George Obulutsa | NAIROBI
Kenya&#8217;s central bank said on Friday it had issued a licence to DIB Bank Kenya Ltd, a unit of United Arab Emirates-based Dubai Islamic Bank, to operate in the east African nation.
&#8220;DIB intends to exclusively offer shariah-compliant banking services in Kenya,&#8221; the Central Bank of Kenya said in a statement. &#8220;DIB&#8217;s entry will expand the offerings in the market, particularly in the nascent shariah-compliant banking niche.&#8221;
(Reporting by George Obulutsa; Editing by Biju Dwarakanath)
&nbsp;

Kenya’s cenbank issues licence to DIB Bank

South Africa&#8217;s Capitec Bank reported an 18 percent rise in full-year profit on Tuesday as the lender continues its push into transactional banking.
Capitec, which grants loans not supported by assets, said it gained 1.3 million active clients, brining its total to 8.6 million customers, over the past year as feeble growth in Africa&#8217;s most advanced economy forced thrifty South Africans to shop around.
The lender posted diluted headline earnings per share of 3,270 cents for the year to end-February, compared with 2,787 cents a year earlier.
&#8220;Despite weak economic conditions, there was strong year-on-year growth in net transaction fee income,&#8221; Capitec said in a statement.
Capitec&#8217;s transaction fee income climbed 30 percent to 3.9 billion rand ($304.57 million), but interest income remains the lender&#8217;s largest source of revenue, increasing 11 percent to 14.9 billion rand.
The bank, which in 15 years grew from a startup to touch a market value of 93 billion rand, last week said it had bought a 40 percent stake in Latvia&#8217;s Creamfinance, its first acquisition outside its home market.
&#8220;We continue to grow our client numbers, branches and ATM network. This will provide us with the opportunity to offer new financial services in the future,&#8221; the bank added.
($1 = 12.8049 rand)
(Reporting by TJ Strydom; Editing by Sunil Nair)
&nbsp;

South Africa’s Capitec FY profit up as client numbers climb

Zimbabwe&#8217;s mining output is under threat because banks are delaying processing foreign payments by up to three months due to a shortage of dollars, the southern African country&#8217;s mining chamber warned on Monday.
Mining generates more than half of Zimbabwe&#8217;s foreign exchange and should be given priority by the central bank when making offshore payments, Chamber of Mines economist Pardon Chitsuro told a parliamentary committee.
Zimbabwe introduced a so-called bond note currency, which is denominated in U.S. dollars, in November in a bid to ease cash shortages, but long queues continue outside banks while U.S. dollars are slowly disappearing from circulation.
Some businesses, especially those importing goods, are offering discounts on cash purchases in U.S. dollars, while charging more for mobile or card transactions.
Mining companies need to import machinery and inputs such as explosives and chemicals.
Importers say they are struggling to pay for goods abroad because accounts held by local banks overseas have been depleted of foreign currency.
&#8220;We have been facing a foreign payments gridlock with delays of up to 12 weeks impacting negatively on production,&#8221; Chitsuro said.
The world&#8217;s two largest platinum producers Anglo American Platinum and Impala Platinum have operations in Zimbabwe, alongside local firms Bindura Nickel and Hwange Colliery Company.
Bankers Association of Zimbabwe president Charity Jinya acknowledged the delays, which she blamed on a lack of dollars and depleted offshore accounts of local banks.
Last month, the central bank said Zimbabwean banks only had enough cash in offshore accounts to finance about two weeks&#8217; worth of imports.
Zimbabwe needs an average $430 million a month to pay for imports, according to central bank figures for 2016.
(Reporting by MacDonald Dzirutwe; Editing by Alexander Smith)
&nbsp;

Zimbabwe mining threatened by foreign payment delays

South Africa&#8217;s Standard Bank Group Ltd reported a 4 percent rise in full-year profit on Thursday as the threat of a sovereign ratings downgrade weighed on its home market.
Standard Bank posted headline earnings per share (EPS) of 1,389 cents for the period to end-December, compared with 1,359 cents the previous year. Headline EPS is the main profit measure in South Africa and excludes certain one-off items.
&#8220;In South Africa, the threat of a sovereign downgrade by rating agencies to sub-investment grade persisted throughout the year. This in turn negatively impacted the already weak business and consumer confidence and further delayed much needed domestic investment and job creation opportunities,&#8221; Standard Bank said in a statement.
 
