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SSA news through Oct. 5


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SSA news through Oct. 5


* The Bank of Uganda reduced its key lending rate by 0.5 percentage point to 9.5%. The central bank also cut the rediscount rate to 13.5% and the bank rate to 14.5%.

* The Central Bank of Kenya initiated a review of the country's credit information sharing system, following complaints that banks are using client data to blacklist defaulters instead of rewarding loyal borrowers, The East African reported. The regulator has blamed credit reference bureaus for using different methods in calculating a borrower's probability of default.

* Chase Bank (Kenya) Ltd.'s customers will have to wait longer to be given clarity on the fate of their funds as the bank's receivership, which was set to end Oct. 7, will be extended pending a Nov. 14 hearing at the High Court on the case, Business Daily Africa wrote.


* First Bank of Nigeria Ltd. announced the acquisition of the remaining stake in FBN Bank (DRC) Ltd., Vanguard reported. Both banks are units of First Bank Nigeria Holdings Plc.

* The Central Bank of Nigeria has dismissed a report saying that Deputy Governor Bayo Adelabu was arrested and forced to forfeit money to the Economic and Financial Crimes Commission, ThisDay wrote.

* Access Bank Plc intends to pump additional capital into Access Bank Ghana before the end of the first quarter next year, Citi Business News reported. The move will help Access Bank Ghana meet the new minimum capital requirement of 400 million cedis set by the Bank of Ghana.

* Ghana's equity and debt market is too small to supply the 9 billion cedis in cash that the country's lenders must raise to meet new minimum capital requirements by the end of 2018, according to George Bodo, head of banking research at Ecobank Capital Ltd., Bloomberg News wrote.

* GCB Bank Ltd., which took over UT Bank Ghana Ltd. UT Bank Ghana Ltd. and Capital Bank Ltd. in August, has laid off about 450 employees of the defunct lenders, insiders told Citi Business News. Roughly 80 are from Capital Bank while the rest are from UT Bank.

* Jaiz Bank Plc appointed AdbulFattah Olanrewaju Amoo CFO and executive director for operations, effective Nov. 6.

* Ababacar Diaw has been named CEO of Senegal-based Impaxis Securities SA, replacing Patrick Brochet, Financial Afrik wrote.


* MCB Group Ltd. reported a 1.2% year-over-year increase in profit attributable to equity holders of the group of 6.70 billion Mauritian rupees for the year ended June 30. The group declared a final dividend of 5 rupees per share, to be paid on or around Dec. 15.

* Cameroon's Afriland First Bank has absorbed subsidiary Africa Leasing Co. for strategic reasons after the merger was approved last December, Financial Afrik reported. All the assets and liabilities of the absorbed company will be transmitted to Afriland. The subsidiary has a capital of 2 billion CFA francs.

* Angola's central bank has decided to leave its benchmark lending rate at 16%, citing a slowdown in consumer price inflation, Reuters noted.

* New Angolan President João Lourenço has sworn in his cabinet, keeping 10 ministers from the previous government of José Eduardo dos Santos, including Finance Minister Archer Mangueira, state news agency Angop and Portuguese newspaper Público reported.

* More than a third of Angolan financial institutions have failed to submit data on U.S. account holders in line with the U.S. Foreign Account Tax Compliance Act, Expansão reported, citing the African country's AGT tax agency. It said the deadline for banks, insurance companies and other financial entities to present the information was July 31, but only 38 of the 60 institutions obliged.

* Foreign donors to Mozambique are unlikely to resume short-term aid, putting pressure on key economic indicators in the southern African country, according to a report by the Economist Intelligence Unit, Jornal de Angola reported. The World Bank, the IMF and other foreign donors halted financing to Mozambique last year due to revelations about $2 billion in previously hidden public debt.

* Mozambique's ruling Frelimo party announced that President Filipe Nyusi will run for re-election in 2019, Reuters reported. Nyusi is expected to face opposition from Renamo party leader Afonso Dhlakama.

* The South African Reserve Bank said the country's weak economic growth may allow for "some limited scope" for lower interest rates to have positive countercyclical effects in the short term. The central bank's monetary policy committee last month decided to maintain its key rate at 6.75%. Bloomberg News had a report.

* Barclays Africa Group Ltd. and unit Absa Bank Ltd. said they would continue to reconsider their ties with auditing firm KPMG, following reports that the South African Reserve Bank told the country's top four lenders that they cannot fire KPMG despite it being embroiled in a scandal involving the Gupta family as such a move could undermine financial stability, The Citizen reported. KPMG is one of only four auditors deemed by the central bank as capable of jointly auditing Standard Bank Group Ltd., Barclays Africa Group, Nedbank Group Ltd. and FirstRand Ltd., and the four banks are required to appoint two joint auditors and rotate them every five years, Reuters noted.

* Germany-based Munich Re's African subsidiary has ditched KPMG as its auditor, its regional CEO, Nico Conradie, told Reuters.

* Nhlamu Dlomu, CEO of auditing firm KPMG's South African unit, said they found no evidence that the errors it made when it carried out work for the controversial Gupta family and the country's tax authority were "systemic," and that reforms are underway to address the issues, Bloomberg News wrote.

* Nedbank Group said it is in talks with consultancy firm McKinsey & Co. regarding the latter's alleged involvement in disputed government contracts and will wait for the results of the U.S. firm's probe into the matter before deciding whether or not to terminate its services, Bloomberg News wrote.

Sophie Davies and Helen Popper contributed to this report.