Items filtered by date: Tuesday, 09 January 2018

Democratic Republic of Congo, Africa’s top copper producer, collected $489.2 million in revenues from the mining sector in the first nine months of last year, up more than 9 percent over the same period in 2016, the finance ministry said.

In a quarterly report seen by Reuters on Tuesday, the ministry said revenues from the oil and gas sector rose nearly 71 percent over the same period. However, oil and gas revenues in the third quarter of the year fell 35 percent, offsetting a strong second quarter.

The two sectors together account for roughly 95 percent of Congo’s export revenues.

(Reporting By Aaron Ross; Editing by Joe Bavier and Robin Pomeroy)  (Reuters)

Published in Economy

Tanzania’s central bank last week revoked the licenses of five “critically undercapitalised” community banks to protect financial stability in East Africa’s No. 3 economy.

There are about 40 commercial banks and a dozen community banks, which target savings from specific communities or sectors such as farming, but the financial sector is largely dominated by just a handful of big banks.

The central bank said it would liquidate the Covenant Bank for Women (Tanzania) Ltd, Efatha Bank Ltd, Njombe Community Bank Ltd, Kagera Farmers’ Cooperative Bank Ltd and Meru Community Bank Ltd.
“The aforesaid banks are critically undercapitalised,” the central bank said in a statement.

It said continuation of operations of the banks in their current capital position was “detrimental to the interests of depositors and poses a risk to the stability of the financial system.”

The closure of the banks comes after President John Magufuli ordered the central bank to take action against failing financial institutions. This brings to eight the number of banks whose business licences have been cancelled since 2017.

Analysts said a steep increase in bad loans coupled with a sharp decline in credit to the private sector are threatening to undermine economic growth. The central bank announced new rules last June for capital buffers, a move that will force banks to hold more capital to withstand financial shocks following a sharp rise in non-performing loans.

Tanzania’s economy grew at an annual rate of 6.8 percent in the first half of 2017 from 7.7 percent in the same period in 2016. The International Monetary Fund said last month Tanzania’s banking sector was well-capitalised, but some small and mid-sized banks faced a sizable reduction in capitalisation ratios.


- Reuters

Published in Bank & Finance

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