African banks expanded their regional and international reach this week. Nedbank completed its controlling investment in Kenya’s NCBA, while Absa joined banking peers in Dubai to pursue Gulf–Africa trade and investment. Moody’s downgrade of Senegal highlighted the prospect of greater losses for external creditors under its planned debt restructuring. The action comes as the newly launched Africa Credit Rating Agency seeks to offer an additional perspective on African credit risk. Read more on the week’s key developments: 1. Nedbank gains East African banking network through NCBA acquisition NCBA confirmed on 4 November that Nedbank’s acquisition of a 66% controlling stake had completed on 3 November, including the transfer of approximately 1.087 billion shares through the Nairobi Securities Exchange and settlement of the cash and share consideration. Shareholders representing 79.9% of NCBA’s issued shares accepted the offer, requiring excess applications to be scaled back. NCBA retains its Nairobi listing, brand and local management, while Nedbank expects to consolidate its results from the fourth quarter of 2026. The acquisition changes the scale of Nedbank’s East African presence. Previously represented in the region through a representative office, the South African group gains an established banking network spanning Kenya, Uganda, Tanzania and Rwanda, alongside NCBA’s digital lending and asset-finance businesses. Nedbank has said its larger balance sheet will support NCBA’s corporate banking expansion, with Kenya serving as the regional hub. 2. Moody’s cuts Senegal’s foreign-currency rating on higher expected restructuring losses Moody’s Ratings downgraded Senegal’s foreign-currency long-term issuer and senior unsecured ratings to Ca from Caa2 on 29 October, citing higher expected losses for private external creditors under its planned debt restructuring. The agency expects losses within a 35%–65% range, judging that restoring debt sustainability will require more than extending repayment schedules. It affirmed the local-currency long-term issuer rating at Caa2 and changed the outlook to stable from negative. Moody’s said Senegal’s government proposal to exclude CFA franc-denominated debt, accounting for around one-third of central government debt, from the restructuring would concentrate losses on remaining creditors. This contributed to its higher loss expectations for private external lenders and the foreign-currency downgrade. Local-currency obligations would still face liquidity risks if parliamentary delays to budget measures held up IMF programme approval and funding. Separately, the Africa Credit Rating Agency, launched on 7 October, aims to broaden the data and regional context used in assessing African credit risk. 3. Ecobank’s nine-month profit rises 12% as lower funding costs support margins Ecobank Transnational Incorporated reported a 12% year-on-year increase in profit before tax to $737 million for the nine months ended September 2026, or 7% growth in constant currency. Operating income rose 12% to $1.96 billion, while customer deposits reached $27.5 billion, up 9% from December 2025. Higher low-cost current and savings account balances helped offset margin pressure during monetary easing: average funding costs fell 31 basis points to 1.97%, while net interest margin edged up to 5.84% from 5.79%. Operating expenses rose broadly in line with revenue, leaving the cost-to-income ratio little changed at 47.8%, compared with 48.0%. Total impairment charges increased 13% to $287 million, although net loan impairment charges rose a more modest 3% and cost of risk declined to 2.39% from 2.62%. The non-performing loan ratio fell to 7.5% from 9.4% at December 2025, largely driven by write-offs, qualifying the apparent improvement in asset quality. 4. Ethiopia holds rate at 16% as gold purchases fuel liquidity growth The National Bank of Ethiopia maintained its policy rate at 16% on 3 November, retaining an interest-rate corridor of ±300 basis points as it projected inflation would remain in double digits over the following six months. Reserve money increased 87.2% year-on-year during the first quarter of the 2026/27 fiscal year. Broad money expanded 40.2% and outstanding bank credit rose 42.6%, also year-on-year. The central bank’s gold purchases increased net foreign assets but also injected local currency into the banking system, helping explain why liquidity expanded despite its tight policy stance. Broad money growth exceeded projected nominal GDP growth, while excess bank reserves contributed to declining short-term market rates. The central bank will absorb liquidity through open-market operations and assess individual banks’ loan-to-deposit ratios, applying additional reserve requirements where credit expansion threatens the inflation outlook. 