By Anayo Onukwugha, Leadership The Nigeria Deposit Insurance Corporation (NDIC) has said that about 76.8 per cent of rural dwellers in Nigeria do not patronise financial institutions, especially commercial and micro-finance banks in the country. Managing Director of NDIC, Alhaji Umaru Ibrahim, disclosed this yesterday in Port Harcourt during the opening... 

By Nazifi Dawud Khalid, Daily Trust Kano — The Nigeria Deposit Insurance Corporation (NDIC) has announced its decision to publish names of people who were operating dubious and unlicensed financial institutions called ‘wonder banks’ that promise hefty monetary rewards for customers who make deposits in their banks with the intent to... 

By Mohammed Awad, Bikya News ADDIS ABABA: Ethiopia women are praising efforts over the past month to increase their empowerment within the business sector of the country. In recent weeks, Ethiopian women have been able to increase their living by applying for loans at a nationwide bank launched by women for women. “Without the new loan I have... 

By Mohammed Awad, Bikya News

ADDIS ABABA: Ethiopia women are praising efforts over the past month to increase their empowerment within the business sector of the country. In recent weeks, Ethiopian women have been able to increase their living by applying for loans at a nationwide bank launched by women for women.

“Without the new loan I have got in the past few weeks, I would not have been able to start the process of creating my own medical clinic in the village,” Hallelujah Desalign told Bikyanews.com. She recently established a small clinic about an hour outside Addis Ababa that gives women pre-natal care and children now have access to daily healthcare and medicine.

“It’s all because of the banking system and how women are helping women out,” she added.

She was referring to last month’s launch of a bank pushed by 11 Ethiopian women and some 7400 shareholders with the aim to serve and support women and empowerment in the country.

“This is a great time for women in Ethiopia,” an economic consultant for the government told Bikyanews.com. “We are seeing initiatives that are helping to make better business opportunities for women and this will help boost our overall economy.”

Meaza Ashenafi, Chairperson of Bank Board of Directors, told reporters that 64 percent of the shareholders are women.

Meaza revealed that the Bank has been launched with initial capital of 120 million Ethiopian Birr (about 18.5 Ethiopia Birr equals 1 US dollar), to be raised to 500 million Ethiopian Birr in two years time.

The Chairperson noted that it is women’s initiative potentially to be one of the biggest banks in Ethiopia.

The bank launched its services with two branches in Bole and Bambis areas of Addis Ababa.

The Chairperson stated that they would expand the bank’s services by opening other branches in different parts of the country and also by using mobile bank.

“We have launched the bank, the first women’s bank in the country; and potentially be one of the biggest banks in Ethiopia. It is women’s initiative. It was promoted by eleven Ethiopian women and we have over 7,000 shareholders,” she said.

She said they wanted to use mobile bank as it has huge potential to reach all.

Speaking at the launching ceremony, Mekonnen Manyazewal, Ethiopian’s minister of trade, noted that the bank initiated by Ethiopian women would have its contribution to development activities in the country.

The bank has said that it provides bank services uniquely in a manner it improves citizens’ saving culture and loan services that promotes investment in the country.

Investment firm Gold Coast Securities will start operating its Micro finance firm in Liberia in 2 months time. The company says its background checks have revealed huge prospects exist for the business in the West African country. The Board Chairman, Abakah Jackson says they are therefore ready for the business in the new market. He spoke to JOY BUSINESS... 

Stakeholders in the micro finance institutions from the five member countries of WAIFEM (The Gambia, Ghana, Liberia, Nigeria and Sierra Leone) yesterday commence a four-day regional course on microfinance operations and regulations. Organised by the West African Institute for Financial and Economic Management (WAIFEM), the course currently under... 

Stakeholders in the micro finance institutions from the five member countries of WAIFEM (The Gambia, Ghana, Liberia, Nigeria and Sierra Leone) yesterday commence a four-day regional course on microfinance operations and regulations.

Organised by the West African Institute for Financial and Economic Management (WAIFEM), the course currently under way at the Paradise Suites Hotel in Kololi, was designed to among others enhance participants’ understanding of the features, operations and contributions of microfinance institutions to the financial intermediation process.

The course comes in the light of the fact that while the gap between the supply and demand for microfinance services is huge, one of the major constraints is the lack of capacity in operating sustainable institutions.

In a statement delivered on his behalf by Basiru Njai, first Deputy Governor of the Central Bank of The Gambia, Amadou Colley, Governor of the Central Bank of the Gambia, said poverty is arguably the most challenging economic problem, and it is estimated that over two billion of the world’s population are living in conditions of extreme poverty, of which rural poverty accounts for nearly 63 percent of world-wide poverty, reaching 90 percent in some countries.

