<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-820x547.jpg" alt="" class="wp-image-425565" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/GY5LKY5NC5NTZLM3SIWJG6YQMQ-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: International Monetary Fund logo is seen outside its headquarters during the IMF/World Bank spring meetings in Washington, U.S., April 20, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



RABAT, June 19 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund (IMF) is working on a platform for central bank digital currencies (CDBCs) to enable transactions between countries, IMF Managing Director Kristalina Georgieva said on Monday.



&#8220;CBDCs should not be fragmented national propositions&#8230; To have more efficient and fairer transactions we need systems that connect countries: we need interoperability,&#8221; Georgieva told a conference attended by African central banks in Rabat, Morocco.



&#8220;For this reason at the IMF, we are working on the concept of a global CBDC platform,&#8221; she said.



The IMF wants central banks to agree on a common regulatory framework for digital currencies that will allow global interoperability. Failure to agree on a common platform would create a vacuum that would likely be filled by cryptocurrencies, she said.



A CBDC is a digital currency controlled by the central bank, while cryptocurrencies are nearly always decentralised.



Already 114 central banks are at some stage of CBDC exploration, &#8220;with about 10 already crossing the finish line&#8221;, she said.



&#8220;If countries develop CDBCs only for domestic deployment we are underutilizing their capacity,&#8221; she added.



CBDCs could also help promote financial inclusion and make remittances cheaper, she said, noting that the average cost of money transfers stands at 6.3% amounting to $44 billion annually.



Georgieva stressed that CBDCs should be backed by assets and added that cryptocurrencies are an investment opportunity when backed by assets, but when they are not they are a “speculative investment.



(Reporting by Ahmed Eljechtimi; Editing by Sharon Singleton)

FILE PHOTO: International Monetary Fund logo is seen outside the headquarters building

IMF working on global central bank digital currency platform

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="640" height="360" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1.jpg" alt="" class="wp-image-400524" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/istockphoto-1250489640-640x640-1-300x169.jpg 300w" sizes="(max-width: 640px) 100vw, 640px" /><figcaption>World Bank on glass building. Image: Flickr</figcaption></figure>



The World Bank said it has approved a $750 million credit line for Nigeria to help the country&#8217;s 36 states push through reforms to attract investment and create jobs.



Several states in Nigeria struggle to pay salaries due to low revenues and resort to borrowing from the domestic bond market and banks to fund infrastructure projects.



The World Bank said Nigeria had made progress in improving the ease of doing business but the country&#8217;s ability to attract domestic and foreign investment remained low compared with others.



&#8220;Private sector investments remain the major vehicle to create more jobs, increase revenues to the states and improve social and economic outcomes for citizens,&#8221; the World Bank&#8217;s country director for Nigeria, Shubham Chaudhuri, said in a statement late on Thursday.



The $750 million credit would improve land administration, telecommunications infrastructure, public-private partnerships, investment promotion and the business regulatory environment, the World Bank said.

istockphoto-1250489640-640×640

World Bank approves $750 mln credit to boost Nigerian reforms

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="443" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4-820x443.png" alt="" class="wp-image-420187" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4-820x443.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4-300x162.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4-160x86.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4-768x415.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/image-4.png 877w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Finance Minister Prof. Njuguna Ndung&#8217;u and CA DG Francis Wangusi Image via: Reuters</figcaption></figure>



Kenya&#8217;s new President William Ruto instructed the finance ministry on Thursday to cut 300 billion shillings ($2.5 billion) from annual government spending this year, to bring the country &#8220;back to sanity&#8221;.



Ruto, sworn in on Sept. 13, appointed his cabinet on Tuesday, naming&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30Y3ZF&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">former central bank governor Njuguna Ndung&#8217;u</a>&nbsp;as finance minister to navigate the economy through rising inflation, a heavy debt burden and drought.



Ruto also said he aimed to bring the recurrent expenditure down further next year by an undisclosed amount, in a bid to achieve a recurrent budget surplus by the third year.



The president did not give details on the expenditure to be cut. Recurrent expenditure usually includes civil servant salaries, domestic and foreign interest payments, pensions and fuel costs for the government fleet of vehicles.



&#8220;I have instructed Treasury to work with ministries to find savings of 300 billion shillings in this year&#8217;s budget,&#8221; Ruto said in his first speech as president to parliament.



The 2022/23 budget was presented in April.



&#8220;Next year, we will bring it further down so that, by the third year, we have a recurrent budget surplus.&#8221;



The president said the government should never borrow to finance recurrent expenditure, adding, &#8220;the market cannot sustain the kind of borrowing we are doing as a government&#8221;.



&#8220;We must bring ourselves back to sanity.&#8221;



A finance ministry document issued earlier this month showed&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N30L4H7&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">recurrent expenditures</a>&nbsp;were projected at 2.27 trillion shillings or 16.2 percent of Gross Domestic Product in the 2022/23 (July-June) fiscal year.



Ruto became president after winning a closely contested election last month, with campaign pledges to create economic opportunities for the poor.



He faces a very&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N2Z644Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">narrow fiscal space</a>&nbsp;to roll out his policies, after his predecessor Uhuru Kenyatta increased public borrowing to fund infrastructure projects.



The finance ministry has forecast economic growth of 5.5% this year compared with 7.5% in 2021, a continuation of recovery from the COVID-19 pandemic, which led to a contraction of 0.3 percent in 2020.

image-4

Kenya’s Ruto vows to cut spending, borrowing in move ‘back to sanity’

<ul><li>China stocks slip 0.3%-0.8% on weak data</li></ul>



<ul><li>Rand down 0.4% amid growth concerns, power cuts, gold price decline</li></ul>



<ul><li>Turkish March current account deficit $5.554 billion; lira slips 0.5%</li></ul>



By Anisha Sircar and Bansari Mayur Kamdar



May 16 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks and currencies hovered just above their lowest level in almost two years on Monday as dire Chinese economic data renewed concerns around global growth, while the South African rand came under pressure from domestic power cuts.



The MSCI index for emerging market (EM) equities&nbsp;.MSCIEF&nbsp;inched 0.2% higher, still down 6.5% on the month and nearly 20% on the year, while currencies&nbsp;.MIEM00000CUS&nbsp;were little changed against a strong greenback after a sixth straight weekly decline last week.



