Finance Archives - MEA Markets https://meamarkets.digital/category/articles/finance/ Business news from the Middle East Thu, 24 Apr 2025 08:29:02 +0000 en-GB hourly 1 https://wordpress.org/?v=6.7.2 UBF’s AGM Approves 2025 Strategy to Further Develop Banking Sector https://meamarkets.digital/ubfs-agm-approves-2025-strategy-to-further-develop-banking-sector/ Thu, 24 Apr 2025 08:29:01 +0000 https://meamarkets.digital/?p=39460 UAE Banks Federation (UBF) held its Annual General Meeting, under the chairmanship of Abdulaziz Al-Ghurair, Chairman of UAE Banks Federation, and in the presence of members of the Board of Directors of the Federation and representatives of member banks.

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Accounting fund managers meeting to planning to improve quality next year team consultation

The General Assembly emphasised the importance of supporting strong fundamentals of the banking industry and its role in socio-economic development to achieve the strategic objectives of the UAE

UAE Banks Federation (UBF) held its Annual General Meeting, under the chairmanship of Abdulaziz Al-Ghurair, Chairman of UAE Banks Federation, and in the presence of members of the Board of Directors of the Federation and representatives of member banks.

During the meeting, the members approved the previous minutes of the General Assembly held on 29th April 2024, the audited financial statements for 2024 and the auditors’ report. The General Meeting also absolved the Board of Directors from liabilities arising from their duties for the financial year ending 31st December 2024 and appointed the auditors for 2025.

The meeting approved the strategic goals and plans of UBF for 2025, as presented by the Board of Directors, to develop the UAE banking sector and strengthen the UAE’s position as one of the global financial, economic, and commercial centres.

The General Assembly emphasised the importance of supporting strong fundamentals of the banking industry and its role in socio-economic development to achieve the strategic objectives of the UAE. The meeting praised the steady strong growth of UAE banks in 2024, which maintained high capitalisation levels, strong profitability, sufficient liquidity, and stable financial reserves.

This performance reaffirms the effectiveness of the Central Bank of the UAE’s vision and efforts to establish the necessary frameworks to develop the banking and financial sector and provide a seamless and secure experience to all customers.

The AGM hailed the efforts made by UBF in promoting Emiratisation, which aims to increase the number of UAE nationals working in banking and insurance according to the Central Bank of the UAE’s plan, exceeding the Emiratisation’s targets by achieving growth of 152.9 percent during 2024.

The meeting stressed the importance of continuing efforts to further enhance Emiratisation, and training programmes for human capital in the sector to keep pace with the accelerated developments in the banking and financial industry and digital transformation.

The meeting expressed appreciation for initiatives and programmes undertaken by the UBF during 2024, particularly in terms of enhancing trust, cementing the UAE as one of the top countries in the world with a 90 percent trust rate in the banking sector, which is the most trusted industry in the UAE according to Trust Index.

It also noted the effectiveness of UBF’s plans in accelerating digital transformation, protecting digital infrastructure, combating fraud and consolidating the financial system in the UAE by ensuring compliance with laws, regulations, and supervisory guidelines, as well as adherence to the highest standards of governance, transparency, and risk management.

The General Assembly urged UBF member banks to further enhance financial inclusion and provide the best banking services and products to customers, focusing on supporting small and medium enterprises (SMEs) and entrepreneurs.

Participants at the AGM praised UBF’s efforts to strengthen cooperation with strategic partners, and banking associations in friendly countries.

The General Assembly reiterated its support for member banks’ efforts to increase sustainable finance by strengthening foundations to accelerate the transition to sustainable solutions.

The meeting commended the awareness and training programmes organised by UBF as part of its efforts to enhance the skills of employees in the sector and keep abreast of the latest developments in the industry, as well as for providing appropriate platforms of knowledge and experience sharing.

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Kuwait: Banks Consider Imposing Fees on Online Transfers https://meamarkets.digital/kuwait-banks-consider-imposing-fees-on-online-transfers/ Wed, 12 Mar 2025 12:07:10 +0000 https://meamarkets.digital/?p=39155 The move aims to generate revenue that would help cover the costs of continuous development and digital transformation initiatives undertaken by banks.

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Businessman using smartphone for Digital Wallet

The move aims to generate revenue that would help cover the costs of continuous development and digital transformation initiatives undertaken by banks

In response to the growing volume of online financial transfers between local banks, a new banking proposal has emerged to impose fees on these transactions.

The move aims to generate revenue that would help cover the costs of continuous development and digital transformation initiatives undertaken by banks.

According to informed sources, the proposal suggests introducing fees for online transfers between different banks, replacing the current practice of offering such services free of charge. While banks currently charge 5 dinars for transfers conducted through branch offices, the new plan would keep in-branch transfer fees unchanged for transactions within the same bank. However, online transfers between different banks would incur a fee ranging from 1 to 2 dinars per transaction, with each bank setting its rate within this range based on its strategic goals.

Proponents of the proposal argue that the surge in online financial transfers, particularly for commercial payments, has created a significant operational burden for banks. Despite the high volume of these transactions, banks currently do not collect any fees for them. Some bankers have specifically suggested imposing fees on transfers executed through platforms like “Wamd” or similar services, as these channels handle a large portion of commercial payments. The daily transfer limit of 3,000 dinars through such platforms underscores their financial significance.

The sources noted that while personal financial transfers typically involve smaller amounts, the widespread adoption of electronic payment services has encouraged customers to shift to online transactions for all types of payments. This shift has been driven by the convenience, security, and speed of online transfers, with some transactions being completed in seconds and available around the clock.

Although banks have largely agreed on the need to impose fees on interbank online transfers, the proposal to extend these fees to transfers via “Wamd” or similar platforms has not gained sufficient support. Concerns have been raised that such a move could negatively impact small-scale transaction users, who are difficult to distinguish in fast-paced money transfer services.

