RAFIKI’s Post

South Africa Banking Market Report 2024 – Local Banks are Increasingly Focusing on the Rest of Africa as Lending Slows and Impairments Rise Locally. The slowing economy and increased cost of living have seen consumer lending slow, and banks are looking to the rest of Africa to generate better returns. Despite this, higher interest rates have lifted interest income. Learn more about the market insights and trends of the South African banking industry. https://lnkd.in/dYvdvJay #Sabanking #Industrynews #financesouthafrica #knowyoureconomy #networkfinanceinsights #networkfinance

Let's talk Financial Inclusion in Africa! Undoubtedly, Africa has made strides in financial service accessibility through mobile money, boasting over 700 million users in sub-Saharan Africa alone. However, there's a concerning reality: Africa seems to have become part of the most costly retail banking service worldwide, evident in the current transaction fees ranging from 2-5% imposed by mobile money providers. Is this notion of financial inclusion truly inclusive when it places such a heavy financial burden on a population that is highly sensitive to costs? How can we rectify this significant flaw within what is otherwise regarded as one of the most remarkable advancements of our time in terms of financial inclusion? Here is an interesting blog by William Blackmon on the TRUE cost of Mobile Money: https://lnkd.in/gaqWVGrd #fintech #mobilemoney #financialinclusion #africa

According to The World Bank, in 2023, remittance inflows to Sub-Saharan Africa grew by 1.9%, with a projected increase of 2.5% in 2024. This highlights the essential role remittances play in the nation's economic landscape and its growth potential. 📈 🌍 However, with this growth comes a cost challenge as remittance costs remain persistently high, averaging 6.2% for sending $200 in the second quarter of 2023. Banks emerge as the costliest channel at 12.1%, followed by post offices (7%), money transfer operators (5.3%), and mobile operators (4.1%). To overcome this challenge, AZA Finance provides a cost-effective and efficient solution for remittance payments in Africa. 👉 Learn more about how we can help your business make cost-effective remittance payments into Africa, send us a message to speak to a payment expert. 💬 ⤵ Meanwhile, click the link in the comment to read the full article. #remittances #nigeria #businesspayments #moneytransferoperators #azafinance #payments #fx #treasury #remittance #mto #moneytransfers

South Africa's banking industry is undergoing a transformation in its lending practices, as reported by BusinessTech https://buff.ly/4avTHME. This shift entails banks increasing their loans to businesses and government entities, aiming to capitalize on public-private partnerships. However, individuals facing financial difficulties may encounter challenges in securing credit due to elevated non-performing loan levels and economic uncertainties. In essence, South African banks are prioritizing financial stability by concentrating on borrowers with lower risk profiles. This strategic approach could potentially restrict credit options for consumers already grappling with soaring inflation and interest rates. The future landscape of lending in South Africa hinges on the nation's economic recovery trajectory and banks' adeptness in effectively managing credit risks. #SouthAfrica #Banking #Lending #Economy #Businesses

Marking 21 years of collaboration with the Payments Association of South Africa, the cornerstone of our industry's regulation and advancement. Their unwavering guidance and strategic direction have been fundamental in the establishment and growth of the local payments sector. Visit our site at www.directtransact.co.za #paymentsassociationofsouthafrica #PASA #paymentregulation #IndustryPartnership #digitalpayments #financialservices #techinnovation #fintechindustry #digitalcurrency #financetech #financialempowerment

World Bank data shows that the average fee for sending just $200 in Africa is 8.2% - nearly double the global average. This affects SMEs, entrepreneurs and even diaspora communities The role of multi-currency accounts is important because sending money across borders in Africa is a costly. The Africa Cross-Border Payments Guide 2024 by BCSL (Bendada.com) and Raenest will help you understand how: ✅ How to open a multi-currency account ✅ How African businesses like yours are using multi-currency accounts to thrive Download here: https://cutt.ly/Aey1fhv6

The pace of change in payment systems in Africa is incredible. Africa has the opportunity to lead the world by implementing instant payments in every country on the continent by 2030 and interconnect them to enable instant cross-border payments. https://lnkd.in/grVPbGet