The dollar index&nbsp;=USD&nbsp;was perched at a two-decade peak as investors ramped up U.S. monetary policy tightening expectations.&nbsp;FRX/



&#8220;The main factor weighing on risky emerging assets is the prospect of further rate hikes by the Fed, accompanied by growing concerns that the global economy could be heading for recession,&#8221; said Piotr Matys, senior FX analyst at In Touch Capital Markets.



Concerns around monetary tightening amid slowing global growth, rising inflation and a cooling commodity price rally have hampered the attractiveness of emerging markets.



China stocks&nbsp;.SSEC,&nbsp;.CSI300&nbsp;fell between 0.3% and 0.8% as data showed the country&#8217;s April retail sales shrank 11.1% on the year, almost twice the drop forecast, while industrial output fell 2.9%.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2X8047&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



South Africa&#8217;s rand&nbsp;ZAR=&nbsp;fell 0.4% as domestic power cuts, weaker gold prices and a blurry growth outlook weighed on the currency.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2X818V&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Investor focus was on a monetary policy decision expected on Thursday where the central bank is likely to make its first 50 basis point repo rate hike in more than six years.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2X398J&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The Czech crown&nbsp;EURCZK=&nbsp;inched 0.3% higher after hitting two-month lows last week. Data showed industrial producer prices rose 26.6% year-on-year in April, greater than market expectations.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AP7N2QN02E&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The Czech National Bank launched a &#8220;true monetary-policy intervention&#8221; when it entered the market on May 12 to stop a weakening of the crown, board member Tomas Holub said Friday.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2X50HP&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The Sri Lankan rupee&nbsp;LKR=&nbsp;fell&nbsp;1.2%&nbsp;ahead of an address by the crisis-hit country&#8217;s new prime minister, Ranil Wickremesinghe.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL3N2X812C&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Turkey&#8217;s lira&nbsp;TRY=&nbsp;fell 0.5% as the central bank said the country&#8217;s current account deficit in March widened to $5.554 billion, more than the forecasted $5.371 billion, but is up about 18% from its record low hit in December.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AAPN0KPIRT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;The government notion that Turkey will be able to bring inflation lower in coming quarters if the current account deficit narrows is being put to a major test,&#8221; Matys said.



For GRAPHIC on emerging market FX performance in 2022, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2022, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ATOPEMRG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



For CENTRAL EUROPE market report, see&nbsp;CEE/



For TURKISH market report, see&nbsp;.IS



For RUSSIAN market report, see&nbsp;RU/RUB



(Reporting by Anisha Sircar and Bansari Mayur Kamdar in Bengaluru; Editing by Kirsten Donovan)

Stock market exchange graph price drop with red numbers investment lose of business financial digital background – Candle stick charts stock crash crisis fall risk decreasing arrow down trend sell

EMERGING MARKETS-Battered stocks inch up; S. African rand falls on power cuts, growth fears

* Asia stocks drop to near 2yr low, U.S. equity futures struggle



* Dollar hits 2yr highs on AUD, NZD



* Bitcoin tumbling, hits new 16-month low



By Tom Westbrook



SINGAPORE, May 12 (Reuters) – Asian stocks fell to an almost two-year low and the dollar rose to multi-year highs on Thursday as data showed U.S. inflation persistently hot, deepening investor worries about the economic toll of aggressive interest rate hikes to tame it.



U.S. markets whipsawed after the news, then closed sharply lower. S&amp;P 500 futures gave up early gains to fall 0.2% in the Asia session. European futures also fell, with EuroSTOXX 50 futures down 2% and FTSE futures down 1.6%.



Bitcoin, leading a fire-sale of risky assets as rate hikes gather steam, fell 7% to $26,970. It was near $40,000 a week ago and is 60% beneath its peak six months ago.



The growth-sensitive Australian and New Zealand dollars fell about 0.8% to almost two-year lows. The Chinese yuan slid to a 19-month trough.



Headline U.S. consumer prices rose 8.3% for the 12 months to April, slower than the 8.5% pace of a month earlier, but higher than market forecasts for 8.1%. Traders said it underscored concern that rates will rise quickly in response.



“We’re now very much embedded with at least two further (U.S.) hikes of 50 basis points on the agenda. For equity markets that really is the end of free money,” said Damian Rooney, director of institutional sales at Argonaut in Perth.



“I think we probably were delusional six months ago with the rise of U.S. equities on hopes and prayers and the madness of the meme stocks, and suddenly were going a little bit back to what is reality,” he said.



MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2% to a 22-month low. Japan’s Nikkei fell 1.7%.



Treasuries were steady in Asia, but selling at the short end and a rally at the longer end has flattened the yield curve as investors brace for near-term hikes to hurt long-run growth.



The benchmark 10-year Treasury yield fell six basis points (bps) overnight and dropped a further 2.6 bps in Tokyo trade to 2.8967%. The gap between two-year and 10-year yields narrowed 3.5 bps.



“There should be a tipping point in how far the Fed can be pressed before odds clearly point towards a hard landing,” said NatWest Markets’ U.S. rates strategist Jan Nevruzi.



SELL IN MAY



The rates outlook is driving up the U.S. dollar and taking the heaviest toll on riskier assets that shot up through two years of stimulus and low-rate lending.



The Nasdaq is down nearly 8% in May so far and more than 25% this year. Hong Kong’s Hang Seng Tech index slid 1.5% on Thursday and is off more than 30% this year.



Cryptocurrency markets are also melting down, with the collapse of the so-called stablecoin TerraUSD highlighting the turmoil as well as the selling in bitcoin and next-biggest-crypto, ether.



A weakening growth picture outside the United States is battering investor confidence, too, as war in Ukraine threatens an energy crisis in Europe and lengthening COVID-19 lockdowns in China throw another spanner into supply chain chaos.



Nomura estimated this week that 41 Chinese cities are in full or partial lockdowns, making up 30% of the country’s GDP.



Property developer Sunac China said it missed a bond interest payment and will miss more as China’s real estate sector remains in the grip of a credit crunch.



