By Guardian Reporter , The Guardian
AFRICAN countries have been urged to advance cross border –banking in order to drive economic transformation across the continent.
This was said during an official panel discussion in Nairobi yesterday, on the sideline of the African Development Bank (AfDB) Annual Meeting that bring together over 3000 participants, including heads of state, government leaders, and representatives from financial institutions across Africa.
Speaking during the event, top Tanzanian banker Abdulmajid Nsekela, stated that his bank has continued its efforts to strengthen its presence beyond Tanzania's borders while encouraging other financial institutions in Tanzania to follow suit since the financial institutions, especially banks, play a significant role in the development of the African continent.
"As the first locally owned and operated bank in the country to cross national borders and establish subsidiaries in Burundi and the Democratic Republic of Congo, we feel great pride and honor to have the opportunity to organize this discussion aimed at inspiring financial institutions in our African countries to expand their services beyond our national borders to stimulate economic transformation in Africa," added Nsekela.
During the discussion, he elaborated further on the bank's expansion journey, emphasizing that this journey is ongoing.
In addition to its presence in Burundi and the Democratic Republic of Congo, the bank is currently in the feasibility study stages for other African markets as well as establish strategic offices in some countries outside Africa, demonstrating its commitment to continuous growth and expansion.
One of the participants in the discussion, Norfund's Director for East Africa, William Nyaoke, posed a challenge to African governments to have stable policies that do not frequently change to attract financial institutions to invest beyond their home countries' borders and thus stimulate economic transformation in Africa.
In addition to participating in the 2024 Annual Meeting of the African Development Bank (AFDB) and organizing a discussion aimed at stimulating economic transformation in Africa, Nsekela and his delegation held several meetings with international financial organizations, including Afreximbank and the African Guarantee Fund (AGF).
These strategic meetings aimed to strengthen relationships between these institutions, which are already partners with the, enabling it to provide loans in sectors with significant financing needs, including agriculture and business, while also targeting youth and women's groups.
Additionally, these meetings aimed to expand collaborations with these institutions in the bank’s subsidiaries in Burundi and the Democratic Republic of Congo.
The adoption of the African Continental Free Trade Area (AfCFTA) in the continent is anticipated to bring about a notable transformation in the way African countries trade with each other and enhance the volumes of intra-continental trade.
To support this transformation, cross-border financial services, including banking and insurance are pivotal, potentially unlocking unprecedented economic growth and integration across the continent.
According to AfDB, the introduction of digital banking solutions and fintech partnerships have accelerated the digital transformation of Africa’s banking sector, enhancing access to financial services for underserved populations and small and medium-sized enterprises (SMEs).
“This digital leap, facilitated by cross-border banking, is not just about financial transactions; it’s about equipping businesses and individuals across Africa with the tools and capabilities to thrive in a rapidly evolving global economy,” said AfDB in a statement.
In his meeting opening Speech by Dr Akinwumi A. Adesina President and Chairman, Boards of Directors said African economies are showing resilience, despite the challenges posed by climate change, geopolitical tensions, global inflation and rising debt, among others.
No comments :
Post a Comment