DOCSLIB.ORG

Equity Group Foundation

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Equity Group Foundation Investor Briefing FY 2017 Performance Macroeconomic Environment Indicators & Trends 1 % Jan-13 Inflation has been on a sustained recovery since mid 2017. Inflationary pressure now now pressure Inflationary 2017. mid since recovery sustained a on been has Inflation Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 within the targeted range targeted the within Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Inflation Mar-15 , May-15 inflation rate at a new low level of 4.46% of level low new a at rate inflation Jul-15 Sep-15 – Nov-15 Kenya 12 Jan-16 11 Mar-16 10 May-16 9 Jul-16 8 Sep-16 7 Nov-16 6 Jan-17 5 Mar-17 restrained 4 May-17 3 Jul-17 2 Sep-17 and currently currently and 1 Nov-17 0 Dec-17 Feb-18 band Lower Inflation Target band Upper CBR 2 Foreign Exchange – Kenya The Kenyan Shilling has been relatively stable in 2017 with the largest volatility between January and March driven by increased importation of food. 2018 continues to see a recovering Shilling. 105 104 KES/USD 103 102 101 100 99 98 2 1 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2016 2017 3 reserves accumulation reserves down slowed however has prices oil global in recovery continued The 4 months. recommended the against level stable remainFX reserves 2017 Jun since recovery a started have markets international Oil in the Crudeof prices Average Source: CBK Source: Cover Import of Months Recommended Import Cover Import of Months Foreign Reserves Reserves Foreign Jan-17 Feb-17 Mar-17 Apr-17 – May-17 Kenya Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 5.4 5.5 5.4 5.2 4.6 4.6 4.8 5.0 5.0 4.9 4.7 4.7 4.7 4.8 Dec-17 Jan-18 Feb-18 4 months months importwithinof cover levels stable global of recovering the effectoil prices to continues remittances Diaspora growing The Months of Import Cover Import of Months Millions) (US$ Remittances Diaspora Monthly Foreign Reserves Reserves Foreign thus suppress the the suppress keeping Jan-17 Feb-17 147.5 Mar-17 Apr-17 May-17 – Kenya 154.9 203.8 Jun-17 175.2 176.1 Jul-17 Aug-17 Sep-17 5.4 4.8 5.0 4.7 4.8 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 5 21.2% Jul-15 21.0% Aug-15 20.8% Sep-15 19.5% Oct-15 18.7% Nov-15 18.0% Dec-15 17.0% Jan-16 Trend Growth Credit Sector Private 16.0% Feb-16 15.5% Mar-16 13.5% Apr-16 11.1% May-16 8.6% Jun-16 7.1% Jul-16 5.3% Aug-16 4.4% Sep-16 4.6% Oct-16 4.2% Nov-16 4.1% Dec-16 3.9% Jan-17 3.5% Feb-17 3.0% Mar-17 2.3% Apr-17 1.9% May-17 1.5% Jun-17 2.0% Oct-17 2.4% 6 Dec-17 Current Account Deficit – Kenya The current account deficit is expected to narrow to 5.4% of GDP in 2018 largely due to; • Lower imports of food • Lower imports in the second phase of the SGR project • Steady growth in tea and horticulture exports • Strong diaspora remittances • continued growth in receipts from tourism. Current Account Deficit/GDP -5.2% -6.2% -6.7% -8.4% -9.1% -8.8% -10.4% 2011 2012 2013 2014 2015 2016 2017 7 Tourist Arrivals – Kenya Kenya remains a growing tourist destination. Tourists visits consistently growing except for electioneering months. Growth expected to be compounded by; • New Kenya – US direct flight • Lifting of travel ban In thousands +18% +36% -7% 105 +16% 106 +6% +15% 97 0% +23% +5% +22% +7% 90 90 87 -11% 80 79 78 75 73 73 72 76 72 73 67 68 69 69 63 65 59 55 Jul Apr Oct Jan Jun Mar Feb Nov Aug Dec Sep May 2016 2017 JKIA and MIA arrivals 8 Evolving Economic Environment 9 2018 Operating Environment 2018 Challenges 1. Region instability especially in South Sudan and DRC 2. Interest rate capping has continued to create a credit squeeze on businesses 2018 Rays of Hope 1. Lifting of travel sanctions by the US 2. Opening of direct flights to US from Kenya 3. IMF sponsored economic reforms expected to continue as part of a Stand-By Arrangement facility. Reforms include; • Reducing the fiscal deficit • Amending interest rate controls 4. No elections in any of the East African countries in 2018, leading to minimum disruptions to businesses 5. Reduced political risk in Kenya with the resolve of the ruling party and their opposition to bring the country together 6. End of the prolonged 2 year drought that had crippled agriculture, water and energy