The sources emphasized that the push for fees is partly motivated by the rising costs of digital transformation in the banking sector. Banks are investing heavily in redesigning internal operations and adopting new financial technologies to keep pace with rapid changes in the industry. Imposing fees on online transfers could provide a supplementary income stream to enhance the efficiency and security of these services, ultimately benefiting customers by strengthening protective measures against breaches.

Despite the banking sector’s consensus on the fairness of introducing fees for online transfers, discussions with regulatory authorities, including the Central Bank of Kuwait, have revealed reservations about revising banking fee structures. The Central Bank’s stance aligns with its broader strategy to promote financial inclusion and support digital transformation across the banking sector, suggesting that any changes to fee regulations will be carefully considered to avoid undermining these goals.

In conclusion, while the proposal reflects the banking sector’s need to offset the costs of digital innovation, its implementation will require balancing revenue generation with the broader objectives of financial inclusion and technological advancement.

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Cash Crunch Pushes Libyans to Bank Cards Despite Hurdles https://meamarkets.digital/cash-crunch-pushes-libyans-to-bank-cards-despite-hurdles/ Tue, 03 Dec 2024 16:35:15 +0000 https://meamarkets.digital/?p=38556 In Libya, a shortage of cash in the banking system has pushed many to turn to cards for payments.

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Close up of credit card contactless payment

Across most Libyan cities, withdrawing money is akin to an obstacle course in which hundreds wait, often for hours, outside heavily guarded banks for a turn to take out cash

In Libya, a shortage of cash in the banking system has pushed many to turn to cards for payments after more than a decade of war and instability has hammered the country’s financial system.

Across most Libyan cities, withdrawing money is akin to an obstacle course in which hundreds wait, often for hours, outside heavily guarded banks for a turn to take out cash.

But the money all too often runs out early due to short supply.

Mistrust in that system means money is rarely reinjected back into banks, with Libyans preferring instead to keep cash on hand.

And while cashless culture has yet to take root, “the younger generations are easily adopting it”, said Abdullah al-Gatet, an employee at a bank in Misrata, the country’s third largest city.

Withdrawals at bank counters are capped at 1,000 dinars ($206) each time.

This, along with the cash shortage, means civil servants who make up the bulk of Libya’s working population often receive their salaries late.

There is a growing awareness among Libyans of “the importance of electronic solutions to facilitate daily transactions, especially in times of liquidity crisis”, said 30-year-old Gatet, “even if the infrastructure is still insufficient”.

Shift in awareness

Libya has been wracked by instability and conflict since the 2011 NATO-backed uprising that overthrew and killed longtime dictator Moamer Kadhafi.

It is currently divided between a United Nations-recognised government in the capital Tripoli and a rival administration in the east backed by general Khalifa Haftar.

In Misrata, a major port city and commercial hub about 200 kilometres (120 miles) from Tripoli, the population of 400,000 are increasingly signing up to receive bank cards.

But the shift towards cash-free transactions is not without stumbling blocks.

There are few ATM machines and many vendors do not accept card payments as they are not equipped with payment terminals.

Economist Khaled al-Delfaq, 42, said that while the shortages have pushed many to shift to using cards, there needs to be an accompanying shift in awareness, and work needs to be done to “make these services more accessible”.

But in the seeming absence of other options, many have already been converted.

Among those are Mohamed al-Soussi, who was shopping for his family at a supermarket in Misrata.

“Transactions are more simple with the card. I don’t need to carry large wads of cash with me anymore,” he said.

Divided central bank

Libya’s political upheaval has also precipitated another strange side-effect — multiple prints of 50-dinar banknotes.

Libya’s institutions have since 2014 been caught between the two camps vying for power in the oil-rich country, and its central bank is no exception.

Until last year, it had been split in two, with an internationally recognised headquarters in the capital and another in the east, with each printing bills signed off by their respective governors.

In 2012, new 50-dinar bills, the largest available denomination, were put into circulation to make life easier for consumers who often make cash payments in the thousands.

But last April, the central bank announced the withdrawal of those notes from circulation due to the proliferation of counterfeits.

“The situation became even more complicated with businesses refusing the 50-dinar bills,” said Moussab al-Haddar, a 45-year-old teacher who was visiting his bank branch to request a card.

The central bank had initially set a deadline for the end of August for the notes to go out of circulation, before extending it to the end of the year.

In a bid to address the current crisis, the bank injected 15 billion dinars into the system in late October, while urging banks to facilitate the issuing of cards to clients.

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Holiday Scam Warning for South Africa: How to Protect Yourself From Increasing Banking Fraud https://meamarkets.digital/holiday-scam-warning-for-south-africa-how-to-protect-yourself-from-increasing-banking-fraud/ Thu, 29 Aug 2024 10:41:52 +0000 https://www.mea-markets.com/?p=38020 The end of the year is fast approaching, and with it, the festive season and general anticipation for that hard-earned vacation that many South Africans work so hard for during the year.

While this is a time of good cheer and increased shopping activity to prepare for the December break, it is also a busy time for scammers who want to take advantage of this activity.

Many South Africans have recently contacted a popular Johannesburg radio station reporting increased attempts at banking fraud, with scammers sometimes becoming increasingly aggressive and convincing.

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A person sits on a sofa, holding their forehead with one hand and a credit card against their head, while looking at a smartphone in their other hand.

The end of the year is fast approaching, and with it, the festive season and general anticipation for that hard-earned vacation that many South Africans work so hard for during the year.

While this is a time of good cheer and increased shopping activity to prepare for the December break, it is also a busy time for scammers who want to take advantage of this activity.

Many South Africans have recently contacted a popular Johannesburg radio station reporting increased attempts at banking fraud, with scammers sometimes becoming increasingly aggressive and convincing.