(Reporting by TJ Strydom; Editing by Subhranshu Sahu)﻿

South Africa's Standard Bank posts 4 pct rise in FY profit

For many wealthy individuals and families the beginning of the year serves as an opportune time for personal introspection making it the ideal period to review financial goals and strategies for dealing with the challenges of growing and preserving wealth in a volatile economic climate.
Eric Enslin, CEO of FNB Private Wealth and RMB Private Bank, says “High-net worth individuals take into account a variety of economic, regulatory and investment factors as well as family and career aspirations when planning for the year ahead. Advisors are required to thoroughly assess the state of their clients’ long-term wealth growth, while guiding them on how to overcome and understand some of the key issues and trends that keep them engaged around the dinner table.”
Enslin has identified four industry trends affecting high-net worth individuals that advisors should take into account when reviewing long term wealth strategies. 
Fintech – the rapid growth of fintech should not be seen as a threat to advisors, but rather an opportunity to tap into innovation through the use of tools, analytics and technology to better understand and efficiently cater for the dynamic and ever changing needs of high-net worth individuals.
Life expectancy – according to the ‘Ageing World Report’ released last year in March by the U.S. Census Bureau, 8.5 percent of the world population is aged 65 and over, and this older population is expected to continue growing over the next 35 years.
Increasing life expectancy continues to put more pressure on advisors to exercise greater flexibility when helping clients to plan financially for retirement. This has a huge impact on the accurate projection of medical and living costs.  
Economic uncertainty – the current challenges facing South Africa and the possibility of a sovereign credit rating downgrade in 2017 is growing concern amongst high-net worth individuals. This is likely to increase the prospect of investors looking for more exposure to offshore investments as means to diversify their wealth.
There will be increased pressure on advisors to offer sound advice taking into account the diverse risks and opportunities of investing offshore.
Local and global legislation – ongoing changes in legislation significantly increase financial demands and risks facing wealthy individuals on a yearly basis. Therefore, it is essential for them to regularly review and adjust their risk and wealth management strategies accordingly.
“As an example, high-net worth individuals are waiting with bated breath for the outcome of the much debated, Draft Taxation Laws Amendment Bill from Treasury which will impact taxation on personal trusts. From a global perspective, concerns around the long term impact of Brexit on the global economy are ongoing,” says Enslin.
“Although wealthy individuals and families take a long term view when devising growth strategies, each year has a unique set of challenges, making it essential for advisors to constantly familiarise themselves with the issues and opportunities that keep their clients awake at night. This gives high-net worth individuals piece of mind knowing that they are receiving the best advice to achieve their goals and continue reaching important milestones in their wealth journey,” concludes Enslin.
 
END
For more information contact: 
FNB Corporate Communications
Senzi Dlamini: <a href="mailto:Senzi.Dlamini@fnb.co.za">Senzi.Dlamini@fnb.co.za</a> or 087 335 8277﻿

Trends affecting wealthy individuals in 2017

Shares in South Africa&#8217;s banking index extended losses on Monday as investors continued to digest the competition watchdog&#8217;s recommendation that banks should be fined for rigging the rand currency.
South Africa&#8217;s Competition Commission said last week it had found that more than a dozen local and foreign banks including Barclays Africa (Absa) and Standard Bank colluded to coordinate trading in the South African and U.S. currencies.
The Johannesburg Stock Exchange&#8217;s banking index extended losses to 1.54 percent to 7,473 points by 1200 GMT, its lowest level since Feb. 10, before the forex rigging announcement.
&#8220;There is more and more concern about what has happened with these banks colluding on this rand trading that took place,&#8221; said Cratos Capital equities trader Greg Davies. &#8220;It might be investors deciding to sell their shares in case there are very big fines from the authorities.&#8221;
In the case of the alleged rigging of the rand, the antitrust watchdog said it had recommended fines amounting to 10 percent of the banks&#8217; South African annual revenues to the country&#8217;s Competition Tribunal, which adjudicates on the commission&#8217;s findings.
Details of Finance Minister Pravin Gordhan&#8217;s budget speech on Wednesday will also be the next likely trigger for price moves, trader at Global Trader Paul Chakaduka said.
&#8220;Leading up to the budget we should see pressure on the financials without a doubt,&#8221; Chakaduka said.
 
