The Bankers’ Association for Finance and Trade (Baft) convened its second annual Africa bank-to-bank forum on June 30 – July 1 in Nairobi.
The forum brought together African banking executives to discuss significant banking, trade, and finance developments in the region, including the economic crisis and its impact on Africa’s banks, cross-border initiatives for trade finance, mobile banking, and industry best practices. Industry experts addressing the forum focused on global liquidity concerns, trade contraction, restraints on credit, payment system issues, anti-money laundering efforts, and regulatory oversight.
“This event demonstrated a need for banks across Africa to work together – the continent is facing a time of great opportunity following the crisis and the banking community is well placed to help realise that,” says Jeremy Wilson, vice-chairman of Barclays Commercial and chairman of the global councils of Baft.
“The Africa Council is proving to be an appropriate vehicle and will also help the banking sector in the dissemination of best practice and knowledge and understanding of banking issues from commerce to compliance. The banking sector in Africa has a growing track record in innovation and is working from a position of relative strength,” Wilson says.
“Africa is a unique marketplace – in some ways, it has felt the same pain as the rest of the world during this crisis, yet its banks have not suffered liquidity problems as severely as banks in developed markets,” says Donna Alexander, president of Baft. “Africa clearly has an advantage in that respect.”
She adds: “This second Baft Africa bank-to-bank forum offered an excellent opportunity to identify pitfalls in the banking business and share best practices for overcoming them. In addition to discussions on the trade finance crisis, we had a frank exchange on effective anti-money laundering measures, as well as the challenges they present for African banks and regulators alike. Due diligence standards on bank customers vary widely and cash transactions can sometimes present challenges in these markets. Baft is focusing on advancing cross-border industry solutions for African banks and looks forward to working with local banking associations and regional bodies in their harmonisation efforts.”
Forum participants continued the open dialogue that was initiated by groundbreaking Baft global summits on the trade finance crisis earlier this year. Banking executives also heard from industry pioneers in mobile banking and discussed the future for banks on this relatively new initiative. The noted success of M-Pesa in Kenya (a service allowing the transfer of money using a mobile phone) spawned a forward-looking exchange on the possibility of partnerships and expansion in this space.
The next Baft bank-to-bank forum lead by the Baft Africa Council will be held the first quarter of 2010. Trade finance, cross-border initiatives, anti-money laundering, and the innovations of mobile banking and payments will be covered, as well as other priorities for the banking industry in Africa.
Reader Comments