Standard Chartered Bank Launches its First-Ever Digital Bank in Africa

Standard Chartered Bank Launches its First-Ever Digital Bank in Africa

 

ABIDJAN, Ivory Coast, March 16, 2018/ — Standard Chartered Bank today announced the official launch of its digital bank in Côte d’Ivoire. This marks the Bank’s first digital bank in Africa and the first-of-its-kind to open in Côte d’Ivoire.

Mr. Bruno Nabagné KONE, Minister of Information technologies and communication of the Republic of Côte d’Ivoire, was the guest of honour at the official launch event. The event was attended by dignitaries, business leaders, clients and senior management, as well as sporting legend and Ivorian icon, Didier Drogba. As the Bank’s Digital Ambassador, Drogba shared his experience on the ease of opening an account using his mobile phone. He is the first person in Côte d’Ivoire to open a digital account at the Bank.

Commenting on the launch, Sunil Kaushal, Regional CEO, Africa and Middle East said: “We are pleased to launch our first digital bank in Africa with the support of the Government of Côte d’Ivoire. This is a key milestone on our digital journey as a Bank and underlines our commitment to investing and growing in the market. We have been steadily investing in expanding our footprint in Africa over the years, and this will continue to be a priority moving forward. Digitising Africa remains at the heart of our business strategy for the region, and we look to implement our Côte d’Ivoire model across other markets in the coming months.”

Commenting on the launch, Jaydeep Gupta, Regional Head of Retail Banking, Africa & Middle East, said: “Our new digital bank was developed with our clients in mind. We have taken into consideration the feedback received by our clients at each stage of the design process and have incorporated innovative technology to allow them to execute all banking activities from a mobile device. This includes 70 banking services through the app.”

“In addition, for the first time, the client onboarding journey has been digitised and in under 15 minutes a client can open a new account through the app. What has also been introduced is the ability for clients to track and trace a request submitted, which is a first for Standard Chartered. This is something we are very proud of.”

Isaac Foly, Chief Executive Officer, Côte d’Ivoire, said: “I’m pleased to have launched the Bank’s first digital retail bank in Côte d’Ivoire and proud to see the progress the country has made over the past decade. We have seen how digital transformation has contributed to economic development and will continue to do so, in line with the country’s National Development Plan. Our partnership with Didier Drogba has helped raise awareness, not only for our digital offering, but for enhancing financial literacy and improving accessibility to financial services across Côte d’Ivoire. Promoting the social and economic wellbeing of communities is a key component of our strategy to support sustainable development and our digital bank is certainly another step in the right direction.”

The bank’s digital services are available by downloading the Standard Chartered mobile application. New clients can execute all of their banking activities right from their mobile devices, starting by opening their bank account in less than 15 minutes. They can also provide all verification documents by uploading to the application and fully complete their onboarding process within minutes.

New World Tourism Organization (UNWTO) Agenda for Africa moves ahead in Berlin

New World Tourism Organization (UNWTO) Agenda for Africa moves ahead in Berlin

BERLIN, Germany, March 13, 2018/ — An African ministerial working meeting conveyed by the World Tourism Organization (UNWTO) during this year’s Berlin International Tourism Fair ITB (8 March) agreed to move ahead with a new ten-point UNWTO Agenda for Africa. The final document will be adopted at the UNWTO Commission meeting for Africa, taking place in Nigeria in June this year.

Against the backdrop of international tourist arrivals expanding 8% in Africa in 2017, thus outgrowing the world average increase in arrivals, tourism is gaining weight as a development opportunity for the whole continent, with its vast diversity of nature, culture and wildlife its greatest vehicle for development.

UNWTO Secretary-General Zurab Pololikashvili stressed that “tourism has huge potential to generate lasting development opportunities in Africa if we manage it in the right way, which is economic, social and environmental sustainability”.

The participants from 17 countries, including 14 ministers, supported a coordinated approach to seizing the continent’s potential for tourism, a sector that last year attracted more than 62 million international visitors. Issues on the UNWTO Agenda for Africa include, among others, connectivity, the image and brand of Africa, poverty alleviation, climate change, education and skills development, and financing. Delegates underscored the importance of educating other economic sectors on the broad impact of tourism for the benefit of societies and its people, and promoting tourism as a priority in national agendas.