The yuan fell to a 19-month low of 6.7631 and has dropped almost 6% in under a month.



The Australian dollar fell 0.8% to a near two-year low of $0.6879. The kiwi slid by a similar margin to $0.6240, though the euro and yen held steady to keep the dollar index just shy of a two-decade peak.



Sterling was at a two-year low of $1.2204.



In commodity trade, oil wound back a bit of Wednesday’s surge as growth worries dampened fear of gas supply disruptions in Europe.



Brent crude futures fell 1.3% to $106.90 a barrel.



British activity and growth data is due later in the day.



(Editing by Muralikumar Anantharaman and Kim Coghill)

(Photo: Flickr/QuoteInspector.com)

SHARES TUMBLE AS STUBBORN U.S. INFLATION STOKES WORRIES ON RATES, ECONOMY

<figure class="wp-block-image is-resized"><img decoding="async" loading="lazy" src="https://www.directorstalkinterviews.com/wp-content/uploads/2020/11/Investment-management.jpg" alt="Jarvis Securities Q&amp;A: Expecting volumes to double (LON:JIM) - DirectorsTalk Interviews" width="642" height="428"/><figcaption>Image Credit: QuoteInspector.com</figcaption></figure>



Emerging market stocks stemmed losses on Thursday, helped by a rally in Mainland China and emerging Europe, but remained on course for their first quarterly loss since the coronavirus pandemic flared in March 2020.



Beijing&#8217;s efforts to quell fears of a power shortage, and a string of downbeat economic data from China, weaker-than-expected September factory activity being the latest, spurred bets of monetary policy easing, lifting heavy-weight mainland China stocks .



But Hong Kong stocks fell as technology giants lagged and real estate firms followed Evergrande lower after it missed a deadline for a coupon repayment.



MSCI&#8217;s index of EM shares was flat. While worries about an economic slowdown in China spooked some other Asian shares, those elsewhere took heart from a higher open for Western European bourses.



Russian stocks were on their way back to record highs, up 0.8%, while those in Turkey, Hungary and Poland rallied between 0.3% and 0.4%



&#8220;A sense of calm has certainly returned to financial markets following the heavy sell-off across equities witnessed earlier in the week,&#8221; said Lukman Otunuga, a senior research analyst at FXTM.



But the broader EM index was set for a quarterly drop of about 9%, breaking a five-quarter winning streak. Beijing&#8217;s crackdown on businesses, worries about a likely default at Evergrande, slowing growth and rising inflation weighed on risk appetite this quarter.



This would be the index&#8217;s worst third quarter since the September quarter of 2015.



With the greenback holding steady near one-year highs against major peers, most emerging currencies attempted gains.



Turkey&#8217;s beleaguered lira was 0.5% firmer, pulling away from a record closing low of 8.9490 marked on Wednesday as worries persist over President Tayyip Erdogan&#8217;s influence on monetary policy.



South Africa&#8217;s rand climbed 0.5% in its best day in about three weeks, while Russia&#8217;s rouble firmed 0.4%.



Ahead of a central bank meeting on Thursday, Mexico&#8217;s peso snapped a four-day losing streak to rise 0.2%. The benchmark interest rate is expected to be hiked by 25 basis points to 4.75%.



Tunisian bonds continued their climb and the currency jumped 1%, attempting to recoup losses suffered in the previous session.



President Kais Saied named Najla Bouden Romdhane, a little-known professor of geophysics, as Tunisia&#8217;s first woman prime minister on Wednesday. After being elected in 2019, Saied had been under pressure to form a government.



Poland&#8217;s zloty rose 0.2% against the euro. Poland&#8217;s Constitutional Tribunal will make its third attempt on Thursday to rule on whether the country&#8217;s constitution or European law takes precedence in solving disputes.



For GRAPHIC on emerging market FX performance in 2021, see <a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>

Investment-management

Stocks set for worst quarter since pandemic-hit March 2020

JOHANNESBURG, July 14 (Reuters) &#8211; Claims for damage and theft from businesses affected by civil unrest in South Africa are likely to be between 7 billion rand and 10 billion rand ($481 million to $683 million), the head of the only insurer covering political violence in the country told Reuters.



Days of riots and looting have left more than 70 people dead, hurt thousands of businesses and damaged major infrastructure in some of the worst civil unrest in decades.



Triggered by the jailing of ex-president Jacob Zuma last week after he failed to appear at a corruption inquiry, its has widened into an outpouring of anger over poverty and inequality.


		
						<div style="display: block; position: relative; min-width: 0px; max-width: 640px;">
					<div style="padding-top: 56%; ">
						<video-js
								id="6263502442001"
								data-video-id="6263502442001" data-account="1571595826001"
								data-player="default"
								data-usage="cms:WordPress:6.3.1:2.8.3:javascript"
								data-embed="default" class="video-js"
								data-application-id=""
								controls 								style="width: 100%; height: 100%; position: absolute; top: 0; bottom: 0; right: 0; left: 0;">
						</video-js>

						<script src="https://players.brightcove.net/1571595826001/default_default/index.min.js"></script> 					</div>
				</div>
						
		


Sasria, a state-owned insurer set up after private firms stopped underwriting risks relating to political violence due to unrest during apartheid, has received around 100 million rand in claims so far, its managing director Cedric Masondo told Reuters, adding this was expected to rise significantly.



The company, the only insurer to offer cover for such risks, expects total claims of up to 10 billion rand, or 12 billion rand in a worst-case scenario &#8211; making the unrest likely the most significant event in terms of the value of claims since Sasria was set up in 1974, Masondo continued.



&#8220;This is the worst in terms of financial magnitude,&#8221; he said.



Masondo said while Sasria has re-insurance cover that runs into the high single digits and can fund up to 10 billion rand of claims from its own balance sheet, it only covers customers up to a threshold of 500 million rand.



This will mean smaller firms will likely see their losses insured in full, while major companies that have suffered significant damage are likely to have to shoulder some of the cost themselves.



Some 40,000 firms have been affected in the Ethekwini municipality in the province of KwaZulu-Natal alone, with damages in the area put at 15 billion rand, according to its mayor.