supplies 7. Continued growth in FX streams from Diaspora and growing tourism flows 8. Renewed focus on the Big 4 - agriculture, low income housing, affordable health and manufacturing 10 Emerging Opportunities in Africa Africa Agenda 2063 which holds a great opportunity for the continent's transformation a) Africa Continental Free Trade Area b) Free movement of persons supported by Africa open sky space c) Plan for accelerated industrialization of Africa d) The joint development of infrastructure ( cross border roads, railways, energy pool strategy and communications) e) Transformation and natural resources mining and processing the same in the continent 11 Equity Group Business Model & Strategy – Post Interest Rate Capping 12 Equity Bank Business Model & Strategy – Post Interest Rate Capping (Adjusting and adapting to the new norm) Focus areas: 1. Non-funded income growth 2. Treasury 3. Subsidiaries and business diversification 4. Strengthening liquidity and balance sheet agility 5. Asset quality 6. Innovation and digitization 7. Efficiencies and cost optimization 13 Focus Area 1: Non-funded income growth Loan Interest Income Non Funded Income Total Interest Income Growth Trend Growth Trend Growth Trend +19% -7% +14% -21% 51.8 43.4 48.4 8.4 43.5 38.0 +24% Treasury Interest 5.4 14.3 34.1 Income 27.6 +1% 21.9 22.2 43.4 Loan Interest 38.0 Income 34.1 FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 14 Focus Area 1: Non-funded income growth In Kes Million Fees & Commissions (Key Lines - Kenya) FX Income Salary Remittance Gross Merchant Mobile Banking Commission Commission 2,195 1,910 +15% 1,344 1,215 +11% 1,281 1,197 1,103 +16% +64% 731 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 Trade Finance Agency Commission AMEX Commission Diaspora Remittances 1035 893 +16% 828 717 +15% 274 178 +54% 198 151 +31% FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 *Equitel only charges on transfers to other banks and mobile operators 15 Focus Area 1: Non-funded income growth We have partnered with key payment …which has allowed us to grow our number of transactions companies… and commissions Volume (Billions) Commissions (Billions) +17% +25% 55.7 47.6 38.2 1.3 1.1 +16% 0.9 +24% ▪ Equity is leading in Acquiring and Issuing FY 2015 FY 2016 FY 2017 ▪ Best in class payment channel services work well with merchants Merchant Transaction Volumes Merchant Commissions 16 Focus Area 2: Treasury In KES Billion In KES Billion In KES Billion Government Yield on Government Treasury Gross Income Treasury Income Mix Securities Portfolio Securities Contribution 59% 3% 19.2 76.0 128.0 74.1 0.9 0.7 12.0 Treasury Income 19.2 (16%) (25%) 11.7% 4.1 (21%) 100.6 11.0% Interest Income 12.0 Placements 0.5 Bond Trading 0.3 Income 3.3 FX Income (27%) All Other Income 62.0 (ex Treasury Income) (84%) 56.8 13.4 (75%) (70%) Interest Income 7.9 Gov. Securities (65%) FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 Note: Income calculation above is before funding costs 17 Focus Area 3: Subsidiaries & business diversification . Double digit growth in profitability across subsidiaries . Enhanced PAT contribution to Group from 7% to 14% In KES Billion Contribution Contribution Uganda DRC Rwanda Tanzania S. Sudan EIA Finserve EIB Total EBKL FY 2017 FY 2016 Deposit 20.7 32.3 15.1 19.1 4.9 - - - 92.1 298.7 24% 21% Growth 52% 39% 20% 25% -33% 28% 8% Loan 14.0 21.8 11.5 17.3 0.1 - - - 64.6 214.5 23% 20% Growth 56% 28% 14% 7% -19% 24% 0% Assets 29.3 42.9 21.4 26.0 8.3 0.4 2.0 1.2 131.4 406.4 24% 22% Growth 60% 32% 36% 9% -25% -50% 11% 39% 25% 7% PAT (Kes) 0.9 0.3 0.5 0.2 0.11 0.3 0.2 0.1 2.6 16.3 14% 7% Growth (Kes) 81% 63% 80% 17% 121% 0% 21% 94% 126% 7% PAT (LCY) 30.6 0.003 3.9 4.8 0.13 0.3 0.2 0.1 16.3 Growth (LCY) 87% 60% 87% 18% 131% 0% 21% 94% 7% 18 Focus Area 4: Strengthening liquidity position and agile balance sheet ….to mitigate economic uncertainty and shocks and to support responsiveness and agility Liquidity Ratio (Group) 54.2% 50.6% 51.1% 52.1% 47.6% 42.7% Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 19 Focus Area 4: Strengthening liquidity position and agile balance sheet In KES Billion Funding Split Asset Split Growth per Group Growth per Group Funding Type Asset Class +11% +11% 524.5 524.5 10.3 20% 37.8 473.7 47.9 (2%) -11% 