Banking | - Part 116

South Africa | Barclays Unit Rejects South Africa Minister’s Invite to Gupta Talks

Johannesburg, South Africa, Capital Markets in Africa: Barclays Africa Group Limited’s Absa declined an invitation to meet South African Mineral Resources Minister Mosebenzi Zwane to discuss the closure of bank accounts related to companies controlled by the Gupta family, who are friends of President Jacob Zuma and in business with his son. “We have respectfully declined on account of client confidentiality,” the Johannesburg-based lender said in an e-mailed response to questions on Wednesday. “As a bank we cannot discuss any…

Kenya | Equity Group Pauses Africa Expansion Plans as Economies Slow

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Nairobi, Kenya, Capital Markets in Africa: Equity Group Holdings Ltd., Kenya’s biggest bank by market value, put plans to expand into five other African countries on hold after sliding prices for commodities from oil to copper caused currencies to tumble. The lender, which had prioritized entries into Nigeria, Angola, Ghana, Mozambique and Zambia, will instead focus on deepening its presence in markets in which it already operates by growing branch networks, Chief Executive Officer James Mwangi said. “We…

South Africa | Barclays Sells 12.2% Stake in African Unit for $879 Million

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Johannesburg, South Africa, Capital Markets in Africa — Barclays Plc said it sold about one-fifth of its stake in Barclays Africa Group Ltd. for about 13.1 billion rand ($879 million) as part of Chief Executive Officer Jes Staley’s plan to overhaul the British lender. The bank sold 12.2 percent of Barclays Africa’s shares to money managers, leaving it with a holding of 50.1 percent, it said in a statement on Thursday. The shares were bought for 126 rand each,…

Dollar Shortage Leaves ATMs Empty, Zimbabweans Without Cash

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HARARE, Zimbabwe, Capital Markets in Africa — Banks in Zimbabwe, which abandoned its own currency in 2009 because of hyperinflation, have limited cash withdrawals and shut down some ATMs as the country’s ailing economy causes dollar supplies to evaporate, threatening to result in company failures. Lines of people are growing outside banks in the capital, Harare, as cash-strapped residents try get money to pay for everything from school fees to groceries. The shortage highlights the struggle…

South Africa Reserve Bank Sees Medium to High Risk of Credit-Rating Cut to Junk

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Johannesburg, South Africa, Capital Markets in Africa — There is a medium to high probability that South Africa’s debt will be downgraded to non-investment status, according to the country’s central bank. A cut may lead to capital outflows, affect the government’s rand-denominated debt, increase the cost of funding and reduce credit to the private sector, the Pretoria-based South African Reserve Bank said in its Financial Stability Review on Tuesday. Spreads on credit-default swaps would also widen, corporate profits…

Kenya’s Biggest Bank May Expand Operations to Four New Countries

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NAIROBI, Kenya, Capital Markets in Africa — Kenya Commercial Bank (KCB) Group Limited, owner of Kenya’s largest bank, may enter Mozambique, the Democratic Republic of Congo, Somalia and Djibouti by 2020, said Chief Executive Officer Joshua Oigara. The lender is willing to swap shares to fund transactions, he told reporters in the capital, Nairobi, on Friday. KCB will complete an assessment of Chase Bank Kenya Ltd., the failed lender that it is helping to reopen branches and…

Central Bank of Egypt Keeps Policy Rate Unchanged at 10.75% in April

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CAIRO, Egypt, Capital Markets in Africa — In its meeting held on April 28, 2016, the Monetary Policy Committee (MPC) decided to keep the overnight deposit rate, overnight lending rate, and the rate of the Central Bank of Egypt’s (CBE) main operation unchanged at 10.75 percent, 11.75 percent, and 11.25 percent, respectively. The discount rate was also kept unchanged at 11.25 percent. Annual headline CPI remained at around 9 percent in February and March 2016,…

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