Michael Mensah-Baah

Banking transactions hit highest level in eight months: The BankservAfrica Economic Transactions Index (BETI), which measure all interbank economic activity processed by BankservAfrica, recovered further to an index level of 134.2 in April, thereby hitting the highest level in eight months. The BETI has almost reached last August’s level and improved by 0.6% on a monthly basis. According to BankservAfrica, the index was buoyed by the suspension of load shedding towards the end of March. BankservAfrica’s head of stakeholder engagements, Shergeran Naidoo, yesterday said this could have had a positive impact on economic activity in April while spending in preparation for the upcoming elections might have also played a role. Naidoo also said a detailed evaluation of the BETI around election dates in South Africa revealed that in six of the nine elections under review, economic activity picked up in the month before the election month. “According to the Electoral Commission of South Africa (IEC), a record number of about 27.7 million voters – the highest since the advent of democracy in South Africa – are eligible to participate in the 2024 national and provincial elections on 29 May,” Naidoo said. “Additional economic activity for political party campaigns and the IEC’s preparation activities are likely to be reflected in additional retail spending.” BankservAfrica said in what seemed to be a synchronised uptick, other nowcast indicators also increased in April. The S&P Global South Africa Purchasing Managers’ Index (PMI) increased to 50.3 in April, which was a month of stability. Similarly, the Absa PMI rebounded to 54 index points, driven by improved business activity. After eight successive months of falling numbers, new vehicle sales picked up in April and improved by 2.2% on an annualised basis for the first time since July last year that monthly sales outperformed those of a year earlier. The standardised nominal value of transactions cleared through BankservAfrica in April this year subsided to R1.290 trillion versus R1.305 trillion in March, while the number of transactions increased to 157.0 million, growing from 156.1 million in March, according to Naidoo. While April was a welcomed “blip of positivity”, independent economist Elize Kruger cautioned that there were still multiple challenges facing the economy, such as uncertainty around the election outcome and what that would mean for the economy, combined with the “wait-and-see” approach by investors, particularly for capital expenditure plans. “While other developments in the economy are also reflected in the performance of the BETI, election-related spending could make a meaningful impact on the BETI, in the period around election dates,” Kruger said. “Assuming the election outcome will not lead to a major disruption in macroeconomic policies, a slight improvement in the economic scenario is…

Access Bank Awarded for ESG Practices, African Banks Lead in ESG Practices and Sustainable Development. Access Bank Plc was recognized at the Euromoney Awards for Excellence 2024, earning the titles of Nigeria’s Best Bank and Ghana’s Best Bank for Environmental, Social, and Governance practices. Roosevelt Ogbonna, the Managing Director and CEO of Access Bank, stated that this recognition not only celebrates the bank's past achievements but also reflects its future goals. He emphasized the bank's mission to meet financial needs while positively impacting the communities it serves. According to Morningstar Sustainalytics, Access Bank holds a medium ESG risk rating, ranking 525 out of 1,052 banks globally. In Ghana, the bank actively engages in community support, such as partnering with the Ghana Football Association's Division One League and environmental initiatives like planting over 20,000 seedlings across the country. Access Bank's recognition at the Euromoney Awards for Excellence underscores the growing importance of Environmental, Social, and Governance practices in the banking sector, reflecting a broader movement across Africa where banks increasingly integrate sustainability into their operations and strategies. In South Africa, Standard Bank leads in financing renewable energy projects and reducing its carbon footprint, while Kenya's Equity Bank promotes environmental conservation through its "Tree for Life" initiative. Uganda's Stanbic Bank supports education and healthcare projects, and Tanzania's CRDB Bank focuses on financial inclusion and SME support. These examples highlight how African banks like Access Bank, Standard Bank, Equity Bank, Stanbic Bank, and CRDB Bank are driving sustainable development and contributing to a more equitable and resilient future for Africa. #Africa #Accessbank #ESG #Banking #Finance #Sustainability

According to Bill Blackie, CEO of Business and Commercial Banking at Standard Bank one of the many reasons to be optimistic about Africa’s future is its untapped energy potential which includes both fossil fuels and renewable energy, such as solar, wind and hydro energy. “We aim to invest R250-billion in renewable energy projects in Africa over the next few years,” he stated. “Without energy, economic growth is not possible, which is why we are focusing on energy and sustainability for growth.” In addition to removing trade barriers and investing in energy projects, Blackie said Standard Bank was encouraged by the higher levels of infrastructure spending in Africa. “Every country I have visited on the continent recently is spending money on improving infrastructure, be it on improving roads, ports, or airports. This is another fundamental lever for growth.” Africa should focus on getting a greater slice of the global economic pie and conquer its biggest challenge: creating jobs, Basson said. “Rather than figuring out how to move goods across borders, businesses should source local suppliers,” he stated. “In Zambia, 97% of our supplies are locally procured.” Standard Bank Group Leon Louw #whyafrica #africa #investment #investinafrica #whyinvestinafrica #investors #energy #infrastructure https://lnkd.in/dEq72R_R