“This is not uncommon,” warns Roy Retief, Head of Operations at the Southern African Fraud Prevention Service (SAFPS). Scammers generally tend to be more active during periods of increased consumer activity. It is essential to know how to spot a scam and what measures you have available to prevent you from becoming a victim,” says Retief.

Impersonation fraud

When it comes to banking scams, scammers constantly devise new methods to use on their victims; however, the most common scams follow a set formula.

“Impersonation fraud is rife when it comes to banking scams,” warns Retief. Scammers will often contact potential victims, posing as bank representatives. Armed with a lot of information about their potential victims, scammers will ask them to confirm banking details or other sensitive information such as ID numbers. “In line with the gravitation towards online banking, many scammers will phone their potential victim, posing as a bank representative, [EK1] and tell them they need to perform an important action on their online banking profile. Scammers are often tech-savvy and can remotely access a victim’s compromised mobile device, triggering a technical issue to create a sense of urgency or panic; the victim then feels they need to follow the prompts from the scammer to secure their device. Armed with this, scammers can cause significant damage,” warns Retief.

A new modus operandi involves scammers calling potential victims and asking them to move money into a safer or higher-interest-bearing account. “Victims will unknowingly be moving money from their account into the scammer’s account,” says Retief.

A common scourge

Nerosha Maseti, Lead Ombudsman for the banking Division of the National Financial Ombud Scheme (NFO), points out that complaints related to banking scams have been and continue to be the biggest contributors to formal complaints opened at the NFO’s banking division.

“In 2023, of the 8521 formal cases which were opened at the Ombudsman for Banking Services for the year (being the predecessor to the banking division of the NFO), 3380 or 43.47% were categorised as fraud,” says Maseti. She adds that the complaints are prevalent across the industry. In the context of a changing global banking landscape, where branch networks are shrinking, volumes of digital payments are increasing, and payments are being processed in seconds, fraudsters are creatively finding new ways to steal from banks and their customers across the banking industry. “Banks globally and within our jurisdictions are seeing an increasing trend in scams. Fraudsters are manipulating and coercing customers into making payments to them, bypassing bank controls,” warns Maseti.

She points out that, when investigating such complaints, our investigation will typically involve ascertaining whether there was wrongdoing or negligence on the part of the bank that caused the customer’s losses or contributed to them. If, after our investigation, we find that the bank could have prevented or mitigated the customer’s losses but failed to do so, we have the power to recommend to the bank involved to refund the portion of the customer’s losses that could have been prevented but for the bank’s negligence.

“It is important to note, however, that our starting point when dealing with such complaints is that the bank customer is liable for all transactions they do voluntarily or that take place using that customer’s confidential banking access details. Liability only shifts to the bank once fraud or compromise of the confidential access details has been reported to the bank. Only then will the bank be expected to take immediate steps to prevent the customer’s losses. We can only make a recommendation where we find that there has been unfair treatment, negligence, non-compliance or maladministration on the part of a bank,” says Maseti.

Tips on how to prevent being scammed

It is important that consumers remain vigilant and aware that they are ultimately responsible for any transactions that take place on their accounts, no matter how convincing the scammer is.

There are essential factors to consider:

  • Ignore any SMS or email notification that asks you to follow a link and provide your username and password;
  • Do not store any banking credentials on your smartphone;
  • Do not let your browser (Safari, Chrome and others) save your banking passwords;
  • Ensure that your banking credentials are unique and not used to log in to any other websites, email accounts or apps;
  • When selling your phone, ensure all your details are removed, your Banking App is uninstalled and delinked from your banking profile, and the phone is reset to factory settings;
  • Never leave your smartphone unattended when you are logged in;
  • Use two-factor authentication whenever possible to increase the security of your login;
  • Do not jailbreak (your iPhone), use pirated software, or compromise the security of the software on your device, as this could easily lead to attackers spying on you without your knowledge;
  • Install a reputable anti-malware solution on your device to detect and block signs of malicious activity. Remember to keep the software updated to ensure maximum effectiveness;
  • Do not access your banking app in busy public places or whilst outside venues waiting for e-haling services, where it is easy for a criminal to snatch your mobile device whilst your banking app is unlocked; and
  • Do not access your banking app or perform sensitive financial transactions whilst connected to unsecured public wi-fi networks.

A major tool

How do we combat this? Retief points out that the SAFPS launched Yima in response to the growing need for a proactive approach to fraud prevention.

“Yima allows South Africans to report scams, [RR2] and scan any website for vulnerabilities related to scams. They can also educate themselves on how to identify a scam. These tools will enable consumers to surf the internet, access key products such as online banking and money transfers more confidently and make their daily lives aware and informed. These are just some exciting elements South Africans can access through the site,” says Retief.

The website’s main element will be the ability to report a scam incident or any suspicious activity to the SAFPS. This suspicious activity includes a fake or suspect-looking online shopping website or portal, and instances where the user has received phoney banking information. Users can also access a scam hotline to report fraud incidents to their banks and the South African Police Service.

Additionally, Yima users will have access to the consumer products and services offered by the SAFPS.

Protective Registration

Protective Registration is one of the SAFPS’ most essential services and is the core of its offering.

Protective Registration is a service that protects individuals against future fraud, at no cost to the consumer. Consumers apply for this service, and the SAFPS alerts its members to take additional care when handling that individual’s details. It provides an added layer of protection and peace of mind regardless of whether the applicant’s identity has been compromised.

“If a member of the public wants to become proactive in the fight against fraud, the SAFPS is there to serve them. Visit our website at www.safps.org.za. Then, click on the Apply for Protective Registration tab and protect yourself against identity theft. For best results, use your smartphone to go to our website. Once you have uploaded key pieces of information, you will be issued with a confirmation letter via e-mail, adding another layer of protection against potential ID fraud,” says Retief.

