The Central Bank of Kenya held its policy rate at 8.75%, continuing the pause after 425 basis points of easing from its 2024 peak. Kenya also approved its first locally domiciled banking-sector ETF for listing, providing exposure to 11 listed banking groups once trading begins.

Afreximbank extended Chad a local-currency facility equivalent to EUR 110 million ($125 million), its largest financing to the government to date. The IMF found Ghana’s banking system broadly resilient to a severe gold-price shock, but identified vulnerabilities at weaker banks and the Bank of Ghana.

Read more on the week’s key developments:

1. Kenya maintains policy rate at 8.75%

The Central Bank of Kenya maintained its Central Bank Rate at 8.75% on 11 August, extending the pause after leaving it unchanged at its previous meeting in June. The benchmark remains 425 basis points below its 13% peak in 2024 following the preceding easing cycle. Domestic inflation remained within the central bank’s target range, while external risks included higher global energy prices and geopolitical tensions. The decision gives the central bank more time to assess the effect of earlier rate cuts on inflation, economic activity and credit conditions.

Attention now turns to the transmission of earlier easing through the banking system. The unchanged rate provides banks with greater pricing stability, but the effect on borrowers will depend on how far previous cuts pass through to commercial lending rates and credit growth. Further declines in lending rates and stronger private-sector credit growth would provide clearer evidence that financing conditions are easing.

2. Afreximbank extends EUR 110 million facility to Chad

Afreximbank announced on 10 August that it had extended the Chadian government a facility equivalent to EUR 110 million ($125 million) in local currency, its largest financing to the government to date. The agreement was signed on 5 August by Chad’s Minister of Finance, Budget, Economy, Planning and International Cooperation, Tahir Hamid Nguilin, and Afreximbank President George Elombi. The financing will support trade-enabling infrastructure projects approved under Chad’s 2026 Finance Law, with the broader aim of expanding commercial activity and reducing the economy’s dependence on oil.

The transaction significantly expands Afreximbank’s financing relationship with Chad and strengthens its role as a source of sovereign development financing. Its local-currency structure limits the government’s direct foreign-exchange exposure, giving Chad additional funding capacity without adding the same currency risk as foreign-currency borrowing. The announcement does not specify the disbursement schedule or final allocation among projects, so implementation, project selection and subsequent outcomes will determine the facility’s economic impact.

3. Continental Reinsurance opens BWP 2.13 billion public offer in Botswana

Continental Reinsurance Holdings opened its public offer on the Botswana Stock Exchange on 5 August and formally announced the transaction on 6 August. Shares are offered at BWP 1 ($0.07) each, with a minimum application of 200 shares. The offer is scheduled to close on 16 September, with listing planned for 5 October 2026. Total proceeds are expected to reach BWP 2.13 billion ($156.1 million), comprising BWP 409 million ($30 million) in new capital for Continental Reinsurance and BWP 1.72 billion ($126.1 million) from the sale of shares by existing shareholders.

The offer would add reinsurance as a new segment to Botswana’s listed financial sector. Most of the transaction is a shareholder sell-down, with about 19% of the proceeds strengthening Continental Reinsurance’s capital base. The new capital could support underwriting growth, while the broader market impact will depend on subscription levels, the resulting shareholder base and post-listing liquidity.

4. IMF stress tests Ghana’s banking system against severe gold-price shock

The International Monetary Fund published an assessment on 10 August examining how a severe and persistent decline in gold prices could affect Ghana’s banking system and the Bank of Ghana. It found that banks’ capitalisation, profitability and liquidity had strengthened following the Domestic Debt Exchange Programme. Ghana’s dependence on gold nevertheless leaves the financial system exposed to a sustained price decline through the exchange rate, inflation, fiscal position, sovereign risk and bank balance sheets. The banking system remained broadly resilient in aggregate under the IMF’s stress scenarios, although weaker institutions were more vulnerable.

Gold accounts for more than half of Ghana’s export receipts, close to 10% of GDP and about 21% of direct tax revenue, making a sustained price reversal a wider sovereign and banking risk. The IMF modelled declines of 30% and 45% from the end-2025 price of $4,151 per ounce. The shock had a larger near-term effect on the Bank of Ghana’s equity, strengthening the case for completing the resolution of remaining weak banks and incorporating commodity risk into the central bank’s recapitalisation planning. The aggregate results do not establish resilience at every bank, making institution-level capital strength and the continued recovery of weaker institutions important indicators to watch.