Violence has been concentrated in KwaZulu-Natal, Zuma&#8217;s homeland, as well as the country&#8217;s economic and financial centre of Johannesburg and surrounding areas in the Gauteng province.



($1 = 14.6309 rand) (Reporting by Emma Rumney; Editing by Olivia Kumwenda-Mtambo and Toby Chopra)



(c) Copyright Thomson Reuters 2021. Click For Restrictions &#8211; https://agency.reuters.com/en/copyright.html

Why Flood Insurance May Encourage Americans To Live Near Danger

Insurance claims from S.African unrest seen at up to $680 mln – govt insurer

<figure class="wp-block-image size-large is-resized"><img decoding="async" loading="lazy" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1198542964-820x506.jpeg" alt="" class="wp-image-397281" width="658" height="406" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1198542964-820x506.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1198542964-300x185.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1198542964-768x474.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1198542964-1536x948.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/02/GettyImages-1198542964-scaled.jpeg 2048w" sizes="(max-width: 658px) 100vw, 658px" /><figcaption>Stock market exchange graph price drop with red numbers investment lose of business financial digital background / Candle stick charts stock </figcaption></figure>



&nbsp;Index provider MSCI said on Thursday it will reclassify the MSCI Argentina Index from Emerging Markets to Standalone Markets status during its November index review.



“The prolonged severity of capital controls with no resolution is not in line with the Market Accessibility criteria of the MSCI Emerging Markets Index,&#8221; said Craig Feldman, global head of index management research at MSCI.



&#8220;This has led to the reclassification of the MSCI Argentina Index from Emerging Markets to Standalone Markets status.&#8221;



MSCI also said it will consult on the possible reclassification of Pakistan from emerging to frontier market and continues to monitor the accessibility to the Nigerian stock market.



 (Reporting by Rodrigo Campos Editing by Chris Reese)

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

MSCI to dump Argentina out of benchmark EM stock index

<figure class="wp-block-image size-large is-resized"><img decoding="async" loading="lazy" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/1435739708_5cb0ad5c44_c-1.jpg" alt="" class="wp-image-405092" width="576" height="379" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/1435739708_5cb0ad5c44_c-1.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/1435739708_5cb0ad5c44_c-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/1435739708_5cb0ad5c44_c-1-768x506.jpg 768w" sizes="(max-width: 576px) 100vw, 576px" /><figcaption>Image via Flickr</figcaption></figure>



Zambia&#8217;s central bank will increase the daily limit for foreign currency exchange transactions, it announced on Thursday, as part of an effort to draw transactions into official channels and reduce complication for businesses.



Commercial bank customers will be allowed to exchange $10,000 per day, increased from $5,000. Customers at retail foreign exchange bureaus will be permitted to exchange up to $5,000, raised from $1,000, Central Bank Governor Christopher Mvunga said.



&#8220;This will allow for a regulated, systematic market where people can transact within the formal channels,&#8221; Mvunga said of the measures, which will take effect on June 1.



The limits were introduced 20 years ago, and the central bank had recognised that they were inconveniencing businesses and forcing people to buy hard currency on the black market.



The central bank said in a circular dated May 24 that it would observe the new over-the-counter foreign currency limits for a period of two months, subject to further review. 



(Reporting by Chris Mfula Editing by Promit Mukherjee and Peter Graff)

1435739708_5cb0ad5c44_c

Zambia’s central bank to raise cap on foreign exchange transactions

<figure class="wp-block-image size-large is-resized"><img decoding="async" loading="lazy" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" width="745" height="435" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="(max-width: 745px) 100vw, 745px" /><figcaption>Photograph via istockphoto</figcaption></figure>



SINGAPORE, April 1 (Reuters) &#8211; Stocks crept higher on Thursday following their weakest quarter in a year and vaunted U.S. economic strength supported the dollar, as investors parsed details of a $2 trillion government spending plan and hoped for strong jobs data later in the week.



MSCI&#8217;s broadest index of Asia-Pacific shares outside Japan recouped Wednesday losses with a 0.7% gain. The greenback hit a three-month high against the Aussie and was near milestone peaks on the euro and the Japanese yen.



Japan&#8217;s Nikkei rose 0.8% as a survey showed big manufacturer sentiment bouncing back to pre-pandemic levels.



Equity futures for Europe, London and the S&amp;P 500 held steady just above flat into the final trading day of the week before Good Friday.



On the heels of a $1.9 trillion pandemic relief package, President Joe Biden outlined a broad plan to re-make the world&#8217;s biggest economy including spending on roads, railways, broadband, clean energy and semiconductor manufacture.



Benchmark ten-year U.S. Treasuries, which had sold in New York on early details of the plan and had suffered their biggest selloff in a dozen years last quarter, steadied on Thursday and pared yields a fraction to 1.7568%.



&#8220;We&#8217;ll probably see more spending power from the stimulus than drag from the (accompanying) taxes,&#8221; said Jun Bei Liu, portfolio manager at Tribeca Investment Partners in Sydney.



&#8220;And if anything the higher taxes probably limit future inflationary pressure, and in a strange way might even help bond yields to stabilise where they are,&#8221; she said.



It is not clear if the plan could clear Congress, since it has had an icy reception from Republicans, however, the breadth of the proposed spending did help draw investors back to technology shares on Wednesday, and the Nasdaq rose 1.5%.



SHIFTING SENTIMENT



U.S. markets had closed out the quarter with gains &#8211; the S&amp;P 500 rose 5.8% and the Dow Jones 7.8% over the three months &#8211; however the 4.1% quarterly rise in world stocks was the slowest since the recovery from last March&#8217;s meltdown had begun.



This has come with growing concern about hiccups in the vaccine rollout and a fresh wave of coronavirus infections, particularly in Europe where on Wednesday France ordered a third national lockdown.



The euro has been punished as the pandemic turns resurgent on the continent, and was clinging on at $1.1717 in Asia while investors awaited Friday&#8217;s U.S. labour market data to assess the growing gap in recoveries astride the Atlantic Ocean.



The consensus forecast for job creation last month is just under 650,000 but Chris Weston, head of research at brokerage Pepperstone in Melbourne, said recent paring of U.S. dollar shorts shows investors are positioned for an even bigger figure.



