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SSA news through June 1


Banking Essentials Newsletter: 7th February Edition


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Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)

SSA news through June 1


* Fitch Ratings said the loan interest rate cap and deposit rate floor introduced by the Kenyan government are harming smaller banks, which may become takeover targets or candidates for consolidation. The rating agency said large and medium-sized banks are better positioned than their smaller counterparts to face threats from the loan cap, the full impact of which on net interest margins and profitability will not be seen until later in 2017.

* The Central Bank of Kenya's monetary policy committee retained the central bank rate at 10%.

* I&M Holdings Ltd. paid 819.9 million Kenyan shillings to acquire a further 15.35% stake in Tanzanian unit I&M Bank (T) Ltd., increasing its stake to 70.38% from 55.03%, Business Daily Africa wrote. I&M Holdings raised its stake during the second half of 2016 by purchasing shares from French fund Proparco and participating in the subsidiary's rights issue.

* Co-operative Bank of Kenya Ltd. shareholders approved a proposal to increase the lender's share capital to 7.5 billion Kenyan shillings from 5 billion shillings, paving the way for a bonus share issue of 1 share for every 5 shares held, The East African wrote.

* HDFC Investments Ltd., a unit of India-based Housing Development Finance Corp. Ltd., acquired a 15% stake in Tanzania's first housing finance company, First Housing Finance (Tanzania) Ltd. for a total price of $1.5 million.


* uniBank (Ghana) Ltd. named Kwabena Duffuor II managing director, effective June 1. He replaced Felix Nyarko-Pong, whose term ended the same day.

* GCB Bank Ltd. declared a total dividend payout of 100.7 million Ghanaian cedis, or 38 pesewas per share, for 2016, up from 33 pesewas a year ago. Separately, GCB shareholders rejected a proposal to increase the remuneration of the bank's directors to 4 million cedis from 2.5 million cedis annually, Ghana News Agency reported.

* Unions and banks in Guinea agreed on a truce until July 4 after a strike resulted in all banks in the country closing for a week, Financial Afrik wrote. The two parties agreed to increase the general level of wages by an average of 16.9% during 2017.

* Former Ivorian Employment Minister Moussa Dosso was named the African Development Bank's director for Ivory Coast, Guinea and Equatorial Guinea, according to Financial Afrik.

* Nigerian Vice President Yemi Osinbajo, serving as acting president in Muhammadu Buhari's absence, approved the appointments of Olukayode Pitan and Dikko Aliyu AbdulRahman as managing director and governing board chairman, respectively, of Bank of Industry Ltd.

* BGFIBank Sénégal SA named Mohamed Kasim Yaya its new director general, replacing Gabriel Lopes, whose term of office has expired.


* Barclays Plc will sell 285,691,979 ordinary shares or a 33.7% stake in Barclays Africa Group Ltd. at 132.0 South African rand per share, raising aggregate gross proceeds of approximately 37.71 billion rand. South African pension fund manager Public Investment Corp. agreed to acquire 59 million shares, representing a 7% stake in Barclays Africa, in the share placing that will see the British lender's shareholding in the unit drop to about 139 million ordinary shares, or a 16.4% stake. Barclays initially planned to sell an approximately 22% stake in Barclays Africa but raised the size of its placing on the back of strong investor demand.

* Barclays also signed the terms of a separation agreement reached in February with Barclays Africa, following regulatory approval of the share sale by South Africa's finance minister. The agreement includes the payment of £765 million to Barclays Africa, of which £27.5 million has already been paid and of which the remainder is due at the conclusion of a sale that takes Barclays' stake below 50%.

* Malawi-listed FMB Capital Holdings Plc will acquire Barclays Bank Plc's majority stake in Barclays Bank of Zimbabwe Ltd., marking the Malawian group's first operation in Zimbabwe. The consideration of the acquisition, which is expected to conclude by the end of the third quarter, amounted to $60 million, insiders told Zimbabwe Independent.

* The Banco Nacional de Angola retained its benchmark lending rate at 16%, Reuters reported.

* Mozambican pension fund Kuhanha, which manages pensions of Banco de Moçambique employees, agreed to inject $138 million into Moza Banco SA in exchange for an 80% stake in the lender, Reuters reported. Portuguese lender Novo Banco SA and Sociedade Moçambicana de Capitais, a grouping of some 400 Mozambicans, will hold stakes of 10% each.

* Standard Bank Group Ltd. named Kenny Fihla CEO of corporate and investment banking, replacing David Munro, who in turn replaces Thabo Dloti as CEO of Liberty Holdings Ltd. Dloti decided to step down as CEO of the South African insurer following a difference of opinion with the board.

* Arise BV, a South Africa-based investment firm focusing on sub-Saharan African financial service providers, appointed former South African Finance Minister Nhlanhla Nene supervisory board chairman.

Sophie Davies and Mariana Aldano contributed to this report.