Moniepoint’s Acquisition of Sumac Microfinance Gets Green Light from Kenyan Regulators

June 10, 2025Admin0 Comments

Moniepoint’s Acquisition of Sumac Microfinance Gets Green Light from Kenyan Regulators

Global Macro Highlights

US Doubles Tariffs on Foreign Steel and Aluminium, Spares UK Amid Trade Strategy Shift

The US has increased its tariffs on foreign steel and aluminum imports to 50%, from 25% previously. This increase will apply to all its trading partners except Britain, the only country that has struck a preliminary trade agreement with the US during the 90-day pause. According to the US government, this move aligns with its intentions to revive American industries, despite criticism from key trading partners. The tariff on steel and aluminum imports from the UK is expected to remain at 25% (until at least 9^th July), likely because the UK does not rank amongst the top exporters of those items to the US.

Eurozone Inflation Falls Below ECB Target, Raising Hopes for Further Rate Cuts

Eurozone inflation eased to 1.9% in May 2025 (vs. 2.2% in the previous month). This falls below the European Central Bank’s (ECB) medium-term target of 2.0%. The decline in inflation is attributed to lower services cost and energy prices during the period. We expect the easing inflationary pressure to influence the ECB’s dovish stance, spurring expectations of another rate cut in its next meeting. While global trade tensions may indicate longer-term price pressures, slower wage growth, decreasing energy prices, and a stronger currency in the near term could continue to support easing inflation.

Moniepoint’s Acquisition of Sumac Microfinance Gets Green Light from Kenyan Regulators

The Competition Authority of Kenya (CAK) has given its approval for Moniepoint Inc.’s proposed acquisition of a 78% stake in Sumac Microfinance Bank Limited, after confirming that the transaction does not pose any threat to market competition or public interest. In a statement released by the CAK, the acquisition, which meets the threshold for mandatory regulatory review, was approved unconditionally, following an extensive analysis of its impact on Kenya’s microfinance sector. The CAK said it also evaluated the potential impact of the transaction on public interest factors such as employment, SME competitiveness, and local industry resilience, and concluded that there would be no job losses as all current Sumac employees would be retained under existing terms.

Fitch Downgrades Afreximbank to BBB- Amid Rising Credit Risks and Loan Exposure in Africa

Fitch downgraded Afreximbank’s credit rating to one notch above junk on Wednesday, with a negative outlook, citing high credit risks and weak risk-management policies. The one-notch downgrade to BBB- comes as the African lender battles to protect its loans from restructuring in Ghana, Zambia and Malawi, claiming that as a multilateral lender, it has preferred creditor status. Fitch pegged Afreximbank’s non-performing loans at 7.1% at the end of 2024, while the bank itself reported a first-quarter NPL ratio of 2.4%.

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Domestic Events

Tinubu Caps Oil & Gas Tax Credits at 20% to Spur Investment and Safeguard Revenue

Nigeria’s President Bola Tinubu has signed an executive order to cap available tax credits for the oil and gas industry at 20% of the company’s annual tax liability. This is aimed at drawing investment in the oil sector by lowering project costs, while protecting government revenue consequently growing the output from the sector. The new directive would also introduce a performance-based tax incentive for upstream operators although implementation guidelines are pending.

Gates Foundation Launches $7.5M AI Hub in Nigeria to Boost Healthcare, Education & Innovation

Gates Foundation Partners with Nigeria on $7.5M AI Initiative for Socioeconomic Development. The hub will convene government agencies, private sector tech companies, academia, and development partners to support large-scale implementation of mature AI innovations. The fund is also expected to drive AI adoption in key sectors like healthcare, education which would likely improve efficiency in those sectors.

EU Commits €10.4M to Nigeria’s Solar Health Project, Empowering Healthcare and Economic Growth

The European Union (EU) has announced it will invest EUR10.4mn in the Nigeria Solar for Health Project (NISHP), a project designed to enhance Nigeria’s healthcare sector by providing reliable energy for healthcare service providers. The projects aim to provide the healthcare service providers with 24-hour access to clean and reliable energy. The initiative also aims to power SME’s, Telecom towers which would promote economic growth, community development, improved healthcare welfarism of the citizens of Nigeria.

Access Bank Expands East African Footprint with Acquisition of National Bank of Kenya

Access Bank Plc (ACCESSCORP) has announced the acquisition of the National Bank of Kenya (NBK) in a strategic move aimed at strengthening its footprint in East Africa and enhancing financial services across the region. The acquisition, announced on Monday, reflects Access Bank’s commitment to establishing its public sector, corporate, retail, and digital banking footprint and capabilities in Africa and globally, and is part of its broader strategy to expand its tailored services.