Risk-sensitive currencies reflected that on Thursday, although the looming Easter long weekend thinned trade. The Australian dollar fell 0.7% to $0.7535, its lowest since December, and the yuan and kiwi dollar also slipped.



Australia&#8217;s fastest home-price gains in more than three decades last month also point to some of the side effects of ultra-easy monetary policy, possibly putting pressure on central banks to curtail support sooner than they had planned.



Other signs of fragility in sentiment included the flop listing of food delivery company Deliveroo, which fell by nearly a third on its London debut, and nerves following the fire sale of Archegos Capital&#8217;s portfolio in the United States.



Commodities stayed in a cautious mode, and crude oil nursed overnight losses with Brent futures steady at $63.13 a barrel and U.S. crude up slightly to $59.59.



Gold, which pays no income, hung on to an overnight bounce to trade at $1,714 an ounce. Even so, it suffered its worst quarter since late 2016 owing to the rise in U.S. yields.



(Reporting by Tom Westbrook in Singapore. Additional reporting by Kevin Buckland in Tokyo and Alwyn Scott in New York. Editing by Sonya Hepinstall, Sam Holmes and Jane Wardell)

World map with charts and graphs as symbols of global finance

GLOBAL MARKETS-Stocks firm, dollar gains as investors pin hopes on U.S. economy

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/income-tax-south-africa-820x547.jpg" alt="" class="wp-image-400713" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/income-tax-south-africa-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/income-tax-south-africa-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/income-tax-south-africa-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/income-tax-south-africa-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/income-tax-south-africa.jpg 1800w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>Photograph via Shutterstock</figcaption></figure>



JOHANNESBURG, April 1 (Reuters) &#8211; South Africa collected 1.25 trillion rand ($85 billion) in tax revenue in the financial year ended March 2021, around 12% less than the government&#8217;s original target of 1.425 trillion rand, the revenue service said on Thursday.



The South African Revenue Service (SARS) said improved economic activity, higher collections company tax, especially mining firms, and greater tax compliance had helped to reduced the shortfall.



The initial 2020/21 target of 1.425 trillion rand was set by the National Treasury before the coronavirus pandemic struck in March last year. Treasury revised the estimate down to 1.112 trillion rand in October, but then upped it to 1.212 trillion in the February 2021 budget. ($1 = 14.6551 rand) 



(Reporting by Mfuneko Toyana Editing by Tanisha Heiberg)

income-tax-south-africa

South Africa collects $85 billion in taxes in 2020/21  – revenue service

NAIROBI, March 30 (Reuters) &#8211; Kenya&#8217;s central bank has room to cut its benchmark interest rate, its governor said on Tuesday, adding that other interventions were also needed to help economic recovery in the face of a coronavirus-induced slump.



Policymakers held the benchmark rate at 7.0% for the seventh time in a row on Monday, saying that a package of measures rolled out since last year had protected the economy from substantial decline.



&#8220;There is definitely space to cut interest rates,&#8221; Patrick Njoroge told a news conference.



More needed to be done to ensure that the economy can recover from the impact of the coronavirus, Njoroge said.



&#8220;The measures that will have the most impact are not the sort of demand management measures. It&#8217;s actually the structural measures,&#8221; he said &#8212; for example, offering more cargo freight space to fresh produce growers to help them export.



A new International Monetary Fund financing programme to Kenya worth $2.4 billion was likely to be approved by the IMF&#8217;s board next week, the central banker said.



&#8220;We expect that programme will be discussed by the IMF on Friday, April 2,&#8221; he said.



For nearly two years, Kenya has abandoned expensive commercial debt to cut back on ballooning repayments, while revenue collection has been squeezed by the pandemic.



However, the Treasury said last week that it was planning to go to the international capital markets later this year to issue two separate international bonds, partly to refinance maturing dollar bonds.



It was still too early for the central bank to assess the potential economic impact of new, partial restrictions the government imposed on Nairobi and four adjacent counties to curb the spread of the coronavirus, Njoroge said, maintaining the bank&#8217;s optimism about growth prospects for this year.



&#8220;The dynamism that was taking root towards the end of the year has been sustained,&#8221; he said. 



(Reporting by George Obulutsa; editing by Duncan Miriri and Larry King)

KENYA-MONEY

Kenya central bank says has space to cut rates, urges more measures

ABUJA, March 30 (Reuters) &#8211; Nigeria&#8217;s biggest lender Access Bank has bought a controlling stake in South Africa&#8217;s Grobank for around $60 million and will shore up the bank&#8217;s capital, its chief executive said on Tuesday, becoming the first Nigerian lender to venture into South Africa.



Access took on both equity and debt in the South African bank, part of a regional expansion to tap into correspondent and trade banking deals on the continent, Herbert Wigwe told CNBC Africa Television. He did not disclose the exact stake size.



Nigerian lenders have been seeking new avenues to boost profit amid slow economic growth at home, a drop in government bond yields and a rise in restructured loans due to the impact of the coronavirus pandemic.


		
						<div style="display: block; position: relative; min-width: 0px; max-width: 800px;">
					<div style="padding-top: 56%; ">
						<video-js
								id="6245151297001"
								data-video-id="6245151297001" data-account="1571595826001"
								data-player="c0AOssA7"
								data-usage="cms:WordPress:6.3.1:2.8.3:javascript"
								data-embed="default" class="video-js"
								data-application-id=""
								controls 								style="width: 100%; height: 100%; position: absolute; top: 0; bottom: 0; right: 0; left: 0;">
						</video-js>

						<script src="https://players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js"></script> 					</div>
				</div>
						
		


Access Bank is expanding across the continent to counter stagflation at home and dollar shortages that have frustrated businesses. The latest deal brings its African presence to nine countries.



&#8220;We have a full retail banking licence in South Africa,&#8221; Wigwe said. &#8220;We will pursue a wholesale banking franchise. We will pursue trade finance,&#8221; he said, adding that Grobank is focused on the agribusiness and foods sector in South Africa.



South Africa&#8217;s banking sector is dominated by four top lenders that vie to grow profits in an economy that has been weakened further by the COVID-19 pandemic and seen rising impairments for bad loans.