The detailed, four-year UNWTO Agenda for Africa will be approved at the upcoming 61st Regional Commission for Africa – UNWTO’s annual gathering of all its member countries of the continent – in the Nigerian capital of Abuja (4-6 June).

The following countries were represented at the meeting at ITB: Angola, Cape Verde, Cameroon, Congo, Côte d’Ivoire, Ethiopia, Gambia, Kenya, Madagascar, Mali, Mauritius, Morocco, Mozambique, Nigeria, Sudan, Zambia, and Zimbabwe.

Africa’s population explosion is a ticking time bomb, says African Development Bank Governors

Africa’s population explosion is a ticking time bomb, says African Development Bank Governors


ABIDJAN, Ivory Coast, March 7, 2018/ — The African Development Bank and its East and North African Governors have stressed the need for urgent measures to match the continent’s growing population and youth unemployment, which they likened to a “ticking time bomb.”

The meeting described the continent’s growing young population as a potential growth engine for the world.

“The good news is that the solution is within our reach and will require investments,” said Akinwumi Adesina, President of the African Development Bank.

At the end of a two-day consultation at the headquarters of the Bank in Abidjan, CÕte d’Ivoire, the Bank and the Governors discussed strategies for closing Africa’s $170 billion infrastructure investment gap.

To bridge the investment gap, ensure inclusive growth, and create employment for the continent’s population, the meeting endorsed the African Development Bank-led African Investment Forum and described it as a timely opportunity to catalyze investments into projects and attract social impact financing to Africa.

Tanzania’s Minister for Finance and Planning, Isdor Mpango, called for closer involvement of the private sector in financing development on the continent.

“The African Development Bank is well positioned to advise and assist Governments and the private sector to come up with bankable projects,” Mpango said, calling for direct resources to provide budget support and investment opportunities.”

Through the African Investment Forum, scheduled for November 7-9, 2018 in Johannesburg, South Africa, the Bank and its partners intend to showcase bankable projects, attract financing, and provide platforms for investing across Africa. The forum will bring together the African Development Bank and other global multilateral financial institutions to de-risk investments at scale.

“A uniqueness of the African Investment Forum is that there will be no speeches. The only speeches will be transactions,” said President Adesina.

Rwanda’s Minister of Finance and Economic Planning, Claver Gatete said: “The African Development Bank has already discussed the concept of the African Investment Forum with us. The Rwandan Government takes this Forum very seriously.”

“Jobs will come from industrialization. The new approach using the African Investment Forum to de-risk the sector and attract investors is the way to go,” said Kiplagat Rotich, Kenyan Finance Minister.

13 per cent of the world’s population is estimated to live in sub-Saharan Africa today. That number is projected to more than double by 2050. Four billion (or 36 per cent of the world’s population) could live in the region by 2100, according to the UN Population Division. Africa is projected to have over 840 million youth by 2050 with the continent having the youngest population on earth.

According to Adesina, “We have 12 years left to the SDGs. It is an alarm bell because if Africa does not achieve the SDGs, the world won’t achieve them. The African Development Bank is accelerating development across Africa through the High 5s. We are deepening our reforms. We deepened our disbursements to the highest levels ever last year and we are leveraging more resources for Africa.”

Tunisia’s Finance Minister Zied Ladhari recalled how the Bank’s 11-year temporary relocation to his country helped strengthen the bonds between them. “We share the Bank’s vision. Africa is the continent of the future. This is a great Africa moment with the Bank at the centre. Unleashing the potential of African economies is a task which the Bank must accomplish.”

As part of the Bank’s High 5 agenda, 13 million African women have benefitted from new electricity connections and 23 million from improvements in agriculture. Also, 10 million African women have benefited from investee projects

An analysis of the African Development Bank’s impact from 2010-2017 indicates that 27 million Africans gained access to new electricity connections. 899,000 small businesses were provided with financial services. 35 million have benefitted from improved access to water and sanitation.

