Wednesday, April 14African Business News
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ITFC and the Republic of Cameroon Sign a US$750 Million Three-year Framework Agreement to Support Cameroon’s Key Sectors through Integrated Trade Solutions

ITFC and the Republic of Cameroon Sign a US$750 Million Three-year Framework Agreement to Support Cameroon’s Key Sectors through Integrated Trade Solutions

Finance
The International Islamic Trade Finance Corporation (ITFC) (ITFC-IDB.org), a member of the Islamic Development Bank Group (IsDB) and the Republic of Cameroon have signed on April 12, 2021 two agreements in a virtual signing ceremony between H.E. Alamine Ousmane Mey, Minister of Economy, Planning and Regional Development (IsDB Governor) and Eng. Hani Salem Sonbol, CEO, ITFC. The first signing is a three-year framework agreement amounting to US$ 750 Million under which ITFC will provide to Cameroon a financing envelop of US $ 250 Million annually over a period of three years to facilitate the imports of key commodities in the strategic sectors of energy, mining, in addition to the health sector with medical supplies including healthcare equipment. It will also sustain its already strong ...
Sterling Bank reports 16% profit growth in 2020

Sterling Bank reports 16% profit growth in 2020

Finance
Despite the adverse effect of the Covid-19 pandemic, Sterling Bank Plc, a full service national commercial bank, has reported a Profit Before Tax (PBT) of N12.4 billion. The lender reported the Profit Before Tax on gross earnings of N138.9 billion in the financial year ended 31 December 2020 compared to a PBT of N10.7 billion on gross earnings of N150.2 billion in the same period of 2019, representing a 15.9percent growth. In response to the pandemic and expected credit losses, Sterling Bank proactively increased the cost of risk by 10 bps to 1.0% while moderating the Non-Performing Loan ratio downwards by 30bps to 1.9percent. Commenting on the results, Abubakar Suleiman, Chief Executive Officer (CEO), Sterling Bank, said, “2020 was an extraordinary defined by the g...
MFIs, SMEs and challenges of financing

MFIs, SMEs and challenges of financing

Finance
Data by Microfinance Barometer shows that 139.9 million borrowers benefited from the services of microfinance institutions (MFIs) in 2018 compared to 98 million borrowers reported 10 years earlier (2009). That is equivalent to about a 43 per cent jump in the global coverage of MFIs in a decade. Of the figures, 80 per cent were women while 65 per cent are rural dwellers. Activities of MFIs have increased tremendously, and their operational structures transformed over time. What has remained constant, however, are the proportions of borrowers. The blend between women and rural dwellers has remained consistently stable in the researcher’s yearly surveys in the past 12 years it took up the challenge of tracking the progress of global microcredit, a key variable of financial inclusion. ...
UBA assures shareholders of improved returns on key investments

UBA assures shareholders of improved returns on key investments

Finance
United Bank for Africa (UBA) Plc has announced that it has spearheaded strategic investments in digital banking and technology platforms that would guarantee its capacity to absorb the impact of an uncertain environment. UBA Group Chairman, Tony O. Elumelu, who gave this assurance to shareholders at the 59th yearly general meeting held in Lagos at the weekend, also assured shareholders of improved performance and greater returns on investment in the current financial year. Also at the meeting, shareholders approved a final dividend of N0.35 kobo for every ordinary share of 50 kobo, bringing the total dividend for the year to N0.52 kobo as the bank had paid an interim dividend of N0.17 kobo earlier in the year. Elumelu said the bank had established a diversified business model...
Smile Telecoms Holdings Enters New Era with Approved Restructuring Plan – Fresh Money

Smile Telecoms Holdings Enters New Era with Approved Restructuring Plan – Fresh Money

Finance
Smile Telecoms Holdings Ltd. (Smilecoms.com), a Pan-African telecommunications group with operations in Nigeria, Uganda, Tanzania, and the Democratic Republic of the Congo, announced today, March 30th 2021 that its RP (Restructuring Plan) has been approved and agreed with the lenders. This debt restructuring plan sees an injection in fresh money funding from Smile's majority shareholder, the Al Nahla, and rescheduling on debt repayment until post-March 2022. The fresh injection of $51m in funding for Operations will further enhance Smile's position in its respective markets and energize Smile's operations and support efforts towards achieving better performance.
CIBN takes fresh approach to address skill issues in banks