4% 473.7 (7%) 8.6 (9%) Other Liabilities 42.6 46.0 (2%) Other Assets Borrowed Funds 93.1 (9%) 128.0 (10%) 14% 27% (18%) (24%) Shareholders’ 82.0 Government 100.6 Funds (17%) Securities (21%) 79.6 24% Cash & Cash 64.4 (15%) Equivalents (14%) 373.1 11% 337.2 Deposits (71%) (71%) 266.1 279.1 5% Net Loans (56%) (53%) FY 2016 FY 2017 FY 2016 FY 2017 20 Focus Area 5: Asset quality (Group) NPL’s – Sector vs EGH Plc as at Q4 2017 NPL per sector as at Q4 2017 Sector (Kenya) 15.4% 10.7% 10.6% Group 9.9% 9.5% 9.1% 8.8% 8.4% 7.7% 7.4% 8.9% 7.1% 7.3% 7.1% 6.8% 6.3% 6.7% 6.2% 6.3% 5.8% 4.6% 3.8% 3.3% 0.0% SME Total Micro Large Consumer Agriculture Enterprises Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Enterprises NPL Coverage 69.1% 64.4% 48.0% 50.3% (Spec.
Load more

Recommended publications
  • Digital Access: the Future of Financial Inclusion in Africa Acronyms
    DIGITAL ACCESS: THE FUTURE OF FINANCIAL INCLUSION IN AFRICA ACRONYMS ADC Alternative Delivery Channel ISO International Organization for Standardization AFSD African Financial Sector Database IT Information Technology ARPU Average Revenue Per User KES Kenyan Shilling API Application Programming Interface KPI Key Performance Indicator ATM Automated Teller Machine KYC Know Your Customer B2P Business to Person LAPO MfB Lift Above Poverty Organization BCEAO Central Bank of West Africa (Banque Centrale Microfinance Bank des Etats de l’Afrique de l’Ouest) M-banking Mobile Banking BOI Banking Operations Intermediary M-wallet Mobile Wallet BVN Bank Verification Number MFI Microfinance Institution CEO Chief Executive Officer MM Mobile Money CBA Commercial Bank of Africa MSME Micro, Small and Medium Enterprise CBN Central Bank of Nigeria MTN Mobile Telephone Network CFA West African Franc, or Central African Franc MNO Mobile Network Operator CGAP Consultative Group to Assist the Poor MVNO Mobile Virtual Network Operator CRM Customer Relationship Management NFC Near Field Communication DFS Digital Financial Services OTC Over the Counter DJ Disc Jockey P2B Person to Business DVD Digital Versatile Disc P2P Person to Person E-banking Electronic Banking PC Personal Computer EFT Electronic Funds Transfer PIN Personal Identification Number EMI e-Money Issuer POS Point of Sale E-money Electronic Money PSP Payment Service Provider E-wallet Electronic Wallet E-warehousing Electronic Warehousing QR Quick Response FCMB First City Monument Bank RCT Randomized
    [Show full text]
  • Competitive Strategies and Performance of Equity Bank in Kenya
    COMPETITIVE STRATEGIES AND PERFORMANCE OF EQUITY BANK IN KENYA NYAGA ANDREW IRERI A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION SCHOOL OF BUSINESS UNIVERSITY OF NAIROBI MAY, 2016 DECLARATION This research project is my original work and has not been presented for examination in any other university. Signature...................................... Date......................................... NYAGA ANDREW IRERI (D61/72455/2014) This research project has been submitted for examination with my approval as the University Supervisor. Signature...................................... Date......................................... DR. JOHN YABS SENIOR LECTURER DEPARTMENT OF BUSINESS ADMINISTRATION SCHOOL OF BUSINESS UNIVERSITY OF NAIROBI ii ACKNOWLEDGEMENT I thank the almighty God for seeing me through my entire Master‟s Degree course. Indeed God‟s providence and unfailing mercy have made this possible. I wish to acknowledge the University of Nairobi for the support accorded to me during the entire course. I am indeed grateful to my supervisor, my moderator and lecturers for the support, encouragement, guidance and constructive criticism which I was able to complete my project. I thank all the respondents who spend their precious time and participated in the research and answered my questions in the interview guide. iii DEDICATION This project is dedicated to parents who inspired me to acquire my academic potential and supporting me throughout my MBA. I highly cherish your love, encouragement, support, and guidance throughout all these years. May the Almighty God bless you. iv ABSTRACT Modern banking sector operates in a dynamic and turbulent environment faced with variety of challenges brought about by competition in the sector.