“With the Bank’s support, Somalia has evolved from a failed to a fragile state,” asserted Somalia’s Finance Minister, Abdirahman Beileh. “The African Development Bank has been with us throughout. Together we can reach the bright light at the end of the tunnel.”

Algeria’s Finance Minister, Abderahmane Raouia, said “The biggest challenge for Africa today is job creation. It is a stake of stability and a lever to pull economic growth upwards. We must offer job opportunities for young people to convince them to stay here on the continent.”

According to Simon Mizrahi, Director, Delivery, Performance Management and Results, the Bank needs to move from billions to trillions in its funding and leveraging effect.

Egypt’s Ambassador to Côte d’Ivoire, Mohamed El-Hamzawi, who represented the Finance Minister, said the country has seen two revolutions in 2011 and 2014. He thanked the Bank for supporting the country’s macroeconomic stabilization, financial reforms, infrastructure, and energy projects, among others.

Morocco’s Economy and Finance Minister, Mohammed Boussaid, praised the Bank’s ambition for Africa, and underscored its support for energy, agriculture and infrastructure projects. He said “a capital increase today is not a choice, it is a necessity. Today, the leading export sector in Morocco no longer belongs to traditional sectors, such as phosphates, but to the automotive industry. This generates jobs and adds value for sustainable and robust growth.”

With a substantive capital increase, the African Development will be able to execute its robust pipeline of operations (15bn in 2018 alone), including infrastructure and regional integration projects. The prospects for 2018-2020 are bright, with 50.3 million people benefiting from improved access to transport compared to 14 million in 2017. Also, more than 35 million people are expected to benefit from new or improved electricity connections, in contrast to 4.4 million delivered in 2017.

Africa is projected to have over 840 million youth by 2050 with the continent having the youngest population on earth

The African Development Bank and its East and North African Governors have stressed the need for urgent measures to match the continent’s growing population and youth unemployment
(Source: African Development Bank Group (AfDB)

Applications are now open for the 8th Orange Social Venture Prize in Africa and the Middle East

Applications are now open for the 8th Orange Social Venture Prize in Africa and the Middle East

PARIS, France, March 1, 2018/ — The call for applications for the 8th Orange Social Venture Prize in Africa and the Middle East opens today and will run through 31 May 2018,

This prize, awarded by Orange, rewards innovative projects based on Information and Communication Technologies (ICT) which improve the living conditions of people in Africa and the Middle East in fields such as education, healthcare, farming, mobile payments or sustainable development.

The competition will start with a national phase, during which each of the 17 participating Orange subsidiaries will assess the projects submitted in its country and select 3 winners. This will be followed by an international phase, during which all 51 national winners will compete for an international jury which will present the Orange Social Venture Prize grand prize to the three final winners at the AfricaCom Awards event, to be held in Cape Town, South Africa in November.

In addition to their national prizes, the three winners will receive €25,000, €15,000 and €10,000 respectively, as well as six months of personalised support from start-up creation and financing professionals.

The Orange Social Venture Prize is open to all students, employees and entrepreneurs over age 21 whose initiative is under three years old and serves Botswana, Cameroon, Côte d’Ivoire, Egypt, Guinea Bissau, Guinea Conakry, Madagascar, Mali, Morocco, Niger, Central African Republic, Democratic Republic of the Congo, Senegal, Tunisia, Jordan, Liberia or Burkina-Faso.

Bruno Mettling, CEO Orange Middle East and Africa, says: “1,200 projects were submitted in 2017, a 60% increase over 2016. Support for talented start-ups is at the heart of Orange’s development strategy. With the Orange Social Venture Prize, we reaffirm our commitment to being a partner for the innovators working to improve daily life ever year.”

Detecting young talents is a core element of Orange’s strategy. Since its creation in 2011, the Orange Social Venture Prize in Africa and the Middle East has already provided support to close to twenty projects.

Growth and innovation in African retail banking

Growth and innovation in African retail banking

JOHANNESBURG, South Africa, February 28, 2018/ — The McKinsey Global Banking practice has today published a new report on African Retail Banking – Roaring to life: Growth and innovation in African retail banking..

