Africa

Both Egypt and Turkey have recently been able to tap dollars more cheaply through sukuk.

The desire among political and financial leaders in Beijing to climb the value chain in development finance is clear. But the challenges now facing a giant Chinese state-run infrastructure contractor at Nigeria’s new deep-water port in Lekki show that this is easier said than done.

Gains written on banks’ equity book values from long dollar positions could be quickly wiped out if borrowers prove unable to service debt at a higher exchange rate.

Across the Middle East and North Africa, Egypt and its banks boast august credentials when it comes to climate and sustainability. But frameworks and agreements are one thing, creating substantive change across an entire financial sector is quite another.

A groundbreaking repo facility for African sovereign Eurobonds was completed in time for a debut trade as COP27 took place. The road to closing the deal was far from simple.

Boutique investment bank DAI Magister suggests donor funds could catalyse private equity and debt investment in climate tech, the big theme of COP27.

As European and Chinese banks scale back in Africa to cut costs and redeploy capital to core markets, Middle East lenders are happily jumping in to fill the gap, buying assets and putting more boots on the ground as bilateral trade between the regions increases.

Egypt’s supportive regulation, together with the impact of Covid, saw cashless payments in the country grow by more than 230% last year. Now fintechs, banks and state-owned platforms all want a piece of the action.

As legacy banks plough billions into fintech, their valuations – especially compared to standalone fintech players – are far from seeing the desired benefit. Spin-offs and subsidiary IPOs are part of a growing push to make these fintech investments more independent and visible, and to force a sum-of-parts valuation. Is the answer to restructure into a listed financial holding company, of which the legacy bank would just be one part?

Fonsis is an interesting sovereign wealth fund, operating a fund-of-funds model to help the country’s SME development while generating an industry around the management of private capital.

Increased intracontinental trade in Africa is a laudable objective, but may serve to highlight disparities in exchange-rate regimes that could further widen the gap between winners and losers.

South African banks’ sustainable finance challenges reflect the nation’s difficult but vital transition away from coal.

Many parts of Africa present formidable obstacles to financial inclusion. Euromoney speaks to some of the pioneers that are using technology to bring far-flung populations into the financial system.

Can multilateral development banks fight climate change while still promoting economic development in emerging markets? The European Bank for Reconstruction and Development is the first to set out concrete plans on how to do this.

Uche Orji is approaching 10 years as head of the Nigeria Sovereign Investment Authority, a sophisticated institution segregated into three very different funds. Covid spurred a year of outstanding market returns, but now Orji’s focus is on domestic infrastructure before he steps down next year.

African banks have enviable growth prospects, but fintech and regulation are forcing them to look beyond their core businesses.

Hitesh Anadkat has spent the last 25 years building an African SME banking empire from scratch from his base in the Malawian city of Blantyre. His FMB Capital Group now also has operations in Zimbabwe, Mozambique, Zambia, Mauritius and Botswana; and he is looking to gain market share in them all.

The surprise exit of Absa chief executive Daniel Mminele in April, only 15 months into the job, shows how much the South African group is still finding its way in the post-Barclays era. Mminele – Absa’s first black CEO – was seen in some quarters as losing a power struggle against an overwhelmingly white executive team. Can the next chief executive gain the authority to drive Absa’s revival?

Years of tough but successful IMF-led reforms have put Egypt in a great place to rebound strongly from Covid. Its future will be shaped by big infrastructure projects and by a plan to transform the nation into a powerhouse of green finance.

Whether doing a branch network tour or complying with regulation, Bank of Saint Helena boss Josephine George has a job that is like few other bankers’ anywhere.

Banque du Caire was on the cusp of completing a $500 million listing in London and Cairo last year when Covid hit. Its chairman Tarek Fayed meets Euromoney to talk about investing in people and digital – and why he still wants to complete a slimmed-down stock sale when conditions allow.

Emerging markets have regained some of the buoyancy lost during the early months of the coronavirus crisis, but analyst opinions hint at the difficulty of identifying which EM currencies investors should favour.

The rand is back to pre-pandemic levels despite little confidence in the South African government’s ability to revitalize its economy.

The BRICS economies, which between them represent 40% of the world population and 32% of its GDP, are a powerful force for the private banking industry as their economic engines drive wealth creation. But they are all distinct markets with their own unique opportunities and challenges.

As Gulf banks grapple with squeezed margins, low interest rates and over-banking, Egypt offers the opposite: high interest rates, low lending penetration and a largely unbanked population. It is no surprise that domestic and regional buyers are now circling.

The Egyptian bank is to launch a digital bank as Covid-19 accelerates the government’s push for a cashless society.

Africa’s most ambitious homegrown regional bank has a problem, and it is called Nigeria. If it doesn’t solve it, the Nigerian business will hamper Ecobank’s goal of banking 100 million people across the rest of the continent.

Analysts can see through the economic and fiscal shock to observe a country with its underlying strengths intact.

The coronavirus pandemic is intensifying the case for domestic bank M&A in Africa, but cross-border deals will be challenging to execute.

Unquantifiable risk as a result of Covid-19 made the complex deal unworkable.