African Banker du 01-11-2021
76 pages

African Banker du 01-11-2021 , magazine presse


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76 pages
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Publié par
Date de parution 01 novembre 2021
Langue Français
Poids de l'ouvrage 69 Mo


4 t h Q u a r t e r 2 0 2 1A N I C P U B L I C AT I O NI S S U E 5 6
InsuranceAfrica’s sleeping giant
Nor th African banks enjoy rude health Boom time for Tanzanian star tups Is Rwanda Africa’s tech Singapore? Essay: Recycle unused SDRs
In Conversation: MUA’s Ber trand Casteres Africa50’s Vincent Le Guennou DPI’s Eduardo Gutierrez Garcia
EUROZONE €8.00, UK £6.00, USA $9.95, CFA Zone CFA5.000, Egypt E£80, Ethiopia R200, Gambia Da400, Ghana GH¢40.00, Kenya KShs800, Liberia $8, Mauritius MR300, Morocco Dh60, Sierra Leone LE 70000, South Africa R50.00 (inc tax), Tunisia DT7, Uganda USh30,000, Zambia ZMW 100, Other Southern African countries R49.00 (excl tax), Tanzania TShs20,000.
United Kingdom IC Publications 7 Coldbath Square London EC1R 4LQ Tel: +44 20 7841 3210 Fax: +44 20 7713 7898 Email: France IC Publications 609 Bat A, 77 Rue Bayen 75017 Paris tel: +33 1 44 30 81 00 fax: +33 1 44 30 81 11 email:
FOUNDER Afif Ben Yedder
EDITOR Anver Versi
EDITORATLARGEHichem Ben Yaïche
ADVERTISING SALES DIRECTORS Medrine Chitty, Baytir Samba, Nick Rosefield
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N° DE COMMISSION PARITAIRE 0120 T 90333 Dépôt légal: Octobre 2021
Cover StoryInsurance in Africa
Editorial 5Awakening Africa’s insurance giant
News in Brief 6Banking sector news from around the continent
African Banker’s World 12Who’s going where in the African banking industry
Cover Story 16Insurance – Africa’s sleeping giant 17Reshaping the industry 18Uneven regional performances
In Conversation 22Bertrand Casteres, MUA
Essay 26Hippolyte Foack:Recycle unused  SDRs to lowincome countries
Special Report:Banking and finance in North Africa 2021 28Overview 29North African banks weather the Covid storm 31Egypt pulls out the stops on financial inclusion 32Moroccan banks holding strong 33Tunisian banks seek political stability 35Can Algerian banks make reforms stick this time?
Events / Babacar Ndiaye Lecture 36Science is the Holy Grail for economic growth
In Conversation 38Hany Fekry,Network International
Capital Markets 42IHS Towers raises $378m in New York listing 42MTN seeks $280m in Uganda IPO 43Namibia’s biggest IPO 44Sanlam and Absa to combine fund management 44Mauritius SE’s new trading system 45Zimbabweans go digital to access bourse 45Is Africa switching to digital currencies?
AfCFTA 46Is PAPSS finally the answer  to African traders’ prayers?
Islamic Finance 48IsDB gears up African  recovery financing
The Bigger Picture 50BADEA on Africa’s digital divide
In Conversation 52Vincent Le Guennou,Africa50 54Eduardo Gutierrez-Garcia,DPI 56Vuyo Ntoi,AIIM
Book Review 59fresh look at sovereign debt A
Venture Capital 60for African startups hits new record Appetite
Events / IC Roundtable 62payments key for AfCFTA Crossborder
Fintech 64internetfree transaction app Revolutionary
Country Focus 66Tanzania: Boom time for startups 68 Rwanda: Africa’s fintech Singapore?
