People & Lifestyle
Absa Group Remains Profitable Despite Economic Impact of COVID-19 and Increased Impairment Charges
Despite significantly higher credit impairments and the material impact of the lockdowns on transactional volumes, Absa Group, including all business units, remained profitable. In addition, revenue increased by 3% while cost-to-income ratio reduced from 56.7% to 53.9%.
The group also reported an 82% decline in normalised interim earnings after impairments increased four-fold to R14.7 billion. Impairment charges rose as customers and clients struggled to repay debt and as the Group took decisive action to increase impairment provisions against future potential credit losses. The Group expects a continued difficult environment for the consumer and heightened uncertainty is expected in the remainder of 2020.
“In the current economic climate, ensuring continued operational and financial resilience is paramount. We are therefore temporarily holding our growth ambitions in abeyance to focus on cost management and capital and liquidity preservation, while continuing to support customers,” said Daniel Mminele, Absa Group Chief Executive.
While the negative impact of the crisis on Absa’s earnings is clear, the interim results also highlight the resilience of the business.
Jason Quinn – Absa Group Financial Director
“Our revenue remained resilient and our operating costs were well managed and responded to the crisis, resulting in encouraging pre-provision profit growth of 9%,” said Absa Group Financial Director Jason Quinn. “Our capital and liquidity levels are strong and will allow us to further support our customers as we emerge from the crisis,” he said.
Absa extended significant support to customers and clients across its operating markets. In South Africa, the Group’s largest market, Absa implemented a comprehensive payment relief plan. Measures included credit payment relief, insurance premium relief, the temporary expansion of the Credit Life product to cover a wider definition of loss of income, the waiving of Saswitch fees, and supporting the distribution of social grants and pension payments.
As at 30 June, Absa had provided R8.7 billion of relief on R154 billion worth of loans to 538 000 customers, including 20 000 businesses in South Africa.
Corporate and Investment Banking South Africa assisted clients on a one-to-one basis and granted payment relief on R37 billion of loans, 12% of their book.
Absa Regional Operations, including Absa Bank Ghana, afforded customers payment relief on loans totaling R25 billion.
Absa Regional Operations (ARO)
ARO, which comprises the operations in Africa outside of South Africa, continued to show strong top-line growth during the period and now contributes 26% of Group revenue. These operations provide the footprint to support customers across the continent and provides diversification to the Group’s exposure.
Similar to the rest of the business, ARO was adversely affected by the crisis, manifesting as a five-fold increase to impairments. Despite this, the business remained profitable and contributed positively to Group earnings.
ARO highlights during the period included the successful completion of separation, specifically the brand and name change and migration of banking platforms and applications, as well as a notable increase in digital customer activity. The number of digitally active customers in the retail and business banking business grew by 28%, resulting in digital transactional volumes rising 77%.
Outlook
While uncertainty remains high, the Group is well-positioned with a strong capital and liquidity position allowing it to continue to support its customers. With the decisive actions that have been taken in the first half to improve balance sheet resilience, the Group expects the second-half impairment outcome and returns to improve.
People & Lifestyle
What the Statistics Show About Reasons Online Casinos Are Growing Increasingly Popular in Ghana
Online casino gamblers have significantly increased in several African nations, including Ghana. In reality, iGaming operations have increased across the whole continent, particularly in South Africa and Ghana, which, along with Kenya, have the most lucrative and rapidly expanding iGaming sectors. Both sports betting and gambling at online casinos have grown considerably throughout African iGaming markets in contrast to the same industry just three years ago.
Putting the above in other words: Greater numbers of players began turning to online options rather than the more established brick-and-mortar casinos. The coronavirus epidemic was one of several factors contributing to the rise in the attractiveness of online casinos, as well as sports betting sites. Additionally, the extraordinary expansion of online casino gambling in Ghana and numerous other African nations has been fueled by cutting-edge technologies and a significant increase in digitization across the continent.
According to research conducted by the Ghanaian government, the number of young residents of the nation participating in online casino gambling behaviors has increased. The youth of Ghana gamble online, which constitutes one of the research topics that has received the least attention. The majority of research focuses on the connections between young people and work, development, education, and politics.
Another study on the gambling industry in Africa found that the following nations, in descending order, had the greatest numbers of gamblers:
- South Africa
- Kenya
- Nigeria
- Uganda
- Tanzania
- Morocco
- Botswana
- Ghana
According to this survey, Ghana is among the 10 nations, even eight nations, in Africa with the highest concentration of gamblers, which is not surprising given the country’s lax iGaming rules and regulations. While South African gamblers account for more than 80% of those who gamble on the gorgeous Savanna-filled continent, Ghana’s iGaming industry is one of the richest there.
Gambling in Ghana: What the Numbers Tell Us
Gambling is widely accepted in Ghana. As a result, it is estimated that 45% of people in the nation have gambled at some point. The country’s youthful population contributes to the growth of both sports and casino betting there. An estimated 30 million Ghanaians between the ages of 19 and 34 enjoy betting on casino games and sporting events.
The business that was launched as an outcome of the 1960 Lotteries Betting Act, the 1973 Gambling Machines Act, and the Casino Licensing Act appears to be flourishing at the moment. Ghanaians have access to a wide range of gambling activities, including sports betting, lotteries, slots, and bingo, according to officials of some of the best Ghanaian casino sites, which we contacted for expertise. This, together with the abundance of offline and online suppliers, indicates that the sector has enormous continued potential.
Both Online and Offline Casinos’ Home
Ghana is pleased to let operators of both brick-and-mortar and Internet casinos do business there. Numerous land-based casinos provide their patrons with additional alluring amenities like restaurants and swimming pools. There are several physical casinos located all around the nation. There are six physical casinos located in Accra, the country’s capital.
