Finance & Banking

Absa Bank has unveiled its plans to increase its sustainable finance allocation to KES120 billion within a span of two years as part of its renewed commitment to sustainability.

This year alone, the bank has already provided approximately KES60 billion in sustainable finance, encompassing both green finance and inclusive finance.

In its latest Sustainability Report, the bank has outlined its strategic initiatives across 13 commitments that were established during the launch of its Sustainability Commitments in November 2020.

These commitments cover a wide range of themes, including Net Zero Commitments, Social and Environmental Impact, Empowerment of Women and Youth, and Value Creation for Businesses and Partners.

Abdi Mohamed, the Managing Director and CEO of Absa Bank Kenya, expressed the bank’s ambition to significantly expand its investment in this area, aiming to enhance its support for sustainable development across all economic sectors.

He emphasized that the bank will play a more prominent and daring role, particularly in sectors such as renewable energy, energy efficiency, green building, and climate-smart agriculture.

Charles Muchene, the Board Chairman of Absa Bank Kenya PLC, highlighted the bank’s sustainability strategy, which has been implemented over the past three years.

He emphasized the 13 commitments as the driving force behind their shared value strategy. Recognizing the urgency of climate change and the need for global action, the bank has intensified its efforts to improve its green credentials and climate approach.

This includes reducing its carbon footprint, pursuing green funding opportunities, and actively engaging in initiatives that promote the green economy.

The bank has achieved significant milestones in its sustainability journey, including a 13% reduction in energy consumption and a 26.3% reduction in carbon footprint through the implementation of eco-friendly measures such as minimizing the use of plastic bottled water and reducing energy usage in its premises.

As part of its commitment to becoming a net zero carbon footprint company by 2040, Absa Bank became the first bank to join the Kenya Green Building Society, championing initiatives that aim to reduce pollution, improve lives, and foster economic growth.

KCB Bank Kenya has partnered with Mastercard to introduce World Elite Exclusive Credit Card which offers premium and private banking customers a range of market-exclusive benefits, privileges, and experiences.

The Mastercard branded cards will be available in two categories including World Elite KES Credit, tailored for high-net-worth individuals who prefer transacting in Kenya Shillings (KES) and World Elite USD Credit, designed for frequent international transactions in United States Dollars (USD). 

Additionally, the Bank has introduced the World Debit card which will offer exclusive benefits and privileges, ensuring personalized and tailored banking options.

KCB Bank Kenya Managing Director, Mrs. Annastacia Kimtai said that the cards set a new standard of excellence, providing unparalleled benefits and privileges that cater to the refined needs of their discerning clientele.

“We are confident that this offering will further elevate KCB Bank as the preferred choice for premium and private individuals seeking exceptional financial solutions.”

The Exclusive World Elite card will offer a host of benefits, including accelerated rewards earning rates, a dedicated 24/7 concierge team for travel arrangements and personalized recommendations, comprehensive travel privileges such as airport lounge access and preferential treatment at partner hotels and resorts worldwide.

This also comes with exclusive benefits and access to prestigious golf clubs and tournaments globally, as well as personalized financial advice and assistance from a dedicated relationship manager, ensuring the highest level of service and support for cardholders.

Shehryar Ali, Senior Vice President and Country Manager for East Africa and Indian Ocean Islands at Mastercard expressed his excitement indicating that he Exclusive World Elite Credit Card combines the global expertise of Mastercard with KCB Bank’s local market knowledge to deliver a remarkable banking experience.

“We are confident that this offering will exceed the expectations of customers in Kenya, providing them with unrivaled privileges and benefits giving them a truly priceless experience.”

The World Elite Credit Cards come with enhanced daily and per transaction limits to improve the user experience and avoid any inconveniences for the clients.

The move comes as the latest research indicates that Kenya’s cards and payments market volume reached $49.5 million in 2022 and is expected to achieve a Compound Annual Growth Rate (CAGR) of more than 17% by 2026. The launch of digital-only banks and the roll-out of mobile POS terminals has been touted as a catalyst for the growth of card-based payments going into the future.

I&M Bank Tanzania, a leading bank with customer-centric digital solutions, has partnered with Mastercard, a technology leader in the global payment industry, to launch a suite of Debit and Multicurrency Prepaid Cards.

The new cards will enable customers to make seamless transactions in both domestic and international markets.

The bank will be launching the I&M Debit Gold Card for personal banking customers and the I&M World Elite Card for high-net-worth clients. I&M Bank Tanzania will be the only bank offering World Elite Debit Cards in the Tanzanian market to affluent customers, giving them exclusive access to a range of unique benefits, privileges and experiences that can be accessed at home and abroad.

