Kenya  

Absa, Old Mutual launch new insurance for SMEs 

Absa Bank Kenya and Old Mutual Kenya have launched a joint insurance product targeted at Small and Medium Enterprises (SMEs). The product dubbed ‘Linda Biz’ will offer assets, medical, and life insurance. The solution also features comprehensive medical insurance with inpatient, outpatient, dental, optical, and maternity cover options with attractive benefits such as hospital cash benefits and lifetime cover. “At the heart of our bank is the SME sector, which accounts for 30 percent of the GDP of our economy. This strategic partnership is anchored on our mutual goal to introduce customised and bespoke insurance solutions that directly address the unique requirements of our SME customers,” Absa Bank Kenya MD and CEO Abdi Mohamed said during the launch of the product.

(Business Daily)

Uganda

Finance releases Shs 6 trillion for quarter one 

Since Uganda’s economy has fully recovered from various shocks, the Ministry of Finance, Planning and Economic Development on July 16 released Shs5.899 trillion for quarter one of the financial year 2024/2025, which is Shs 21.3 percent of the discretionary budget. Public budgeting is the process by which governments prepare and approve their strategic allocations of public resources. This involves both the development and the recurrent expenditure, which all have been planned and budgeted for the fiscal year 2024/2025 to spur economic activities in the country for consumption and investments. Speaking during the release of quarter one budget expenditure at the Ministry of Finance, Planning and Economic Development headquarters in Kampala yesterday, the Permanent Secretary/Secretary to Treasury, Ramathan Ggoobi, said: “All Government operations this financial year will underpin fiscal discipline, budget credibility and commitment to service.”

(Monitor)

Tanzania

Tanzanian conglomerate to pay Kenya cement firm shareholders $5.31 million if it breaks proposed deal

A Tanzanian conglomerate will pay Bamburi Cement shareholders $5.31 million (KSh 682.7 million) if it walks out of the proposed deal to acquire the Nairobi-bourse listed firm for reasons other than legal hitches. Amsons Group, a family-run business with operations in diverse markets in East Africa, including Tanzania, Zambia, Malawi, and Mozambique, said last Thursday that the proposed deal to acquire the entire stake in Bamburi for KSh 23.59 billion includes a $5.31 million break fee. A break fee is a penalty paid by a party who backs out of a deal or agreement with the other party involved. Firms entering into deals such as mergers and acquisitions commonly insert clauses for the party that breaches the terms and conditions to pay the termination fee.

(The Citizen)

Rwanda

Rwanda Bankers’ Association launches report.

The Rwanda Bankers’ Association (RBA) has launched its inaugural State of the Banking Industry Report (SBIR). The report was launched on July 11, 2024, at the Kigali Marriott Hotel.

The SBIR dissemination event brought together bank CEOs, representatives from the National Bank of Rwanda and other regulatory agencies, microfinance and insurance institutions, and regional and international financial development institutions. In his opening remarks, Tony Francis Ntore, CEO of RBA, highlighted that the report represents the collective effort and dedication of the RBA Research Centre and the invaluable contributions from members’ banks. “The report provides deep insights into key aspects of our banking industry, including trends, market dynamics, profitability, and the sector’s evolution,” said Ntore.

(The New Times)

Ethiopia

NBE, Central Bank Of UAE sign currency swap agreement and MoU

The National Bank of Ethiopia (NBE) and the Central Bank of UAE (CBUAE) signed a currency swap agreement and a Memorandum of Understanding (MoU) to promote the use of domestic currencies and interlink their payment and messaging systems. Governor of the National Bank of Ethiopia, Mamo Mihretu, and Governor of the Central Bank of the UAE, Khaled Mohamed Balama, signed a bilateral currency swap agreement for the UAE Dirham and Ethiopian Birr in Abu Dhabi on Tuesday,  a joint statement confirmed. The two parties also entered into two Memorandum of Understanding (MoU) to establish a framework for the use of local currencies in settling cross-border transactions and for linking their payment and messaging systems.

(ENA)

South Sudan

S.Sudan secures $46m grant for agriculture, food security

African Development Bank Group (AfDB) said it has approved a $46.2-million grant for South Sudan to boost agricultural productivity, improve food security and enhance the country’s resilience. The AfDB, a financial provider to African governments and private companies investing in the regional member countries, said the first phase of the climate-resilient agri-food system transformation programme in South Sudan is set to be implemented from September 2024 to December 2030. Themba Bhebhe, the Group’s Country Manager for South Sudan, said in a statement on Friday evening that the programme’s activities will help boost productivity and produce an additional 350,000 tonnes of cereals (rice and sorghum) and 2,450 tonnes of fish.

(Business Daily)

Somalia

Somalia’s financial turnaround: From debt forgiveness to regional integration

Somali Prime Minister Hamsa Abdi Barre lauded the nation’s transformation towards a “strong, modern and reliable” financial system. This transformation, he noted, has paved the way for the forgiveness of Somalia’s debt and the lifting of the arms embargo, allowing the country to integrate with regional markets. “The process of the country’s financial system brought together all the processes that were going through the construction of the country’s institutions for reconstruction, which shows us that we have matured and the debt has been forgiven, the ban on arms has been removed, and we have joined the regional markets,” explained the Prime Minister. Addressing an audience at an event showcasing the achievements of Somalia’s financial management, PM Barre underscored that this success did not come without great effort and patience from the Somali people.

(Radio Dalasan)