(Reporting by Nqobile Dludla; Editing by Ed Stoddard)﻿
<div></div>

S.African banking shares extend losses after watchdog charges

Standard Chartered will consider whether it can restart correspondent banking relationships with Sudan following the proposed lifting of U.S. sanctions, a senior executive said.
Anurag Bajaj, who oversees the British-based lender&#8217;s correspondent banking business, where it provides services for other banks, said the bank was reviewing the implications of last month&#8217;s move by the outgoing Obama administration to unfreeze assets and remove financial sanctions in return for its help in fighting Islamic State and other groups.
The sanctions relief will come in six months if Sudan takes further steps to improve its human rights record and makes progress resolving its military conflicts.
&#8220;How significant the unravelling of the sanctions are [in Sudan] we will look at,&#8221; Bajaj, Standard Chartered&#8217;s global head of banks, transaction banking, told Reuters.
&#8220;Our sanctions team will review it before taking a decision,&#8221; he added.
For Sudan, the resumption of correspondent banking relationships will be vital to turning around its economy, which has struggled since South Sudan seceded in 2011, taking with it three-quarters of the country&#8217;s oil output.
But banks are likely to be cautious given the tougher immigration rules imposed by President Donald Trump on citizens from seven countries, including Sudan, that could affect the country&#8217;s relations with the United States.
Standard Chartered admitted in 2012 to breaking U.S. sanctions against Sudan, as well as Iran and Libya.
Bajaj said Iran, which the Trump administration earlier this month imposed sanctions on following a ballistic missile test, remained off-limits for the bank as it was &#8220;sanctioned.&#8221;
However, he added that while the bank had cut ties with some clients in other countries to guard against the risk of falling foul of rules on sanctions or money laundering, it was still only a &#8220;minimal&#8221; number in global terms.
&#8220;There&#8217;s always the odd-one, rare client that will not match our risk appetite but there are also clients that we are growing our business with,&#8221; he said.
 
(Editing by Greg Mahlich)﻿

Standard Chartered to review Sudan links after U.S. sanctions move

Democratic Republic of Congo&#8217;s central bank injected $50 million into the interbank exchange market on Tuesday to prop up the Congolese franc, which has lost nearly 40 percent of its value in the last year, the bank&#8217;s spokesman said.
The bank injected $50 million into the market five times in 2016 and hiked interest rates but the franc continued to slide.
<div class="teads-inread">
<div>
<div class="teads-player" id="teads1"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads0"></div>
</div>
</div>
Low oil and mineral prices over the last two years in Africa&#8217;s top copper producer have heaped pressure on the franc and driven inflation from less than 1 percent in 2015 to over 11 percent last year.
The oil and mining sectors provide 95 percent of the country&#8217;s export earnings.
Congo&#8217;s GDP growth slowed to an estimated 2.5 percent last year from 6.9 percent in 2015. The bank expects growth of 2.9 percent this year.﻿