    [Show full text]
  • Positioning Strategies on Mobile Money Transfer at Safaricom Limited
    POSITIONING STRATEGIES ON MOBILE MONEY TRANSFER AT SAFARICOM LIMITED BY ROSEMARY ATIENO ADONGO SUPERVISOR DR. FLORENCE MUINDI A RESEARCH PROJECT PRESENTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTTRATION, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI NOVEMBER, 2017 DECLARATION This research proposal is my original work and has not been presented for a degree in any other university. Signature............................................................... Date................................ Rosemary Atieno Adongo Reg No: D61/75015/2014 This research proposal has been submitted for examinations with my approval as the university supervisor. Signature...................................................... Date.............................. Dr. Florence Muindi School of Business, University of Nairobi. ii ACKNOWLEDGEMENT I thank to the Almighty God, who has made the completion of this project possible through good health, peace of mind, supportive supervisor, friends and family who have been of great help towards the completion of this project. Most sincerely I thank Supervisor Dr. Florence Mundi for her patience, availability, professional advice; guidance and encouragement that helped me meet the deadline and success of this project. Finally I appreciate the efforts of my husband James Adunya, my children Sharon, Felix, Calistor and Allan who relentlessly encouraged me to move on regardless of the hurdles that came on my way. iii DEDICATION This project is dedicated to my family for their support their guidance and contribution in getting to where I am today and for their patience and support as I spent time and resources towards attaining my master‟s degree. iv ABSTRACT Organizations that operate in an industry with more than one firm face substantial competition if not fierce competition.
    [Show full text]
  • Orange Money Is Launched in Kenya, Powered by Equity
    December 2010 EQUITY NEWS A NEWS PUBLICATION OF EQUITY BANK Your Listening Caring partner www.equitybank.co.ke Issue 01 FEATURED INSIDE Guest of Hon- our Deputy Prime Minister and Minister for Finance Uhuru Kenyatta with Dr. Mwangi named the 2010 Orange CEO African Banker of the Year Pg 3 Mickael Ghos- Revolutionary M-Kesho product sein and Equity launched Pg 3 Bank CEO Dr. Equity Bank Southern Sudan James Mwangi grows Pg 7 at the launch of Equity Bank Uganda recognized Orange Money. as best employer Pg 7 ORANGE MONEY IS LAUNCHED IN KENYA, POWERED BY EQUITY BANK DR. MWANGI November 2010 saw Equity Bank and tele- on recent advancements in the Information the Bank already have a foothold. Dr. Mwangi ADDRESSES GLOBAL communications Service provider Telkom Ke- and Communications Technology. He said the added “Cooperation with like- minded part- SAVINGS FORUM nya launch Orange Money, a versatile product introduction of the product in Kenya was in- ners brings on board value added solutions, that combines the features of mobile money formed by lessons from other countries where and Equity Bank will continue to seek partner- r. Mwangi was one of the pan- transfer and mobile banking. Orange money Orange Money had been introduced, as well ships that will not only focus on innovation, elists at the first ever Global is powered by Equity Bank’s mobile banking as intensive research on the needs and prefer- but will at the end of the day make a difference Savings Forum held in Seattle, platform. Orange money is mapped onto the ences of Kenyans.
