finance Corporation (IDFC), forecast that global Islamic Finance assets could reach $3.8 trillion by 2024.

Large swathes of African populace still remains unbanked, pertinently those shifting stance from the conventional system driven by their religious beliefs, thereby unlocking an untapped pool of investments.…

• Afreximbank and Nigeria’s Anambra State have partnered to advance the state’s “Smart Mega City” vision and foster economic growth in Africa.
• The partnership involves an MOU that seeks to offer project preparation and advisory services for state development.
• The collaboration opens the door to a potential debt financing of up to $200M, which could support the realization of transformative projects.
  

The African Export-Import Bank (Afreximbank) and Nigeria’s Anambra State have entered into an agreement to accelerate the region’s vision of becoming a “Smart Mega City”.

In an agreement signed during the Anambra Investment Summit, the partnership also underscores Afreximbank’s commitment to fostering economic growth and development across Africa.

The MOU, signed by Afreximbank’s Executive Vice President, Intra-African Trade Bank Kanayo Awani and the Governor of Anambra State, Charles Soludo, signifies a collaborative effort to drive state development through the provision of project preparation and advisory services. 

It also opens …

• About US$5 trillion is traded every day in forex markets, with investors effectively swapping currencies the world over.
• In Nigeria, the Central Bank has abandoned its long-standing currency peg, meaning that the currency will be exchanged at a fluctuating rate as determined by the market.
• Currently, the shift in Nigeria’s forex policy may have a more direct impact on Nigerians and local economies, too.

Forex trading constitutes one of the truly universal methods of investment practiced around the world. As such, it is incredibly popular. The latest estimates suggest that roughly US$5 trillion is traded every day in forex markets, with investors effectively swapping currencies the world over.

As much as forex is thought of as a free-flowing, global marketplace of currency trades, the market in individual countries and regions can still be affected by government regulations.

This is proving to be the case of late in Nigeria, where new …

• Zimbabwe’s economic history has been turbulent with hyperinflation, currency devaluation, and a shortage of the Zimbabwean dollar.
• To cope with these challenges, Zimbabweans embraced digital payments.
• In H1 2023, digital payment values rose by 40%, with transaction volumes seeing a slight 4% decline.
• Mobile money services such as EcoCash, OneMoney, Innbucks, O’mari, and Telecash are now crucial for transactions in Zimbabwe.

For years, Zimbabwe has grappled with a severe shortage of physical currency. The nation’s economic turmoil commenced with hyperinflation, forcing the abandonment of its own currency in 2009. Instead, a mix of foreign currencies, primarily the US dollar, came in helping to steady the economy.

However, by 2015, the US dollar began vanishing from formal banks, resulting in a significant scarcity. Consequently, individuals and businesses started hoarding US dollars. The USD was considered a safe investment rather than a means of exchange.

Introduction of Bond Notes in Zimbabwe

To …

• AfDB and South Korea have signed two agreements worth $28.6 million.
• The funding will boost growth in Africa. It complements the $600M co-financing deal under the Korea-Africa Energy Investment Framework.
• AfDB-South Korea partnership focuses on energy, agriculture, and capacity-building in multiple African economies.

In a plan to boost Africa’s development agenda, the African Development Bank (AfDB) and the Government of South Korea have inked two agreements, collectively valued at $28.6 million.

This financial support aims to catalyse growth and prosperity across Africa, marking a milestone in the collaboration between Africa and South Korea.

The funding, a testament to the growing partnership between AfDB and South Korea, complements the $600 million co-financing commitment established under the Korea-Africa Energy Investment Framework in 2021.

AfDB and South Korea partnership

This framework plays a pivotal role in supporting African nations in enhancing their human capacity and developing their energy sectors, thereby bolstering sustainable growth.…

• The funding will target young entrepreneurs and micro, small, and medium enterprises with innovative solutions to drive climate change adaptation and resilience throughout Africa.
• YouthAdapt has already disbursed over $1.5 million to 33 young entrepreneurs across 19 African nations.
• Failing to invest in the youth will hurt Africa; failure is not an option – AfDB President Akinwumi Adesina.

The African Development Bank (AfDB) President Akinwumi Adesina has unveiled a $1 billion fund aimed at propelling climate financing for youth-led businesses across Africa. The initiative, known as YouthAdapt, is a partnership between the AfDB and the Global Centre on Adaptation.

YouthAdapt is designed to empower young entrepreneurs and micro, small, and medium enterprises with innovative solutions to drive climate change adaptation and resilience throughout Africa.

Dr Adesina made the announcement during a High-Level Dialogue titled “Africa Driving Climate Adaptation Solutions and Jobs,” held at the Wangari Maathai Institute of …