Trade and Financial Services Round-Up

  • 12 Jun 2023
  • 3 Mins Read
  • 〜 by Annette Muindi


Kenyans abroad avoid banks on sending money home

Kenyans living and working abroad increasingly avoided banks when wiring cash home in favour of less costly traditional money transfer methods such as “hawala” amid money laundering threats.

The World Bank says the cash transfer fees in the banking sector and the lower exchange rate is encouraging the use of traditional money transfer by Kenyans abroad.

The global lender says it costs an average of Sh1,549 ($11.14) to wire Sh27,806 from the US to Kenya through banks.

It further adds that the spread – the difference between the prices a dealer buys and sells a currency — has seen banks pay less per dollar compared to traditional money transfers and forex bureaus.

(Source: Business Daily)


Tanzania Breweries Limited announces a multi-billion malting plant investment

Tanzania Breweries Limited (TBL) has announced a TSh96 billion investment in its flagship Kilimanjaro Malting Plant that is being built in Moshi.

The plant will boost the agricultural sector, improving the livelihoods of farmers by scaling up local purchases of barley from 5,000 tons to 12,000 tons and then 32,000 tons over five years once completed.

Furthermore, TBL’s investment in the opening of this plant in March 2024 will benefit brewers and manufacturers, thus boosting Tanzania’s economy. The construction phase of the megaproject will provide direct employment to around 70 people, 80 percent of them Tanzanians, and is set to create direct and indirect jobs for many others once it is fully operational.

(Source: The Citizen)


Payment platform goes regional, 650 ATMs now on Interswitch

At least 23 financial institutions in Uganda now have their Automated Teller Machines (ATMs) and points of sale connected by Interswitch, an integrated payments and transaction processing company.

This means that account holders at the various banks and other financial institutions can now access their accounts at 650 ATMs countrywide, irrespective of which bank they belong to.

This follows the connection of Equity Bank to the system whose platform markets all financial institutions from SACCOs, microfinance institutions and commercial banks.

(Source: The Independent)


Central Bank warns against dealing with unlicensed insurer

The National Bank of Rwanda (NBR), has warned the public against dealing with Placier en Assurance, saying the company is not authorized to offer insurance brokerage services in the country.

The regulator further noted that the company is not authorised for such, and therefore anyone who deals with it does so at their own risk.

The central bank also reminded all people to only deal with financial institutions that are authorized.

Among its many responsibilities, the NBR is tasked to supervise and regulate the activities of financial institutions notably banks, microfinance institutions, non-deposit-taking lending institutions, finance-lease institutions, insurance institutions, social security institutions, pension funds/schemes institutions, discount houses and other financial services providers.

(Source: RBA)


Council refers 2016 fiscal year budget to House of People’s Representatives

The Council of Ministers has referred the 801.6-billion Birr budget for the Ethiopian fiscal year 2016 to the House of People’s Representatives.

In its regular meeting held today, the council has taken into consideration the goals set in the Ten Year Perspective Development Plan in preparing the budget, according to the Office of the Prime Minister.

Accordingly, 369.6 billion Birr has been allocated for recurrent spending, 203.9 billion Birr for capital expenditure, 214.07 billion Birr to subsidize regional states, and 14 billion Birr for Sustainable Development Goals (SDG), it was learned.

(Source: ENA)


Somalia and Germany foster bilateral ties

Somali Prime Minister Hamza Abdi Barre and German State Minister for Economic Cooperation and Development, Jochen Flasbarth, held a meeting in Mogadishu on Sunday to reaffirm their commitment to strengthening bilateral relations between Somalia and Germany.

During the meeting, Prime Minister Barre expressed his sincere appreciation to Germany for its continuous support and outlined the Government’s key priorities for the future. These priorities include job creation, infrastructure development, and improving access to education and healthcare.

The meeting between the Prime Minister and the State Minister is a significant development towards strengthening bilateral relations between Somalia and Germany. Germany has been providing support to Somalia in various sectors, including security, governance, and humanitarian assistance. Germany is also a key partner in Somalia’s debt relief efforts, having committed to cancelling its share of Somalia’s debt under the HIPC process.

(Source: Radio Dalsan)