South Africa Treasury Seeks to Supplement FX Borrowing Program
The initiative is aimed at diversifying funding sources beyond traditional eurobonds and reducing the cost of funding, the Treasury said in a statement on Friday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
an hour ago
- Forbes
How Structured Trade Finance Can Help Address Africa's USD Liquidity Crisis
Meelan Gupta | Global finance & treasury pro w/ 25+ years' experience in Africa, the Middle East, Europe & Asia | GeBBS Healthcare Solutions Many African economies face persistent shortages of foreign exchange (FX), particularly U.S. dollars, which can impair their ability to fund imports, pay off debt and maintain stable macroeconomic conditions. The issue is especially severe in nations reliant on commodity exports or with narrow industrial bases. But an increasingly viable solution is emerging—structured trade finance using standby letter of credit (SBLC)-backed bill discounting. I work as a financial advisor and strategist with deep involvement in cross-border trade and structured finance across emerging markets. I have worked alongside African financial institutions, importers and development partners to design liquidity-enhancing trade finance structures. My experience spans engagements involving SBLCs, particularly for FX-constrained economies. This direct exposure to the operational and regulatory intricacies of African trade flows has informed my advocacy for structured solutions like SBLC-backed bill discounting as pragmatic mechanisms for maintaining macroeconomic stability and ensuring trade continuity. Understanding The FX Crunch Foreign exchange shortages are not new to Africa. Countries like Nigeria, Ghana and Kenya frequently struggle to access dollars, especially during periods of global economic stress (registration required). These shortages are exacerbated by fluctuating commodity prices, limited diversification and capital flight. For example, Nigeria's dollar crisis in 2014 followed a steep drop in global oil prices. More recently, the Covid-19 pandemic caused a $5 billion capital outflow from the continent, intensifying pressure on foreign reserves and curbing trade flows. The impact goes beyond macroeconomic figures—it disrupts sectors like agriculture and manufacturing. In Kenya and Nigeria, crop yields have fallen due to delayed fertilizer imports. In Egypt, textile mills have reduced output due to the unavailability of imported raw materials. These are not isolated incidents—they're systemwide consequences of a fragmented FX ecosystem. A Practical Model: SBLC-Backed Bill Discounting One proven, structured solution is the standby letter of credit-backed bill discounting model. This mechanism combines local bank credit enhancement with international bank liquidity to bridge the FX gap. Here's how it works, based on my experience: • A local firm issues an invoice to its client and presents it to its local bank for discounting. • Instead of paying USD directly, the local bank issues an SBLC to a correspondent bank that gives USD liquidity. • The international bank provides USD liquidity against the SBLC. • This liquidity is then used to pay offshore suppliers, while the local client eventually repays in local currency. This model can be used across industries to fund procurement and meet offshore obligations, without depending on a central bank or informal markets. In my firm's work with clients, we were able to do multiple transactions. Benefits Across The Board For banks, this model helps limit direct FX exposure and can deepen international correspondent relationships. For businesses, it eliminates reliance on central bank allocations or black-market FX premiums, helping improve supply chain continuity and project delivery timelines. For the economy, it can contribute to more stable FX markets, help lower inflationary pressure and promote investor confidence. Why It's Scalable My firm has concluded a deal in Nigeria, but the model is scalable across many African economies. South Africa, Ghana, Kenya and Egypt—with their structured banking systems and active trade links—are well-positioned to adopt similar solutions. The key enablers? Regulatory harmonization, credit guarantee schemes and collaboration between commercial banks and fintech platforms. Technology As An Enabler Digital platforms, artificial intelligence (AI)-driven credit scoring and blockchain-based documentation can further streamline trade finance. By automating invoice validation and tracking FX exposures in real time, these tools can help reduce friction and increase transparency in multicountry deals. Considerations And Caveats For SBLC-Backed Bill Discounting While SBLC-backed bill discounting can ease FX shortages and support trade, it comes with important caveats: SBLC-backed discounting can be a valuable tool but should be used selectively, with strong legal, financial and policy oversight. A Call To Action For Policymakers To support structured trade finance, African governments and regional blocs must: • Standardize trade finance regulations across borders. • Recognize SBLCs and similar instruments as eligible collateral. • Support credit enhancement and FX guarantee mechanisms through development finance institutions. A Call To Action For Finance Professionals Africa's FX shortage is a corporate challenge—and a major opportunity for finance professionals. Here's how you can respond: SBLC-backed discounting is a tool to help drive returns and resilience. Finance professionals can lead the charge in bridging Africa's liquidity gap while opening new markets and mitigating global risk. Final Thoughts Africa's FX liquidity challenges won't disappear overnight—but structured trade finance offers a road map to greater resilience. SBLC-backed bill discounting is one such tool that can potentially help stabilize trade flows, empower businesses and restore investor faith. For finance professionals, this is the moment to step in—not just as financiers, but as enablers of stability and growth in one of the world's most dynamic yet underserved markets. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Associated Press
