Amanda Kabagambe

Microfinance banks in Kenya have been struggling financially, posting a combined loss for the eighth consecutive year in 2023. Their pre-tax losses widened to a record Sh2.39 billion, driven by shrinking revenues and rising operating costs. Once attractive for small loans and high returns, the sector has been severely impacted by competition from large commercial banks and digital lenders. This competition has led to a significant decline in both loan and deposit volumes. The number of loan accounts dropped by 57.4% from 2013 to 2023, and deposits fell by 53.6% over the same period. High interest rates charged by microfinance banks, averaging up to 32% for small businesses, have further deterred borrowers. Despite efforts to attract fresh capital through acquisitions, the sector's return on shareholders' equity has remained negative since 2017, indicating ongoing financial instability and challenges in regaining profitability.

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At the Semafor Fall World Economic Summit, Equity Group Managing Director and CEO, Dr. James Mwangi, shared insights on the transformative potential of East Africa's economy. He highlighted the critical role of regional integration in boosting cross-border trade, alongside significant investments in infrastructure and energy as key drivers of sustainable growth. He stated, “If we can leverage global markets to supply our region with adequate capital, we have the potential to lead the entire African continent in development. Our innovations in financial technology and infrastructure can be a game-changer for our economies.” Dr. Mwangi is optimistic about East Africa's future, emphasizing that with the right investments and strategies, the region can position itself as a leader on the continent, creating vast opportunities for both the economy and Equity Group. #AfricaRecoveryandResiliencePlan #EastAfrica #EconomicGrowth SEMAFOR Follow the discussion: https://lnkd.in/dU4SXccG

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#SCBWealthSeries In this week's Standard Chartered Bank Wealth Series, Sanjay Rughani, the Standard Chartered Bank Uganda CEO, talks about #WealthManagement. Wealth Management, he says, is at its simplest about behaviour- behaviour around dealing with money. Financial knowledge and literacy are key. Do your own research but seek knowledge from qualified advisors such as you will find at Standard Chartered Bank Start early and think long-term. The are no shortcuts and no quick wins. He also emphasises the importance of ethical investment⏤ put your money where it will be a force for good. #HereForGood  #WealthAdvisory #StandardCharteredBank Margaret Kigozi MCIM Phoebe Nakibuuka Cynthia Mpanga Paul Sefa-Badu

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Join Hans Mbah and Dr. Idahosa Osamhanze on SOUQ Business Landscape as they explore why JPMorgan prioritized South Africa and Nigeria for wealth management. Discover the economic implications for Kenya and learn about the IMF loan, Coca-Cola review, and KCB-EIB SME funding deal. Watch the full video on YouTube at SOUQ News TV. #SBL #Finance #Kenya #Economy #JPMorgan #IMF #CocaCola #SME

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Locally-led climate actions are essential because they address the specific needs and vulnerabilities of communities while promoting ownership and sustainability. Tailoring financial instruments to support these efforts can unlock resources where they are needed most, empowering communities to implement effective adaptation and mitigation measures. By releasing findings on the potential for new financial instruments, we are going to provide valuable insights and guidance to stakeholders, enabling them to access and allocate resources more efficiently and effectively to address climate challenges at the local level. Adaptation Consortium FSD Kenya FSD Africa IIED Europe The World Bank

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We are proud to partner with Standard Bank Group, a market leader in sustainable economic growth, to launch an initiative that empowers those with limited access to funding to receive credit and grow their businesses in Uganda. The asset-backed securitisation (ABS) solution will provide entrepreneurs with instant access to lower lending rates on their mobile phones. JUMO’s intelligent banking technology, powered by AI and machine learning, ensures that capital invested into the ABS structure is accessible to a new class of financially excluded customers. Standard Bank is at the forefront of driving sustainable economic growth and human development in Africa, with a footprint in 20 countries. Together, we are making strides towards a more inclusive financial future, not just in Uganda but across Africa. Pictured: Joseph Mucheru (JUMO) and Paula Coetzee (Stanbic Bank Uganda) #TechForGood #SustainableFinance #FinancialInclusion #PartnershipsForGrowth

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As FSDT celebrates its 20-year anniversary this year, it’s important for us in the financial sector to take a moment to reflect on the past achievements, including noteworthy success and persistent challenges in order to shape the future of financial inclusion in Tanzania. We will do so by releasing a series of articles exploring how various industries in the financial sector have fared over the past 20 years. In this article in particular, we will focus on the insurance industry. Read and share your thoughts on the article on Tanzania’s Insurance Gap: Challenges, Opportunities, and Solutions, by clicking the following link: https://lnkd.in/eRbnAxNA #FSDT20Years

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🌍🔍 Refining Credit Risk and Prioritizing Financial Education: Key for Tanzanian Bank Executives Our latest Cost of Living Tracker reveals critical insights into consumer financial health in Tanzania. With 47% finding job markets challenging and 56% avoiding borrowing, tailored financial products and credit risk management are more crucial than ever. Optimism prevails with 79% expecting income growth in the next six months, creating opportunities for innovative banking solutions. 💡 Leverage these insights to lead in an uncertain economy and provide your customers with the right support and products. Discover how you can refine your strategies with deep insights: https://lnkd.in/gu9bgwCV #Banking #Tanzania #FinancialEducation #CreditRisk #EconomicInsights #KasiInsight