Congo central bank injects $50 million into market to prop up franc

This new arrival in the MSCI African equity universe has a lot going for it, including the right conditions for a banking sector boom. Renaissance Capital outlines the risks and opportunities in an economy which the IMF estimates is on course to double every decade.
This piece could have the shortest shelf-life of any piece since one of our equity analysts published on the great Iraq opportunity just weeks before ISIS took over half the country.
Indeed, last night reading <a href="https://www.washingtonpost.com/news/monkey-cage/wp/2017/01/10/the-events-in-ivory-coast-last-week-were-a-textbook-case-of-mutiny/?postshare=7631484683086642&amp;tid=ss_tw&amp;utm_term=.4155ed869f27">this report</a> on army mutinies in Ivory Coast (and related tweets about Burkino Faso) nearly encouraged me to pull the release. That article concludes “ Soldiers in Ivory Coast have mutinied in 1990 (twice), 1993, 1999, 2000 (twice), 2002, 2003, 2008, 2014 and now 2017. They are the most mutinous military in the region, and likely the continent. Their history of revolts precedes the country’s civil war. Resolutions that go far beyond payments will be needed for Ivory Coast to break this cycle.”When I was in Abidjan last week, the initial mutiny of 6-7 January seemed to have been resolved. But in the last few days, two soldiers are reported to have died, and the gendarme temporarily seized a port. The noise is calming down in the afternoons according to one Reuters journalist when Africa Cup matches are televised, but this does look serious.  
But we are frank about the political risk, and I think we correctly identify the likely macro threat stemming from these mutinies – which is fiscal.
It seems that the numbers an economist loves – stable, strong, sustainable growth – are not what a population likes.  Despite the incumbent winning the 2015 presidential and then the 2016 parliamentary elections  (just last month), there are big demands for more pay across the country.  It reminds me a little of Zambia in 2011 and arguably the US in 2016 – growth is not good enough unless the population feels real incomes have risen substantially.  
None of this is a great way to encourage interest in this piece – which focuses on what is the best macro in Africa – and suggests investors who can stomach illiquidity ($1m trading volume a day) should look at the country.  The numbers are pretty amazing – across the board improvements over the last five years, from the Ease of Doing Business to a 52% rise in GDP, to new IPOs, a double of the banking sector, low inflation, a stable currency, a small current account deficit and a budget deficit of just 4% of GDP.  Read this and weep, rest of the world. ﻿
 <img loading="lazy" decoding="async" src="/media/19308140/rencap_19jan2017.png" width="480" height="288" alt="Rencap _19Jan 2017"/>﻿
In a world convinced that Africa Rising is no longer a theme – this country has been acting as a strong economic challenge to that pessimism (indeed many in Africa are doing well  – but the theme has been under assault by problems in the top three economies, Nigeria, SA, and Egypt until recently, as well as Mozambique).  If Ivory Coast can manage what looks to be a growing challenge to state authority – this bullish story will encourage investors in.  For more detail – see the <a href="http://www.imf.org/external/pubs/ft/scr/2016/cr16383.pdf">IMF EFF report</a> issued here.
There has been little reaction to the mutiny in the past 10 days or so.
 
 <img loading="lazy" decoding="async" src="/media/19308147/rencap_19jan2017_2_595x324.jpg" width="595" height="324" alt="Rencap _19Jan 2017_2"/>﻿
     ﻿Ivory Coast – 2032 Eurobond price over 5 years ﻿﻿
To see the full report: <a href="https://research.rencap.com/eng/default.asp" target="_blank">Thoughts from a Renaissance Man: Ivory Coast – the best macro in Africa?﻿  </a>

Op-Ed: Ivory Coast – the best macro in Africa?

The former regional heads for Africa at private equity giants KKR and Carlyle are setting up an investment firm, Arkana Partners, to target local equity investments of up to $100 million.
Kayode Akinola told Reuters on Wednesday that he was leaving KKR to join forces with Marlon Chigwende, who left his role as Africa chief at rival Carlyle in 2016, as private equity opportunities in Africa are often seen as too small for the buyout industry&#8217;s titans.
&#8220;We will be focused on the mid-cap, where we believe the bulk of opportunities are,&#8221; Akinola said, adding that while the emphasis will be on private equity investments the new firm will be flexible in its approach.
<div class="teads-inread">
<div>
<div class="teads-player" id="teads1"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads0"></div>
</div>
</div>
&#8220;You need to bring your entire tool bag to the market. (In Africa) you can&#8217;t just say you&#8217;re only going to do buy-outs or just greenfield,&#8221; he said, referring to developing projects, often in infrastructure, from scratch.
The new firm will look for ventures which are ready to absorb up to $100 million but will mostly focus on opportunities requiring between $20 and $60 million of equity, Akinola said, highlighting that what counts as &#8220;mid-cap&#8221; can vary widely in different African economies.
It remained unclear when fundraising for the new venture would take place or how much the firm aimed to raise.
KKR, a global investment firm with more than $131 billion in assets under management, invests in Africa with its European private equity fund and targets at least $125 million in equity but more typically between $200 and $250 million, according to sources close to the firm.
Akinola joined KKR in 2013 amid growing hopes for the region to lead and develop the firm&#8217;s African efforts from Africa-focused Helios Investment Partners. Since then KKR has managed one investment in Africa, putting $200 million into Afriflora, a flower company in Ethiopia. Akinola remains on its board.
KKR will continue to examine deals in the region on a selective basis, the sources said.
Akinola, a Nigerian, and Chigwende who is originally from Zimbabwe, are setting up their firm as Sub-Saharan Africa&#8217;s two biggest economies face significant political and economic headwinds.
Nigeria&#8217;s economic recession deepened in the third quarter of last year as production of oil, its main export, fell.
Meanwhile South Africa&#8217;s economy barely grew in the same quarter as the manufacturing sector contracted sharply and investors worry whether the government can implement policies to boost growth.
Akinola remains unperturbed by any macroeconomic fears over Africa, where the U.N. says more than half of the world&#8217;s population growth between now and 2050 is projected to take place.
&#8220;The thing about emerging markets is that sometimes you have to be countercyclical. Africa continues to be a market where structural demand across most sectors will drive long term growth.&#8221;﻿

