Kenya

NSE banks’ deposits expense rises 54p as rate hits 1998 level

Kenyan banks listed on the Nairobi Securities Exchange (NSE) paid depositors Sh117.1 billion in the six months ended June 2024, marking a 54.5 percent rise as interest rate on deposits soared to levels last seen 26 years ago. The rise in interest expense on deposits from §h75.8 billion highlights the price banks have had to pay as they compete with the government for depositors in an environment where returns on Treasury bills and Treasury bonds have been rising, hitting as high as 18 percent. Latest Central Bank of Kenya (CBK) data shows banks raised interest rates on deposits to 11.48 percent by end of June, a level only dwarfed by the 17.85 percent that banks were offering customers in May 1998. The 26-year high rates in a bid to avoid loss of deposits have seen commercial banks end up with a higher interest expense, slowing the pace of growth in net interest income in an environment where high interest rates on loans clipped the appetite for loans. “The biggest driver in our market today is sovereign, not clients. So even with few thousand of shillings), my customers are saying I want to buy a bond’ and now we have a decision to make between keeping the deposits and allowing them to buy the bond,” said Joshua Oigara, Stanbic Bank Kenya and South Sudan chief executive officer, in a recent interview.

(Business Daily)

Tanzania

CRDB introduces account for religious institutions.

CRDB Bank has introduced a special account specific for religious institutions to collect donations, tithes, and other contributions aimed at facilitating the giving of offerings to God. The ‘Sadaka Account’ will facilitate the collection of offerings during worship or even when worshippers are unable to attend services. CRDB Group CEO, Abdulmajid Nsekela, said on Tuesday that they have always strived to develop services and products that meet the needs and expectations of their customers across various sectors, including cultural and religious beliefs. To achieve this, the bank has been innovating services and accounts that align with religious principles as well as other areas such as business, investment, and savings management.

(Daily News)

Uganda

New money transfer service launched to support Ugandans in diaspora

The Ministry of Foreign Affairs (MOFA) has endorsed the launch of NALA, a cross-border money transfer service aimed at helping Ugandans in the diaspora send money home securely and affordably. NALA, operating in 21 countries including the UK and US, offers remittances via mobile money wallets and bank accounts with no fees. During the launch in Kampala on Thursday, Ms Sophie Birungi, a Foreign Service Officer from MOFA’s Diaspora Department, highlighted the difficulties diaspora members face when sending money home. “Many Ugandans abroad struggle with ensuring the safety of their funds. Often, money sent home ends up in the wrong hands, or their savings are misused. Additionally, some can’t open bank accounts due to visa overstays, forcing them to store cash at home, where it can be confiscated by authorities,” she said.

(Monitor)

Rwanda

New ibimina regulation to ensure security, accountability

The new legislation governing tontines – commonly known as ibimina – is expected to deter mismanagement of funds saved by members and help to ensure accountability for the growth of these community-based financial schemes, according to people who spoke to The New Times. A ministerial order of August 21, 2024, governing tontines provides, among others, that the ministerial order stipulates that a tontine is registered with the administration of the sector in which it operates. Application for registration is done online or by submitting the required documents to the Sector administration, and it is free of charge. The order seeks to implement a provision on tontines contained in the current law governing deposit-taking microfinance institutions. It defines a tontine as a scheme through which a group of individuals contribute sums of money to make collective savings and lend money to one another on terms agreed upon among themselves. 

(The New Times)

South Sudan

South Sudan, China firm ink deal to construct oil refinery.

Chinese firm Shengli Oilfield Keer Engineering and Construction Company (Sokec) on Friday, 23rd August, signed an agreement with South Sudan’s state-owned Nile Petroleum Corporation (Nilepet) to construct modern oil refinery and storage facilities in South Sudan. Sokec president Wu Song and Nilepet Muhammad managing director Lino Benjamin signed a memorandum of understanding (MoU), which will see the Chinese firm immediately begin investing in South Sudan. Benjamin hailed Sokec for its contribution to the development of the youngest nation in Africa. “With this MoU, we hope you will be able to translate it into agreements and projects that we will do together,” he said at the signing ceremony in Juba, the capital of South Sudan.

Wu said Sokec would embark on investment without hesitation, aiming to enhance production capabilities and operational efficiency. “We will start our preparation work as soon as possible on the refinery and storage facilities,” he said.

(Business Daily)

Ethiopia.

FM Taye Confirms Ethiopia’s Strong Political Commitment to Implement AfCFTA.

Addis Ababa August 30/2024 (ENA) Minister of Foreign Affairs, Ambassador Taye Atske Selassie confirmed Ethiopia’s strong political commitment to the implementation of the African Continental Free Trade Area (AfCFTA). The Minister received the Secretary General of AfCFTA at his office today and held a discussion. On the occasion, Taye emphasized that capacity building for institutions and the private sector is critical for the full implementation of the agreement.  

(ENA)

Somalia.

Somalia launches national digital ID system for banks.

The National Identification and Registration Authority (NIRA) has partnered with the Somali Bankers Association (SBA) to roll out a National Digital Identification system. This new system, formalised through a Memorandum of Understanding (MoU), marks a significant milestone in the modernisation of Somalia’s banking infrastructure. Somali Deputy Prime Minister Salah Ahmed Jama, alongside other prominent government officials, inaugurated the new National Digital Identification system in Mogadishu. The system, which assigns a Unique Identification Number (UIN) to each Somali citizen, aims to revolutionise customer identification in the banking sector by enhancing security and streamlining processes.  

(Radio Dalsan)