Wigwe acknowledged the competitive landscape in South Africa but said he saw opportunities to connect the region, especially with the launch of the Africa free-trade area this year, and provide banking services to customers across the continent.



Access, with more than $16 billion of assets and a focus on corporate and retail banking, is restructuring its Nigerian business into a holding company. Wigwe said the lender will support Grobank with more capital, but did not give details.



In August, Access Bank agreed to buy Zambia&#8217;s loss-making Cavmont Bank and in January last year it acquired Kenya&#8217;s Transnational Bank with the aim of pursuing more acquisitions on the continent. ($1 = 14.9356 rand) 



(Reporting by Chijioke Ohuocha; Editing by Kirsten Donovan, Louise Heavens and Susan Fenton)

HERBERT WIGWE (2)

Nigeria’s Access Bank takes controlling stake in South Africa’s Grobank

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="727" height="484" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1262892802.jpg" alt="" class="wp-image-400407" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1262892802.jpg 727w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1262892802-300x200.jpg 300w" sizes="(max-width: 727px) 100vw, 727px" /><figcaption>All source data is in the public domain: https://www.naturalearthdata.com/downloads/10m-cultural-vectors/</figcaption></figure>



ABUJA, March 30 (Reuters) &#8211; African private equity raised less cash for investments in 2020 compared with the previous year as a result of the economic fallout of the COVID-19 pandemic, the African Private Equity and Venture Capital Association (AVCA) said.



Private equity funds investing on the continent raised $1.2 billion last year, down from $3.9 billion the previous year, AVCA said in its Annual African Private Equity Data Tracker seen by Reuters on Tuesday.



African private equity raised $4.3 billion in 2015.



&#8220;2020 saw a decrease in fundraising numbers, as a result of the economic effect of the pandemic,&#8221; the association said.



The coronavirus pandemic has stalled Africa&#8217;s growth momentum. Though the continent has started to recover, although with regional disparities, full recovery is difficult to predict, the AVCA said.



The total value of private equity deals in Africa dropped to $3.3 billion last year, from $3.8 billion in 2019, due to the pandemic, the AVCA said.



Deals announced during the period included Helios Investment Partners&#8217; agreeing to acquire a stake in Africa Specialty Risk Group and Old Mutual Alternative Investments buying a stake in Sifiso Learning Group of South Africa.



AVCA said deals in technology-enabled companies accounted for more than half of the total deals in 2020. Healthtech, fintech, edtech and agritech were among the top picks.



&#8220;The pandemic and subsequent lockdown restrictions showcased the viability of some sectors and presented new investment opportunities.&#8221;



A total of $18.1 billion was raised by African private equity funds between 2015 and 2020, AVCA said. There were 1,257 private equity deals worth $21.7 billion during that period, the association added. 



(Reporting by Chijioke Ohuocha in Abuja Editing by Matthew Lewis)

Map of the planet. Rays of energy.  World map. Global social network. Future. Vector. Blue futuristic background with planet Earth. Internet and technology. Floating blue plexus geometric background.

African private equity fundraising fell in 2020 due to pandemic – association

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-820x547.jpeg" alt="" class="wp-image-398627" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/03/GettyImages-1215267366-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption>3D rendering illustration of global futuristic abstract background</figcaption></figure>



Cynthia, a spaza shop owner in Johannesburg opens a fintech lender’s app and authorizes them to fetch her transactions from her mobile money account, which she uses to pay her bills, her bank account into which she deposits her weekly earnings and her money transfer account, which she uses to remit money to relatives.&nbsp;With a full view of her cashflow, she now gets approved for credit instantly and directly receives it into her preferred card. She also uses the app to find an affordable health insurance policy for her family, then sets a saving goal to meet the monthly premium and instructs her bank to save a certain amount every month to reach her&nbsp;goal, which once met, automatically enrols her and helps her prepare for difficult times&#8230;



<blockquote class="wp-block-quote">Many of those who are financially unbanked or underserved have an existing relationship with a telco, fintech or micro finance company and so there is an opportunity for banks to benefit from “open data” or “open telco”.</blockquote>



Some innovations have the potential to transform an entire landscape. Apple revolutionized the mobile phone and changed how we connect and communicate with each other. Tesla has reimagined car manufacturing in a software-centred world. One technology that is promising to change how we experience money, and is set to reshape financial services is ‘open banking’.



Open banking&nbsp;can be the game changer for financial services in Africa, assisting individuals and small businesses who traditionally have been underserved by the financial sector.



And while open banking is likely to be a game changer for Africa, could Africa also create a paradigm shift for open banking?&nbsp;Many of those who are financially unbanked or underserved have an existing relationship with a telco, fintech or micro finance company and so there is an opportunity for banks to benefit from “open data” or “open telco”. A move towards such openness – from both the banks and the other parties &#8211; will be needed if we are to unleash the true potential of financial services and give both consumers and businesses greater choice and control.



<h2 class="wp-block-heading" id="h-what-is-open-banking">What Is Open Banking?&nbsp;</h2>



Open banking is a collaborative ecosystem in which customer-consented data is shared among financial institutions, merchants and fintechs. This data is exchanged through secure Application Programming Interfaces (APIs) and gives customers control of their data and provides them with better products and services. While the open banking experience varies across the globe based on regulatory specifications, there are three common themes:



<ul><li>Data Access:&nbsp;Banks share customer-consented data—including payment, account, product, and financial information &#8211; with participants in the banking system to make customer experiences more seamless.</li><li>Customer Authentication:&nbsp;Banks enhance their customer authentication rules and consent management, often across multiple industries, to be more strict and more unified.</li><li>Transaction Initiation:&nbsp;Third Party Providers (TPPs) initiate payments—including card, mortgage, and loan payments, as well as investment decisions and stock purchases on behalf of customers.</li></ul>



<h2 class="wp-block-heading" id="h-how-will-it-unfold">How will it unfold?&nbsp;</h2>



Regulation has led the way in UK, EU, and Australia, while the US and India have been led by market forces where the sharing of account data is an accelerant of fast and smarter innovation.&nbsp;



On the African continent, Nigeria has recently announced their own regulatory framework establishing principles for data sharing between banks and the fintech ecosystem, that amongst other things stipulates access, technical and information security standards. The South African Reserve Bank has started industry consultations with a view to safeguard consumer data and manage cyber security risks specific to open banking payment solutions, particularly in the e-commerce environment.