‘Ironically, we live in a time of greater material abundance, of greater availability and transferability of capital and technology around the world more than humanity has ever had,’ Colley stated.

According to the Central Bank Governor, there is an important link between economic growth and poverty reduction, and studies have confirmed that sustained economic growth of 7-8 percent per annum, that is inclusive, is the most effective and efficient means of reducing poverty.

Noting that faster and sustained economic growth requires inter alia access to financial services including microfinance, Governor Colley said efforts targeted at ensuring the poor have access to finance started with the introduction of micro-credit in the early 1970s in Bangladesh, India and Latin America.

He highlighted some of the challenges facing the microfinance sector, among them institutional weaknesses in areas such as planning, governance, poor management, limited access to long-term financing; limited diversification of products; weak networks; and costs and risks associated with setting up microfinance in rural areas.

He noted that as the custodian of the financial system, the Central Bank of the Gambia continues to perform its role as supervisor, regulator and promoter of microfinance in The Gambia.

To unleash the potentials of microfinance, Colley noted that the CBG is committed to the maintenance of a benign macroeconomic environment, and that there is a strong link between price stability and financial stability.

‘Price instability and volatility in financial markets which it engenders are probably the most serious of the risks that financial institutions have to cope with,’ he said, adding that almost in every case where there has been serious threat of systematic financial disturbance, it can be traced to macroeconomic policy failures of one kind or another.

Speaking on behalf of the Director General of WAIFEM, Professor Akpan H. Ekpo, the Director of Financial Management at WAIFEM, Ousman Sowe, said WAIFEM was established in July 1996 by central banks of The Gambia, Ghana, Liberia, Nigeria and Sierra Leone principally to build sustainable capacity for improved macroeconomic and financial management in the constituent countries.

“In order to ensure highest quality in its programmes, WAIFEM has extensive technical partnerships with reputable institutions including the International Monetary Fund, the World Bank, African Development Bank, Commonwealth Secretariat, Debt Relief International, and the World Trade Organization, among others,’ he stated.

According to him, the objective of the course is to enhance participants understanding of the features, operations and contributions of microfinance institutions to the financial intermediation process.

He noted that one of the key goals of the millennium development programme is poverty reduction, and microfinance has been viewed as a veritable instrument or a major process that will effectively address the issue of poverty by making available to the majority of the poor greater opportunity for sustainable progress and development.

He said while the gap between the supply and demand for microfinance services is huge, one of the major constraints is the lack of capacity in operating sustainable institutions.

Ogbonnaya Agu, programme manager of WAIFEM, delivered the vote of thanks.

SOURCE: The Point (Gambia)

North Darfur has announced its total commitment to empowering rural women through microfinance programmes as an ideal way of expanding production in the state. Abu Daoud Suleiman, the North Darfur state Minister for Finance, Economy and Civil Service, expressed readiness to provide all facilities for rural women to enable them to get micro finance... 

The Amenfiman Rural Bank Limited made a profit before tax of Gh? 2,247,312.19 in 2012 as against Gh? 1,151,981 in 2011. Dr Toni Aubynn, Chairman of the Board, announced this at the 29th Annual General Meeting of the Bank at Wassa Akropong on Saturday. He said this represented an increase of 95 per cent and “this is indeed very impressive by... 

The Amenfiman Rural Bank Limited made a profit before tax of Gh? 2,247,312.19 in 2012 as against Gh? 1,151,981 in 2011.

Dr Toni Aubynn, Chairman of the Board, announced this at the 29th Annual General Meeting of the Bank at Wassa Akropong on Saturday.

He said this represented an increase of 95 per cent and “this is indeed very impressive by all standards”.

Dr Aubynn, who is the Chief Executive Officer of the Ghana Chamber of Mines, said profit after tax rose from Gh? 1,044,882.01 in 2011 to Gh? 2,054,322.41 in 2012 representing an increase of 97 per cent.

He said total income also increased by 67 per cent from Gh? 4,077,343.94 in 2011 to Gh? 6,818,843.85 in 2012.

Dr Aubynn said this performance was expected to increase when the bank rolled out other income generating products and services.

He said deposits increased from Gh? 23,523,595. 07 in 2011 to Gh? 32,009,952.12 in 2012.

Dr Aubynn said shareholders funds rose from Gh? 2,206,087.08 in 2011 to Gh? 4,089,348.31 in 2012, an increase of 85 per cent.

