Stanbic IBTC Bank is offering a 50% discount on loan fees to female entrepreneurs in the Blue Blossom Community. The community provides training, mentorship, and networking opportunities to help women succeed in business. Women above 18 years of age can join the community and access various financial solutions. The bank emphasizes financial dignity and encourages early investment and savings for sustainable income.
-
Ethiopia: Safaricom’s M-Pesa to compete with Telebirr
Safaricom, the largest telecom company in East Africa, has paid $150 million for a license to offer its M-Pesa mobile money service in Ethiopia. This move allows Safaricom to compete with Telebirr, the state-owned mobile money service. Despite the challenges and a drop in earnings, Safaricom aims to replicate the success of M-Pesa in Kenya in the Ethiopian market, which has a population of 120 million.
-
Uganda: Female bankers more numerous, male more successful
A report by the Uganda Bankers Association, an umbrella association of the banking sector, reveals that while many financial institutions have a significant number of women employees, men still dominate executive positions. Only eight out of 36 institutions have female CEOs. Some banks, like Brac, have a larger proportion of women staff, but others, including Centenary Bank and Post Bank, are still male-dominated. Affirmative action programs and upcoming initiatives aim to promote gender equity in employment.
-
Nigeria: Telcos to suspend USSD services for banks
Mobile operators in Nigeria, including MTN Group and Airtel Africa, will disconnect text message services for banks until $259 million in debt is paid. The dispute over pricing and unremitted fees has been ongoing for two years, with the operators hoping that the withdrawal of services will prompt a resolution. Banks argue they do not owe arrears to mobile-phone companies.
Tags: USSD -
Kenya: Flutterwave selects Nairobi for East Africa hub
Flutterwave, the San Francisco-based African fintech company, has selected Nairobi, Kenya as its regional headquarters for East Africa, citing the country’s business-friendly environment and digital capabilities. The announcement follows the receipt of two additional licenses to operate in Rwanda, allowing Flutterwave to expand its operations in the East African nation. The company’s chief regulatory and government relations officer, Oluwabankole Falade, made the announcement during the third American Chamber of Commerce Business Summit held in Nairobi.
-
Kenya: Digital lenders raise ethics questions
The number of digital lenders and loans disbursed through mobile phone apps in Kenya have grown substantially since the launch of M-Shwari in 2012. However, concerns have been raised about the largely unregulated fintech industry, with the possibility of leading to a credit crisis, particularly since debt-collecting methods like debt shaming and incessant calls are frequently used by creditors. Kenya’s Central Bank (KCB) reported that, as of November 2022, about 14 million accounts had been listed for defaulting on digital lending apps. Industry experts fear the 14 million defaulted accounts could create a bubble in the economy, leading to a credit crunch and eventually an economic recession.
Tags: Kenya -
Standard Chartered, IFC sign $700m trade finance program
Standard Chartered and the International Finance Corporation (IFC) have signed a $700m investment in IFC’s Global Trade Liquidity Programme to support global trade finance. The facility is expected to support up to $6.4bn in trade over three years across Asia, the Middle East, Africa and Latin America by supporting about 850 importers and exporters involved in critical commodities, basic goods and other essential materials. The GTLP programme continues to evolve to reflect changing market dynamics and now features a significant climate component as well as seeking greater activity in the areas of IDA markets and food security.
-
Google now prevents credit apps from accessing user data
Google has updated its Personal Loans policy for apps on Play Store, prohibiting apps offering personal loans from accessing sensitive data, such as photos, contacts, and call logs. The new policy applies to apps offering financial services and aims to comply with emerging regulations meant to take on predatory Digital Credit Providers (DCPs) particularly in Kenya, India, Indonesia, the Philippines, Nigeria, and Pakistan. Nonbanking financial companies in these countries must have only one digital lending app on the Google Play Store, and must comply with specific terms and conditions for financial apps to be allowed on the platform.