    [Show full text]
  • 16045 KPMG Africa P4 Web.Indd
    Africa Banking Industry Retail Customer Satisfaction Survey September 2016 kpmg.com About this survey To succeed in today’s banking environment, bank executives need to understand their customers: their preferences, their channel usage, their needs and their satisfaction. That is why we talked with more than 33,000 Understanding the methodology retail banking customers spread across 18 different African markets. We asked them what was important to them in a banking relationship. We asked them For this report (and our previous report in 2013), we what channels they currently use and what channels used our Customer Service Index (CSI) methodology they would like to use. And we asked them how to determine customer satisfaction. The CSI is a their current banks compared to their expectations. weighted score that reflects the relationship between the importance rating allocated by customers to certain measures and their satisfaction with the same Through the eyes of the customer measures. The data we collected from our conversations The CSI ranks importance and satisfaction across reflect the opinions of real banking customers. six key measures: As such, they reflect only the perceptions of customers and – as a result – they may not always be fair. Perceptions are, by defi nition, subjective. Branding To be clear: the data reported in this survey does not refl ect the opinions of KPMG member fi rms. Rather, it illustrates the feelings and experiences Value for Customer of customers based on the service they received money care at their particular banks. Delivering a balanced view Products Convenience and services For this survey, we talked with retail banking customers across 18 sub-Saharan countries Executional in Africa.
    [Show full text]
  • A Guide for Diaspora Remittances & Investments
    SEND MONEY invest &in KenYA A guide for diaspora remitTances & investments This Action is supported This Action is funded by the Secretariat of the by the European Union ACP Group of States 2 The contents of this booklet are the sole responsibility of the author and cannot be taken to reflect the views of the ACP Secretariat, ACP States, the European Commission or the International Organization for Migration (IOM). The designations employed and the presentation of material throughout the booklet do not imply the expression of any opinion whatsoever on the part of the ACP Secretariat, ACP States, the European Commission or the IOM concerning the legal status of any country, territory, city or area, or of its authorities, or concerning its frontiers or boundaries. The ACP Secretariat, the ACP States, the European Commission or the IOM do not make any warranties or representations, either express or implied, with respect to the accuracy or completeness of this booklet. Under no circumstances shall they be liable for any loss, damage, liability or expense incurred or suffered that is claimed to have resulted from the use of this booklet, including, without limitation, any fault, error, omission, interruption or delay with respect thereto. This booklet contains links to third-party websites. The linked sites are not maintained or controlled by the ACP States, the ACP Secretariat, the European Commission or the IOM. The ACP States, the ACP Secretariat, the European Commission or the IOM are therefore not responsible for the availability, content or accuracy of any linked site or any link contained in a linked site.
    [Show full text]
  • FOR RELEASE: Dr. James Mwangi Joins Global Ceos in Signing a Commitment to Champion a Cross-Sector Collaboration for a Purpose–First Economy
    FOR RELEASE: Dr. James Mwangi joins Global CEOs in signing a commitment to champion a cross-sector collaboration for a Purpose–First Economy • Pledges to be a champion of creating an inclusive and sustainable economy that leaves no one behind • Advocates for broadening economic recovery and development strategies in order to catalyze the power of purpose–first businesses • Calls on governments and businesses to accelerate a transition towards an inclusive, resilient, sustainable economy with purpose-first at its center. September 23rd, 2020, Nairobi: Dr. James Mwangi has joined a league of 14 global CEOs who have committed to champion cross–sector collaboration in the creation of a purpose-first economy. In a global call to action, the letter signed by the signatories outlines their vision for a new global economy that is more equal, inclusive and sustainable; an economy that is more resilient in the face of pandemics, climate change and many other global challenges that the world is facing. The CEOs’ open letter has been endorsed by the UN Secretary General António Guterres, UNICEF Executive Director Henrietta Fore, and OECD Development Co-operation Director Jorge Moreira da Silva, among others. Dr. Mwangi joined the CEOs of Mastercard, Fortune Media, Mahindra, Interface, Voyager, Danone, DSM, Philips, L’Oréal, International Chamber of Commerce, Ketchum PR, Natura & Co. and Beiersdorf in calling on businesses, governments and development actors to join them in accelerating the transition towards an inclusive, resilient, sustainable economy that recognizes and enables purpose-first businesses to thrive. “Rather than ’build it back’, we are choosing to ’build it better’,” states the joint signatories in the commitment letter.