In Conversation 70Jef Gable,Absa
Country Focus 72Nigeria: Disappearing dollar  forces homebased solutions
The Last Word 74 ‘Smart cash’ is on the way
A N V E R V E R S I ,
Awakening Africa’s insurance giant
t might come as something of a surprise to know that the idea of insurance has deep and an-I cient roots – the îrst forms of insurance were recorded by the Babylonian and Chinese traders who sought to limit their losses dur-ing the transit of goods.The Code of Hammurabi, written in 1750BC, recorded a loss-limitation method – under which a merchant who had taken a loan would pay the lender an extra amount in ex-changfor a guarantee that the loane wouldbe cancelled if his shipment was lost or stolen. Theneed to înd some kind of as-surance or assistance if things go badly andtotry and prepare for it seems to be a common human desire and over the centuries it has evolved into a multitude of forms that fall under the umbrella of ‘insurance’. In the 17th century, as world trade (with Britain at its centre) started to ex-pand, ship and cargo insurance became very important and this led individu-als and companies coming together to ‘underwrite’ or gamble on the success or failure of the various trading ven-tures. They tended to meet in a coee house owned by Edward Lloyds and here worked out the risk factor and based their premiums on it. Lloyds is still probably the foremost insurance bro-kerage in the world. Over time, insurance was extended to businesses, property (following the Great Fire of London in 1666), life – which was started by mutual societies in which members contributed premi-ums which were then distributed to
their widows and orphans – valued and valuable items and so on. In the 1930s, as auto vehicles became more popular and the number of ac-cidents increased, a form of manda-tory vehicle insurance, third party, was introduced in the UK. Other forms of mandatory insurance, such as for îre hazard in factories, injuries to work-ers etc, followed. National insurance schemes, îrst formed in Germany but developed in the UK in 1948, became mandatory for all working people and it provided protection if one was unem-ployed and also provided a pension on retirement. National health insurance covered all medical costs. All these developments in insurance have been of immense beneît to people by reducing the eects of disasters or shocks, and by pooling together smaller sums from individuals, it has been pos-sible to create large funds to be used in times of distress for those most af-fected. This is the principle behind the sys-tem of insurance that we are familiar with – a helping hand in times of crisis. One would expect that in regions where life and the business of life is subject to a multitude of vagaries and risks, the insurance industry would be booming.
The lack of trust hurdle However, as our cover story in this is-sue (Insurance – Africa’s sleeping giant) discusses, that is not the case in Africa. Insurance penetration is less than 3%. Reasons why this is so are competently presented by some of the continent’s leading insurance leaders; they single
out lack of trust and a general igno-rance about the beneîts of insurance as some of the main causes of the very low penetration rates in the continent. This is a pity as Africans, perhaps more than other populations, need a strong insurance industry, one that is transparent, accountable and that can be trusted to always pay out in full in case of genuine claims. There is no doubt that there is a lot of fraud in the industry, especially by the smaller, y-by-night organisations that come up with very attractive-looking deals only to disappear with millions of dollars’ worth of premiums when the net begins to close around them. These rotten apples tend to spoil the whole insurance barrel and give the industry a poor image. One solution that is being proposed is that just as for the banking industry, there should be a consolidation of the insurance industry and the assimilation of the smaller entities into the larger, better organised, better regulated com-panies. The potential for insurance in Africa, once it can get over its image issue, is immense. In addition to the beneîts of assurance it provides, the industry elsewhere is also often the biggest do-mestic saving fund, sitting on vast pools of regular premiums which it can de-ploy, at a proît, in other areas of the economy. With a robust insurance and pen-sions industry, Africa’s perpetual search for foreign investment would diminish rapidly and the continent could really begin on a solid path to prosperity.