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Transforming Global Finance: The Impact of Continuous Transaction Controls on Tax Compliance https://meamarkets.digital/transforming-global-finance-the-impact-of-continuous-transaction-controls/ Thu, 22 Aug 2024 10:24:49 +0000 https://www.mea-markets.com/?p=37997 While the global economy is becoming increasingly interconnected, the need for standardized financial processes has never been greater. Continuous Transaction Controls offer a relatively new approach to transaction data reporting and verification that promises to streamline tax compliance and bolster financial integrity.

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Investments and financial planning banking analyst concept background.

While the global economy is becoming increasingly interconnected, the need for standardized financial processes has never been greater. Continuous Transaction Controls offer a relatively new approach to transaction data reporting and verification that promises to streamline tax compliance and bolster financial integrity.

Definition of CTCs

Continuous transaction controls (CTCs) represent a transformative shift in financial procedures, requiring the mandatory reporting and verification of transaction data, such as invoice information, by tax authorities through e-invoicing or real-time transaction listings.

These controls empower tax administrations to access and scrutinize business operations from a company’s management system, facilitating detailed record-keeping for VAT regulatory audits.

The core goals of CTCs include combating tax evasion, enhancing tax collection, and minimizing fraud.

Benefits of CTCs for the tax administration

By leveraging CTCs, tax administrations can accurately and promptly identify transactions subject to taxation, thereby narrowing the VAT gap between expected and actual collections.

CTCs enable proactive monitoring of business activities, guaranteeing a thorough understanding of local tax regulations. This ongoing monitoring also helps to reconcile discrepancies in VAT declaration and remittance.

Centralized and decentralized CTC models around the globe

Various countries have adopted centralized or decentralized models of CTCs. For instance, Mexico and Chile mandate businesses to settle invoices through a tax administration system prior to transmission to buyers, while others such as Guatemala and Panama employ unique versions of the clearance model. European countries such as Italy and Romania have also embraced CTC solutions, following the successful implementations in Latin America.

France will enforce electronic invoicing and reporting for every transaction starting September 2026. This involves utilizing a centralized digital invoicing system or authorized service providers. The operational models in France may either be centralized CTC if connected to the official platform or decentralized if intermediated by certified providers.

Hungary introduced a real-time invoice reporting (RTIR) CTC model in 2018, where taxable entities report invoice data promptly to the tax authority’s online system.

Electronic invoicing itself is not rigorously controlled in the Hungarian model. Nonetheless, suppliers are required to swiftly declare a part of the e-document to the tax administration in a specified format after the issuance and reception. Subsequently, the tax authority verifies each transaction to approve or decline it.

Germany has implemented the B2G e-invoicing mandate in 2020 and plans to adopt a countrywide CTC model by 2028. For now, B2B electronic invoicing still stays facultative.

In Poland, the proposed KSeF platform will require invoice validation at the time of issuance. Additionally, the Ministry of Finance has proposed new implementation dates for this requirement:

  • February 1, 2026, for entities with annual turnovers exceeding 200 million PLN
  • April 1, 2026, for all other entities.

PEPPOL CTC model

The PEPPOL network is an international platform for the easy interchange of electronic documents, which is widely adopted by countries such as Sweden, Finland, and Norway. To exchange digital invoices and other documents, members must use a PEPPOL Service Provider or PEPPOL Access Point. The PEPPOL network keeps improving and strives to become the universal B2B transaction standard. Employing the four-corner model, senders and receivers engage with their service providers autonomously, separately from the tax administration’s supervision.

In systems utilizing the PEPPOL network with an integrated reporting component, often referred to as the ‘five corner model,’ the fifth corner serves as the channel through which transaction data is transmitted to tax agencies in real-time, thereby enhancing business automation and tax administration control.

Multiple local vendors or one technology provider?

Keeping up with diverse tax regulations across jurisdictions can be daunting, prompting many multinational corporations to seek CTC solutions from reliable vendors. Utilizing a single technology partner streamlines compliance efforts, ensuring adherence to local obligations globally.

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How Nigerian Investors Can Tap into UK Social Housing with Yield Investing https://meamarkets.digital/how-nigerian-investors-can-tap-into-uk-social-housing-with-yield-investing/ Wed, 31 Jul 2024 08:37:45 +0000 https://www.mea-markets.com/?p=36013 In recent years, savvy Nigerian investors have been expanding their portfolios beyond local markets, seeking stable, high-yield opportunities abroad.

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A street of red brick terraced houses

Unlocking Ethical, High-Yield Opportunities in Britain’s £40 Billion Social Housing Sector

In recent years, savvy Nigerian investors have been expanding their portfolios beyond local markets, seeking stable, high-yield opportunities abroad. The United Kingdom, with its robust property market and strong legal framework, has long been a favoured destination. However, a new investment avenue is gaining traction among West African investors: UK social housing. At the forefront of this opportunity is Yield Investing, a company that’s revolutionising how international investors can participate in this socially impactful and financially rewarding sector.

Understanding Social Housing in the UK

Before delving into the investment opportunity, it’s crucial to understand what social housing is and why it’s become such a critical issue in the UK.

Social housing refers to rental properties owned and managed by local councils, housing associations, or other organisations on a non-profit basis. These homes are typically offered at lower rents than the private market and are allocated based on need. The primary goal of social housing is to provide affordable, safe, and decent accommodation to individuals and families who might otherwise struggle to secure housing in the private rental market.

The Size and Scope of the UK Social Housing Market

The UK social housing sector is substantial, with an estimated value of over £40 billion. As of 2024, there are approximately 4 million social housing units in the UK, housing around 9 million people. Despite this significant number, demand far outstrips supply.

Currently, there are over 1.2 million households on social housing waitlists across the UK. This number has grown by 5% over the past two years, highlighting the urgent need for more social housing units. The shortage is so acute that local councils are spending billions on temporary accommodation to house those in urgent need.

In the fiscal year 2022/23, UK local authorities spent a staggering £2.4 billion on addressing homelessness, with £1.7 billion of that figure dedicated to temporary accommodation fees. This represents a significant financial burden on local councils and underscores the pressing need for more permanent social housing solutions.

