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Imagine living life without emergency funds.

We can see you squeeze your face a bit as you understand that there is a need for emergency funds at various points in life.

For the sake of formality, allow us to give context to the concept of emergency funds. Your emergency fund is the money that you keep aside for critical cases. In this case, it is not the money you’re using to buy bread when you crave it or the money you’d use to take a taxi to the office. Instead, as the name implies, the money will be kept and used for only ‘emergency cases.’

As you read further, you can spot some situations that would classify as emergency cases. However, this article is here to remind you that everyone needs emergency funds, and we will give you reasons to remember why you need emergency funds.


It would be horrible to be stuck in a situation that money can solve, but you do not have the funds to ease the problems. In such cases, you begin to regret and wonder why you didn’t keep some money aside as emergency funds.


After looking at why people need emergency funds, we will also give you steps by which you can save emergency funds.


Why you need emergency funds


Now, let us look at reasons why anyone would need emergency funds.


  • Serves as a financial security blanket: Do you know that thing called peace of mind? We often make jokes about the concept of having peace of mind. However, we must realize that many people do not have peace of mind.

One of the reasons why they may not have peace of mind is because of their monetary situation. These people have sleepless and restless nights thinking about things and problems they could solve with money. They could avoid such a situation if they had emergency funds.

Everyone needs an emergency fund because it serves as a financial security blanket. It is that assurance that constantly stays at the back of your mind, reminding you that you and your family are covered if there is ever a financial emergency.

The thing with emergencies is that you can never tell when they will occur. It is why we advise people to always prepare their emergency funds. But unfortunately, some people tend to procrastinate and begin to regret such a decision later.

If you’ve been in the habit of living without emergency funds, we will assume that you do not like having peace of mind. But to enjoy financial peace of mind, you need to build your emergency funds.

  • Reduces stress: Let’s say you’re in the office one day trying to get some work done and wishing that payday would come faster as you’ve used up all your money for the month. Suddenly, your phone rings, and you’re initially reluctant to pick up. After all, why should anyone be calling you during work hours?

When you look at the phone, you see that the call is from your sibling, which is surprising. Your sibling doesn’t typically call when you’re in the office. So, you decide to pick up the call and find out what could warrant such a call.

Unfortunately, your sibling isn’t calling with good news as you’re informed that a family emergency needs considerable money to settle. Some minutes ago, you were thinking of payday, and now this has come up. The problems are compounding.

Now, you’re running around looking for how to get the money, as it is your responsibility to provide. Can you see how the stress plays out? You’re panicking, and work is done for the day cause there is no way you can concentrate until you are sure the problem is settled.

But emergency funds allow you to have money for such an emergency easily.

  • It helps to clear debts: If you have emergency funds, you’d see that it is easier to clear your debts. Yes, we know you may be doubtful about this angle, but we will explain what we mean.

Typically, no one likes to be indebted. Therefore, people are always reluctant when the suggestion of taking loans comes up. As a result, people would shy away from taking loans, and it will only be their last resort.

When you borrow money from someone, there is the mindset that you’d pay the person back when you get your monthly salary. But, unfortunately, when you get your compensation and pay the person back, you may be left with nothing to survive until you get your next paycheck. So then, you are tempted to borrow again, which seems to become an unending cycle.

However, if you have been building your emergency funds, you can use them to repay your loans and rebuild them. After all, you had to borrow the money for an important reason. So, you can dip into your emergency funds to repay instead of being looped into the unending borrowing cycle.

However, it is essential to remember to rebuild the emergency funds rather than forgetting about them.

  • For medical reasons: Do you have any health issues? Sometimes, you may not be the one with health issues, as it could be a loved one or someone around you. If you did not know, medical issues take up most of the bills. It is why people are always grateful for good health.

But, there is also the understanding that medical issues can spring up at any time as it isn’t planned. After all, does anyone wake up and decide to be ill? When medical conditions arise, you will spend a lot of money. If you do not have emergency funds, you’d barely be able to survive after spending on medical treatment.

However, you can clear bills and settle things quickly when money is stored as emergency funds. You need not dip into your survival money before paying those medical bills.

If you have elderly parents, we do not need to tell you the importance of having money for medical reasons, as you already know that older people require more medical attention. Thus, reading this should prompt you to build up your emergency funds.