Former Africa heads at Carlyle and KKR to set up investment firm

If you are lucky enough to travel overseas you know there is a lot to do and plan before you can relax at your destination. We understand how important it is that you know which boxes to tick to ensure you are ready for your journey.
So, you have booked your flight tickets, accommodation is sorted and all your travel documentation such as your passport, visas, inoculations, unabridged certificates for the kids are in order.
But, did you notify your bank that you are travelling overseas?
Anthony Grant, CEO of FNB Foreign Exchange says “When planning a trip overseas, make sure that your bank is aware of your travel plans so they can advise you on the best foreign exchange solutions. They can also advise you on convenient ways to access funds in your accounts while traveling abroad and how to ensure that your cards are open for transacting in the country you will be visiting.”
“You should always keep your options open and ensure that you have more than one payment option available.  Ensure you have some foreign cash in your pocket for a coffee at the airport and small things like tips, taxis and train fares,” he says.
Grant recommends the following tips for a smooth overseas trip:
Consider a multi-currency solution
Apply for a Multi-currency Cash PassportTM online to use when purchasing goods and to make cash withdrawals while travelling overseas.
A Multi-currency Cash™ Passport can be loaded with four major currencies: US Dollar, British Pound, Australian Dollar and Euro, all in one card. The card can be reloaded online with Forex before or while travelling. And the great thing is you spend what you loaded on the card and you stay within your budget,” adds Grant
Travel Insurance
Ensure that you are covered for unfortunate eventualities such as lost luggage, media emergencies, and loss of valuables and when the trip is cancelled and there are trip cancellation costs to be covered. Travelling insurance cushions against incurring costs in a foreign country in the event of an emergency.
Emergency numbers
Keep all key emergency numbers stored in a safe place. Emergency contacts could include family and friends, your bank’s contact numbers should you need to make contact with them urgently or an embassy in case you lose your passport.
Bank Cards
Inform the bank where you will be travelling to and provide dates as well, in this way the bank will not suspect the fraud when they receive alerts that the cards is being used in a foreign country.
Travel documents
Keep all you travel documents in a secure place, if you lose your passport while traveling in a foreign country it may prove difficult to prove your country of origin. Keep copies of your documents separate from the originals.
“There are quite a few steps to consider when planning an overseas trip, to ensure that you have everything covered it’s always better to starting the planning well in advance,” adds Grant﻿

Top tips for travelling overseas this festive season

South Africa&#8217;s wealthy Gupta family, accused in a government corruption probe of allegedly holding undue influence over President Jacob Zuma, said on Tuesday it had asked a court to force a financial regulator to give the family details concerning the closure of its business accounts.
The country&#8217;s four major banks, Barclay&#8217;s , Standard Bank , FNB and Nedbank early in 2016 terminated the accounts of several companies, spanning mining to media operations, controlled by the family under the Johannesburg exchange listed Oakbay Resources.
The banks refused to make public their reasons for closing the accounts. Analysts have said the banks were likely prompted by concerns about reputational risk.
<div class="teads-inread">
<div>
<div class="teads-player" id="teads6"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads5"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads4"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads3"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads2"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads1"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads0"></div>
</div>
</div>
The Guptas have denied accusations that they have used their friendship with Zuma to advance their interests as well accusations of money laundering and fraud.
In the affidavit the family requested the High Court to force the Financial Intelligence Centre (FIC) to provide details of transactions totalling 6.8 billion rand ($493 million) flagged as suspicious by the regulator in a report to Finance Minister Pravin Gordhan.
An anti-graft probe published this month by the Public Protector focused on claims that the brothers, Ajay, Atul and Rajesh Gupta influenced the appointment of ministers.
It also called for an investigation into whether Zuma, some of his cabinet members and some state companies had acted improperly, triggering renewed calls for the president&#8217;s resignation.
President Zuma, who on Monday was facing a motion to remove him by members of his party, the ANC, has said that the Guptas are his friends but denied doing anything improper.
($1 = 13.7952 rand)﻿