64 T H B A N K E R A F R I C A N 2 0 2 1Q U A R T E R
Absa Bank Kenya has reiterated that the WhatsApp banking platform it launched last August is safe and secure, quelling fears that accounts could be hacked, as happened in India. While many customers in Kenya were thrilled by the new style of banking, cyber-security concerns arose after a doctor in Mumbai, India said he had lost $2,000 from his WhatsApp wallet, leading to worries that hackers
have a way of fraudulently withdrawing money from e-wallets linked to banks. But Absa Kenya’s head of digital channels, Andrew Mwithiga toldAfrican Bankerthat sending and receiving cash via WhatsApp was secured by double encryption and internal cyber-security measures, and that the online banking process is not vulnerable to cyber-attacks. “We have applied
stringent measures to make WhatsApp banking secure for everyone. We have several security layers on the platform,” said Mwithiga. Last September, Facebook, which owns WhatsApp, added another layer of privacy and security to the platform with an end-to-end encryption option for the backups people choose to store in Google Drive or iCloud. In October, after acknowledging security loopholes in the platform, chief executive Mark Zuckerberg announced the addition of another element, with optional access restrictions that involve using a password or
encryption key. “No other global messaging service at this scale provides this level of security for their users’ messages, media, voice messages, video calls, and chat backups,” WhatsApp said in a statement on 14 October, 10 months after Tesla CEO, Elon Musk urged the world to ditch WhatsApp due to its then cyber-security vulnerabilities and instead use Signal. With the new app, which comes with an online banking assistant named Abby, Absa Bank Kenya seeks to ride on the new security updates and Kenya’s high fast-internet penetration, smartphone ownership, and
WhatsApp usage to pioneer social media banking in the country. According to the Global Web Index’s2020 Social Media User Trends Report, Kenya has the highest percentage of monthly WhatsApp users compared to the rest of the world, with 97% of all internet users in the country active on it. Having launched a similar platform in South Africa in 2018, the bank is conîdent that its experience as the îrst African bank to venture into social media banking will enable banking to be accessible any time and anywhere in a secure way. The introduction of WhatsApp banking by Absa
Fitch BOI upgrade will bolster investment
Commenting on the announcement that Fitch, one of the world’s ‘big three’ ratings agency had upgraded Nigeria’s Bank of Industry’s (BOI) National Long-Term Rating to AAA (nga), while aïrming its Long-Term Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook, Olukayode Pitan(right),MD/CEO of the bank,said the upgrade would help the bank attract additional funds. “We are delighted at the outcome of this ratingwhich comes on the back of a series of successful fundraising eorts in the international debt market and positions us to attract greater foreign
ushers the sector into the new age of banking, which integrates transactional, conversational and personalised banking services in a seamless, fast and reliable manner. “With this solution, each of our customers gets access to a 24/7 digital personal banker who can help them perform transactions upon receiving simple instructions on chat,’’ said Jeremy Awori, Absa Bank Kenya’s MD.
investment,” he said. “In spite of the challenges we have experienced as a result of the Covid-19 pandemic, it is reassuring to see that the resilience of our organisation has bolstered the conîdence of our stakeholders, who undoubtedly contributed to our improved performance.” BOI is Nigeria’s foremost development înance institution (DFI). It has a mandate to transform Nigeria’s industrial sector by providing înancial assistancefor the establishment of large, mediumand small enterprises; as well as to drive the expansion, diversiîcation and modernisation of existing enterprises; and the rehabilitation of ailing ones.
A F R I C A N B A N K E R 4 T H Q U A R T E R 2 0 2 17
Autochek, the automo-tive technology company that aims to facilitate auto înance across Africa, has ventured into the Kenyan market. The company said it will work with NCBA Group, Caritas MFB, KKVL, Musoni and Sidian bank to increase the market adoption of vehi-cle loans. To lead its Kenyan opera-tions, Autochek has appoint-ed Bilhah Muriithi as the Country Manager. Having recently acquired automotive marketplaces Cheki Kenya and Cheki Uganda from ROAM Africa, the move into the Kenyan market shows Autochek’s focus on build-ing digital solutions that will accelerate auto înancing. With credit penetration in Kenya at 27.5%, far higher than in West Africa, where it stands at 5%, East Africa’s growing market is posi-tioned as a key auto înanc-ing hub. Having started her career at Cheki Kenya, Bilhah Muriithi joins Autochek from
NCBA bank’s Digital Busi-ness department, where she was a manager responsible for running the Carduka portal, an online motor ve-hicle platform. As Country Manager, Bilhah will be responsi-ble for overall oversight of the business, growing the marketplace by ensuring that the Autochek platform includes all mainstream car dealers, all auto lenders, all car buyers, all insurance and tracking companies. Powered by its residual value algorithm, Autochek is able to pre-qualify cus-tomers for înancing and disburse auto loans within 48 hours through a single application process. Autochek’s in-house digital solutions have ena-bled the platform to part-ner with over 68 înancial institutions, and build a 1,000-dealer network inte-grated with 1,000 workshop networks in Nigeria, Ghana and Kenya.
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