Benefits of Social Housing for Society and Investors

Societal Benefits:

  1. Affordable Housing: Social housing provides stable, affordable accommodation for those who might otherwise face homelessness or substandard living conditions.
  2. Community Stability: By offering long-term tenancies, social housing helps create stable communities, reducing transience and associated social issues.
  3. Economic Impact: Research has shown that for every £1 invested in social housing, £2.84 is generated in the UK economy. Furthermore, each £1 invested saves £780 a year in housing benefits.
  4. Improved Health Outcomes: Stable, decent housing is linked to better physical and mental health outcomes, reducing strain on public health services.
  5. Social Mobility: By providing affordable housing, social housing can free up resources for education and skill development, potentially breaking cycles of poverty.

Benefits for Investors:

  1. High Yields: Yield Investing offers rental yields of 8-10% NET, significantly outperforming many traditional property investments.
  2. Government-Backed Security: The UK government’s commitment to social housing, evidenced by substantial funding packages, provides a layer of security for investors.
  3. Long-Term Stable Income: Social housing tenancies are typically long-term, often extending beyond 10 years, providing consistent rental income.
  4. Inflation-Proof Returns: Rents in social housing are often tied to inflation indexes, providing a natural hedge against rising costs.
  5. Hands-Off Investment: With Full Repairs and Insurance (FRI) leases, investors are freed from the burdens of property management and maintenance.
  6. Ethical Investment: Social housing investments allow investors to align their financial goals with positive social impact.

How Nigerian Investors Can Tap into UK Social Housing with Yield Investing

Yield Investing has positioned itself as a bridge between international investors and the UK social housing market. Here’s how Nigerian investors can tap into this opportunity:

  1. Understanding the Yield Investing Model

Yield Investing specialises in developing high-quality social housing properties with long-term commercial tenants in place. They focus on areas with high demand for social housing but lower property prices, particularly in Northern England. This strategy allows them to generate higher yields for investors while addressing critical housing needs.

  1. The Investment Process

Nigerian investors can start their journey with Yield Investing by following these steps:

a) Initial Consultation: Connect with Yield Investing, ideally through their West African Regional Head, Olori Toyin Bakare, to discuss investment goals and options.

b) Property Selection: Yield Investing will present carefully vetted social housing properties that align with the investor’s goals.

c) Due Diligence: Investors are provided with comprehensive information about the property, including location analysis, yield projections, and lease terms.

d) Investment: Once a property is selected, Yield Investing guides the investor through the purchase process, including legal and financial aspects.

e) Ongoing Management: After the investment is made, Yield Investing or its partners handle all aspects of property management, from maintenance to rent collection.

  1. Leveraging Local Expertise

Yield Investing’s appointment of Olori Toyin Bakare as Regional Head for West Africa is a game-changer for Nigerian investors. With over 20 years of experience in property law and investment, Bakare brings a wealth of knowledge about both the UK property market and the specific needs of West African investors.

“Our goal is to make UK social housing investments accessible and straightforward for Nigerian investors,” says Bakare. “We provide end-to-end support, from explaining the nuances of the UK market to guiding investors through the entire investment process.”

  1. Overcoming Potential Challenges

Investing in overseas property markets can present challenges, but Yield Investing has systems in place to address these:

a) Currency Exchange: Yield Investing can assist with currency exchange strategies to minimise the impact of fluctuations between the Naira and the British Pound.

b) Legal and Tax Implications: The company provides guidance on UK property laws and tax regulations, ensuring investors are fully compliant.

c) Remote Management: With their hands-off investment model, Yield Investing eliminates the need for investors to be physically present in the UK to manage their properties.

  1. Diversification and Risk Management

For Nigerian investors, UK social housing offers an excellent opportunity for portfolio diversification. It provides exposure to a different economy and currency, potentially helping to mitigate risks associated with the Nigerian market.

Moreover, the stable, long-term nature of social housing investments can serve as a counterbalance to more volatile assets in an investor’s portfolio.

The Future of UK Social Housing Investments

As the UK government continues to prioritise addressing the housing crisis, the outlook for social housing investments remains strong. The government’s commitment is evidenced by the recent £64.7 billion funding package for 2024/25, which includes significant allocations for housing and social care.

For Nigerian investors, this presents a unique opportunity to enter a market with strong growth potential, backed by government support, and driven by persistent demand. As awareness of this investment avenue grows among West African investors, we can expect to see increased participation in this sector.

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How Data Sharing Can Drive Financial Inclusion in Africa https://meamarkets.digital/how-data-sharing-can-drive-financial-inclusion-in-africa/ Thu, 25 Jul 2024 11:57:08 +0000 https://www.mea-markets.com/?p=35994 Despite the access to financial services that mobile money has introduced across Africa, a significant portion of the population remains unbanked and underserved. Data sharing holds the key to unlock the continent's vast economic potential.

Financial institutions have traditionally relied on conventional credit histories and collateral to assess customers’ risk profiles, often excluding those without formal profiles in the process. However, alternative data sharing allows for a more nuanced understanding.

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Businessman showing virtual glowing cloud computing to download and loading data information and upload on system network application. Technology data transformation concept, data transfer

Despite the access to financial services that mobile money has introduced across Africa, a significant portion of the population remains unbanked and underserved. Data sharing holds the key to unlock the continent’s vast economic potential.

Financial institutions have traditionally relied on conventional credit histories and collateral to assess customers’ risk profiles, often excluding those without formal profiles in the process. However, alternative data sharing allows for a more nuanced understanding.

By analysing data from mobile money transactions, utility payments and even airtime purchases, institutions can now assess risk and creditworthiness, empowering previously excluded individuals to access financial products and services.