S.Africa's Gupta family asks court to force release of details over closure of accounts

Mauritian bank group SBM Holdings will acquire full ownership of Kenya&#8217;s Fidelity Bank, a small lender, in a deal valued at 100 shillings ($0.98), SBM said on Tuesday. 
SBM said in a filing with the Mauritian bourse that it would inject 1.45 billion shillings of fresh capital into Fidelity, once the deal gets all the required regulatory approval.
<div class="teads-inread">
<div>
<div class="teads-player" id="teads1"></div>
</div>
</div>
<div class="teads-inread">
<div>
<div class="teads-player" id="teads0"></div>
</div>
</div>
&#8220;The acquisition is in line with SBMH&#8217;s regional expansion strategy into East Africa,&#8221; SBM said in the filing.
The Kenyan central bank said the deal was expected to be completed by the end of this year.
&#8220;SBM Group will bring its experience and expertise from Mauritius and other markets, to enhance competitiveness and the resilience of Kenya&#8217;s banking sector,&#8221; the central bank said.
Fidelity, which started operating as a commercial bank 20 years ago, has 14 branches in Kenya and is ranked 31 out of 41 Kenyan lenders by market share, with 0.39 percent, the central bank said.
SBM Group, which operates one of the Indian Ocean island nation&#8217;s leading commercial banks, SBM Bank, had assets of $4.2 billion as of September. It also operates in India and Madagascar.
Analysts say rising bad debts, the capping of commercial lending rates and weaknesses in corporate governance exposed by the collapse of two lenders in the past year and a half, have made the Kenyan banking sector ripe for consolidation.
&#8220;CBK (Central Bank of Kenya) welcomes the interest of foreign banks that will contribute to the emergence of a world-class financial sector,&#8221; the central bank said.
($1 = 101.8000 Kenyan shillings)﻿

Mauritian bank to acquire Kenya's Fidelity Bank

The African Development Bank&#8217;s board approved a $600 million loan for Nigeria on Wednesday aimed at helping Africa&#8217;s largest economy plug its budget deficit as it grapples with its first recession in more than 20 years, a senior bank official said.
The loan is the first tranche of a total $1 billion budget support package. The second disbursement of $400 million is dependent upon the implementation of reforms, the bank&#8217;s Nigeria country director Ousmane Dore said.
Dore said one of the main triggers for the release of the remaining tranche will be when the government spells out its plan for overcoming its current economic challenges.
&#8220;The economic recovery plan that the government is working on must be a package of comprehensive reforms, including even exchange rate policy, the consistency with regards to the monetary policy and structural reforms,&#8221; he said.
If it meets the bank&#8217;s reform requirements, the tranche is expected to be approved by the board early next year.
Nigeria&#8217;s economy has been shrinking largely as a result of a plunge in oil prices since mid-2014. Attacks on energy facilities in the Niger Delta have also cut crude production by around a third since the start of the year.
The bank noted that oil generates around 70 percent of Nigerian government revenues. The drop in prices has left Nigeria struggling to fund a record 6.06 trillion naira ($20 billion) 2016 budget that aims to stimulate growth by tripling capital expenditure.﻿