There is a vibrant fintech community across both markets, comprising, e-wallets, Payments Service Providers (PSPs) s, TPPs and digital merchants, who can benefit from open banking. Simultaneously banks will be concerned about data protection, dispute management, liabilities, and implications on their services.



<ul><li>This journey will be an evolution, not a revolution. Adoption will take time as we are seeing in Europe and will require stakeholders from across the new ecosystem – including regulators, third parties, and banks – to come together to address challenges in FOUR key areas: Create promising use cases with clear value for consumers and businesses while creating the right incentives (monetization/ Business model) for both banks and fintechs</li><li>Develop a level playing field and standardised mechanisms by which banks and TPPs and PSP’s interact</li><li>Establish ecosystem-appropriate solutions to maximise security and minimise participants’ exposure to fraud</li><li>Ensure rules, standards and infrastructure to manage consumer consent, safeguard consumers financial information, manage enquiries and resolve disputes</li></ul>



&nbsp;Mastercard is playing a leadership role in facilitating and encouraging a safe and successful move to open banking, which will increasingly underpin the workings of new digital economies.&nbsp;We recognise the importance of establishing consumer trust in this new ecosystem which&nbsp;will require cross-industry co-ordination, including regulators, and potentially investment.



We have also acquired a company called Finicity a leading North American provider of real-time access to financial data and insights, that further strengthens our ability to deliver on the open banking opportunity globally and has the potential to help facilitate the anticipated open banking evolution in Africa.



<h2 class="wp-block-heading" id="h-can-banks-monetize-open-banking">Can banks Monetize Open Banking?</h2>



Some open banking regulations, such as those in Mexico, allow banks to charge third parties a fee to access financial data. Others, such as in the EU, currently prohibit such charges. Regardless, any charges are nominal. Where incumbent banks once ran the risk of commoditization as providers of financial infrastructure to third-party providers, open banking is now recognized as a potential source of new revenue and a basis for innovation such as:



Bank as a third-party provider&nbsp;refers to banks sourcing services from third parties to address customer lifestyle needs. Recently,&nbsp;<a href="https://newsroom.mastercard.com/mea/press-releases/new-fintech-brand-launches-sas-first-open-banking-offering/https:/newsroom.mastercard.com/mea/press-releases/new-fintech-brand-launches-sas-first-open-banking-offering/" target="_blank" rel="noreferrer noopener">Mastercard teamed up with Spot Money South Africa</a>&nbsp;to launch Spot&nbsp;&#8211; the first open banking marketplace in South Africa. The app is a great example of how Spot Money’s customers can transact seamlessly and review tailormade financial offers such as loans, insurance, and lifestyle services from fintech partners -.



Banking as a service&nbsp;refers to banks distributing their financial services through third parties. Third parties can offer services on behalf of banks by providing login-by-bank solutions to allow for automated form-filling. Banks generally profit through improved customer acquisition and commissions.



Banking as a platform&nbsp;refers to banks opening their product suite up to third parties. Banks can create white-label offerings and provide a suite of services to fintechs to sell to customers. Banks can profit from revenue sharing but may also charge a fee to third parties in white-labeling cases.



<h2 class="wp-block-heading" id="h-a-game-changer-and-for-africa">A Game Changer? And for Africa?</h2>



In its simplest form, open banking is&nbsp;empowering consumers to access, use, and benefit from their financial data.&nbsp;The consumer may not recognise the term open banking but in time will appreciate, for example, their ability to set up smart budgeting tools that help with savings and auto switch insurance policies to get a better deal etc. from third parties.&nbsp;Imagine topping-up your investment in real-time because your investment provider knows you have money in your bank account? Or comparing interest rates for a small business loan without having a credit history or even applying for a cellphone contract without having to obtain stamped bank statements?



In Africa, where a large part of the population remains unbanked or underbanked, open banking has the potential to facilitate financial inclusion as it addresses access and affordability.&nbsp;While it is early days, the top five use cases for open banking in Africa could include:



<ul><li>Small Business Finance Management:&nbsp;Africa is home to 50M+ small and micro businesses, many of whom have been significantly impacted by COVID-19. Open banking can enable these businesses to be paid more easily through a payment initiation service.&nbsp;In addition, it will be easier to retrieve cash flows and business information from banks to their suppliers, investors, and P2P lenders, critical to informing a lending decision. Premium APIs can provide access to business or director/owner information and credit scores directly into a third-party provider’s application to speed up commercial credit decision-making. </li><li>Thin File Scoring/ Instant Credit/&nbsp;Buy Now Pay Later Credit Bureaus, while somewhat mature in South Africa, only cover part of the population and in other African markets, bureau calls tend to be expensive for thin-file customers. By using the consumer’s banking transaction history such as regular rent payments, bill payments, or pay stabs, lenders can make better credit decisions for those who previously did not have access to credit. Open banking can enable alternative lenders to implement an API-based process and decision-making for instant approval of transactional credit or installments at the point of checkout in either face-to-face or e-commerce environments.</li><li>Account to Account Payment Initiation:&nbsp;This use case is already live today in South Africa for e-commerce albeit via Screen Scraping, which&nbsp;poses several concerns around dispute management, liability, and fraud. Open APIs, consumer consent management and agreed dispute rules will make payment initiation safer. </li><li>KYC and Account Opening:&nbsp;Africa has over 350 million unbanked individuals – and a particular challenge is last-mile onboarding in remote locations. Enabling agencies or fintech to conduct account opening and eKYC on behalf of banks can unlock access and efficiency. </li><li>Digital First Banking Experiences:&nbsp;Regardless of global differences, Covid-19 has had a consolidating effect worldwide. Even if digital banking—a basic tenet of open banking—wasn’t the norm in most regions before COVID-19, it is now. That’s not to discount the future of physical bank branches. As with any retailer, they provide complementary experiences in an online-offline fusion. But open banking isn’t only about smoother online banking experiences; it’s about improved financial planning for individuals struggling during the economic downturn.</li></ul>



Fintech and mobile banking players have already improved financial inclusion in Africa by developing affordable mobile payment and transfer solutions. By fully harnessing the potential of open banking, banks, telecommunication companies and other fintech players can further strengthen and broaden African financial markets, while providing consumers and businesses with greater choice and control.

asian man contactless payment with qr code in supermarket

Will Africa Create a Paradigm Shift for “Open Banking”?