    [Show full text]
  • United Nations Kenya, SDG Partnership Platform, Equity Group Holdings and Equity Group Foundation Enhance Partnership for Acceleration and Attainment of the Sdgs
    PRESS RELEASE United Nations Kenya, SDG Partnership Platform, Equity Group Holdings and Equity Group Foundation Enhance Partnership for Acceleration and Attainment of the SDGs • The partnership will create an opportunity to innovate, co-create and expand opportunities for wealth creation for the Kenyan people and the economy • This will also catalyze investments in the SDGs beyond short term cycles, enabling the United Nations to reach communities by leveraging on Equity’s network Nairobi, 23 June 2021: Equity Group and Equity Group Foundation together with the United Nations system in Kenya, and its SDG Partnership Platform have signed a strategic partnership to accelerate the achievement of the Sustainable Development Goals (SDGs) in Kenya by 2030. The strengthened partnership will promote and catalyze investments in the SDGs beyond short term cycles, enabling the UN system in Kenya to reach more people on the ground through Equity’s strong brand in the community, its infrastructure network, development expertise and local knowledge. Additionally, the partnership will promote social and financial inclusion improving economic outcomes for human development and contributing to the socio-economic transformation of Kenya. The coming together of the two institutions will support Kenya’s transition as an emerging Middle- Income country through harnessing innovative partnerships, investments, and financing to accelerate the SDGs for poverty alleviation, and minimizing reliance on aid for transformation of the lives and livelihoods of the Kenyan people. “Equity is joining this alliance as the implementation partner for various social impact initiatives aligned to the SDGs with the end goal of trickling down to the local communities. We will deploy USD 6 billion on the SDG Partnership Platform and we expect 5 million MSMEs to benefit from this financing within the region.
    [Show full text]
  • The Mobile Banking Revolution in Kenya
    SWIFT INSTITUTE SWIFT INSTITUTE WORKING PAPER NO. 2015-005 A QUANTUM LEAP OVER HIGH HURDLES TO FINANCIAL INCLUSION: THE MOBILE BANKING REVOLUTION IN KENYA JAY K. ROSENGARD JOHN F. KENNEDY SCHOOL OF GOVERNMENT HARVARD UNIVERSITY PUBLICATION DATE: 29 JUNE 2016 The views and opinions expressed in this paper are those of the authors. SWIFT and the SWIFT Institute have not made any editorial review of this paper, therefore the views and opinions do not necessarily reflect those of either SWIFT or the SWIFT Institute. 1 Abstract A powerful tool to achieve equitable development is promotion of economic empowerment for marginalized citizens by increasing formal financial services access and utilization. The provision of these services via mobile phones has shown great promise in overcoming geographic, demographic, and institutional constraints to financial inclusion, especially in Africa and led by the mobile banking revolution in Kenya. This is exemplified by the extraordinary success since 2007 of Safaricom’s M-PESA, a mobile phone-based money transfer, payment, and banking service: as of June 2015, Safaricom had more than 22 million M-PESA subscribers served by over 90,000 M-PESA agents. The confluence of several factors have contributed to M-PESA's success, including Kenya's political and economic context, demographics, telecommunications sector structure, lack of affordable consumer options, and enabling regulatory policies. Equally important have been Safaricom's internal astute management and marketing of M-PESA. But M-PESA is now facing a strong new rival in Airtel Money, offered by Equity Bank, Kenya's third largest bank. Now two different models for mobile financial services are competing vigorously in Kenya: Safaricom, an example of telecom-led mobile banking and Equity Bank, an example of bank- led mobile banking.
    [Show full text]
  • A Comparison of the Mobile Financial Services Sector in Kenya, Tanzania and Uganda
    A Comparison of the Mobile Financial Services Sector in Kenya, Tanzania and Uganda The 3rd Annual Competition and Economic Regulation (ACER) Conference Dar es Salaam, Tanzania 14 – 15 July 2017 DRAFT NOT FOR CITATION Anthea Paelo [email protected] Centre for Competition, Regulation and Economic Development (CCRED) Mobile money has been a fast growing phenomenon in developing countries around the world but particularly in East Africa. The East African countries of Kenya, Uganda and Tanzania have shown remarkable growth and are three of the 16 countries globally where mobile money accounts outnumber bank accounts. The sector has now evolved to provide mobile financial services such as savings, loans and even insurance, providing greater opportunities for increased financial inclusion. Studies have shown that in countries where there has been successful penetration of mobile money services, there has been an increase in financial inclusion. However, the level of evolution and uptake has varied by country. Kenya has taken the lead in terms of uptake and more competitive pricing while Uganda lags behind in terms of available financial services. Tanzania for its part is the first of the East African countries to implement interoperability between mobile money operators. Using a case study approach, this study provides comparisons of the mobile money markets in each of the three countries, including a profile of the sector and a discussion on how this might have affected prices, variety of available services and levels of adoption. It will examine how the existing structures of the markets and regulation may have influenced the pricing, uptake and availability uptake of mobile financial services.