Nigeria to recieve $600 mn loan from African Development Bank

Standard Chartered&#8217;s Islamic division is seeking banking licences in three African countries in order to offer its services to the continent&#8217;s large Muslim population.
Standard Chartered Saadiq could enter at least one of these markets &#8211; Nigeria, Botswana and Zambia &#8211; as early as 2017, Mohammad Ali Allawalla, who is head of Islamic banking for retail clients at the bank, said on the sidelines of a media briefing on Tuesday.
The Muslim population in sub-Saharan Africa is forecast to more than double from about 250 million people in 2010 to nearly 670 million in 2050, according to Pew Research Center.
As well as talking to regulators in the three African countries, Standard Chartered Saadiq is also in discussions about gaining an Islamic banking licence in Brunei in South East Asia and working with the regulator there on guidelines for Islamic wealth management.
Standard Chartered Saadiq&#8217;s core markets are Pakistan, Malaysia, Bahrain, United Arab Emirates, Indonesia and Bangladesh and in 2014 it entered the Kenyan market, its first move into Africa.
&#8220;Nigeria is an interesting market in terms of size we are exploring and other markets like Botswana and Zambia, which are not big markets in terms of sheer size but in terms of pockets of customers they present a good opportunity,&#8221; Allawalla said.
Nigeria, the continent&#8217;s most populous nation, has around 77 million Muslims, according to Pew Research Center.
Allawalla said the country presented challenges for retail banking because of the gap between rich and poor.
Standard Chartered already operates in Nigeria, Botswana, Zambia and Brunei and Saadiq would only venture into them if there was a need for a alternative Islamic products, Allawalla said.
&#8220;Its not just a matter of what we would like to do, it&#8217;s also a matter of how mature the regulations are, what do the regulations allow you to do, what is the cost of setting up vis-à-vis the products you can roll out in the market,&#8221; he added.﻿

Standard Chartered Islamic division sets sights on Africa

<div class="inlineRelatedContent">Nigerian bank executives met with central bank officials, banking sources told Reuters on Wednesday, a day after the monetary authority suspended nine lenders from foreign exchange transactions for failing to remit money owed to the government.</div>
The suspensions from the interbank market were imposed after the banks failed to remit $2.1 billion, the government&#8217;s share of dividends from state-owned gas company NLNG, the sources said. They were due to pay the funds into the government account at the central bank.
Investors dumped bank shares on Wednesday while traders said the black market naira sank to a record low of 402 per dollar.
The central bank (CBN) readmitted UBA &#8211; one of the banks suspended on Tuesday &#8211; to foreign exchange trading as it had remitted all outstanding deposits, CBN said in a statement.
Last year, President Muhammadu Buhari ordered all state accounts merged into that single account in a bid to reduce corruption.
Bankers told Reuters the central bank wanted the funds remitted in dollars, which are in short supply as Africa&#8217;s largest economy suffers its worst financial crisis in decades due to a slump in the price of oil, its dominant commodity.
The central bank tightened restrictions on the flow of dollars to domestic lenders in March, forcing the banks to delay hard-currency loan and trade repayments and increasing their risk of default.
One of the nine banks, FCMB, said it was working with the central bank to resolve the issue, which was a function of illiquidity in the currency markets and the weak economy rather than wilful non-compliance.
A third, First Bank, said it remits government funds when due but was discussing with the central bank and state-oil firm on ways of retaining the dollars to help solve forex shortages and meet its obligations.
There was no comment from the other banks.
There were no trades on the interbank market until three minutes before the end of the session, when the central bank intervened with dollar sales, traders said.
Only three deals worth $0.75 million were traded at 305.50 naira per dollar, the level the market has closed at since Monday.
Traders said the central bank, which has been selling dollars almost daily since it floated the naira in June, had reduced the volumes of dollars it supplied.
Foreign investors &#8211; other past suppliers of dollars &#8211; have remained on the sidelines during the West African country&#8217;s financial crisis, making the central bank the main source of hard currency.
On Wednesday, Nigeria&#8217;s dollar reserves fell 2.5 percent from a month ago to $25.67 billion, its lowest level in more than 11 years, according to central bank figures.
But reserves may be far less when all future dollar commitments are included.
The central bank settled $1.2 billion worth of outright forward contracts it sold in June at 280 per dollar this week. It is due to pay $153 million in futures contract settled in naira on Wednesday.
 
