Category: Kenyan News.

Uganda may be on track to fully embracing digital transactions

  • Equity Bank in Uganda reports that only 6% of its transactions take place within its banking halls, highlighting a significant shift towards digital and alternative banking channels. 
  • With technology enabling 94% of transactions to occur outside branches, Equity Bank emphasizes the need for a network, service, and digital banking system restructuring. 
  • Equity Bank expands its agency banking network to over 8,000 agents, processing significant quarterly transaction volumes, while investing in digital banking to cater to unbanked individuals in Uganda.

Uganda’s Equity Bank has disclosed that only 6% of its transactions are carried out inside its banking halls. The specifics represent a significant move toward new financial transaction channels, such as agency banking, digital, mobile, and internet banking, among others.

Mr. Anthony M. Kituuka, managing director of Equity Bank, stated that technology has made it possible for the bank to perform 94% of its transactions outside of its branches (halls) when presenting the firm’s financial results for the period ending December 2022.

However, at Shs694b, the value of transactions made inside the bank is still bigger than that of digital channels. The managing director noted that the change had made it necessary to restructure the bank’s financial network, services, and digital banking system.

Mr. Kituuka stated that throughout the course of the year, the agency banking network of Equity Bank had increased to more than 8,000 agents from 7,727 agents in 2021, processing more than Shs13b per quarter.

He explained that in order to serve more Ugandans without bank accounts, the bank will keep making investments in digital banking.

The first financial institution in Uganda to use an agency banking platform was Equity Bank. It uses a separate platform from Agent Banking Company’s common agent platform, which is used by more than 20 banks and has a total of 20,487 agents.

Mr. Kituuka also said that other digital banking channels, such as Eazzy stock financing, have contributed to the development of non-banking transactions. Several banks, including Stanbic, have already said that the change in banking has affected banking hall traffic, which has decreased by more than 80% for most of them.

Because of this, banks have had to make technological investments to take advantage of the transition as well as manage the introduction of new product lines to compete with emerging financial services like mobile money, which have seen rapid development over the past ten years.

Read More..

Angola edges out Nigeria to become Africa’s top oil producer

  • Angola Surpasses Nigeria: In April 2023, Angola emerged as the leading oil-producing country in Africa, surpassing Nigeria, according to the OPEC MOMR.
  • Nigeria’s economy faced significant hurdles in the first half of 2023, including sluggish corporate and consumer expenditure, high input cost inflation, and lower employment levels compared to other African nations. 
  • Global Oil Consumption and Tensions: The OPEC report highlighted escalating international tensions impacting global oil consumption in 2023.

For the month of April 2023, Angola has surpassed Nigeria to grab the top spot among oil-producing African countries. This is based on information from direct communication included in the Organization of Petroleum Exporting Countries (OPEC) MOMR for April 2023.

According to the research, Angola produced 1.06 million barrels per day of crude oil in April 2023. In the meantime, Algeria and Nigeria both registered daily production of 999,000 barrels during the highlighted period in April 2023. Nigeria’s output rate in 2023 is at its lowest level ever.

The report noted that Nigeria’s economy struggled to pick up steam in 1H23 due to sluggish corporate and consumer expenditure, high input cost inflation, and lower employment levels compared to other African nations.

Recent leading signs, however, point to a potential economic recovery in the months ahead. The Nigerian government postponed the June deadline for ending gasoline subsidies, but it has not yet specified a new date.

The OPEC report also indicated that month-over-month, the total OPEC-13 crude oil output decreased by 191,000 barrels per day (tb/d) to an average of 28.60 million barrels per day (mb/d) in April 2023. While production in Iraq and Nigeria fell, it climbed mostly in Saudi Arabia, Angola, and Iran.

According to OPEC, escalating international tensions will continue to affect global oil consumption in 2023. In its monthly oil market report (MOMR), which was published on May 11, the organization made this claim. According to the research from OPEC, global oil consumption would likely exceed 101.9 million barrels per day (mb/d) in 2023.

The Central Bank of Nigeria maintained the policy rate at 18% after raising it by 50 basis points in March and by 100 points in January. Despite the difficulties, the Stanbic IBTC Bank Nigeria PMI rose sharply in April to 53.8 from only 42.3 in March, suggesting a potential short-term rebound.

Read More..