Converge Conference’s Post

GHIB HOST INAUGRAL ‘CONVERGE’ CONFERENCE TO BOOST TRADE BANKING IN AFRICA GHIB- Ghana International Bank (GHIB) is set to host its inaugural ‘CONVERGE’ conference in London from August 5-9, 2024, focusing on the future of African international trade banking. The event aims to foster dialogue and collaboration on trade finance as a sustainable alternative to debt-driven economic models. The theme is “The Risk/Opportunity Interplay for African Trade.” Keynote speakers include the Governor of the Bank of Ghana and representatives from central banks in The Gambia and Sierra Leone. GHIB's CEO, Dean Adansi, emphasized the bank's long-standing commitment to Africa and its experience in trade finance, correspondent banking, and cross-border solutions. The conference will address challenges such as Africa's low participation in global trade and the continent's $81 billion trade finance gap. CONVERGE aims to propose new ideas to grow African trade and digitize trade finance operations. See More: https://lnkd.in/d77wiipp #GHIB #CNVERGE2024 #AfricanTrade #TradeFinance #SustainableDevelopment

Presidential Decree 165/24, of 18 July 2024, enacted the Regulations of Microfinance Institutions in Angola. These institutions are subject to the following main rules: • The incorporation of microfinance institutions is subject to authorization from the Angolan Central Bank (BNA); • Microfinance institutions may carry out the following activities: ➡ Take small deposits (in a maximum amount to be set by BNA); ➡ Make small loans (in a maximum amount to be set by BNA); ➡ Make low risk investments (term deposits, sovereign bonds, etc) with a maturity not exceeding 1 year; ➡ Issue domestic debit/credit cards; ➡ Subcontract credit agents and intermediaries as set forth in the law. Any other activities may only be carried on an exceptional basis subject to BNA prior authorization. • Microfinance institutions are prohibited from engaging in foreign exchange operations. BNA will issue detailed instructions to complement the above regulations. #OneLegal

Africa’s financial sector remains archaic and primitive, with trade across 1.5 billion people still tied to an extraterritorial currency: the U.S. dollar. The vision of a unified African currency has been derailed, in part by external forces like former French President Sarkozy and his allies, who stymied progress toward economic sovereignty and regional integration. While politicians frequently champion regional economic unity, Africa’s dependency on the dollar persists, enabling capital flight and facilitating money laundering. In the Democratic Republic of Congo (DRC), for example, major financial institutions are foreign-owned, and the reliance on dollars intensifies these challenges. However, the African Continental Free Trade Area (AfCFTA) offers hope. A pan-African payment system could eliminate the dollar from cross-border transactions, saving Africa up to $5 billion annually in processing costs. Tunde Macaulay of Standard Bank Group highlights that this system could formalize $50 billion in trade, reducing the need to clear transactions through U.S. or European banks. This step towards a unified payment network could be transformative for Africa’s financial independence and economic resilience.

AfDB Launches $150 Million Facility to Amplify Trade Finance in Eastern and Southern Africa The African Development Bank Group (AfDB) has taken a significant step forward in boosting trade across Eastern and Southern Africa with the approval of a $150 million Trade Finance Unfunded Risk Participation Agreement (RPA) facility. In collaboration with the Trade and Development Bank Group - TDB Group (TDB), this initiative aims to revitalize intra-Africa trade, foster regional integration, and address the trade finance gap on the continent, aligning with the African Continental Free Trade Area (AfCFTA) Secretariat goals. The AfDB will offer guarantee coverage ranging from 50% to 75% for transactions, particularly benefiting low-income and transitional states. Set to enhance the trade capabilities of local and regional banks within the COMESA region, the facility is projected to support approximately $1.8 billion in trade over the next three years.  #AfDBTradeFinance #EconomicGrowthAfrica #IntraAfricaTrade #RegionalIntegration 𝐼𝑚𝑎𝑔𝑒 : 𝐴𝑓𝐷𝐵 𝑅𝑒𝑔𝑖𝑜𝑛𝑎𝑙 𝐵𝑟𝑎𝑛𝑐ℎ 𝐼𝑛 𝑁𝑎𝑖𝑟𝑜𝑏𝑖

Reliable access to trade finance liquidity is crucial for African trade, yet limited capital pools and weak connections to global banking often restrict local lender capacity. Insufficient access to global credit lines, correspondent banks, and foreign exchange reserves complicates trade finance., however increased collaboration and improved regulatory compliance may help overcome these barriers and enhance local lending capacity. This panel at #GTRAfrica in #London will consider how African banks and their global banking partners can improve trade finance capabilities and support Africa’s capacity for lending. Our expert speakers will look at bank de-risking, risk-sharing with global #FIs, #DFIs and #multilaterals, and the technical knowledge improvements that can be made across local banks. How DFI’s can further build an intra-African approach to develop technical knowledge will also be discussed, and the changes required from global financiers to unlock their risk appetite for African lending. 🎤 Natalia Andrew (Zenith Bank Plc (UK) 🎤 Enga Kameni Ph.D (African Export-Import Bank (Afreximbank)) 🎤 Clarine Stenfert (Multilateral Investment Guarantee Agency (MIGA) 🎤 Rima KALAI (ATF Finance Ltd) 🎤 Tim Bescoby (British International Investment (BII)   Connect with the key players shaping the future of African #trade and #exports on November 14. 📅 Secure your booking today to avoid missing out: https://lnkd.in/df6hRHCp #GTRAfrica #TradeFinance #ExportFinance #InfrastructureFinance #LiquidityAccess #FinancialInclusion