(additional reporting by Camillus Eboh and Ulf Laessing; Editing by John Stonestreet and Phil Berlowitz)﻿

Nigerian bank execs meet central bank over FX market suspension – sources

Nigeria&#8217;s central bank has suspended nine banks from the interbank currency market for failing to remit money owed to the government, banking sources told Reuters on Tuesday.
The suspension comes after the central bank tightened restrictions on the flow of dollars to domestic lenders in March. That has forced the banks to delay hard-currency loan and trade repayments and increased their risk of default.
&#8220;This is really a function of the dire macroeconomic situation and illiquidity in the FX markets rather than willful non-compliance by banks,&#8221; said Diran Olojo, a spokesman for FCMB, one of the banks.
Olojo said the bank was working with the central bank to resolve the issue.
The banks have failed to remit $2.1 billion, the government&#8217;s share of dividends from the state-owned gas company, NLNG. The banks were supposed to pay the money into the government&#8217;s account at the central bank.
Last year, President Muhammadu Buhari ordered the merger of state accounts into that one account at the central bank to reduce corruption.
In addition to FCMB, the banks are First Bank, United Bank for Africa (UBA), Heritage Bank, Keystone Bank, Skye Bank, Diamond Bank, Sterling Bank and Fidelity Bank, banking sources say.
&#8220;We could not trade today,&#8221; one banker said. &#8220;The suspension is meant to pass on the pressure to banks to make payments (but) this is foreign currency and we have to source the dollars.&#8221;
Nigeria, Africa&#8217;s largest economy, is suffering its worst financial crisis in decades as a slump in oil revenues hammers public finances and the naira. The central bank governor has said recession is likely.
The bank floated the currency in June to attract investment, allowing the naira to fall by 40 percent against the dollar. But foreign investors have remained on the sidelines, making the central bank the main supplier of dollars.
Some lenders were trying to sell assets to pay the funds, another banker said, adding that the central bank was aware of refinancing challenges facing the industry.
A director at one of the affected lenders said his bank informed all board members of the suspension via a letter on Tuesday, adding it held $125 million of the total sum.
The central bank has been selling dollars almost daily to boost interbank trading and liquidity. But it reduced its sales volume this week, traders said, after it settled two-month outright forwards it sold in June.
The regulator paid $1.2 billion for currency forwards it sold in June at 280 per dollar, the bankers said, further draining its dollar reserves. Those reserves are down to $25.7 billion, their lowest in more than 11 years.
The naira, which hit a record low of 365.25 per dollar on Thursday, closed flat at 305.50 on Tuesday, gaining ground after the central bank sold dollars.﻿

Banking

Kenya’s cenbank issues licence to DIB Bank

South Africa’s Capitec FY profit up as client numbers climb

Zimbabwe mining threatened by foreign payment delays

South Africa's Standard Bank posts 4 pct rise in FY profit

Trends affecting wealthy individuals in 2017

S.African banking shares extend losses after watchdog charges

Standard Chartered to review Sudan links after U.S. sanctions move

Congo central bank injects $50 million into market to prop up franc

Op-Ed: Ivory Coast – the best macro in Africa?

Former Africa heads at Carlyle and KKR to set up investment firm

Top tips for travelling overseas this festive season

S.Africa's Gupta family asks court to force release of details over closure of accounts

Mauritian bank to acquire Kenya's Fidelity Bank

Nigeria to recieve $600 mn loan from African Development Bank

Standard Chartered Islamic division sets sights on Africa

Nigerian bank execs meet central bank over FX market suspension – sources

Nigeria central bank suspends nine banks from FX market – source

News Tips

Advertise With Us

Banking

Kenya’s cenbank issues licence to DIB Bank

South Africa’s Capitec FY profit up as client numbers climb

Zimbabwe mining threatened by foreign payment delays

South Africa's Standard Bank posts 4 pct rise in FY profit

Trends affecting wealthy individuals in 2017

S.African banking shares extend losses after watchdog charges

Standard Chartered to review Sudan links after U.S. sanctions move

Congo central bank injects $50 million into market to prop up franc

Op-Ed: Ivory Coast – the best macro in Africa?

Former Africa heads at Carlyle and KKR to set up investment firm

Top tips for travelling overseas this festive season

S.Africa's Gupta family asks court to force release of details over closure of accounts

Mauritian bank to acquire Kenya's Fidelity Bank

Nigeria to recieve $600 mn loan from African Development Bank

Standard Chartered Islamic division sets sights on Africa

Nigerian bank execs meet central bank over FX market suspension – sources

Nigeria central bank suspends nine banks from FX market – source

News Tips

Advertise With Us

Newsletters