In this Issue...
How will the Bank of the future in East Africa look like
The banking sector globally has undergone significant changes in the last decade. The global economic crisis resulted in major regulatory reforms affecting the industry, but other trends including step changes in technological advancement, new sources of competition and changing customer needs have had a profound impact in shaping the sector. PwC's Richard Njoroge discusses.
How to get going on your IFRS 17 project and the pitfalls to avoid
We’re in the home stretch! Yet, with less than a year left until implementation date, a significant proportion of our insurance industry across East Africa is yet to truly get stuck into their IFRS 17 projects. IFRS 17 implementations are complex. Even for the simplest of insurance organisations, there is a lot to do. Understand the requirements → get (or develop) an IFRS 17 engine → Integrate it to your systems → develop a new chart of accounts which is linked to your general ledger → the list goes on: cash flow models, actuarial models, expense systems, FP&A processes, accounting rules, transition, controls, business analytics. PwC's Gauri Shah discusses.
ESG in Financial services: Risk and Regulatory outlook
The ESG concept refers to the three key factors - environmental, social and governance - used to identify the sustainability and social impact of a business. While the term was originally coined in 2005, ESG emerged as somewhat of a buzzword following the implementation of the UN Sustainable Development Goals (SDGs) in 2015. PwC's Edward Kerich and Jane Kanyingi discuss.
Value creation in the Deals market in East Africa
Creating value from M&A has become a real challenge. Value creation is now more important than ever and should be at the heart of any deal if it is to be a success.
In M&A, knowledge of the market and the asset are key, as is the knowledge of the value creation levers. The key is to identify a handful of value levers that are likely to create maximum impact. PwC's June Kago discusses.
Microfinance institutions: Under-appreciated catalyst for economic development and poverty alleviation
The Future of Microfinance Institutions in Tanzania” was the theme on 9th November 2021 at a microfinance event hosted by PwC Tanzania which explored the current state of microfinance, its challenges, future prospects, including discussions on regulations, financial inclusion, and the role of technology. PwC's Cletus Kiyuga discusses.
The new International Sustainability Standards Board (ISSB) and what it means to the future of financial reporting
Climate change and broader issues related to sustainability have attracted increasing interest in the recent years. This major development is a result of greater awareness of climate risks, social inequality, and the impact of COVID-19. For example, the COVID-19 pandemic has highlighted the importance of considering climate risks and social factors in making key business decisions. PwC's Howary Kharbush discusses.
Financial transactions and transfer pricing
On 11 February 2020, the OECD released transfer pricing guidance on financial transactions (the Guidance). This has been the first of its kind and will clarify the application of transfer pricing principles to financial transactions. The Guidance now forms Chapter X of the recently updated OECD Transfer Pricing Guidelines for Multinationals and Tax Administrations, January 2022. The Guidance covers common financial transactions such as intragroup lending, cash pooling, hedging, guarantees and captive insurance as well as the issues related to the pricing of these transactions. PwC's Crystal Kabajwara discusses.
Innovation and tax management in the Financial Sector
The business operating environment continues to evolve forcing most businesses to be innovative and agile to adapt to the disruptive environment. These changes have been experienced across many sectors and the financial sector has not been left behind. Some of the changes we have witnessed in the financial sector include: introduction of new currencies such as cryptocurrency, offering of online loans and cashless payment methods such as mobile, internet banking and cards.
The changes have been necessitated by a number of factors. Some of these factors include the need for the financial institutions to serve their customers better, win new customers, meet different customer needs, improve efficiency in the business operations as well as deal with business competition. PwC's Joseph Khaemba, Justice Kimotho and Paul maina discuss.
Data Privacy in the Financial Services sector
Every second, in every corner of the world, people’s personal data is being processed. The European Union’s General Data Protection Regulations (“GDPR”) set a new benchmark for international privacy frameworks when it came into force on 25th May 2018. The GDPR forms the gold standard for data protection globally.
Subsequently, the Kenyan Data Protection Act 2019 (the “DPA”), which is substantially modelled on the GDPR, came into force on 25th November 2019, breathing life into Article 31 of the Constitution of Kenya, which grants every person the right to privacy. PwC's Joseph Githaiga and Jehaan Kassam (alumnus) discuss.