• 23 Jun 2024
  • 2 Mins Read
  • 〜 by Jewel Tete


Interbank Borrowing Rates dip to 6-month low

Interbank lending rates have fallen to a six-month low of 12.922 per cent on reforms initiated by the Central Bank of Kenya (CBK), which are expected to usher in lower rates for commercial bank loans. The interbank rate is the rate of interest charged on short-term loans between banks. Banks borrow and lend money in the interbank lending market to manage liquidity and satisfy regulations such as reserve requirements. The latest data shows that the interbank lending rates now stand at their lowest since December 21, 2023, and mirror the success of the apex bank in bringing charges in the interbank market closer to its benchmark interest.

(Business Daily)




Uganda banks on tax exemption for speedy e-mobility drive.

The slow uptake of fully electric vehicles in Uganda has prompted authorities to exempt manufacturers from paying duties to drive sales, attract investment, and potentially carbonise. While e-automotive importers and makers in Uganda have been benefiting from government support and tax incentives meant to fuel a shift from internal combustion engines, the country boasts 44 four-wheeler vehicles that are 100 per cent electric registered. The slow and conscious approach from e-vehicle suppliers and buyers sent signals to policymakers that the incentives failed to fuel a faster shift from diesel and petrol-powered vehicles.

(Business Daily)



Access Bank acquires majority stake in Tanzanian lender

Nigeria’s Access Bank Plc has completed the acquisition of the African Banking Corporation Tanzania (Ban-CABCT), as it seeks to deepen its foothold in East Africa’s banking market.

The lender, which is listed on the Nigerian Stock Exchange (NSE), disclosed that it had completed the acquisition of a majority equity stake in BancABCT, a subsidiary of London-listed Atlas Mara Ltd, an Africa-focused special-purpose acquisition company with stakes in different banks across the continent. The deal was first announced on July 14, 2023.

(Business Daily)




Formal financial inclusion in Rwanda grew 39% in 2020-2024

The number of Rwandans who have access to formal financial services and products increased by more than 38.8 per cent to 7.5 million between 2020 and 2024, a new report published by Access to Finance Rwanda (AFR) on June 20 found. That implies that 92 per cent of Rwandans have access to formal financial services, which the report describes as services offered by institutions that are governed by a legal precedent of any kind. Those services are offered by banks, mobile money operators, insurance and pension companies, microfinance institutions, Saving and Credit Cooperative Societies (SACCOs), as well as regulated non-deposit-taking financial institutions.

(The New Times)



Ethiopia to allow foreign banks to set up subsidiaries

Ethiopia will allow foreign banks to set up local subsidiaries and foreigners to acquire shares in domestic lenders, according to a bill approved by the cabinet on Friday. The country of more than 100 million people is one of the biggest economies in sub-Saharan Africa and has a market long-eyed by foreign investors after being closed off for decades. Authorities are opening up the country to foreign investment in banking, telecoms, and transportation, among others. “A foreign bank which is well established, reputable…may be allowed to establish (a) partially or fully owned foreign bank subsidiary,” the bill.

(Business Daily)