  • You’re a freelancer: If you’re self-employed or a freelancer or contractor, you shouldn’t need anyone to tell you that you need emergency funds. Yes, you’re getting gigs from people, and it seems nothing could go wrong. However, what happens at the end of these gigs? One thing every freelancer should have at the back of their minds is that their roles are not permanent and anything could happen. Therefore, you always have to be prepared.

One best way to stay prepared is to build your emergency funds when you still have these gigs. Then, if the duration of the gig expires and you have not gotten a new gig, you will have your emergency funds for survival.

People often say there is no job security when you’re a freelancer, as anything could happen. It is why they would prefer working in the corporate sector.

We are not here to compare being an entrepreneur and working in the corporate sector. However, our general advice is that people should have emergency funds and always be prepared.

Seeing you struggle to survive after months and years of hard work would be sad. Unfortunately, that would happen if you do not have emergency funds.



How to build your emergency funds


Many people ask how they can build their emergency funds. They say that it isn’t that they are not interested in having emergency funds, but they do not know how to build it.


Below are some helpful steps:


  • Separate your savings and spending account: It is impossible to think you can save for emergency funds with your spending account. How? You will dip into that money, shattering the idea of having any emergency funds.

If you’re trying to build your emergency funds, you should have a savings account dedicated to this cause. We recommend that you download and create an account with Mintyn Bank. By saving with them, you get some discounts and interest.

Once you have this savings account, you have it in mind that it isn’t for regular spending. Then, you must exercise self-control to ensure you do not touch the money.

  • Be intentional about budgeting: It is one thing to say that you want to save or have a budget for emergency funds. Then, it is another thing to follow through with the actions that will make it possible. After all, people say that talk is cheap, and we agree with their point of view.

If you’re not intentional about budgeting for emergency funds, you will keep spending the money and making excuses. However, it would help if you channel your mindset to stick to the savings and budgeting plan. It is the only way you can successfully build your emergency funds.   

  • Keep your goal in mind: Sometimes, people forget the reasons why they need emergency funds. It is why we have this article to always serve as a reminder. While you’re building your emergency funds, you should have a goal. It is essential to keep that goal in mind as that is what would keep boosting your energy anytime you feel like giving up.

Yes, we agree that building your emergency funds isn’t easy and can be draining. As a result, you would sometimes feel like giving up. But remembering the goal and reason for it comes in handy. It will also help if you have an accountability partner, as this person always reminds you of the purpose and keeps you in check.

  • Be reasonable and realistic: When you’re trying to build your emergency funds, you need to be practical and realistic. For example, someone may want to put aside 80% of their salary into their emergency funds account. However, how realistic would it be to survive on the remaining 20% for the rest of the month? Of course, you’d find it hard and struggle.

Therefore, you need to be realistic. It is best to remember that you’re not in competition with anyone. Thus, it isn’t out of place if you keep 30% of your monthly salary aside as emergency funds.  


If you haven’t started building your emergency funds, it isn’t too late to start!

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Rand Merchant Bank (RMB) works with World Bank in closing first to market MIGA guaranteed short-term sovereign loan



Rand Merchant Bank (RMB) works with World Bank in closing first to market MIGA guaranteed short-term sovereign loan

Through collaboration with MIGA and the Minister of Economy and Finance for Côte d’Ivoire, RMB facilitated a short-term loan to support crucial trade related initiatives

Rand Merchant Bank (RMB) (, a division of FirstRand Bank Limited, has achieved a significant milestone in Africa by partnering with the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank, to extend short-term funding support on a trade-backed facility for the Republic of Côte d’Ivoire.

Through collaboration with  MIGA and the Minister of Economy and Finance for Côte d’Ivoire, RMB facilitated a short-term loan to support crucial trade related initiatives.

Said Ben Bechet from RMB’s Trade and Working Capital, Structured Solutions team: “While RMB has a proud history of supporting sovereigns on the continent with their funding and capital markets requirements, this is a first of its kind facility for an African sovereign. This transaction will pave the way for further MIGA guaranteed short-term facilities across the continent to assist with developmental initiatives, critical projects and the importation of crucial goods such as food, fertilizer and medicines alongside other resources.”

Clarine Stenfert, Global Trade Finance Head and Head of UK for MIGA, said: “Through deep collaboration with RMB and MIGA, the teams were able to successfully structure and execute a process we hope to scale and introduce to other African countries. MIGA’s Trade Finance Guarantee Framework seeks to support sovereigns or sub-sovereigns across emerging markets with their trade financing requirements, alleviating the current liquidity constraints imposed by the current high inflationary environment and the retreat from markets by private sector players.”