Access to credit is crucial – our Consumer Pulse Study from Q2 2024, conducted in Botswana, Kenya, Namibia, Rwanda and Zambia showed the vast majority of consumers responding that access to credit and lending products is essential for achieving financial goals. However, not even 40% of respondents believed they have sufficient access to credit, except in Botswana (45%).

Botswana has made significant strides in improving consumers’ access to finance and credit in Q2 2024, marking a notable 10 percentage-point increase from the previous year. And it’s telling that a growing number of respondents from Botswana (55%, up from 46% last year) believed incorporating alternative information not usually included in standard credit reports – such as rental payments and gym memberships – would improve their credit scores.

The figures were borne out in the other regions too: 60% in Kenya, 49% in Rwanda, and 50% in Zambia, for instance. This indicates a shift in consumer perception toward a more robust approach to credit scoring.

What does this look like in practice? Picture a small business owner in the rural area in any one of these countries who faithfully pays their electricity bill through mobile money. Data sharing can reveal this positive financial behaviour, allowing them to qualify for a loan to expand their business. This financial inclusion, in turn, fuels economic growth and poverty reduction.

And that kind of example is just for starters: data sharing can unlock a world of possibilities beyond access to basic financial services. Imagine micro-insurance products tailored to specific needs, targeted financial literacy initiatives, or even personalised investment opportunities – all driven by insights gleaned from alternative data.

Secure data sharing

Of course, there are always concerns around data privacy and security, and these must be in place for data sharing to succeed. This means countries need robust regulatory frameworks that ensure user consent and privacy protection. In addition, trust must be built through transparent communication and education, as this will empower users to understand how data benefits them.

Just as financial inclusion requires a collaborative effort, collaboration is also at the foundation of efficient, effective data sharing. Private companies, governments and development agencies must work together to create a secure data-sharing ecosystem. This might involve creating standardised data formats and APIs to facilitate seamless – and secure – information exchange that protects clients’ privacy while opening up new financial avenues for them.

Beyond collaboration, to fully leverage financial inclusion for poverty reduction and economic growth in developing countries, we will need a multifaceted approach – which includes government policies, private-sector initiatives and community engagement.

Community engagement, in particular, is crucial – because trust and digital illiteracy are significant hurdles in promoting data sharing for financial inclusion in Africa. For many, the financial system feels complex and unapproachable, and a lack of transparency around data collection and usage can make people feel like they’re relinquishing control over their personal information.

In addition, those unfamiliar with digital technologies might not grasp the concept of data sharing or its potential benefits. They might struggle to understand the technical jargon used to explain the process.

Financial institutions and governments, therefore, need to be clear and upfront about data-collection practices. Publishing clear data privacy policies and allowing users control over their information can help to build trust.

Financial-literacy initiatives that explain data sharing in simple terms and highlight its benefits are also crucial, and public-awareness campaigns can dispel myths and build trust in the system.

Finally, trusted public figures like community leaders can play a vital role in explaining the benefits of data sharing and addressing concerns.

Data sharing is not a silver bullet, and of course there are challenges like overcoming digital literacy gaps and ensuring responsible data governance. However, by embracing this powerful tool, financial institutions – and the clients they serve – can unlock a future where financial inclusion empowers all Africans to participate in the continent’s economic rise.

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Why the Promise of a Cashless Society is Key to Unlocking the Nigerian Commerce Growth Opportunity https://meamarkets.digital/why-the-promise-of-a-cashless-society-is-key-to-unlocking-the-nigerian-commerce-growth-opportunity/ Fri, 28 Jun 2024 10:55:12 +0000 https://www.mea-markets.com/?p=35928 Cash is a uniquely expensive and inconvenient way to do business. However, shifting to a world of cashless payments is easier said than done, as many policymakers have discovered to their cost. The Nigerian Government is taking unprecedented steps to reduce the economic reliance on cash and promote digitally-driven commerce. Will its gamble pay off?

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Hands of two african individuals doing financial transaction with a point of sales POS terminal as Cash, Naira, Money or currency is exchanging hands

By Justin Floyd, CEO of Redcloud


Under the current Nigerian Government policy, weekly cash withdrawals are limited to ₦500,000 (approx. $1,100) for individuals and ₦5,000,000 (approx. $11,000) for corporations.

Cash is a uniquely expensive and inconvenient way to do business. However, shifting to a world of cashless payments is easier said than done, as many policymakers have discovered to their cost. The Nigerian Government is taking unprecedented steps to reduce the economic reliance on cash and promote digitally-driven commerce. Will its gamble pay off?

Along with Sweden and India, Nigeria has moved ahead of other countries in its efforts to reduce the reliance on cash to make commerce flow and drive economic growth. Most notably, in late 2022, the Government announced a cap on weekly cash withdrawals for both individuals and corporations, with punitive fees levied for those straying above the limits.

Since then, it has also announced a new domestic card scheme to rival foreign cards like Mastercard and Visa and further encourage digital payments. Of course, the perceived rush to change business and consumer behaviour has met with understandable resistance in some quarters. Cash reserves of the country’s newly redesigned paper currency have run low, while the traditional banking infrastructure has come under strain, resulting in markedly slower settlement times. Despite the growing domestic concerns, however, the Central Bank of Nigeria (CBN) has largely resisted efforts to slow down the pace of its economic transformation.

Why over-reliance on cash is a barrier to growth

Cash may have been around since the time of the Mesopotamian shekel over 5000 years ago, but its utility is dwindling for the modern economy. Compared to many digital payment solutions, cash is slow, cumbersome and unreliable. A reliance on cash remains a major barrier to growth in ambitious, high-potential markets like Nigeria: it makes volume business difficult, and cross-border, open commerce impossible. It prevents the accumulation of working capital to facilitate growth. It also comes with significant risks – everything from robbery to fire and flood.

Most pertinently, it is typically the smaller retailers and merchants who carry the steepest cost for being forced to trade in cash. Cash needs complex reconciliation by hand; transactions are slow and insecure, while capital is tied up rather than being used productively.

