Ugandan fintech firm, Service Cops, has partnered with Ethiopia’s Awash Bank to enable about 12 million customers to access digital microloans. The deal will see the roll-out of instant microloans initially offered to Awash Bank customers and gradually extended to non-bank customers. Service Cops is the first Ugandan-based fintech to operate in Ethiopia and is one of a few Ugandan fintechs operating outside Uganda.
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Bank of Africa UK moves core banking to Oracle Cloud
Bank of Africa UK has moved its core banking systems to Oracle Cloud Infrastructure, in a bid to improve the flexibility, performance and cost efficiencies of its critical applications and services, including trading and payments processing. The bank is also using Oracle Fusion Cloud Enterprise Resource Planning and Temenos Transact to improve its financial performance and digital core-banking system. The platform, hosted on Oracle’s London cloud region powered by 100% renewable energy, is planned to go live in 2023.
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Zambia: Bank of Zambia clears Atlas Mara takeover by Access Bank
Access Bank, the Nigerian lender, has received regulatory approval to acquire African Banking Corporation Zambia Limited (Atlas Mara Zambia), which is expected to be completed in Q3 2023. Access Bank has been making a series of acquisitions across Africa to boost its bottom line and increase access to more liquidity and assets outside Nigeria, including Cavmont Bank Limited in Zambia and Grobank Limited in South Africa.
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South Africa: Fin aquires Thuthukani Housing Finance
African neobank Fin has acquired Thuthukani Housing Finance, renaming the firm’s incremental housing finance product as Fin Home Loans and integrating it into its South African portfolio. Fin’s co-CEO said the acquisition was part of its efforts to identify partners in different areas with this requirement, while the acquisition will help scale the business and bring its offering to more people.
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Kenya: Former head of public service joins KCB board
Former Head of Public Service, Dr. Francis Kinyua, has been appointed to the Board of Directors of Kenya Commercial Bank (KCB) Group Plc, effective March 24, 2023. Kinyua has served in various senior positions in the government and has had an illustrious career spanning over 44 years in public service.
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Cameroon: New bank launches, 7th largest by capital
Samuel Foyou’s Africa Golden Bank has been approved to operate as the 19th bank in Cameroon, contributing to the government’s plan to increase the number of active banks to 30 by 2030. Foyou’s investment portfolio expands with the bank, adding to his ten-company empire that includes a 5-star hotel and a brewery.
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South Africa: Banks sign onto low-fee transaction platform
BankservAfrica has launched PayShap, a new rapid low-fee payment system that allows consumers to send small-sum transactions with just a phone number. The system is expected to bring more people towards a cashless society and has been positively received by commercial banks. Currently, the system is available in Standard Bank, Absa, Nedbank and FNB. However, more banks, including Capitec, Investec, Discovery, TymeBank and Standard Chartered, are expected to integrate the new system in the future.
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African banks at low risk of failure, says Moody’s
Moody’s has stated that African banks are at low risk of deposit withdrawals due to the stability of their deposits, high liquidity, and central bank support. The study found that most rated African banks have solid liquidity that can buffer large deposit withdrawals, and the impact of any unrealized investment losses is modest. The greatest risk facing banks across the region is rising sovereign credit risk, and African banks face many challenges captured in their low credit ratings.
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Ghana: FNB launches accounts for women
FBN Bank has launched a gender-focused account for women, dubbed FirstGem, to drive economic empowerment and wealth creation. The account has three variants and is designed for female professionals and entrepreneurs to promote financial inclusion, with a second-level Know Your Customer requirement. FBN Bank’s managing director said that the bank is ensuring that women are at the core of its work and operations, and the FirstGem account is part of its effort to empower women professionally and financially.