Tags: Google -
Cote d’Ivoire: IFC partners with Bank of Africa for $77m SME finance facility
The International Finance Corporation (IFC) has invested $77m in a risk-sharing facility for the Bank of Africa Group, aiming to increase lending to small and medium-sized enterprises (SMEs), including women-owned businesses, in Ghana, Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal, Tanzania, Togo, and Madagascar. The investment is expected to guarantee BOA Group 50% of a loan portfolio up to $154m, which will be distributed to businesses in the agriculture, trade, energy, construction, and other sectors. The investment is also supported by the Global SME Finance Facility (GSMEF) and Women Entrepreneurs Finance Initiative (We-Fi) among others.
-
Nigeria: Opera increases its investment in OPay
Norwegian consumer internet brand, Opera, has increased its share in Africa-focused neo-bank OPay from 6.4% to 9.5%, after selling Nanobank for $127 million in 2022. Opera chose to take OPay shares instead of cash, gaining $35.9 million less than what its investment in Nanobank was worth on paper. The company believes that OPay’s strong growth trajectory makes its investment marketable in the future.
-
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.
-
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.
-
Kenya: Digital lending tops $4bn since 2015
Digital lenders in Kenya have disbursed a total of KES 500bn ($4.4bn) in mobile loans to households and small businesses over the past eight years, with eight million of them receiving the funds. The Digital Lenders Association of Kenya has rebranded as the Digital Financial Services Association of Kenya to attract more players in the digital lending space to deepen financial inclusion. DFSAK is looking to develop new digital financial services, such as digital insurance, digital savings plans and digital investment platforms.
-
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.
-
Kenya: Nigerian fintech Umba starts offering digital banking services
Umba, a Nigerian fintech company, has launched its digital banking services in Kenya following the acquisition of a controlling stake in Daraja Microfinance Bank. Umba is now the second licensed digital bank in Kenya and is offering complete banking solutions including opening and operating current, interest-bearing savings, and fixed deposit accounts, as well as lending and payments services. The company sees Kenya as a significant untapped market due to the more rigorous licensing regulations in place, and has raised $18m in funding to date.
-
Ethiopia: Safaricom prepares launch of M-Pesa mobile money service
Safaricom, the Kenyan mobile network operator, is preparing to launch its M-PESA mobile money service in Ethiopia by April 2023, four months after receiving approval from the Ethiopian government. With a population of around 120 million people and a mobile penetration rate of 57%, Safaricom CEO Aanwar Soussa believes Ethiopia presents a great opportunity to grow the business to the level seen in Kenya in 10 years. M-PESA is already available in seven African countries and has more than 29.5 million active users.
-
Nigeria: FCMB asset finance facility expands lending to SMEs
So far, over 25,800 Nigerian SMEs have accessed a new asset finance facility managed by First City Monument Bank. FCMB has awarded a total of N42.4 billion in loan guarantees to SMEs that lack sufficient collateral coverage. The bank has also issued over N637.08 billion in loans to entrepreneurs. The bank’s asset finance facility offers SMEs a repayment period of up to four years to purchase new equipment or replace depreciating assets, which Mr. George Ogbonnaya, Group Head of Business Banking, said is critical for SMEs to thrive. In recognition of its commitment to SMEs, FCMB has received several awards, including “Best Bank with the Highest Impact on SMEs in Nigeria” for the second year in a row.
-
Togo: CBI Togo’s Islamic finance window shows growth
As of the end of 2022, the Islamic finance activities of the Togolese subsidiary of Coris Bank International (CBI Togo), the third largest banking player in the country, represented CFA900 million ($1.61 million) in financing provided to customers and around CFA1.6 trillion ($2.86 billion) in collected resources. CBI Togo launched its new savings plan, “Epargne Hadj,” which follows Islamic finance principles and aims to make the process of pilgrimage easier. The Togo government has previously raised resources through Islamic bonds (Sukuks). The global Islamic finance industry was worth over $2.8 trillion in 2021, slightly more than 1% of conventional finance.
