Some 1.7 billion adults worldwide still don’t have access to a bank account, according to data released by the World Bank.
The situation is slowly improving, however, with 1.2 billion people getting access to proper banking since 2011, including over half a billion people in the last three years alone.
Access to finance in remote areas is proven to relieve barriers to poverty reduction, economic growth and female empowerment. Fintech can help solve these challenges, but it needs the help of governments, the public sector and financial institutions to have meaningful impact. Across much of the developed world, people take their bank accounts for granted, safe in the knowledge that their money is secure and that there’s an Automated Teller Machine (ATM) close at hand. Elsewhere, the concept of financial inclusion remains a pipe-dream.
Banks, telcos, ministries of finance, central banks and leaders in the banking industry from 10 nations across the West African region are set to gather in Lagos at The Future Banking Technology Summit to discuss efforts aimed at increasing financial inclusion in the sub-region by 2020.
The Future Banking Technology Summit will address over two days of panel discussions and case studies showcasing the full value chain of the region’s banking and financial sector to best achieve financial inclusion and sustainable banking sector growth.
Commenting on the Future Banking Tech West Africa Summit, Khalila Baldwin, the Director of the summit said: “At such an exciting time for the financial space in West Africa, we knew it was imperative to launch an event capturing as many of the dynamic components of this sector as possible. A key focus of our event, and many new policies being driven within the region, is to ensure financial inclusion is increased across West Africa. We, therefore, wanted to shine a light on the leading strategies increasing access to finance with the top financial stakeholders in attendance.
“Late last year, the Central Bank of Nigeria announced the introduction of Payment Service Banks, and amidst so much buzz around Telco’s entering the financial space in Nigeria, we also wanted to provide a platform for both the traditional and non-traditional financial entities to converge” Baldwin added.
The event will focus on the future of digitising banking services for Central Banks in West Africa. This is as leveraging off experiences of similar regions can aid in the adoption of best financial inclusion practices, as it is becoming incumbent on banking stakeholders to be rapid, yet savvy in incorporating disruptive mobile money platforms, automated banking systems, tailored credit facilities and crypto-currencies for this dynamic market. ( The two days summit will also tackle several paramount topics including, innovation in regulation- Overcoming gaps in rural banking strategies, supporting innovative financial institutions to improve financial inclusion, improving credit facilities to underbanked and Small and Medium Enterprises, throughout main panel discussions and networking breaks.
Future Banking Tech West Africa Summit will include case studies from nations that had similar stories, that have increased access to finance through changes in regulations such as mobile money licences for non- banks and pushing agency banking. To showcase this, the two-day summit will begin with discussions from some of the region’s regulators, including Mudashiru Olaitan, Director, Development Finance Department, Central Bank Nigeria as he describes the innovative platforms being adopted, adapted, and implemented to increase financial inclusion. The second session is a panel discussion with EFInA, Central Bank of Nigeria and Ministry of Finance, Ghana as they further examine the best strategies to enhance rural access to finance.
Afreximbank unveils 100m Euro facility for projects.
The African Export-Import Bank (Afreximbank) has announced the disbursement of an 100 million Euro revolving global credit facility to Mota-Engil Engenharia e Construçáo África, S.A. (Mota-Engil Africa) to support the company to implement key developmental projects in Africa. Such projects include the construction of trade-carrying and trade-supporting infrastructure required for the acceleration of the integration process in the continent, said Afreximbank in the announcement released in Cairo. According to the bank, the facility will strengthen Mota-Engil Africa’s capacity to carry out projects critical to reducing transaction costs for businesses, growing intra-regional trade, easing movement of goods, services and people, boosting employment and stimulating economic activity in Africa.The transaction is expected to lead to increased activity in a number of economic sectors, including petroleum and petrochemicals, heavy equipment supplies, spare parts supplies, architectural services, and to increased public revenues from an expansion in economic activity in various countries.Mota-Engil Africa is a significant player in intra-African trade as evidenced by the volumes of goods and services it procures from, and distributes to African countries where it executes contracts. Some of the infrastructure developed by the company, including ports and railways, serve multiple countries.The company has a robust backlog of strategic projects in Africa in excess of EUR3 billion, covering such sectors as construction, mining, power, medical, infrastructure management, waste management and other concession businesses.Speaking on the transaction, Prof. Benedict Oramah, President of Afreximbank, said that with the easing of mobility of goods, services and people across African borders foreseen under the transaction, there would be an increase in intra-regional trade, leading to creation of jobs, increase in foreign exchange earnings and growth in government revenues.Apart from enabling African governments to improve the quality of life of their citizens in line with the Sustainable Development Goals, the expected developmental outcomes will contribute to implementation of the goals of the African Continental Free Trade Area, he added. Also participating in a ceremony to mark the transaction were Kanayo Awani, Managing Director, Intra-African Trade Initiative, Afreximbank, and Manuel Mota, Chief Executive Officer, Mota-Engil Africa.ETI debut $450 million Eurobond oversubscribed
Ecobank Transnational Incorporated (ETI) the Lomé-based parent company of the Ecobank Group, is pleased to announce that it has successfully raised $450 million in its debut Eurobond which was oversubscribed.The proceeds will be used for ETI’s general corporate purposes and to refinance existing Holdco obligations. The Global Offering is a five-year unsecured note (144A/RegS) listed on the main market of the London Stock Exchange. The bond matures in April 2024 and was issued with a coupon pricing of 9.5 per cent with interest payable semi-annually in arrears. The proceeds will be used for ETI’s general corporate purposes and to refinance existing Holdco obligations. Investor’s interest was global, including United Kingdom, United States, Europe, the Middle East, Asia, and Africa. On this debut Eurobond issuance, Ade Ayeyemi, Group Chief Executive Officer of ETI, stated: “This is another first for Ecobank and I’m very excited at the prospects for the group as we continue the second phase of our five-year ‘Roadmap to leadership’ strategy. Our efforts toward greater operational and capital efficiency are paying off, and this offer is another example of the measures we are taking to strengthen our institution and deliver value for all of our stakeholders”.
The Group Chief Financial Officer, Mr. Greg Davis, also commenting on this Eurobond said: “The success of this Eurobond reflects appetite from high quality and real money institutional investors globally and the trust that continues to be conferred on our institution and the markets we have chosen to participate in.”
Source: https://thenationonlineng.net/world-bank-1-7b-adults-lack-access-to-financial-services/