FMIs are not as cool as Fintech, BNPL, BaaS, or other trending acronyms in the money movement space. But they are most important. ⏯⏯  FMI - Financial market infrastructure is the framework that allows financial transactions to take place, i.e. the plumbing of the financial system. 🔝Why is this useful to discuss today? As the conversation about unifying African Payments heats up, it is important to note key moves to make this a possibility. Here are some FMI developments that have happened in 2023 in Africa. ⛳Sierra Leone: Sierra Leone has launched their 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐒𝐰𝐢𝐭𝐜𝐡 12 years after the initial RFP. World Bank assisted this project with $12M USD. ⛳South Africa: The SARB debuted a 𝐫𝐞𝐚𝐥-𝐭𝐢𝐦𝐞 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐩𝐥𝐚𝐭𝐟𝐨𝐫𝐦, 𝐏𝐚𝐲𝐒𝐡𝐚𝐩 which enables South Africans to make payments using non-card identifiers like mobile numbers or e-mail. ⛳São Tomé and Príncipe: The government of São Tomé and Príncipe signed a $ 3.2 million loan agreement with the AFDB to upgrade the 𝐧𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐬𝐰𝐢𝐭𝐜𝐡 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐬𝐲𝐬𝐭𝐞𝐦 - 𝐑𝐓𝐆𝐒 𝐚𝐧𝐝 𝐀𝐂𝐇 𝐟𝐮𝐧𝐜𝐭𝐢𝐨𝐧𝐚𝐥𝐢𝐭𝐲. ⛳Somalia: The Central Bank of Somalia rolled out the 𝐮𝐬𝐞 𝐨𝐟 𝐈𝐁𝐀𝐍 by commercial banks. This will enhance 𝐩𝐫𝐨𝐜𝐞𝐬𝐬𝐢𝐧𝐠 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐭𝐡𝐞 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐒𝐲𝐬𝐭𝐞𝐦. 💡FMIs are in bold font. Interested in learning more? There are 10 African FMI projects highlighted here 👇 https://lnkd.in/dkwafWmx #PaymentRails #Africa #Money #Finance #Fintech #Policy #PaymentMethods #RTGS #clearing

In the words of Tim Masela, Vice Chair, AACB African Inter-Regional Payments Integration Task Force, "Technology gives us an opportunity to broaden use of financial services, including payments, savings, lending, and insurance". The continent is making great strides in taking advantage of this opportunity, and there's still plenty of room for even more progress. The World Bank reports that Sub-Saharan Africa saw account ownership soar to 63% in 2023, up from 55% the year before. That's millions more people gaining access to financial tools like mobile money, utilized by a whopping 614 million individuals across the continent. Mobile money transactions alone in Africa crossed a remarkable $575 billion in 2023, with estimates suggesting digital financial services contribute up to 4% of GDP growth in developing economies. These services go beyond convenience – they empower individuals and businesses, drive financial inclusion, and fuel economic development across Africa. Our comprehensive finance sector trends report delves into these trends, providing actionable insights for brands seeking to navigate and thrive in Africa's dynamic financial services landscape. Download here: https://zurl.co/M2FN #FinanceTrends #AfricanFinance #PierrineReports

Let’s look at last week's highlights in the African banking industry. Firstly expansions: Ecobank Transnational Incorporated (ETI) sets sights on West Africa expansion, targeting Ghana and Nigeria. While Standard Bank Group eyes East Africa, exploring growth opportunities in Kenya and Tanzania. In Digital Innovation: Absa Group enhances digital banking platform, prioritizing improved user experience and accessibility across Africa. Equity Bank Kenya launches mobile banking services to reach rural communities, bolstering financial inclusion. Lastly Regulatory Changes: The Central Bank of Nigeria (CBN) imposes stricter capital adequacy regulations, impacting Access Bank and Zenith Bank. Reserve Bank of Zimbabwe introduces anti-money laundering measures, affecting CBZ Bank and Stanbic Bank Zimbabwe operations. Stay informed with what’s happening in Africa. Staying ahead in the dynamic African banking is key to effective management of your finances. #AfricaFinance #Expansion #Innovation #Regulations