-
Ghana: Access to financial services leapfrogs due to mobile money, fintech
Financial inclusion in Ghana has increased from 22% in 2011 to 68% in 2021, driven by mobile money, digital banking and fintech solutions, according to the governor of the Bank of Ghana, Dr. Ernest Addison. He stated that the bank’s proactive stance on digital finance and issuance of Branchless Banking Guidelines in 2008 paved the way for fintechs to reach the unbanked and underserved. Despite surpassing the average financial inclusion rate of 55% in sub-Saharan Africa, Dr. Addison stressed there is still much to be done to enhance financial inclusion, especially for women, the unbanked, and underrepresented groups in the population.
-
DR Congo: IFC lends $35m to Rawbank for MSME loans
IFC announced a new investment of 35 million USD in Rawbank/DR Congo to improve access to financing for micro, small and medium enterprises (MSMEs). The investment is seen as a commitment to growth and job creation in the DR Congo, and will significantly increase the availability of long-term credits for small businesses in a market where MSME financing is estimated to be 26% of GDP. The investment falls under IFC’s “Base of the Pyramid” program, launched in 2021 to help financial service providers extend credit to small businesses in the wake of the Covid-19 pandemic, and is supported by the Private Sector Promotion Window of the International Development Association.
-
Zimbabwe: Women’s microfinance bank faces criticism
Zimbabwe Women Microfinance Bank (ZWMB) has been criticized by stakeholders for failing to help impoverished women and instead operating as a profit-seeking entity. Women from diverse socio-economic backgrounds at a recent Economic Justice for Women Project event said the bank has failed to turn around their fortunes and only assists wealthy women who have valuable collateral. The bank’s CEO dismissed the allegations and said the bank supports women using collateral that is not acceptable by other financiers. However, she admitted the bank is struggling to support women, as only 150,000 clients transact with the bank and only 114,000 have received loans, despite the population of women in poverty being 7.9 million.
-
Nigeria: IFC lends $30m to Union Bank for making SME loans
Union Bank of Nigeria has received a $30m loan from the International Finance Corporation (IFC) to boost trade financing and working capital lending to Nigerian firms. The funding will allow the bank to extend lending to businesses in food, healthcare, manufacturing, and services sectors. The loan from IFC, made through its COVID-19 Emergency Response Working Capital Solutions Envelope, will help Union Bank’s customers during the economic impacts of COVID-19. IFC has an investment portfolio of $2.3bn in Nigeria across several sectors.
-
South Africa: Lulalend to scale up SME lending
Lulalend will use its recent Series B investment to scale the firm’s business to tackle the estimated $20bn SME credit gap in South Africa. Lulalend offers a digital-first approach and a proprietary credit scoring algorithm for faster, simpler, and more transparent access to business funding. To date, it has disbursed billions of rand to SMEs across the country and has a waiting list of 20,000 businesses. The funds raised will be used to increase the size of its loan book, bring new solutions to market, and invest in technology and talent.
-
Nigeria: Market traders protest against shortage of Naira notes
Angry market women in Warri, Delta State, Nigeria, protested against the shortage of Naira notes due to the Central Bank of Nigeria’s enforcement of the cashless policy. The protesters, who carried placards and leaves, besieged commercial banks in the area, forcing them to close abruptly, and burnt tires along busy roads, causing heavy gridlock. The traders rejected the Nigerian government’s cashless policy and demanded that banks release their money so they can carry out their businesses and take care of their families. Security operatives were spotted trying to address the protesters, but they insisted that the banks must release their money.
Tags: Nigeria -
Ethiopia: Bank of Abyssinia modernizes its software platform
Newgen Software has partnered with Bank of Abyssinia to automate the loan origination process for its retail and small to medium enterprise loans. The platform, NewgenONE, will streamline loan processing, disbursement, and tracking with business rule engine, document management, and workflow management capabilities. The solution will be used in more than 750 branches in Ethiopia and will allow the bank to respond faster to customer requests and digitize its loan process, enhancing the overall customer experience.