5. SARB delays Jibar retirement to May 2027 as legacy contract preparations continue The South African Reserve Bank announced on 3 November that it had postponed the discontinuation of the Johannesburg Interbank Average Rate (Jibar) by five months, from 31 December 2026 to 31 May 2027. The extension allows more time to finalise legislation and operational arrangements for legacy contracts that are difficult to amend. The South African Rand Overnight Index Average (ZARONIA) remains the preferred successor benchmark. The extension gives banks more time to resolve existing contracts, rather than reopen Jibar-based business. Restrictions on new Jibar exposure have applied since 1 May, subject to specified exceptions. Declining activity in the market supporting Jibar has weakened its reliability; ZARONIA instead draws on actual overnight wholesale deposit transactions. Banks must continue amending contracts and updating systems while arrangements for difficult legacy contracts are finalised. 6. Absa joins African banking peers in Dubai to pursue Gulf–Africa business Absa Group announced the opening of its Dubai International Financial Centre office on 29 October to support trade and investment between the Gulf and Africa. Absa Bank Limited’s branch holds a Category 4 licence from the Dubai Financial Services Authority, effective 15 July 2026, permitting it to arrange investment deals, advise on financial products, and arrange and advise on credit. Absa enters an established field: Standard Bank has been present in the UAE since 1997, while UBA opened a DIFC branch in 2022 under a similar Category 4 licence to connect Gulf investors with African markets. Absa identified infrastructure, energy, logistics, agriculture and consumer goods as areas of opportunity. Its Dubai team will build relationships at Gulf clients’ headquarters and bring African market and sector specialists into discussions on investment and expansion. 7. AfDB raises HKD 2 billion through five-year social bond The African Development Bank announced on 29 October that it had priced a HKD 2 billion ($255 million) five-year social bond the previous day, carrying a 4.143% coupon and maturing on 6 November 2031. Orders exceeded HKD 3.4 billion ($433 million), enabling the spread to tighten by three basis points from initial guidance to flat against HIBOR mid-swaps. Proceeds will finance eligible social projects under its Sustainable Bond Framework. AfDB’s second public Hong Kong dollar transaction extends its funding tenor in the market from 3.25 years in March to five years, building another source of financing alongside its dollar and euro issuance. Hong Kong investors received 97% of allocations and bank treasuries accounted for 91%. The reported order book included HKD 2.05 billion ($261 million) of joint lead-manager interest, qualifying the headline demand figure. 8. Absa Ghana offers instant digital personal loans of up to GHS 350,000 Absa Bank Ghana announced on 29 October that eligible salaried customers could access pre-approved personal loans of up to GHS 350,000 ($30,000) through its mobile app, internet banking and ATMs. Automated credit assessments generate personalised offers, with funds available immediately after acceptance. Borrowers do not need collateral or a guarantor. Absa joins Ghanaian banks already offering rapid digital credit to salaried customers. GCB’s app-based Salary Advance provides pre-approved amounts of up to GHS 20,000 ($1,700) within 10 minutes, while Access Bank offers instant salary-linked borrowing through a mobile banking short code (USSD). Absa’s higher ceiling accommodates larger loans, although its announcement did not specify repayment periods or pricing, limiting direct comparison with these short-term salary advances. 9. Google Wallet brings mobile tap-to-pay to Nigeria’s card market Google announced the launch of Google Wallet, including Google Pay, in Nigeria on 28 October. Eligible Android and Wear OS users can add supported bank cards to make contactless payments at compatible terminals, with Google Pay also supporting online and in-app purchases. UBA confirmed support for eligible Visa and Mastercard cards, enabling domestic and international payments. The rollout gives participating banks another way for customers to use their cards in a market already served by instant account-to-account transfers through the Nigeria Inter-Bank Settlement System. Payments remain linked to bank-issued cards, extending their use to phones and watches. For in-store adoption, customers also need compatible devices with near-field communication capability and merchants with contactless terminals. 10. Ghana prepares stablecoin rules as central bank flags currency-substitution risks The Bank of Ghana is developing a dedicated stablecoin directive to establish requirements and clarify permitted activities, Governor Johnson Pandit Asiama said at the Africa Virtual Assets Summit on 2 November. The central bank is working with the Securities and Exchange Commission and Financial Intelligence Centre on regulatory instruments and supervisory arrangements for virtual assets. The directive remains under development. The proposed rules would build on the Virtual Asset Service Providers Act, 2025, under which the central bank and securities regulator share oversight responsibilities. Asiama acknowledged that stablecoins could improve payments and settlement but warned that wider use of foreign-currency tokens could encourage currency substitution and affect capital flows and monetary policy. What to watch The Bank of Ghana announces its next monetary policy decision on 18 November, followed by the South African Reserve Bank on 19 November. The Central Bank of Nigeria’s next policy meeting is scheduled for 23–24 November.