March 3 (Reuters) &#8211; South Africa&#8217;s Standard Bank said on Wednesday it expects annual earnings to drop in the range of 40%-50% as Africa&#8217;s largest bank by assets battles soaring bad loans.



The lender said it expects headline earnings per share, a key metric for South African firms, to be in the range of 883.4 cents to 1,060 cents for the year ended Dec. 31, compared with 1,766.7 cents a year earlier. (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Ramakrishnan M.)



(c) Copyright Thomson Reuters 2021. Click For Restrictions &#8211; https://agency.reuters.com/en/copyright.html

Standard Bank CEO Sim Tshabala presents annual results

South Africa’s Standard Bank sees up to 50% slump in annual profit

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1110" height="740" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1131125549-1-1110x740.jpg" alt="" class="wp-image-395422" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1131125549-1-1110x740.jpg 1110w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1131125549-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1131125549-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1131125549-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2021/01/GettyImages-1131125549-1-scaled.jpg 2048w" sizes="(max-width: 1110px) 100vw, 1110px" /><figcaption>oMalayitsha (transporters) Charles and his colleagues buy groceries for family which will be transported across the border to Zimbabwe on February 20, 2019. &#8211; Items are loaded in Johannesburg onto trailers attached to minibuses which make the 550 kilometres (340 miles) journey north to the border of Zimbabwe, where economic situation has dramatically deteriorated, pushing inflation above 50 percent, and shortages of household essentials have become widespread. (Photo by GULSHAN KHAN / AFP) (Photo credit should read GULSHAN KHAN/AFP via Getty Images)</figcaption></figure>



South Africa’s annual average consumer inflation&nbsp;slumped to a 16-year low in 2020 as a government shutdown of the economy to stop the spread of the coronavirus extended a six-month recession.&nbsp;&nbsp;



Statistics South Africa said&nbsp;the consumer price index (CPI)&nbsp;averaged 3.3 percent,&nbsp;the&nbsp;lowest&nbsp;annual average rate since 2004,&nbsp;and the second lowest since 1969, dampened by a strong rand&nbsp;and&nbsp;subdued economic activity.&nbsp;



For December,&nbsp;annual inflation&nbsp;came in at 3.3 percent,&nbsp;slightly lower&nbsp;than November’s reading of 3.2 percent.&nbsp;The monthly increase&nbsp;was&nbsp;0.2 percent, up from zero&nbsp;in November, mainly as a result of&nbsp;food and non-alcoholic beverages with&nbsp;monthly increases&nbsp;of&nbsp;6 percent and 0.5 percent respectively.&nbsp;



CPI has remained within the South&nbsp;African&nbsp;Reserve Bank’s 3%-6% target band since July.&nbsp;



The outbreak of Covid-19 forced many governments to shatter economies and close borders as authorities sought to stop&nbsp;its spread following the discovery of the first cases in Wuhan, China. A second wave of infections in December forced President Cyril&nbsp;Ramaphosa&nbsp;to re-impose some restrictions.&nbsp;



Economists are forecasting a contraction of about eight percent in gross domestic product for Africa’s second largest economy and a rebound this year.



But they warn that recovery is now being threatened by continued lockdowns and worsening power shortages.&nbsp;

Financial

IMF working on global central bank digital currency platform

World Bank approves $750 mln credit to boost Nigerian reforms

Kenya’s Ruto vows to cut spending, borrowing in move ‘back to sanity’

EMERGING MARKETS-Battered stocks inch up; S. African rand falls on power cuts, growth fears

SHARES TUMBLE AS STUBBORN U.S. INFLATION STOKES WORRIES ON RATES, ECONOMY

Stocks set for worst quarter since pandemic-hit March 2020

Insurance claims from S.African unrest seen at up to $680 mln – govt insurer

MSCI to dump Argentina out of benchmark EM stock index

Zambia’s central bank to raise cap on foreign exchange transactions

GLOBAL MARKETS-Stocks firm, dollar gains as investors pin hopes on U.S. economy

South Africa collects $85 billion in taxes in 2020/21 – revenue service

Kenya central bank says has space to cut rates, urges more measures

Nigeria’s Access Bank takes controlling stake in South Africa’s Grobank

African private equity fundraising fell in 2020 due to pandemic – association

Will Africa Create a Paradigm Shift for “Open Banking”?

South Africa’s Standard Bank sees up to 50% slump in annual profit

South Africa’s consumer inflation neared a 50-year low in 2020

News Tips

Advertise With Us

Financial

IMF working on global central bank digital currency platform

World Bank approves $750 mln credit to boost Nigerian reforms

Kenya’s Ruto vows to cut spending, borrowing in move ‘back to sanity’

EMERGING MARKETS-Battered stocks inch up; S. African rand falls on power cuts, growth fears

SHARES TUMBLE AS STUBBORN U.S. INFLATION STOKES WORRIES ON RATES, ECONOMY

Stocks set for worst quarter since pandemic-hit March 2020

Insurance claims from S.African unrest seen at up to $680 mln – govt insurer

MSCI to dump Argentina out of benchmark EM stock index

Zambia’s central bank to raise cap on foreign exchange transactions

GLOBAL MARKETS-Stocks firm, dollar gains as investors pin hopes on U.S. economy

South Africa collects $85 billion in taxes in 2020/21 – revenue service

Kenya central bank says has space to cut rates, urges more measures

Nigeria’s Access Bank takes controlling stake in South Africa’s Grobank

African private equity fundraising fell in 2020 due to pandemic – association

Will Africa Create a Paradigm Shift for “Open Banking”?

South Africa’s Standard Bank sees up to 50% slump in annual profit

South Africa’s consumer inflation neared a 50-year low in 2020

News Tips

Advertise With Us

Newsletters