The I&M World Elite Exclusive Mastercard Debit card is designed to provide exceptional services exclusively to I&M clients in collaboration with a wide range of international companies and premium retailers worldwide.

It offers extra value while maintaining world-class security and reliability underpinned by Mastercard’s trusted technology. The new technology, which includes contactless payment, ensures a fast and secure checkout experience, whilst also empowering consumers to choose how they want to pay.

Speaking in Dar es Salaam during the signing ceremony, Zahid Mustafa, Chief Executive Officer for I&M Bank Tanzania said that they are delighted to be working with Mastercard, a leading financial technology powerhouse.

This solution will enable both account and non-account holders to transact in both local and foreign currency – safely, securely, and seamlessly. The cards come with advanced security features (PIN and EMV chip) that allows contactless payment (Tap and Go) to ensure that customers transact safely and securely in the virtual environment.

“Over the last decade, there has been considerable progress and a shift in the payment landscape as we know it and as such, we have had to be agile in our approach and develop innovative solutions that address consumers’ pain points. The World Elite Exclusive Mastercard Debit card, a first of its kind in Tanzania, will offer unmatched benefits and convenience to Tanzanians through the Mastercard Priceless platform,” says Shehryar Ali, Country Manager, East Africa, Mastercard.

Priceless services and experiences include exclusive access to the concierge service, privilege membership, premium travel insurance, travel packages, and access to a suite of airport lounges around the world.

On the other hand, the I&M Multicurrency Prepaid Mastercard card will be available in 10 currencies and is intended for customers seeking local and international foreign payment solutions, whether they hold an account at I&M or not. All that is required is a national identity card or copy of passport and work permit copy to sign up for the I&M Multicurrency Prepaid Mastercard and start transacting in the local or international markets.

Customers can use Prepaid or Debit Mastercard cards on local points of sale (POS) machines, online, e-commerce platforms and ATMs. They can withdraw cash, pay for monthly subscription bills such as Netflix, Spotify and iTunes, and purchase goods and services for their entrepreneurial projects on E-commerce platforms with ease.

“Mastercard is committed to driving financial inclusion and providing digital solutions that help customers make safe and seamless transactions. By providing consumers with access to secure and convenient payment solutions such as this, we believe that this partnership will help drive economic growth and improve the lives of millions of Tanzanians,” adds Ali.

We are proud to collaborate with I&M Bank to enhance the drive to access financial services, enabling more people to enter the digital economy and as a leader in the payments technology industry, we will continue to provide our customers with the best solutions and experiences.

The new cards are expected to be available from July 2023.

Mastercard on Wednesday has launched Cross-Border Services Express, a digital tool that simplifies international payments for financial institutions and their customers, including SMEs and consumers.

The service, which works with a customizable digital overlay, offers additional tools to comply with regulatory requirements.

With Mastercard’s Cross-Border Services, participating banks can offer international payments in more than 60 currencies to over 100 markets covering 90% of the world’s population.

Cross-Border Services Express allows financial institutions to enter the market quickly, minimize transaction risks, and deliver the modernized payment experience that consumers and SMEs demand.

Mastercard is working with Fable FinTech and Payall Payment Systems to provide this fast-to-market solution. According to Mastercard’s 2022 Borderless Payments Report, three-quarters of consumers who send and receive cross-border payments use mobile apps, but transparency and costs remain a challenge.

SMEs are particularly affected, with 39% of respondents stating that cross-border payments slow their supply chain. Cross-Border Services Express will allow financial institutions to meet the needs of SMEs for an efficient and digital cross-border payment solution that they can rely on to pay their employees, suppliers, and partners quickly and predictably.

Mastercard has announced that it will be removing first-use, PVC plastics from payment cards on its network by 2028, as part of its sustainability commitments.

Newly-produced plastic payment cards will be required to be made from more sustainable materials, such as recycled or bio-sourced plastics, and approved through a certification program.

Mastercard’s Sustainable Card Program has already transitioned over 168 million cards to recycled and bio-based materials since its launch in 2018.

The rule change will see all newly made cards certified by Mastercard to assess their composition and sustainability claims; this certification will then be validated by an independent third-party auditor. Once a card has been validated it can be imprinted with a Card Eco Certification mark.

“At Mastercard we are leading and shaping our industry’s collective pursuit of a more sustainable, more environmentally conscious future,” said Ajay Bhalla, President of Cyber & Intelligence at Mastercard.

