The International Finance Corporation (IFC) and the Central Bank of Madagascar have partnered to enhance the country’s public credit registry, aiming to improve credit reporting and expand access to finance for individuals and small businesses. The collaboration involves strengthening credit data sharing, training Central Bank employees, and promoting a functional credit information system. The project aims to support economic activity, create jobs, and bolster financial sector resilience in Madagascar. It will also facilitate collaboration between the public credit registry and the private credit bureau.
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Nigeria: Bank borrowing from CBN rises
Several Nigerian banks, including Access Bank, First Bank, and United Bank of Africa, have borrowed over N240 billion from the Central Bank of Nigeria through the Standing Lending Facility to fund their operations. The increase in borrowing may be due to a currency redesign policy that led to cash shortages, causing customers to keep money at home instead of depositing it in banks.
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Cameroon: Local UBA subsidiary most profitable one outside Nigeria
UBA Cameroon closed the 2022 fiscal year with a net profit of 10.5 billion nairas ($25.5 million), up 17.5% compared to the previous year, driven by a 12% increase in its net banking revenue, which reached 40 billion nairas. The bank’s credit and public securities segments contributed to its balance sheet, which totaled XAF 559 billion ($1.02 billion) as of December 31, 2022. Despite a significant increase in operating expenses, UBA Cameroon’s financial results made it the most profitable subsidiary of Nigerian UBA group in Africa outside Nigeria.
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Nigeria: Central bank introduces new rules for mobile money operators
As Nigerian bank customers search for alternatives due to recent transaction failures, licensed mobile money operators have gained popularity by providing better experiences and incentives like zero transfer charges and daily rewards. However, concerns about the legality of these platforms have prompted the central bank to release a list of authorized operators, and it has also issued a regulatory framework for agent banking operations to mitigate risks in the financial sector. The framework includes restrictions such as prohibiting agents from conducting transactions in foreign currency and using the purchase option on PoS terminals for cash-in and cash-out transactions.
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Ethiopia: Wegenfund and Bank of Abyssinia launch business crowdfunding platform
Wegenfund, the Ethiopian crowdfunding platform, has expanded its services to support entrepreneurs and small businesses. The platform was initially launched in December 2021 to provide fundraising tools for charities, religious organisations, and individuals with medical emergencies. Wegenfund offers two types of crowdfunding, namely a donation-like model and a rewards-based model. The platform plans to incorporate debt and equity crowdfunding in the future. The launch of Wegenfund for startups/businesses was announced on March 9, 2023, during a virtual event attended by panellists, startups, entrepreneurs, and invited guests.
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Côte d’Ivoire: NSIA Banque CEO discusses banking in West Africa
The head of NSIA Banque Côte d’Ivoire, Léonce Yacé, discussed the major challenges facing West African banks and the potential for transformation at NSIA Banque Côte d’Ivoire. He believes that African banks have generally coped well with the shocks of the past three years, but that there are now increasing expectations from shareholders, governments, and international organisations to make the banking sector a key catalyst for the energy transition. He also believes that the sector is becoming increasingly competitive, with the arrival of new financial players such as Fintech companies, and that there is a significant regulatory shift taking place across the continent.
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Kenya: High Court allows reintroduction of transfer fees
The High Court in Kenya has decided to allow banks and mobile money providers to charge fees for money transfers between their platforms. An interim order was issued on December 19, 2022, which temporarily stopped the charges from being implemented until the case was resolved. The court announced that the case will be brought up again on March 8, 2023 before Justice Anthony Mrima and the Central Bank of Kenya (CBK), mobile operators, and the Competition Authority of Kenya will be included as parties to the case.
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Africans turning to finance apps
A report by Google and AppsFlyer has revealed a significant increase in finance app installs across Africa, showing that more people are turning to apps and technology as a way of managing finances and navigating economic uncertainty. The report analyzed more than 140 million installs, across 3,000 finance apps, and found that installs across the continent grew 25%. Ghana, Nigeria and Kenya were the main contributors to this rise
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