Foreword
PwC Eastern Africa Regional Senior Partner, Peter Ngahu discusses the year that has been since we published the Financial Focus 2020 edition and how the resilience, systems and processes, technologies for different businesses have been tested over time. How has the Financial Services industry adapted?
In this issue...
Introduction
Many of our financial services clients and contacts operate regionally, serving a diverse clientele with a growing array of customer-centric products. PwC's Richard Njoroge and Brian Ngunjiri provide a summary of the publication. This is what you can expect.
Taking stock: Four areas for financial institutions to consider in 2021 and beyond
It remains to be seen what the ‘new normal’ will look like for the financial services industry. Nonetheless, the beginning of a new year is an opportunity to take stock and refocus. PwC's Moses Nyabanda discusses
How banks can maximise their options on Non-Performing Loans
At the end of 2019, banks closed their books and walked into what was expected to be a new and prosperous 2020. Ultimately, in 2021 and beyond, banks will need to proactively re-evaluate their portfolios and develop tailor-made sector- and borrower-specific plans to preserve and recreate value and put themselves on a clear path to recovery, emerging stronger from the pandemic. PwC's George Weru, Kunal Shah and Timothy Karweti discuss
Balancing access to digital lending with appropriate regulation in Kenya
Increasing access to credit is an essential aspect of Kenya’s efforts to accelerate economic growth. In light of the emerging nature of the non-deposit taking digital lending industry in Kenya, a complicated licensing framework specific to the digital lending industry may stifle its growth. PwC's Joseph Githaiga and Christopher Ndegwa discuss
Preparing for a post-LIBOR world
Considering the far-reaching implications the LIBOR transition will have, as well as the short transition timeline, financial institutions wishing to reap the advantages of being first movers should start planning for the transition now. PwC specialists, George Weru, Akinyemi Awodumila and Gideon Otai discuss
Fit for Growth in Financial Services – Focus on your priorities to fuel growth
Most experts agree that economic uncertainty, like uncertainty about the arc of COVID-19, will linger. As a result, cash-strapped customers and companies need to be ruthless when deciding what to keep and what to ditch. For financial services organisations, like many others, the life of the company could depend on choosing the right things to sacrifice. PwC's Diya Guttoo discusses more in this article
Dealing in Uncertain Times
From an economic perspective, many of the countries in the region were already bracing themselves for slower growth before the pandemic due to various factors. COVID-19 has had a direct impact on deal flow worldwide. Although the official numbers are not yet out, we have also seen much less deal activity in the last twelve months here, closer to home. PwC's Isaac Otolo discusses this developments and more
Circumventing identity-related risks in the banking sector
The banking sector remains a pillar in the development of the country. Individuals and companies alike rely on the banking sector to conduct crucial financial transactions. Given this critical role, banks have every reason to take risk management very seriously. PwC's Robert Aswani and Josphat Muchiri discuss
Rethinking Customer Experience in the Insurance Industry
COVID-19 forced insurance companies to embrace change and to figure out new ways of working. To deliver on these expectations, insurers need to rethink their customer acquisition and servicing models and respond to the continuous evolution in customer behaviours. PwC's Nelly Lacaze discusses
Tanzania Banking sector: 2021 and beyond
The future for the Tanzania banking sector looks bright if the country can continue to maintain its robust macroeconomic fundamentals. So increasingly innovative products and services will be the “ticket to the game” if banks are to remain competitive. PwC's Cletus Kiyuga discusses
Highlights from PwC Zambia’s 2019 Bank and Non-Bank Industry Survey
The fourth edition of PwC Zambia’s Bank and Non-Bank Industry Survey provides insight into many of the key issues, challenges and opportunities for banks and non-bank financial institutions (NBFIs). PwC's Martin Bamukunde discusses the key points in this article
Harnessing Tanzania’s Fintech potential
It is now very difficult to imagine a world without the internet or mobile devices. Despite the increased activity in the fintech sector in Tanzania and the positive multiplier effect in the economy, there is significant potential for further growth. PwC's Uchenna Onuoha writes
Kigali International Financial Centre supporting international investment into Africa
Some of the sectors that Rwanda Finance intends to attract, such as BPO and Fintech, will require time to develop, which is why Kigali International Finance Centre has a long-term, evolving approach to the kinds of regulations and incentives that will support the development of these and other sectors in Rwanda. PwC's Paul Frobisher Mugambwa discusses
COVID-19: A catalyst for change in the banking industry
One of the most visible manifestations of the COVID-19 in the corporate sphere has been the need for organisations to rapidly transition all or most of their workforce to a remote working model. Long story short, the pandemic could prove a significant catalyst for the acceleration of the trends we have already seen towards the digitisation of banking operations. PwC's Adam Sengooba discusses
Common pitfalls in ICT Audits
Technology has evolved from being an enabler of business processes to becoming a key driver of business strategy. Now more than ever before, C-suite executives and Boards in the Financial Services sector need to understand the risk profile of their organisations and confirm that their systems and processes are adequate and capable of managing risk within acceptable tolerance levels. PwC's Peter Ojekunle writes
COVID-19: The uninvited guest at the (financial services) table
Restructuring loan facilities has had far reaching effects for banks, as indicated by their interim results in the last quarter of 2020 so far. Non-Performing Loans (NPLs) have increased significantly which has forced most banks to increase their loan provisions in order to cushion against possible defaults. What steps can banks do to mitigate the risk of the provisions being disallowed? PwC's Simon Githinji & Paul Ndirangu discuss
Tax implications of non-performing loans by banks especially in Covid-19 pandemic
At the end of 2019, banks closed their books and walked into what was expected to be a new and prosperous 2020. Ultimately, in 2021 and beyond, banks will need to proactively re-evaluate their portfolios and develop tailor-made sector- and borrower-specific plans to preserve and recreate value and put themselves on a clear path to recovery, emerging stronger from the pandemic.PwC's Justice Kimotho and Paul Maina discuss
Pitting business against compliance is a race to the bottom
If businesses accepted that risk management is not only necessary in avoiding bad business and staying compliant but also a key catalyst to business growth and innovation, there would be no need to call for changes. PwC's Brenda Guchu discusses
PwC’s East Africa IFRS 17 readiness survey: Insights for insurers
Towards the end of 2020, we conducted our first-ever IFRS 17 readiness survey across East Africa. In this article, PwC's Gauri Shah and Leonora Onyango discuss a summary of IFRS 17
People analytics: A Human Resource skill for the digital age in Financial Services
The more agile and adaptable a bank or insurance company, the higher the survival and success of that business. For HR to truly become a strategic partner to the business, people managers should be able to influence both the thinking and assumptions of leaders and the direction of the organisation. PwC's Joy Mwangi discusses
Managing multijurisdiction finance and tax processes the smart way
It is recommended that companies invest in technology to manage their tax affairs and other reporting processes to create efficiencies and minimiSe exposure to risks. PwC's Joseph Khaemba and Boniface Kemboi discuss
Taxation of the digital economy: A Kenyan perspective
Globally, the Financial Services sector has been at the forefront in adopting digital technology. In Kenya, the sector has experienced tremendous growth as financial institutions digitise their operations making it possible for the sector to offer new products and solutions in country and across borders. PwC's Job Kabochi, Andrew Wanjiru and Emily Wayua share some insights on the recent introduction of Digital Service Tax