Last weekend, the Pan African Payment and Settlement System, PAPSS, had its inaugural forum for CEOs of commercial banks and other participants from across Africa. I had the privilege of attending in Cape Town and seeing first-hand the commitment, energy and enthusiasm from the CEOs and leaders present to use PAPSS to transform trade and payments across Africa - North, South, East and West. PAPSS makes it easier to buy and sell across African borders, through instant settlement in local currencies, instead of the common practice today of using USD, EUR or other hard currencies which takes days, sometimes weeks. Using third-jurisdiction hard currencies adds significant cost and friction to intra-Africa trade and restricts trade as they are in short supply in many African countries. PAPSS solves these issues. PAPSS is a key component in the African Continental Free Trade Area (AfCFTA), a flagship project of the African Union to boost trade and establish a Single African market. The potential is considerable - currently just 16% of African trade is between African countries, in comparison, over 60% of EU trade is between EU countries. In this context, PAPSS must be unique for a payment system in terms of its scope – open to 54 countries and 42 currencies across the continent. I came away confident that we will still see PAPSS make a big difference in Africa over the next few years. There is much work to be done, but momentum is growing, the change is transformational and the prize for Africa is huge. #Afreximbank #AfCFTA #ZLECAf #AfricanUnion #UnionAfricaine #BorderlessAfrica #ConnectingPayments #CrossBorderPayments #IntraAfricanTrade #Paiement #Payment #Africa #Afrique

Our latest article, titled “Understanding the CBN’s Revised Guidelines for International Money Transfers and the Removal of Allowable Limits Circular,” and authored by Richard Enoch, Tobi Adebanjo and Aishat Wale-Salako, FMVA® takes a look at the Central Bank of Nigeria's recently introduced changes to the regulations governing International Money Transfers. These revisions, along with the removal of allowable limits on exchange rates, have profound implications for IMTOs and the Nigerian economy. The article delves into the details of the new guidelines, outlining a comprehensive understanding of the two-phase licensing process, documentation requirements, and the implications of compliance with AML/CFT/CPF regulations. Furthermore, the removal of allowable limits enables IMTOs to issue payouts at prevailing foreign exchange rates, aiming to promote market liberalisation, and transparency, and enhance diaspora remittances and foreign capital inflows. However, these changes also present challenges for fintech firms and startups navigating the licensing process. Compliance and adaptability are paramount in successfully navigating these evolving regulations. Read the full article to gain insights into these regulatory developments and their implications for the financial landscape in Nigeria. Link below ⬇️ https://lnkd.in/d6tQKP3C #AcuityPartners #CBN #policyupdate #Finance #businessupdates #legaladvisory #BusinessSurvival #StrategicGrowth #NigeriaEconomy

South Africa's Financial Sector Conduct Authority (FSCA South Africa) recently published a communication emphasizing the importance and numerous benefits of adopting the Legal Entity Identifier (LEI).   The communication also highlights local regulatory support promoting the widespread adoption of the LEI in South Africa, such as the South African Reserve Bank (SARB) 's Money Market Data Collection Framework. This framework, which requires commercial banks to include the LEIs of counterparties in qualifying money market transactions reported daily, will be expanded to include foreign exchange market transactions in 2024.   #SouthAfrica #FSCA #SARB #LEI

$25m inflow from Dutch Bank To Nigeria Bank. Key parameters That Attracted foreign European banks to invest in Nigeria Banks Although foreign banks have been reluctant to invest in Nigeria, the country's large population and economic growth make it an attractive destination for foreign investors ¹ ². The following are key parameters that attracted foreign European banks to invest in Nigerian banks ¹: - Liberal approach: Nigeria's regulatory approach towards both foreign and indigenous banks has been a unique one since independence, creating a balanced market structure which allows banks to innovate and upgrade their capabilities. - Fragmented industry: The industry has been sufficiently fragmented, preventing strong market players from reducing incentives for capacity development. - Consolidation: The number of banks in Nigeria had been declining continually since independence in a consolidation process imposed by a series of regulatory interventions. - Governance code: A strict governance code imposed corporate governance standards that conform to international best practices, with high levels of transparency and accountability. - Capital-base requirement: A revised capital-base by CBN

A payment system without the dollar could save Africa $5 billion in processing costs, according to Tunde Macaulay from Standard Bank. Streamlining transactions is key for business efficiency! Source: Bloomberg https://lnkd.in/dBMFU7WC | #Africa #Economy #PaymentSystems