Microfinance entity Xtenda Finance Ltd to acquire 45% stake in MyBucks Zambia for US$2.7m

ZAMBIA – Fintech company MyBucks Group has entered into an agreement with Xtenda Finance Limited, a Zambia microfinance entity founded by former BancABC Group executives for the sale of 45 percent of its Zambian subsidiary for US$2.7 million after Dr Rajan Mahtani, an indirect shareholder reportedly failed to meet the deadline for payment of a call option. Xtenda is owned by DBF Capital Partners and other shareholders. The deal would give Xtenda, 100 percent shareholding in MyBucks Zambia after an earlier agreement which was entered into in June 2020 to…

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Pension fund NSSF raises stake in KCB Bank to 7.99% after buying more shares

KENYA – Pension fund National Social Security Fund (NSSF) has purchased an additional 8.55 million shares in KCB Group, raising its stake in Kenya’s biggest bank to 7.99 per cent. Latest figures shows that the state-controlled pension fund closed last month with 256.903 million shares in KCB, being a rise from 248.3 million shares or a 7.73 per cent stake in October. The latest shareholding numbers means that NSSF has added 31.07 million shares in KCB between April and December 2020 amid the Covid-19 environment that saw the lender’s stock…

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Kenya in fresh quest for US$626m debt service suspension

KENYA – Kenya is in a new quest in its debt service relief request to all its bilateral lenders, hoping to save US$626 million, the country’s National Treasury has said. The move comes days after a decision by the Paris Club of international decision to give Kenya a US$300 million loan repayment break to help ease the financial distresses linked to Covid-19. The Treasury said that it had expanded the bid for reprieve from servicing its looming debt payment obligations under the landmark debt relief initiative – known as the…

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Angola and Mozambique to access US$70m from AfDB under the ‘Lusophone Compact’ program

MOZAMBIQUE – African Development Bank (AfDB) has availed two lines of credit worth US$70 million for Angola and Mozambique under the ‘Lusophone Compact’, according to the bank’s vice-president Mateus Magala. The Lusophone Compact is an innovative model for financing projects in African Portuguese-speaking countries, in which Portugal, which has a guarantee of US$484,468 million in the State Budget for this year, and the AfDB, play a major role in the financing, preparation, monitoring and execution of projects. “The projects in Angola and Mozambique are more advanced, with two lines of…

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Bank of Zambia plans to build US$36m worth of gold reserves in 2021 to support local currency

ZAMBIA – Bank of Zambia (BOZ) has revealed plans to buy up about 600 kilograms of Gold from the Zambia Gold Company in 2021, having so far bought 47 kilograms of gold from ZCCM IH subsidiary, Zambia Gold company. The US$36 million gold reserves value excludes gold that will be purchased via its second gold buying agreement with First Quantum Minerals – FQMs Kanshanshi Mine of Solwezi. In an exclusive response to the Zambian Business Times, Bank of Zambia stated that that they target to buy 600kgs of gold from…

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Co-operative Bank of Kenya secures US$75m loan from IFC for SME lending

KENYA – International Finance Corporation (IFC), the private sector arm of the World Bank has given Co-operative Bank of Kenya US$75 million loan for onward lending to micro, small and medium-sized (MSMEs) firms crippled by the Covid-19 pandemic. The Kenyan lender announced that the International Finance Corporation (IFC) loan will come in as a tier II supplementary capital and will be repaid within seven years. Co-operative Bank Chief Executive Officer Gideon Muriuki said the money will support MSME customers to cope with the disruptions brought about by the pandemic. “The funding…

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Kenya’s diaspora remittances hit US$3.1b despite Covid-19 pandemic

KENYA – Kenyans in diaspora sent home more than US$3.1 billion last year, according to Central Bank of Kenya (CBK) data, a significant increase from the US$2.8 billion recorded in 2019. The month of December last year saw the highest remittance from the diaspora of US$25.9 million, largely attributed to supporting festivities and preparations for re-opening of schools. “This remarkable growth of remittances has been supported by financial innovations that provided Kenyans in the diaspora more convenient channels for their transactions,” read a statement from CBK. It is only in…

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Kenya rolls out credit guarantee for small businesses affected by Covid-19

KENYA – The government of Kenya through its National Treasury and local lenders have opened a credit line to bail out small businesses affected by Covid-19. The small and medium enterprises (SME) credit guarantee scheme will see the state insure part of risks undertaken by commercial banks in advancing loans to SMEs. National Treasury Cabinet Secretary Ukur Yatani said the disruption caused by the virus deeply affected small businesses that would unlikely attract affordable and quality credit under the traditional arrangements. “This is in line with best practice in other regions…

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Zenith Bank records a 4% rise in its gross earning in the third quarter of 2020

NIGERIA – Zenith Bank Plc has announced that its gross earnings rose by 4% to N509 billion (US$1.31bn) for the third quarter ended 30 September 2020 from N491 billion (US$1.27bn) posted in the same period in the previous year. This performance demonstrates the Group’s resilience against the backdrop of a challenging macro-economic environment brought about by the Coronavirus (COVID-19) pandemic. According to the unaudited account which was presented to the Nigerian Stock Exchange (NSE), this growth was driven by non-interest income which grew by 11% to N173 billion (US$0.45bn) from…

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Guaranty Trust Bank reports US$433m Profit before tax showing improved performance across key financial metrics

NIGERIA – Guaranty Trust Bank (GTBank) has reported Profit before tax of ₦167.4 billion (US$433.17 million), representing a decrease of 1.9% over ₦170.7 billion (US$441 million) recorded in the corresponding period of September 2019 and an improvement on the 5.2% dip posted in H1-2020 relative to H1-2019. Loan and Deposit book however grew by 4.5% and 25.1% from ₦1.502 trillion (US$3.89 billion) and ₦2.640 trillion (US$6.83 billion) recorded as of December 2019 to ₦1.569 trillion (US$4.06 billion) and ₦3.303 trillion (US$8.55 billion) in September 2020 respectively. Guaranty Trust Bank’s Balance…

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