The report finds that Africa’s banking markets are among the most exciting in the world. The continent’s overall banking market is the second-fastest-growing and second most profitable of any global region, and a hotbed of innovation. Nearly 300 million Africans are banked today, a number that could rise to 450 million in 5 years. The report illustrates four segments of African markets – from the advanced markets like South Africa and Egypt, to fast-growing transition markets such as Kenya, Ghana and Cote D’Ivoire, to sleeping giants like Algeria, Nigeria and Angola, to nascent banking markets like DRC and Ethiopia.

The report finds that Africa’s top quintile banks – the so-called “winners” – are simultaneously 4 times more profitable and over 2 times faster growing than bottom quintile banks. The report’s key findings are that these “winners” are defined by employing one or more of five winning practices:

  1. Draw the right map. In Africa, geography matters. About 65 percent of African banks’ profitability (measured by RoE) and 94 percent of their revenue growth are attributable to their geographic footprint. Importantly, the report highlights a shift in exchange-rate adjusted revenue pools North Africa, East Africa and West Africa, and away from South Africa.
  1. Right segments, compelling offers. We find that 70 percent of revenue pool growth will occur in the middle segments, defined as earning between US$ 6,000 and US$ 36,000 in annual income. The mass market – individuals earning less than US$6,000 per annum – accounts for 13 percent of the growth, but is the fastest growing segment. Whichever segment banks choose, having the right proposition is key. Our survey of 2,500 banking customers in 6 African countries finds that 25 percent of customers choose price as the most important factors in choosing banks. Equally important is convenience, also cited by 25 percent of customers. Service is the third most important factor, selected by 12 percent of customers. We also find huge cross-sell opportunities – while 95% of Africans have transaction products, fewer than 20 percent have lending, insurance, investment or deposit products.
  1. Leaner, simpler banking. While African banks’ cost: income has been falling, we find that this is due to rising margins for banks, and their cost-to-assets ratio has actually been worsening. At 3.6 percent, Africa has the 2nd highest cost-to-assets ratio in the world. However, rapid efficiency gains are possible, and we spotlight eight African banks that have made strides in efficiency in the last five years, through a combination of three levers – end-to-end digitisation; sales productivity improvements fuelled by advanced analytics; back- and middle-office optimisation.
  1. Digital first. 40% of Africans prefer to use digital channels for transactions. In four major African countries – South Africa, Nigeria, Kenya, Angola – a higher proportion of Africans prefer the digital channel for transactions to the branch channel. Given low branch density in Africa, banks need to employ a digital first approach. The report hones in on four themes of innovation emerging in Africa on digital – end-to-end digital transformations (e.g. Equity Bank); partnering with telco companies (e.g. CBA in Kenya or Diamond Bank in Nigeria); building a digital bank (e.g. ALAT in Nigeria); and building an ecosystem (e.g. Alipay in China).
  1. Innovate on risk. African banking still has the second highest cost of risk in the world. Poor data availability is part of the problem: 11 percent of Africans are on credit bureaus, compared to in excess of 90 percent in advanced markets. However, we are seeing innovations such as banks partnering with data and analytics fintechs like Jumo to improve credit underwriting; banks partnering with telcos to leverage telco data to issue small-ticket loans on mobile; and players employing payroll lending across countries.

This new report draws on the experience of McKinsey’s partners and colleagues serving banks across Africa; McKinsey’s Global Banking Pools research; a proprietary database of the financial performance of 35 of Africa’s leading banks; a survey of executives from 20 banks and financial institutions across Africa; and a broad-based survey of 2,500 banking customers from 6 African countries – South Africa, Egypt, Nigeria, Morocco, Angola and Kenya.

muslim media

The report finds that Africa’s banking markets are among the most exciting in the world. The continent’s overall banking market is the second-fastest-growing and second most profitable of any global region, and a hotbed of innovation. Nearly 300 million Africans are banked today, a number that could rise to 450 million in 5 years. The report illustrates four segments of African markets – from the advanced markets like South Africa and Egypt, to fast-growing transition markets such as Kenya, Ghana and Cote D’Ivoire, to sleeping giants like Algeria, Nigeria and Angola, to nascent banking markets like DRC and Ethiopia.