He said the bank’s impressive performance in 2012 placed it as the second most profitable bank in the country out of the 135 rural and community banks and the number one most profitable bank in the Western Region.

Dr Aubynn said the bank was classified by the Apex Bank Limited as a strong bank in the 2012 ranking.

He said the bank invested a total of Gh? 26,000 in community activities including scholarships and bursaries awarded to children and wards of shareholders and to brilliant but needy students.

Dr Aubynn said during 2012, 106 students benefited from the Amenfiman Scholarship Scheme and over 150 brilliant but needy students of the Amenfiman Senior High School obtained bursaries.

Mr Kwadwo Aye Kusi, Managing Director of the Association of Rural Banks (ARB) Apex Bank Limited, said the profits achieved by the bank last year and other healthy financial indicators were sufficient evidence of the effective management of the bank’s resources.

He said the bank could do more by way of deposit and share mobilization, cost control and reduction, risk management and compliance.

Mr Kusi asked the bank to put in place new programmes and policies such as Development of Microfinance Business, Risk Management, staff training and Customer Service.

He said one major area where rural and community banks could develop and create a unique marketing niche to strengthen their banks was microfinance business.

Mr Kusi said although almost all rural and community banks were operating some form of microbusiness, they had the potential to achieve more.

He said it was time for rural and community banks to re-think microfinance given the proliferation of microfinance institutions in their catchment areas and promote it to sustain their banks.

“I will, therefore, urge you to deepen your microfinance business to improve your overall results,” Mr Kusi said.

He said the ARB Apex Bank would soon institute an ICT security policy that would ensure that risk associated with the implementation of ICT products were reduced to the minimum.

SOURCE: Ghanaweb

LAGOS – Mr Olufemi Babajide, Chairman, South-West Chapter of the National Association of Microfinance Banks (NAMBs), on Tuesday said that inadequate funding was hampering smooth operation of microfinance banks in the country. Babajide told newsmen in Lagos that operators in the sub-sector were not performing optimally due to poor funding. He... 

Mid-tier lender, Diamond Trust Bank, has established a unit targeting microfinance and individual borrowers. The bank’s managing director Nasim Devji said many lenders have for long shied away from extending credit to very small enterprises (VSE) slowing growth in this sector that employs over 8.5 million Kenyans. “This is one of the segments... 

By Yejide Gbenga-Ogundare and Matthew Asabor, Nigerian Tribune THE General Manager in charge of operations in NPF Micro Finance Bank, Mr Adelakun Joseph Adesina has filed a N500 million suit against the bank over what he described as unwarranted harassment and psychological trauma caused by a letter dated May 2, 2013 asking him to resign his appointment. In... 

By Yejide Gbenga-Ogundare and Matthew Asabor, Nigerian Tribune

THE General Manager in charge of operations in NPF Micro Finance Bank, Mr Adelakun Joseph Adesina has filed a N500 million suit against the bank over what he described as unwarranted harassment and psychological trauma caused by a letter dated May 2, 2013 asking him to resign his appointment.

In the case filed before the National Industrial Court (NIC) sitting in Lagos, Adeshina is asking the court to restrain the bank from sacking him over alleged insubordination and disrespect to higher authority.

According to his statement of claim, he wants a declaration of the court that the purported letter dated May 2, 2013 and titled, “Resolution of the Board at its meeting of April 30 asking him to tender his resignation with immediate effect is wholly illegal and ultra vires.

He also asked for a declaration that the letter is activated by bias by top directors and against fair hearing as well as an order nullifying or voiding the letter.

Adeshina further asked for an order restraining the defendant permanently from giving effect to the letter and to pay and keep paying his salaries, allowances and other incentives and N500 million as general damages.

In his averrment, the General Manager claimed that the request that he should resign was made to cover up numerous abuses going on in the company and is against his employment and labour rights.

Adeshina, who joined the company in 1993 when it was still BFC Consulting Group Limited stated that the cause of his trouble could be traced to December 13, 2012 when he was served with a letter titled, “Re-Succession Plan-Schedule of duties from the office of the Managing Director, where he was told his designation has been changed to Head of Operations.

According to him, he in turn replied that Head of Operations is an aberration and is unknown as well as alien to the succession plan of the defendant bank as it is only found at branch level, adding that he copied the chairperson his reply based on her instructions when he spoke with her.

He added that after his reply, he was issued a query by the Managing Director for gross disrespect and insurbodination, adding that he replied the query pointing out the obvious breach of code of good corporate governance of the Central Bank and the Securities and Exchange Commission.

The result of this, he claims is the perceived insurbodination and disrespect levelled against him by the Managing Director.