Gambling is common in Ghana and is not just found in physical locations. The web-based gambling and sports betting sectors are also booming. As a result, there are over 250 gambling portals operating in the nation, albeit most bettors only use a few of the most well-known ones.
The Effects of Gambling on Ghana’s Economy
In Ghana, sports wagering alone generates over $3.5 million in NGR (net gaming revenue) each month. About 17.5% of this is taken by the government in taxes.
A fresh set of regulations for the gaming sector is now being developed by the Ghanaian Gaming Commission with the goal of maximizing the revenue it generates. This project was inspired by the fact that the country is thought to lose out on about $300 million Ghana cedis (close to $26 million) in income each year due to leakages in the sector.
Ghana’s Online Gaming Industry’s Future
In five years, the gaming sector in Africa is predicted to increase between 5% and 12%, based on the most recent estimates. The popularity and accessibility of mobile gaming devices are the key drivers of the industry’s growth. Younger people gamble more on mobile devices, and African nations have the largest youth populations in the world. When it pertains to the prospects of Ghana’s online gaming sector, the country’s youth are crucial.
Ghana is home to several worldwide online casinos and sportsbooks, including Betway, 22Bet, 888 Casino, Casino.com, Mansion Casino, and Jackpot City. This implies that Ghanaian gamers have tremendous prospects provided by reputable, profitable, and long-standing international businesses. This implies that gamers from Ghana will not have any trouble locating a trustworthy online casino where they can enjoy playing conventional table games, slot machines, and other well-liked games.
The future of Ghana’s online gaming sector appears quite promising as more and more foreign companies develop their operations there. In Ghana, Kenya, Nigeria, and Uganda, where there are the most young people, the African online gaming market is anticipated to develop the fastest, according to a survey from Research and Markets, a trusted source of market data and stats. The most profitable online gaming market in Africa is located in South Africa. The country’s total gaming revenues are expected to hit the $2 billion level in two years, according to the most recent estimates.
In the sub-Saharan region, Nigeria has the most profitable market, based on projected gross gaming revenues for 2020. Tanzania and Kenya are two more African nations with favorable gaming conditions for foreign operators. The Ghana Gaming Commission, which oversees the majority of the country’s gaming operations, has been working extremely hard to provide a comprehensive iGaming regulatory framework. The Ghanaian online gambling sector is the most stable and is projected to develop, while not being the largest.
Conclusion
The gaming sector in Ghana has been affected by epidemic limitations, as with many other industries, particularly in terms of physical and mortar establishments. The popularity of Internet gambling is still quite strong, though.
Ghana is, as we stressed, already one of the top 10 gaming destinations in Africa, and this trend appears to be continuing. The country’s gambling industry is
People & Lifestyle
Peace Hyde and WEF Young Global Leaders tour billion-dollar oil refinery established by Aliko Dangote
President and chief executive officer of the Dangote Group, Aliko Dangote has celebrated the Forum of Young Global Leaders (YGLs) and the tremendous potential of this unique World Economic Forum community to develop the next generation of African leaders from all parts of society.
The Young Global Leaders programme is an accelerator for a dynamic community of exceptional young people from all over the world with the vision, courage, and influence to drive positive change in the world. This year, British Ghanaian media mogul, Peace Hyde, joined this exemplary group of African change makers who are also part of the Aliko Dangote (WEF Africa YGL) fellows.
Now in the 12th year of collaboration with the WEF YGL programme, the Aliko Dangote (WEF Africa YGL) Fellows continue to represent the continent on the global stage and give back to their communities in a multiplicity of impactful ways.
The executive director, Dangote Industries, Fatima Dangote expressed happiness at the diversity and high proportion of female fellows in the 2023 Cohort, where the nine chosen YGLs represent the media/arts/entertainment, technology & innovation, health, and government sectors.
The ADF-YGL Lagos Convening which took place on September 8, 2023, was an excellent opportunity for the participating current and alumni YGL Africa Fellows to meet and interact with their patron, Alhaji Aliko Dangote.
According to Hyde, “I am deeply honoured to be part of this illustrious community of changemakers. The work Dangote is doing with the Refinery is inspirational and the sheer scale and impact of the facility will empower Africans for years to come.”
People & Lifestyle
Animal Welfare League vaccinated 198 animals in Sokode Communities in the Volta Region to celebrate World Rabies Day in 2023
Animal Welfare League is an animal advocacy organisation dedicated to improving animal welfare in Ghana. They aim to address legislative challenges, uphold institutional and corporate responsibilities for better animal welfare, and develop policies to enhance community and public capacity for creating a better world for animals.
Animal Welfare League, in collaboration with the Veterinary Services Directorate in the Volta Region, identified a distressed community that had reported five suspected cases of rabies in animals. Unfortunately, the suspected animals were killed and disposed of before veterinary investigations could confirm the cases.
The Sokode area comprises five communities: Etoe, Ando, Bagel, Lokoe, and Gbogame, hosting the main campus of the University of Health and Allied Sciences with an estimated population of 40,000 people.
To celebrate World Rabies Day in 2023 with the theme “Rabies: All for 1, One Health for All,” Animal Welfare League collaborated with the School of Veterinary Medicine at KNUST and the Veterinary Services Directorate. They conducted a free rabies vaccination exercise and provided education on dog-bite prevention in four communities within the Sokode Area in the Ho municipality of the Volta region. Through this effort, 198 pets (124 dogs and 74 cats) were vaccinated against rabies.