No wonder policymakers are pushing for digital payments – particularly given that microbusinesses and entrepreneurs present such a huge untapped growth opportunity for the domestic economy.

The latest in a series of cashless interventions

Under the current Nigerian Government policy, weekly cash withdrawals are limited to ₦500,000 (approx. $1,100) for individuals and ₦5,000,000 (approx. $11,000) for corporations. Individuals that breach these limits must pay a fee of 3%, with a 5% fee levied on corporations. The CBN has also limited daily withdrawals, part of a broader suite of measures dating back to 2012 designed to promote the domestic use of digital payments –in particular, the adoption of the country’s digital currency, the eNaira, but also internet banking, mobile banking apps and cards.

The Nigerian authorities have made their rationale clear – embracing digital payments boosts growth, reduces corruption, promotes financial inclusion and facilitates remittances. At the launch of the project, the CBN explained that, “An efficient and modern payment system is positively correlated with economic development, and is a key enabler for economic growth.”

The B2B distribution problem

However, despite undeniable progress, there continues to be an over-reliance of cash across the B2B retail distribution chain in Nigeria. There are a number of reasons: some large brands are reluctant to change a model that has worked well for them and kept out smaller challengers, while some of the bigger distributors have no incentive to change a system that allows them to control the relationship between brands and merchants – and charge fat margins to do so.

Unfortunately, this reliance on cash doesn’t work well for merchants, for consumers, or for all of the many brands and distributors who want to compete on a level playing field – an ‘open commerce’ system. Cash-based distribution invariably limits choice and pushes up prices. It makes accurate sales data and customer insights harder to come by, limiting the efficacy of local markets in matching supply with demand.

Even where brands have attempted to move away from using cash across their Nigerian distribution operations, they’ve done so by building proprietary, closed-garden digital ecosystems – creating a single online home for buying their products, but not for buying anyone else’s. This approach misunderstands how retailers and distributors want to operate. They’re already dealing with multiple brands every week and so if they’re going to be incentivised away from continuing to use cash, it has to be with the promise of a fundamentally better digital solution – for example, an open commerce marketplace where they can buy a wider range of products to suit their local customers’ needs.

Delivering value throughout the distribution chain

Digital payments present a clear pathway to growth for small Nigerian retailers and merchants. They provide far better visibility on all retail transactions, allowing for better stock management, they create verifiable trading data that can improve a merchant’s ability to access working capital via banks and financial services providers and, of course, they offer immediate reconciliation.

What’s more, allowing local retailers and merchants to go cashless has a significant positive effect throughout the distribution chain, allowing brands and their distributors far greater transparency into what is selling, where there may be untapped demand, how to price goods more effectively, and more besides. This is open commerce in action.

And with some open commerce platforms, it’s even possible to trade digitally without any reliance on the traditional banking establishment, with retailers uploading their existing cash at local collection points, giving them the digital currency they need to keep on purchasing without any delays in settlement time.

If the Nigerian Government gets its way, the distribution chain will be forced to digitise over the next few years. Alongside this, what’s needed now is greater market education, nudging progressive brands, distributors and retailers towards open commerce technologies rather than locking themselves into digital versions of their current, constraining relationships. AfricaBusiness.com.

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Best Capital Market Fintech Company – EMEA https://meamarkets.digital/best-capital-market-fintech-company-emea/ Tue, 14 May 2024 09:52:05 +0000 https://www.mea-markets.com/?p=35527 Delivering unparalleled fintech solutions for capital market industries, SYPEX introduces its software to a plethora of clients withing to invest, and manage their investments, with ease. Here we learn more from Co-founder and Associate Director Hicham Benyahya in the wake of SYPEX’s prestigious award win.

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Delivering unparalleled fintech solutions for capital market industries, SYPEX introduces its software to a plethora of clients withing to invest, and manage their investments, with ease. Here we learn more from Co-founder and Associate Director Hicham Benyahya in the wake of SYPEX’s prestigious award win.

Established in 2017 in Casablanca, Morocco, SYPEX is an unshakeable fintech solutions provider with a range of services to support clients from around the MEA region. Hicham Benyahya tells us more about the firm’s clientele, “Our clients are financial market players such as trading rooms and treasury, asset management, UCITS, REIM, stock exchange brokers, custodians, asset servicers, insurance and pension funds, private banking and wealth management.”

Of course, working in such a fast-paced and ever-evolving industry, with various client needs, SYPEX has to be flexible. With its client-oriented platform for service management, the company ensures it can respond to changing needs “while respecting the Service Level Agreements initially defined with them”. Its platform, as a multi-entity software suite, is ideal for OnPremise or Cloud management of business workflows front-to-back and in real time.

SYPEX is built on the core values of commitment, innovation, excellence, respect, and sharing, which makes its connections even stronger regardless of what its clients require. These qualities also stand out as its USPs, separating the company from its competitors within the industry.

Furthermore, Hicham shares, “Our competitive intelligence unit collects and analyzes data relating to competitor strategies, market developments, regulatory developments, technological developments, etc.” By staying up to date with industry developments, as well as forming beneficial partnerships with its clients, SYPEX’s software offers in-depth solutions which ultimately improve outcomes for the capital market as a whole.

Raising the bar for what is expected of the integral industry, SYPEX enriches the surrounding region’s sectors. Hicham continues, “In recent years, we have seen the emergence of several African countries such as South Africa, Nigeria and Morocco where we are based. Even the maturity of some Middle East countries. There have been several developments in our market in Morocco such as the introduction of the REIM portfolio management, Wealth management regulation as well as the ongoing futures markets project. At the regional level, we see the development of UEMOA and CEMAC markets with evolution of UCITS. During market developments, we always follow the industry by adapting in order to integrate new functionalities into our solutions.”

“Our solutions are adapted to the specificities of regional markets and integrating the best technology innovations.”