CIBN takes fresh approach to address skill issues in banks

Finance
The Chartered Institute of Bankers of Nigeria (CIBN) has unveiled a new Banking Professional Examination and Certification Programme Syllabus as part of its move to prepare the industry for the emerging knowledge challenges in the industry. The Institute is looking beyond Nigeria’s market, hoping to leverage the vibrancy of the country’s banking sector, to launch into African and global space. Speaking at the virtual event, which had over 300 stakeholders in diverse sectors in attendance, the President/Chairman of Council, CIBN, Bayo Olugbemi, said the unveiling was a milestone in the institute’s drive to deepen knowledge and skills; implement the competency framework as well as serve as a global reference point for professionalism and ethics in the banking and finance.xhttps: ...
Finance experts chart course for data analytics adoption

Finance experts chart course for data analytics adoption

Finance
International finance experts, including executives of the Association of Chartered Certified Accountants (ACCA), have made a case for a change of orientation among peers, saying technology has altered the course of professional practice. Speaking at a webinar on ‘data analytics in finance, the finance experts said data was not only a challenge but the “people aspects” needed to make the required switch to enable businesses to leapfrog to the operating model. They deliberated on the benefits of data analytics and how businesses enterprises could leverage it to transform their operations and income. They concluded that organisations would benefit more if data science was democratised even though the finance team should necessarily take the lead and ownership of data mining and utilis...
Afreximbank, NEXIM sign $50m fund MoU to stimulate local industries

Afreximbank, NEXIM sign $50m fund MoU to stimulate local industries

Finance
African Export-Import Bank (Afreximbank) and Nigeria Export-Import Bank (NEXIM) have entered into a Memorandum of Understanding (MoU) to establish a fund that will provide early project preparation financing and technical support services to public and private sector entities. Under the terms of the MoU signed in February 2021, Afreximbank and NEXIM will collaborate through the Joint Project Preparation Fund to unlock investments into sectors such as manufacturing, agro-processing, solid minerals development, beneficiation services, healthcare, information, and communications technology as well as creative industries. NEXIMAfrican Export-Import Bank (Afreximbank) and Nigeria Export-Import Bank (NEXIM) have entered into a Memorandum of Understanding (MoU) to establish a fund that...
Kano Assembly approves Ganduje’s N20bn loan request

Kano Assembly approves Ganduje’s N20bn loan request

Finance
The Kano State House of Assembly has approved Gov. Abdullahi Umar Ganduje’s request to access N20 billion domestic loans to fund capital projects. Ganduje had requested the state assembly’s approval to access the sum of N20 billion from the Central Bank of Nigeria (CBN) to execute the Janguza-Durum-Kabo-Karaye road billed at N4.5 billion, the completion of Dangi flyover, the construction of township roads in Rano, Bichi, Gaya and Karaye emirates. Also, projected for execution are N8 billion for the construction of Muhammad Buhari road interchange at NNPC Hotoro and construction of rural roads across 38 local government areas, which will gulp N6.5 billion. The legislators, on Monday, at the plenary approved the loan after deliberation and subsequent consent on the report of th...
DMO lists N162.6b third Sukuk on NGX platform

DMO lists N162.6b third Sukuk on NGX platform

Finance
The Debt Management Office (DMO), yesterday, listed the N162.557 billion seven-year Ijarah Sukuk with a rental rate of 11.20 per cent on the floor of the Nigerian Exchange (NGX) Limited. The third sovereign Sukuk was issued last June to be used for financing the rehabilitation and construction of key road projects across the six geopolitical zones. With this listing, members of the public who invested in the 2020 Sukuk bonds can sell to investors who wish to buy into the asset. Speaking on the listing, the Director-General of DMO, Ms. Patience Oniha, expressed satisfaction that the bond has fulfilled the condition of listing as stipulated by the Financial Regulatory Advisory Council of Experts (FRACE) of the Central Bank of Nigeria (CBN). She said the Sukuk could only be l...