    [Show full text]
  • A Review of African Diaspora Investment Symposium 2021
    Summary and Outcome of African Diaspora Investment Symposium 2021 (ADIS21) July 2020 to February 2021 ADIS21 By The Numbers: Speakers: Sessions: Registrants: Attendees: 2 Countries Represented 57+ 3 Builders of Africa’s Future by The Number: Nominees: Awardees: Sectors: Lead Funder: Registrants Attendees 4 About African Diaspora Network Founded in 2010, African Diaspora Network (ADN) has cultivated a global community invested in uplifting the continent of Africa and the communities in which we live. With over 1,200 on our online platform and a network of over 7,500 people, ADN has catalyzed numerous initiatives, projects, and collaborations through its proven strategy: Inform, Engage, Activate. Mission The mission of ADN is to sustainably serve its constituencies, marketplace, and partners. This is inextricably linked to engaging the African diaspora through an ethics of care, enhancing their well-being in their adopted homelands, and facilitating their strategic involvement in the development of Africa. Vision ADN’s vision is to activate capital from the African diaspora and friends of Africa for the development of Africa and communities around the world. We aim to be a global leader in diaspora philanthropy, investment, and innovation. Board of Directors TWUM DJIN, Head of Engineering, Stripe JOSH GHAIM, Ph.D., Founder & Managing Partner, IgniteGB Inc. NDEYE MAKALOU, Commercial Director, Roche ALMAZ NEGASH, Founder of ADN & Executive Director INNOCENT SHUMBA, Partner, Ernst & Young, San Jose DUNCAN GOLDIE-SCOT, Musoni Kenya, Ltd. AGNIESZKA WINKLER, Founder, Winkler Group Team ALMAZ NEGASH, Founder of ADN & Executive Director DANIEL HARTZ, Founding Board of ADN & Director of Finance and Operations MEGAN HUNSBERGER, Program & Digital Media Manager DEBRA PACIO, Content Developer & Storyteller YINKA DJIN, Information Technology Associate CAROLINE OCAMPO, Public Information & Brand Officer 5 Advisory Council KEDEST TESFAGIORGIS, Bill & Melinda Gates Foundation ABBEY OMOKHODION, Intel Corporation DR.
    [Show full text]
  • Equity to Play Key Role in Creating 5 Million Jobs for Young Kenyans
    EQUITY TO PLAY KEY ROLE IN CREATING 5 MILLION JOBS FOR YOUNG KENYANS Signs up to the Public Private Partnership between Government of Kenya, Mastercard Foundation, and the private sector in Kenya by pledging to train and fund 600,000 entrepreneurs over a five- year period to scale their businesses and create jobs Nairobi: 24th June…. Equity has signed up to the Young Africa Works - Kenya; a public private partnership between the Kenya Government, Mastercard Foundation and the private sector. The transformative and holistic program, funded by Mastercard Foundation to the tune of Ksh 30 billion will transition 5 million Kenyan youth to dignified work by 2023. Equity will deploy its banking infrastructure as well as the Equity Group Foundation platform to implement the program. “Through the bank, we shall extend affordable loans to over 600,000 entrepreneurs while Equity Group Foundation will offer free digital literacy, financial and entrepreneurship training, as well as market linkages in an effort to support entrepreneurs in scaling up their business and create more jobs for young people,” said Dr Mwangi the CEO and Managing Director of Equity Group Holdings Plc. He added “We are excited to be among the pioneer signatories to this ambitious and transformative program. We will leverage our institutional knowledge, skills and expertise in serving the micro, small and medium enterprises to reach and impact over 600,000 entrepreneurs with the right business skills, financial management and market linkages in order to scale up their businesses and create more job opportunities especially in the rural areas. We trust that these entrepreneurs will stimulate the value chains that they operate in causing a much bigger multiplier effect and thus contributing to the goal of creating 5 million jobs in the next five years” Dr Mwangi noted that strengthening the MSMEs will equip them with the right capacity and capabilities to bridge the corporate sector and narrow the gap between the formal and informal sectors in the country through linkages.
    [Show full text]