Trade and Financial Services Round-Up

  • 26 Jun 2023
  • 4 Mins Read
  • 〜 by Jewel Tete


Kenya sees the shilling falling to the 150 mark against the dollar next June

The government is projecting the shilling could weaken further to 150.76 by the time it repays its debut Eurobond in June next year, signalling unabated pressure on the country’s exchange rate. A new report by the Treasury projects the country will pay a total of Sh301,513,774,986 for a $2 billion international sovereign bond. This works out to an exchange rate of 150.76. The shilling, which has been hitting record lows every day and has since breached the 140-mark, was trading at an average of 140.2 against the dollar, according to data from the Central Bank of Kenya (CBK).

(Business Daily)



Dar es Salaam Community Bank consolidates capital base and profit generation

Despite facing economic challenges, DCB Commercial Bank has consistently expanded its capital base, while its profit generation has also maintained an incremental trend, the bank told shareholders over the weekend. Addressing the 21st edition of the Annual General Meeting (AGM) of the bank’s shareholders, chairperson of the bank’s Board of Directors Zawadia Nanyaro said the bank’s capital, which is at Sh28.5 billion, far exceeds the mandatory minimum set by the central bank of TSh15 billion. She said the bank registered an after-tax profit of TSh747 million in the year 2022, which was attributed to non-interest income amounting to TSh10.3 billion.

(The Citizen)



EAC still top destination for Uganda’s exports

The East African Community was the top destination for Uganda’s exports in 2023, accounting for 39.3 percent of the total market share. In the performance of the economy report for May 2023, the Ministry of Finance noted Kenya, Congo and South Sudan were the top three destinations of Uganda’s exports to EAC, taking up 35.7 percent, 25 percent arid 21.3 percent, respectively. “Some of the top earning export commodities to Kenya during the month were animal products particularly day old chicks, milk, maize, fermented black tea and sugar,” the report said. Uganda, the report noted, registered a surplus of $43.01 m (UgShs159 billion) with South Sudan, which is Uganda’s third top export destination in the region.




Rwandan fintech MVend gets Central Bank license.

MVend Limited, a leading Rwandan FinTech solutions service provider, has received an E-Money issuer and remittances license from the National Bank of Rwanda (NBR), granting it the ability to offer digital wallets and mobile financial services.

Issued on Tuesday, June 20, the new license marks a significant milestone for MVend, enabling it to expand its service offerings and compete with larger cross-border players in Africa.

With the license, MVend can now provide customers with digital wallet services, including deposits, withdrawals, transfers, and payments through their Gwiza platform. Additionally, the license allows MVend to facilitate international remittances through their partner networks across Africa and beyond, enhancing their reach and impact.

(The New Times)



Commercial Bank of Ethiopia launches interest-free deposit saving services for Hajj and Umrah

The Commercial Bank of Ethiopia has introduced a new interest-free deposit-saving service called Lebbeyk Mudarabah which is designed to help Muslims save for their Hajj or Umrah pilgrimages.

The service was launched at an event yesterday, where CBE Interest-Free Banking Vice President Nuri Hussein spoke about the bank’s commitment to providing services that meet the needs of the Muslim community. The bank has been providing interest-free banking services for over 10 years, and the Lebbeyk Mudarabah service is the latest in a series of products and services that have been developed to meet the needs of Muslims.

The Lebbeyk Mudarabah service is available at all CBE Noor branches and at select CBE branches. Customers can open an account with as little as Birr 100, and there are no monthly fees. Customers can withdraw their money at any time, and there are no penalties for early withdrawal.



Financial support to families of martyrs

Members of the Customs office as well as members of the PFDJ at the Ministry of Health in the Central Region extended financial support to 47 families of martyrs. According to the report, members of de PIDJ at the Ministry of Health branch in the Central Region extended one thousand Nafka each to 37 families of martyrs in select sub-zones. Likewise, the members of the Customs Office extended one thousand three hundred Nafka each to 10 families of martyrs in one sub-zone.




Central Bank of Sudan takes steps to address banking disruptions.

The Central Bank of Sudan (CBoS) has implemented measures to tackle the disruptions in banking services caused by the ongoing war. However, expert Hafiz Ismail warns of substantial obstacles ahead. The CBoS acknowledged the impact of the fighting, vandalism and war-related issues on banks, including electricity outages and communication issues. To address customer concerns, expired bank cards will be extended by six months. The Central Bank stated that April’s “unified services’ salaries” were paid, along with operational expenses in a number of sectors. The CBoS opened channels for “foreign exchange, facilitating exports, and ensuring the smooth flow of foreign transfers to meet urgent obligations”. Additionally, financing arrangements have been made for various sectors, particularly “agriculture, small industries, and production”. Efforts are underway to restore and resume banking applications.




$21 million vanishes from the government coffers: Somalia

Somalia’s government is facing yet another financial scandal as $21 million of public funds have gone missing from a government account, according to the Auditor-General’s office. The money disappeared between March 8th, 2018 and April 19th, 2023, but the matter has only come to light now. This recent scandal has once again raised concerns over the management of public funds in a country that has been plagued by corruption and instability for decades. The Auditor General’s office has called for an immediate investigation into the missing funds and for those responsible to be held accountable.

(Radio Dalsan)