As our customers respond to increased consumer desire to make more eco-friendly choices, we are making a firm commitment to reducing our environmental footprint – for the benefit of people, planet and inclusive growth.

Mastercard established its sustainability efforts more than a decade ago with a focus on financial inclusion, data responsibility and the environment. Through its network, it collaborates with partners to bring new environmental innovations and initiatives to market, such as our Priceless Planet Coalition, Carbon Calculator as well as the Sustainable Card.

“Mastercard is committed to advancing climate action and reducing waste by driving our business toward net zero emissions and leveraging our network and scale to accelerate the transition to a low-carbon, regenerative economy,” said Ellen Jackowski, Chief Sustainability Officer for Mastercard.

The company will also support its global issuing partners in transitioning away from virgin PVC. The rule change will see all newly-made cards certified by Mastercard and validated by an independent third-party auditor.

Partner banks have praised the initiative as a significant step for the financial services sector’s efforts to build a more sustainable future.

The economic fortunes of Kenyans in the diaspora have significantly improved in recent years, with diaspora remittances or money sent back home by Kenyans living abroad steadily rising to become the country’s top forex exchange earner.

Figures from the Central Bank of Kenya show that the country’s diaspora remittances reached $4.027 billion in 2022, a 8.34% annual growth rate and the highest ever on record. Diaspora remittances have surpassed earnings from coffee, tea, horticulture, and tourism, which have historically been Kenya’s top forex exchange earners.

The prospect of greener pastures overseas has led many Kenyans to consider relocating abroad for work and studies. One of the most popular destinations is the US, which is the leading source of remittances to Kenya, according to CBK data. Europe and the Middle East are also popular.

Depending on the country one is going to and the reasons for traveling, visa requirements may vary and it’s best to get in touch with the relevant embassies for accurate information. The procedure for securing housing, accommodation and insurance may also differ.

There are, however, some tips that could be helpful regardless of which country one wants to travel to. These can help set you in the right direction, especially if you are still evaluating options and haven’t yet made a final decision of where to relocate to.

These tips include:

Cost of living and important needs like healthcare

The cost of living is one of the most important factors to consider before relocating abroad. Having an idea of the cost of basic needs like food, transportation and housing will enable you to have a solid financial plan. It’s also important for one to know what their healthcare options are and what it will cost.

Medical bills can erase many years of hard work if you do not have affordable and reliable insurance. A good health plan will also ensure you get the right care in a timely way in case a medical need arises, minimizing delays that can lead to further health complications.

It’s critical to check local pages to determine what costs are expected in terms of local residency, wages, transport and healthcare. Comparison sites and educational pages dedicated to migration can ensure you get the best value for money.

● Sending money back home

The connection to home is never lost when you relocate abroad, and at some point, you will likely send money back home to friends and loved ones for different reasons. It can be as a gift, for school fees, medical bills and even investments.

When choosing how to send money home, be sure to pick a remittance service you can trust. Check their ratings on neutral customer review sites like Trustpilot. Make sure that the service you use supports sending money to Kenya. WorldRemit, for example, lists the countries you can send money from and to. Senders can transfer money online or via the app to receivers in over 130 countries, including Kenya, with fast and secure transactions.

It’s also important to consider the needs of the person receiving money. You want to choose a service that gives them various options with regards to how they receive the funds. Those receiving money via WorldRemit can receive the funds in their bank account, mobile money wallet such as MPESA, as a cash pick up at partner financial institutions, and even as airtime top up, allowing for micro-transfers below Sh1000.

● Cultural and social differences

Relocating abroad is not just about finding a new job or taking a new educational program. You also need to familiarize yourself with a new culture and social system. This may mean learning to accommodate social values that are foreign to you.

You need to be aware of topics and mannerisms to avoid in public and where to draw personal boundaries in interpersonal relationships with locals. This will help you socialize with ease and help you acquire new friends and contacts, which can be useful when in a foreign country for the first time.

A good place to find information on local culture, norms and customs is on the tourism promotion pages run by government agencies responsible for tourism in the country you are looking to move to. These will give you a good sense of what to expect, what is acceptable and what is not. Some social activities may be legal in your country but illegal or tightly controlled abroad. You need to be aware of these kinds of activities and how the rules apply. Reputable social media pages that help migrants settle into host country communities can be sources of useful information.

Conclusion

Going overseas for work or study is not always an easy decision. However, for many that take the courageous step, it represents a shot at a better life. The tips in this article can help you make an informed decision if you want to relocate.