JULISHA BUSINESS NEWS ROUND-UP.
KENYA.
Investors in Treasury bills and bonds are facing steep losses as returns on government securities plunge, driven by successive cuts to the Central Bank of Kenya's (CBK) benchmark rate since August.
Treasury bill yields have dropped significantly, with the 91-day paper falling from 15.7% in October to 10%, while the 182-day and 364-day rates also declined.
The rate cuts, aimed at spurring economic growth, have made Treasury securities less attractive to depositors, shifting preference to other investment options.
2. Sanlam Kenya Plc shareholders have approved a rights issue to raise Ksh3.25 billion to strengthen the company's financial position.
During a General Meeting, shareholders authorized an increase in share capital to Ksh3.720 billion from Ksh2 billion, with plans to issue up to 1 billion ordinary shares at a nominal value of Ksh5 each.
The initiative, fully underwritten by parent company Sanlam Allianz Africa Proprietary, will enable early repayment of an existing Stanbic Bank Kenya PLC loan facility.
The capital raised will provide working capital and operational flexibility, supporting the non-bank financial services firm's growth strategy.
Sanlam CEO Dr. Dr. Nyamemba Patrick Tumbo EBS, said this financial restructuring follows recent initiatives, including debt portfolio restructuring and subsidiary consolidation.
The rights issue pricing will be announced following regulatory approvals, with current shareholders eligible to participate.
3. Absa Bank Kenya has announced a Sh100 billion funding commitment to support small and medium enterprises (SMEs) over the next three years, a major push to strengthen Kenya's business ecosystem.
The initiative, revealed by SME Head Erastus Muthura during a women traders' forum in Murang'a county, will be complemented by an ambitious training program targeting 50,000 SMEs over five years through the recently launched Absa Foundation, which aims to enhance social and environmental impact.
The bank's support strategy includes a series of empowerment forums across Kenya's regions, including Coast, Western, Rift Valley, and throughout the Mt Kenya region, focusing on women entrepreneurs expected to receive 45% of the allocated funds.
TANZANIA.
The Tanzanian shilling has rallied to a ten-month high against the US dollar, with the Bank of Tanzania (BoT) quoting it at trading at Sh2,513.09 per dollar yesterday as it extended gains that began in early October.
According to BoT Governor Emmanuel Tutuba, this upward trend is expected to continue until February 2025, driven by increased exports, tourism growth, and reduced imports, with the currency appreciating from Sh2,721.68 per dollar on October 4 to Sh2,716.48 and Sh2,620.57 by October 23 and November 23 respectively.
The currency's strength is attributed to multiple factors, including the Export Guarantee Scheme launched in June 2023, which has boosted agricultural exports and domestic production, along with increased trade volumes and reduced imports of certain products.
EGYPT.
The Central Bank of Egypt (CBE) has rolled out a service that enables instant international remittance transfers directly into Egyptian bank accounts.
The service, which operates 24/7 through Egypt's Instant Payment Network (IPN), follows a successful pilot phase in June and has already attracted multiple licensed banks to participate, offering immediate access to funds for recipients at any Egyptian bank.
Building on the success of the InstaPay platform, which has amassed over 11.5 million users since its March 2022 launch, this initiative aims to reduce cash dependency.
The CBE anticipates service adoption, with transaction volumes expected to surpass EGP 2.7 trillion by 2024.
NIGERIA.
Mastercard has partnered with Nigerian B2B e-commerce company Alerzo and the USAID-funded e-Trade Alliance to accelerate digital transformation and financial inclusion among MSMEs in Nigeria, targeting to empower over 10,000 small businesses by year-end.
The collaboration introduces comprehensive digital solutions, including Alerzoshop, a digital B2B marketplace, and Veedez, a digital payment and business management tool.
While implementing Mastercard's innovative payment solutions such as Tap to Pay, QR codes, and Payment Gateway Services to address challenges faced by Nigerian MSMEs including complex supply chains, manual inventory management, and limited access to financial services.
This public-private partnership, announced by Mastercard's West Africa Country Manager Folasade Femi-Lawal and Alerzo CEO Adewale Opaleye, aligns with Mastercard's global goal of bringing one billion people and 50 million micro and small businesses into the digital economy by 2025.
The initiative provides targeted financial and digital training alongside infrastructure upgrades to enable seamless payment processing through Mastercard's network.
Supporting sustainable growth and fostering a more inclusive financial ecosystem for Nigerian MSMEs while demonstrating the potential impact of collaborative efforts in driving economic development.
CRYPTO.
1. Visa and 100Pay have launched PayCard, a crypto-backed debit card enabling direct cryptocurrency spending both online and offline without fiat currency conversion.
The card, available in three tiers with spending limits ranging from $100,000 to $1 million, supports 22 cryptocurrencies including Bitcoin, Ethereum, Solana, and USDT, while integrating with digital wallets such as Apple Pay and Google Pay. The initial release includes 20,000 cards, with deliveries scheduled to begin December 30 on a first-come, first-served basis.
The card offers features including ATM withdrawals, online subscription payments, and up to 5% transaction discounts for users of 100Pay's native token, $PAY, along with a $4 referral bonus program.
2. BITCOIN PROJECTED TO HIT $160,000 Next Year.
Bitcoin’s 2024 performance has already shattered expectations. After breaching $100k recently, it is expected that the biggest crypto might hit $160k by 2025.
The massive 136% Year-to-date (YTD) surge for BTC has been driven by institutional adoption, increasing use cases, and growing regulatory clarity.
The global crypto market has seen Bitcoin regain the spotlight after Donald Trump’s US presidential election win.
BTC price has soared by over 55% in the last 30 days while its supremacy grew to 55.21%. The cumulative digital assets market cap is hovering around the $3.6 trillion mark.
According to the Matrixport report, BTC price is expected to reach $160,000 in 2025, which is still a 60% upward run from current market conditions. This target comes with projections of sustained demand for Bitcoin ETFs, macroeconomic shifts, and global liquidity expansion.
3. Bit Global Digital, the global controller and issuer of Wrapped BTC (WBTC) filed a complaint against Coinbase, Inc. The lawsuit seeks damages from the delisting of WBTC from the exchange.
Bit Global Digital estimated damages of up to $1B after the delisting of Wrapped BTC (WBTC) from Coinbase. In a December 13 filing with the US District Court, Northern District of California, Bit Global pointed out the extensive potential direct and reputational losses from the lawsuit.
Bit Global claimed Coinbase noticed the utility of WBTC, the most widely used form of wrapped Bitcoin. In 2024, Coinbase introduced its new asset, cbBTC, which already launched on Ethereum, Base, and Solana.
Both WBTC and the new cbBTC traded on Coinbase, until on November 19 the exchange announced the upcoming delisting. The newly filed lawsuit noted the action curbed free competition and damaged the reputation of the longest-running wrapped token. The launch of cbBTC arrived in September, immediately spreading concern across all users, especially in DeFi lending.