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Kenya: KCB staff count grows rapidly
KCB Group, Kenya’s largest bank by assets, increased its workforce by 2,560 employees in 2022 following the acquisition of a controlling stake in the Democratic Republic of Congo’s Trust Merchant Bank (TMB) and fresh hiring across other units. The bank’s staff costs rose 22.4% to KES30.26bn ($280m) in 2022 as a result. KCB’s total assets grew by 36.4% to KES1.55tn, helped by increased lending, investment in government securities, and growth in customer deposits and additional borrowings.
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Nigeria: Unity Bank reshuffles board
Unity Bank PLC in Nigeria announced the retirement of Mr. Aminu Babangida and Dr. Oluwafunsho Obasanjo from their roles as Chairman of the Board of Directors and Non-Executive Director respectively, as their tenures expired. The Board has approved the appointment of Mr. Hafiz Mohammed Bashir as the Acting Chairman of the Board and two new Non-Executive Directors, Professor Iyabo Obasanjo and Ms. Halima Babangida, subject to Central Bank of Nigeria’s approval.
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Nigeria: Unity Bank appoints acting chair, new directors
Unity Bank’s chairman, Aminu Babangida, and non-executive director, Oluwafunsho Obasanjo, have retired from the bank in compliance with the prescribed tenure for non-executive directors under the Central Bank of Nigeria’s Code of Corporate Governance for Banks. The lender has appointed Hafiz Mohammed Bashir as its acting chairman and appointed Iyabo Obasanjo and Halima Babangida as non-executive directors. Former President Olusegun Obasanjo and ex-military President Ibrahim Babangida, who have both ruled Nigeria at different periods in the past, have interests in the bank.
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African startups’ exposure to SVB collapse becoming clearer
The collapse of Silicon Valley Bank (SVB) impacted millions of dollars held by African startups and venture capital funds. Affected entities are exploring safeguards with Nala, Jumba, and others reviewing banking options to cushion their startups from such eventualities. African fintech unicorn Chipper Cash was also among several startups that could not access a portion of their funds, and a Dutch wealth manager offered investment banking and corporate services, including opening an SVB account to mainly Egyptian startups. The bank’s collapse also reinforces the need to build homegrown solutions.
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Kenya: KCB stock slides on lower dividend payout
Shares of KCB Group Plc, Kenya’s second-largest bank, dropped as much as 9.99% in Nairobi after the lender proposed a lower dividend payout of 2 shillings per unit, down from 3 shillings the previous year. Sterling Capital attributed the lower payout to KCB Group’s low capital adequacy ratios, mainly due to the undercapitalization of subsidiary National Bank of Kenya. The bank posted 19% growth in net income to 40.6 billion shillings ($312.6 million) for last year and is targeting to lower its non-performing loans ratio to 13% this year from 17.3%.
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South Africa: Standard Bank CEO voices cautious optimism about CBDCs
The CEO of Standard Bank, Sim Tshabalala, has expressed cautious support for central bank digital currencies (CBDCs) at the Standard Bank African Central Bank Conference. Tshabalala called CBDCs “potentially useful” for interbank clearing and serving a social purpose in increasing participation in the formal financial system while reducing tax evasion and financial crime. However, he expressed skepticism about privately-generated crypto assets, saying they make it easier to hide or launder money and posed risks to banks. South African Reserve Bank (SARB) has embarked on a study investigating the feasibility of CBDC.
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Senegal: Maleye Faye appointed CEO of Banque de Dakar
Malèye Faye has been appointed as the new CEO of the BDK Group, which owns banks and financial institutions in four countries in West Africa, according to an exclusive report from Confidentiel Afrique. Faye, who previously served as CEO of the Bank of Abidjan, has 25 years of experience in the banking and finance industry and is highly regarded for his professionalism and reliability. The BDK Group is said to be in a strong financial position, with a total balance sheet of more than 350 billion CFA francs and a record net income of over 5 billion.