SYPEX’s services covers market data, simulation, analysis, portfolios and asset management, contribution and performance attribution, private banking and wealth management, and so much more, to ensure its clients can actively monitor and manage risks and activities – all for a better future in business.

Offering its team all the support needed to thrive, the company is poised and ready to embark on a new journey. As the industry continues to change, SYPEX has plans to consolidate its positioning in its region “while supporting clients in new developments for future markets”. With a large number of satisfied clients over the years, SYPEX endeavours to adapt to even more challenges which will inevitably approach the industry.

Recently awarded with the title of Best Capital Market Fintech Company – EMEA, SYPEX has gained recognition for its excellence in the field of fintech solutions. Its fervent dedication to providing the best software solutions to its clients makes this firm an excellent choice for any business partnership. We wish the company the best as it continues to improve the sphere, and we’re sure to see it flourish further for the years to come.

For further information, please contact Hicham Benyahya or visit https://sypexfs.com/

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China Writes Off Interest-Free Loans Given To Zimbabwe https://meamarkets.digital/china-writes-off-interest-free-loans-given-to-zimbabwe/ Tue, 23 Apr 2024 11:45:20 +0000 https://www.mea-markets.com/?p=35497 China has written off an unspecified amount of Zimbabwe's interest-free loans and pledged to help the Southern African country find a way out of its debt crisis, even as activists warned of a permanent debt trap.

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Estate broker agent and customer shaking hands after signing contract documents

As of September 2023, Zimbabwe’s publicly guaranteed debt stood at $17.7 billion

China has written off an unspecified amount of Zimbabwe’s interest-free loans and pledged to help the Southern African country find a way out of its debt crisis, even as activists warned of a permanent debt trap.

As of September 2023, Zimbabwe’s publicly guaranteed debt stood at $17.7 billion, of which $12.7 billion was external and $5 billion domestic.

Most of the foreign debt was purchased from China, as the country is ineligible for loans from multilateral creditors such as the World Bank and the International Monetary Fund (IMF) after defaulting on repayments since the turn of the millennium.

Since the fall of long-time ruler Robert Mugabe six years ago, Zimbabwe has been struggling to reach an agreement with creditors to restructure its unsustainable debt.

Read: Africa’s creditors come calling as debt distress looms largeFormer Mozambican president Joachim Chissano and African Development Bank President Dr Akinwumi Adesina are leading the debt restructuring dialogue, which suffered a blow last month when the United States withdrew its support, citing Harare’s reluctance to reform.

China, now Zimbabwe’s largest non-Paris Club creditor, says it is ready to help the country resolve its debt quagmire.

Some estimates put Zimbabwe’s debt to China at $3 billion.“China attaches great importance to resolving Zimbabwe’s debt issues,” said China’s ambassador to Zimbabwe Zhou Ding.“China would like to enhance communication with the Zimbabwe government to work out proper statements through friendly consultation. As a concrete measure, China has cancelled Zimbabwe’s interest-free loans, which matured by the end of 2015.”Mr Zhou did not disclose the amount of loans written off, but observers said it may not be much, as Zimbabwe increased its Chinese debt for infrastructure projects after the end of Mr Mugabe’s nearly four-decade rule.

Military coupZimbabwe’s founding leader was replaced by President Emmerson Mnangagwa following a military coup in 2017.

President Mnangagwa’s government has continued to borrow heavily from China, but Mr Zhou said it was not true that Zimbabwe was now in a death trap because of excessive Chinese loans.

Read: Zimbabwe chokes under weight of $13bn China loans“According to the data released by the Zimbabwean government, Zimbabwe’s debt owed to Western countries and international financial institutions accounts for 70 per cent of its external debt, while the debt owed to China only accounts for 15 per cent,” he said.

In August 2022, China announced that it would provide 23 interest-free loans to 17 unnamed African countries, a move analysts said at the time was designed to counter accusations that Beijing was engaging in “debt-trap diplomacy”.

Political leverageCritics accuse China of deliberately lending to countries it knows cannot repay to increase its political leverage as it seeks to counter US influence in Africa.

China vehemently denies the accusations, saying its relations with African countries are based on its policy of non-interference in other countries’ affairs.

In its latest debt analysis, the Zimbabwe Coalition on Debt and Development (Zimcodd) said loan defaults during Mr Mugabe’s era and the country’s long-running economic problems had left Zimbabwe in a debt overhang.“The debt default of the early 200s, coupled with a shrinking economy, has attracted prohibitive penalties and subdued the capacity to service debts, thus trapping Zimbabwe in a debt overhang position,” Zimcodd said.“Also due to these high debt arrears, access to concessionary loan finance has been blocked.“As such, predatory creditors are taking advantage of Zimbabwe’s debt crisis by fuelling debt expansion –mortgaging natural resources and mineral revenues.”Read: Zimbabwe labour unions accuse Chinese firms of violations$400 million loanLast year, Zimbabwe secured a $400 million loan from Afreximbank for budget support and financing of trade-related infrastructure, which it will repay by using 38 per cent of the export earnings of the country’s largest platinum miner.

The previous year, the government announced that the country had borrowed $200 million from China, securing the loan with 26 million ounces of platinum reserves.

Zimcodd said Zimbabwe was at risk of falling into a permanent debt overhang “given complex global challenges such as climate change and deteriorating global geopolitics”.“If left unresolved, the debt crisis will permanently trap Zimbabwe into a vicious debt trap of continuous borrowing, accumulation of arrears and subsequent defaults,” the organisation added.“The sustenance of high indebtedness constrains development through limited access to concessionary funding, currency devaluations, rising cost of money and sluggish economic growth.“So, Zimbabwe faces an impossible choice between serving its people or serving mounting debts.”China loaned Zimbabwe billions of dollars to upgrade two of its main international airports and to expand its two main thermal and hydroelectric power stations. 

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