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Equity Bank Limited Group CEO James Mwangi has been appointed to the World Bank Group’s High-Level Advisory Council on Jobs. Launched during the 2024 The World Bank Group-IMF Annual Meeting in Washington, D.C., the council aims to provide strategic guidance on creating job opportunities, particularly for youth and women in emerging and developing economies. This appointment highlights Mwangi’s influential role in shaping economic and social development across Africa and beyond. Co-chaired by Tharman Shanmugaratnam, President of Singapore, and Michelle Bachelet, former President of Chile, the council includes a diverse group of leaders from policy, business, academia, and civil society. Its primary focus is to address the job crisis expected to affect 1.2 billion people in the Global South over the next decade, particularly in Africa, where 800 million individuals may face unemployment by 2034. The council’s recommendations will target scalable and actionable solutions to close this widening employment gap. Mwangi expressed his dedication to leveraging Africa’s young and growing population to drive economic growth and poverty reduction. He emphasized that Africa has the potential to achieve up to 15% GDP growth and a 17% reduction in poverty by 2030 through effective workforce utilization. He also highlighted Equity’s Africa Recovery and Resilience Plan, which aims to create 50 million jobs by the end of the decade, reinforcing his commitment to the continent’s economic transformation. The council will meet every two months over the next two years, engaging with senior World Bank leadership to ensure its recommendations are implemented effectively. Its distinguished members include global leaders such as Guy Ryder, United Nations Under Secretary General for Policy, and Patrick Achi, former Prime Minister of Cote d’Ivoire, alongside experts from institutions like the University of Chicago and Yale University. This initiative underscores the urgency of addressing the global employment challenge and provides a platform for impactful and sustainable change. #GlobalJobs #EconomicGrowth #AfricaTransformation #WorldBankAdvisoryCouncil #EquityGroup #Leadership #PovertyReduction

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Over the weekend, we were a part of the maiden edition of the Money Matters Conference, where  Adegbolahan Aina, the Managing Director of Cordros Asset Management, was a speaker and panelist. We are proud to have been one of the sponsors of this remarkable event where insights were shared on investments and finance management to help attendees create the future of their dreams. #MoneyMatters #Finances #Cordros #Lagos #FinancialServices #Investments #AssetManagement

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The Lower Sesan 2 Dam is being partly funded by ABBank, a financial intermediary (FI) client of the International Finance Corporation (IFC). Financial intermediaries represent the nexus between development finance and commercial banking. Development finance institutions (DFIs) use private sector banks as financial intermediaries on the premise that it will expand their development finance reach and raise the standards of the financial sector. The big question and big concern is whether DFIs can mobilize commercial finance without compromising their development mandates — with transparency and environmental and social standards as a core part of that. Learn more about the IFC investment on Lower Sesan and the issues faced by the impacted communities: https://lnkd.in/gW4XBXpe

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Ease the burden of school running expenses with our tailored working capital solution! Let us handle your suppliers' payments while you focus on education. Contact us today on +254 111 131 001. #FinancialSolutions #SchoolFinance #EducationPartner #Workingcapital #transforming_generations #socialimpact #sdg4

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Ready to navigate and understand financial tools essential for securing your financial future? Don’t miss this opportunity to gain insights into money market funds, bonds, and bills, Today at 07:00 PM Nairobi Topic: UNDERSTANDING FINANCIAL MARKETS: MMFs, Bonds, Bills Register in advance for this webinar: https://lnkd.in/dmzawQhN https://lnkd.in/eCkDE7X

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Why NCBA is Leading the Way to Financial Inclusion NCBA Bank has taken a groundbreaking step by eliminating monthly maintenance fees on its Retail Banking accounts, positioning itself as a leader in the Kenyan banking industry’s shift towards greater financial inclusion. By removing these charges, NCBA is breaking down financial barriers, allowing more individuals and businesses to participate in the formal banking system without the worry of hidden costs. This initiative not only provides immediate financial relief but also aligns with NCBA's broader commitment to supporting economic growth and customer well-being, especially in challenging economic times. NCBA’s decision underscores its dedication to being a customer-centric institution that listens to and addresses the needs of its clients In leading this banking revolution, NCBA is setting a new standard for what it means to be an inclusive financial institution, making banking a tool for empowerment and growth for all Kenyans. NCBA Group #TwendeMbeleNaNewEra #NCBATwendeMbele #GoForIt

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"MFW4A aims to bring about systemic change in Africa’s financial sector, and in turn contribute to real sector impacts with strong links to the SDGs. MFW4A has identified key features of financial systems that are essential to addressing Africa’s most pressing challenges and set the continent on a path towards achieving the SDGs. These features are captured in our vision "“Deeper, innovative and stable African financial systems capable of improving people’s livelihoods, supporting a green transition, and driving inclusive development on the continent”".  Marina Finken, Partnership Coordinator. We invite you to explore our highlights from the past year, learn of our key achievements while gaining insight into how we are implementing our strategy and creating shared value for our stakeholders. The Making Finance Work for Africa (MFW4A) Annual Report is available here ⬇

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