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Ethiopia: Tigray residents still strapped for cash
Banks in Tigray are facing a cash shortage after the central bank dispensed 5 billion birr to the region in February. Traders and the wealthy reportedly withdrew all their money in cash in the first two weeks, leaving residents unable to access cash services due to a lack of funds. Transactions in Tigray are made solely in cash due to mistrust in banks and fears they may shut down again. Brokers are said to be hoarding cash and charging additional fees for people to access it. Residents complain that banking services have returned to pre-dispensed levels.
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Nigeria: CBN extends use of old naira notes
The Central Bank of Nigeria (CBN) has directed commercial banks to accept and dispense old N200, N500, and N1000 banknotes, following a Supreme Court ruling that extended their use until 31 December. The CBN’s directive to withdraw the notes last December led to protests across the country and has been criticised for negatively impacting businesses and households.
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Kenya: Faster clearing services after for bank clients
Kenyan banks will offer faster clearing services for cheques, direct debits, and electronic funds transfers after upgrading the Automated Clearing House (ACH) to the ISO 20022 standard. The upgrade is expected to reduce processing errors and improve turnaround times in electronic funds transfers, and unlock opportunities for banks and other financial sector players. The ISO 20022 is a global standard for electronic messaging between financial institutions.
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SVB fallout has limited impact on African startup scene
Silicon Valley Bank’s collapse has sent shockwaves through the global tech industry, with fears of contagion and billions of dollars potentially lost for more than 37,000 small businesses and investment firms. While the impact of the crisis on African tech is still unclear, at least two African start-ups – NALA and Chipper Cash – emerged largely unscathed, while reports from Egypt suggest almost 50 local companies are said to be affected. There is a feeling among local industry stakeholders that the direct impact of the crisis on African tech could be minimal as SVB wasn’t exactly popular with clients operating out of Africa.
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Nigeria: Bank stocks drop amid monetary mayhem
Ten commercial banks in Nigeria, including First Bank, Zenith Bank, and Access Bank, lost a total of N87.4 billion in market value within a week of trading activities on the Nigerian Exchange amid difficulties faced by Nigerians in accessing cash and early closures of bank branches due to fear of attacks. First Bank experienced the largest loss of N23.3 billion, followed by Zenith Bank with N18.8 billion wiped off the value of the bank.
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Kenya: Ruto appoints deputy governor of central bank
Kenya’s President William Ruto has appointed Susan Koech, a former banker and senior government official, as the second deputy governor of the central bank, a role that has been unoccupied for over five years. The appointment comes ahead of the end of current Governor Patrick Njoroge and Deputy Governor Sheila M’mbijiwe’s terms in June, and legal experts have suggested that Koech could serve as acting governor if replacements have not been found by that point.
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Nigeria: Central bank adopts open banking regulations
Nigeria has become the first African country to adopt open banking regulations, allowing for the sharing of customer data between banks and third-party service providers to create innovative solutions that benefit consumers. The guidelines provide a framework for handling customer data while ensuring consistency and security, with minimum requirements set for all participants. The regulation will pave the way for a more streamlined and interoperable financial system and expand financial inclusion, but its potential impact will take time to bear fruit.
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Ethiopia: Cash remains scarce in post-war Tigray region
The five billion birr ($116 million) transferred from the National Bank of Ethiopia to banks in Tigray was reportedly fully paid out within a week. However, a shortage of cash has prevented reopened branches in Tigray from offering full services to customers. While the Commercial Bank of Ethiopia distributed the largest portion of the funds, many of its branches have stopped paying out money due to the cash shortage. Some district managers have expressed concern over an illegal cash flow among the community and that the situation will be a big challenge for banks if it is not addressed.
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Kenya: Standard Bank plans to grow through acquisition
Standard Bank is looking to expand its operations in East Africa by acquiring one of Kenya’s banks by 2025. This move is part of the bank’s strategy to increase its footprint in the region, which has a growing population and economy. As Africa’s largest lender by assets, Standard Bank is likely to face competition from other major banks looking to enter the East African market.
Categories: Banks