5. Egypt’s foreign reserves rise to $56.29 billion

The Central Bank of Egypt reported on 5 August that net international reserves rose to $56.29 billion at the end of July, up $1.22 billion from $55.07 billion in June. The increase extends the rebuilding of Egypt’s external buffers following the severe foreign-currency shortages of previous years, which had constrained imports and banks’ ability to meet corporate demand for foreign exchange.

The higher reserves strengthen the central bank’s capacity to meet external obligations. They do not by themselves show that foreign-currency availability has improved across the banking system. Interbank foreign-exchange activity and banks’ ability to meet corporate and importer demand will provide a clearer indication of liquidity conditions.

6. Kenya approves first locally domiciled banking-sector ETF

Kenya’s Capital Markets Authority approved the WSA Banking Index ETF for listing on the Nairobi Securities Exchange on 11 August. The shilling-denominated fund will track the NSE Banking Index, providing exposure to 11 listed banking groups, including Equity Group, KCB Group, Co-operative Bank, Absa Bank Kenya and NCBA Group. It has been approved for listing but has not yet begun trading.

The product will create a new route to diversified exposure to Kenya’s listed banks once trading begins. Regulatory approval does not establish investor demand or market liquidity, however. Initial subscriptions, assets under management and post-listing trading volumes will show whether the ETF materially broadens participation in the sector.

7. CIH Bank completes MAD 750 million capital increase

Morocco’s CIH Bank announced on 5 August that it had completed a MAD 750 million ($82.5 million) cash capital increase following approval by shareholders and the Moroccan Capital Market Authority. The operation involved approximately 2.14 million new shares issued at MAD 350 ($38.50) each, comprising a nominal value of MAD 100 ($11) and an issue premium of MAD 250 ($27.50). Subscriptions reached approximately MAD 832 million ($91.5 million), exceeding the amount offered.

The new equity strengthens CIH Bank’s capital base and gives it greater capacity to support balance-sheet growth while maintaining regulatory buffers. Its effect will depend on how the capital is deployed and whether asset growth generates sufficient returns without weakening credit quality. Subsequent loan growth, capital ratios, asset quality and return on equity will provide clearer evidence of the impact.

8. Morocco’s average lending rate rises in the second quarter

Bank Al-Maghrib published its second-quarter 2026 lending-rate survey on 7 August, showing that the average bank lending rate increased to 4.81% from 4.66% in the first quarter, reversing the decline recorded at the start of the year.

The 15-basis-point increase does not by itself indicate a broad tightening in credit conditions. It could reflect changes in the mix of new lending, borrower risk or bank funding conditions. Comparable rates by borrower and loan category, together with subsequent credit growth, will be needed to determine whether financing conditions have materially tightened.

9. Libya reports LYD 643 billion in electronic transactions

The Central Bank of Libya reported on 5 August that electronic transactions reached LYD 643 billion ($101 billion) between January and July 2026. Instant-payment services LYPay and OnePay processed LYD 252 billion ($39.6 billion), mobile banking applications LYD 209 billion ($32.8 billion) and real-time gross settlement transactions LYD 143 billion ($22.5 billion). Card payments through more than 270,000 point-of-sale terminals reached LYD 33 billion ($5.2 billion), while electronic-wallet transactions totalled LYD 650 million ($102 million).

The values show that bank-transfer-led channels dominate Libya’s electronic transaction mix, with instant payments and mobile banking processing substantially more than cards. High transaction values do not necessarily indicate widespread customer adoption, particularly because the data include wholesale settlement activity. Active-user numbers, transaction counts and comparable previous-period data would provide a clearer measure of the breadth of the digital shift. The central bank also raised cash-withdrawal limits to LYD 3,000 ($472) in most regions and LYD 4,000 ($629) in the south, indicating continued demand for cash.

10. SeerBit adds PayPal to merchant checkout

Nigeria-based payments company SeerBit announced the integration of PayPal on 10 August, enabling merchants using its platform to accept payments from PayPal customers internationally. PayPal joins SeerBit’s existing payment options, which include cards, bank transfers and mobile money across its supported African markets.

The integration adds an international checkout channel to SeerBit’s existing acquiring infrastructure and could support cross-border e-commerce. Its commercial significance remains unclear because the company has not disclosed the number of merchants enabling PayPal, transaction volumes or incremental revenue.

What to watch

The Fintech Festival Tanzania in Dar es Salaam (20–21 August), the CIBN Annual Banking and Finance Conference in Abuja (8–9 September) and the Association of African Central Banks Annual Meetings, hosted by the Central Bank of Kenya in Nairobi (13–18 September). 

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