2 hours ago
- Associated Press
Hansen secures a significant three-year contract extension with Africa's MultiChoice Group
MELBOURNE, Australia--(BUSINESS WIRE)--Jul 29, 2025-- Hansen Technologies (ASX:HSN), a leading global provider of software and services to the communications & media and energy & utilities industries, has signed a three-year contract renewal with MultiChoice Group to enable the continued utilisation of Hansen CCB, as well as the extension of the existing managed services solutions. The agreement, initially for a term of three years, combines various contracts into a single master contract; aligning to MultiChoice's ambition to transition to this latest version of Hansen CCB. MultiChoice is a South African company that operates DStv, a major satellite television service in Sub-Saharan Africa. As Africa's leading entertainment platform, MultiChoice offers a diverse range of content across multiple brands and countries. For over 25 years, MultiChoice has relied on Hansen for their single billing solution, which supports subscribers across 50 markets. Hansen's continued investment into the CCB platform has allowed MultiChoice to adeptly and efficiently handle the mission critical complexities of the various regional requirements and diverse country regulations across Africa. The extension of the contract is a reflection of MultiChoice's resounding confidence in Hansen, not only as a platform provider but as a partner in their evolving future. MultiChoice Group Chief Technology & Information Officer, Sabelo Mwali comments: 'Hansen has proven to be an invaluable partner over many years, consistently providing software and services that have resulted in a highly flexible, reliable and efficient billing platform for the MultiChoice Group. 'We look forward to continuing and expanding our highly successful collaboration with Hansen for many years to come.' Hansen's President of Communications & Media, Scott Weir, shares: 'This agreement re-iterates the confidence Tier-1 industry players hold in Hansen's technology and expertise to deliver mission-critical Billing solutions. 'We look forward to the further extension of the long-standing relationship we have built over the years as we continue to support MultiChoice's ambitions of further innovation and investment into the entertainment arena in Africa.' For further information about Hansen, please visit About Hansen Hansen Technologies (ASX: HSN) is a leading global provider of software and services to the energy & utilities and communications & media industries. With its award-winning software portfolio, Hansen serves organisations with customers located in over 80 countries, helping them to create, sell, and deliver new products and services, manage and analyse customer data, and control critical revenue management and customer support processes. For more information, visit About MultiChoice MultiChoice is Africa's leading entertainment platform, with a mission to enrich lives. The company offers a wide range of products and services, including DStv, GOtv, Showmax, M-Net, SuperSport, Irdeto, and KingMakers. Its products and services are used by over 23.5 million households in 50 markets across sub-Saharan Africa. View source version on CONTACT: For further information, please contact: Megan Rosier Director, Corporate Communications & Marketing Hansen [email protected] KEYWORD: SOUTH AFRICA AFRICA AUSTRALIA/OCEANIA UNITED STATES CANADA NORTH AMERICA AUSTRALIA INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE INTERNET AUDIO/VIDEO TV AND RADIO TECHNOLOGY CARRIERS AND SERVICES ENTERTAINMENT SOURCE: Hansen Technologies Copyright Business Wire 2025. PUB: 07/29/2025 07:07 AM/DISC: 07/29/2025 07:07 AM
Yahoo
2 hours ago
- Yahoo
Tasty discuss board appointment and funding with David Page
UK's casual dining restaurant operator Tasty has confirmed advanced discussions with PizzaExpress former CEO David Page and Fulham Shore former finance director Nicholas Wong regarding potential board appointments, and also strategic funding opportunities, which may include an equity placing. The company is considering various funding options to invest in future strategic opportunities. This follows reports from Sky News that Page is looking to raise nearly £10m ($13.4m) from institutional investors. If successful, this move could lead to changes in Tasty's leadership structure. According to sources, the potential equity raise could result in Page becoming Tasty executive chairman. The company, which is the owner of the Wildwood and dim t dining brands, is also expected to undergo a rebranding to Bow Street Group on the London Stock Exchange, the news channel added. The deal would involve Tasty acquiring Page as well as his associates' cash shell. Nicholas Wong, given his prior experience working with Page at previous establishments, is set to assume the role of finance chief at Bow Street Group, if the proposal becomes successful. The current and proposed members of the board are expected to contribute over £1m to the share placing. Page's plans also include a review of Tasty's current restaurant portfolio. The fundraising efforts are being managed by investment banking firms Allenby Capital and Cavendish. Tasty plans to make further announcements as developments unfold. In 2023, Japan's Toridoll Holdings acquired Page's previous venture, Fulham Shore, which included the Franco Manca pizza chain, in a deal valued at £93m. Toridoll made the offer to acquire Fulham Shore, in April 2023. "Tasty discuss board appointment and funding with David Page" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