MIGA provides political risk insurance guarantees to private sectors and investors in a broad range of sectors in developing  economies. MIGA promotes foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance guarantees and credit enhancement to private sector investors and lenders.

“RMB’s strategy entails forging partnerships with insurance, guarantee and export credit agency providers to extend meaningful funding support to our clients across Africa. Collaboration with development financial institutions and multilaterals remains key to truly unlocking new opportunities to support our clients, concluded Bechet.”

Distributed by APO Group on behalf of Rand Merchant Bank.

About RMB:
Rand Merchant Bank (RMB) is a leading African corporate and investment bank (CIB) and part of the largest financial services group (by market capitalisation) in Africa – FirstRand Bank Limited (which is wholly owned by FirstRand Limited). We offer our clients innovative, value-added advisory, funding, trading, corporate banking, and principal investing solutions.
With a presence in 10 African countries, we have a significant footprint on the continent. We also have access to a network of retail banks, representative offices and branches across Africa, the UK, India and the US.

At RMB we are passionate about solving problems for our clients by asking the hard questions. We challenge accepted thinking. We analyse and seek solutions beyond the obvious. We are innovative in our thinking and turn challenges into opportunities, while delivering on Traditional values. Innovative ideas. Our ability to think differently, our collaborative spirit, our client-centric solutions and our belief that great minds don’t always have to think alike, is what sets us apart.

For more information visit:

About MIGA:
MIGA was created in 1988 as a member of the World Bank to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $76 billion in guarantees across 123 developing countries, supporting more than 1,000 projects. Over the past decade, MIGA’s guarantees have generated more than 156,000 jobs in developing countries.

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Equatorial Guinea and Ghana Accede to the Establishment Agreement for Afreximbank’s Fund for Export Development in Africa (FEDA)



The Fund for Export Development in Africa (FEDA), the development impact-focused subsidiary of the African Export-Import Bank (Afreximbank) (, has announced that the Republic of Equatorial Guinea and the Republic of Ghana have recently signed the FEDA Establishment Agreement.

This important milestone is the result of several months of cooperation between Afreximbank, FEDA and government officials in Equatorial Guinea and Ghana.

As Afreximbank member states, Equatorial Guinea and Ghana have taken another step towards closer collaborations with FEDA by signing the FEDA Establishment Agreement. This milestone marks the countries’ support for Afreximbank’s efforts to extend FEDA’s impact investing objectives across the continent.

New memberships are crucial to broaden the scope of FEDA’s interventions and its mission of delivering long-term capital to African economies with a focus on industrialization, intra-African trade and value-added exports.

Professor Benedict Oramah, President of Afreximbank and Chairman of the Boards of both Afreximbank and FEDA, said: “We heartily welcome the signing of the FEDA Establishment Agreement by the Republic of Equatorial Guinea and the Republic of Ghana. The signing of the FEDA Establishment Agreement lays the groundwork for an enhanced and more effective cooperation with better access to the full range of interventions offered by Afreximbank and FEDA. This milestone builds on the solid partnership already established with both Equatorial Guinea and Ghana. The aim is to support transformative investments in these countries in the near future.”

About FEDA:
The Fund for Export Development in Africa (“FEDA”) is the impact investment subsidiary of Afreximbank set up to provide equity, quasi-equity, and debt capital to finance the multi-billion-dollar funding gap (particularly in equity) needed to transform the Trade sector in Africa. FEDA pursues a multi-sector investment strategy along the intra-African trade, value-added export development, and manufacturing value chain which includes financial services, technology, consumer and retail goods, manufacturing, transport & logistics, agribusiness, as well as ancillary trade enabling infrastructure such as industrial parks.

About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries to effectively participate in the AfCFTA. At the end of September 2023, Afreximbank’s total assets and guarantees stood at over US$33.4 billion, and its shareholder funds amounted to US$5.8 billion. The Bank disbursed more than US$104 billion between 2016 and 2023. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure, (together, “the Group”). The Bank is headquartered in Cairo, Egypt.

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Financial Analysis: A Comprehensive Study of The Well-Being of A Country 




Financial Analysis: A Comprehensive Study of The Well-Being of A Country

Understanding the financial stability of a country requires a thorough understanding of financial analysis. In order to offer insights into the overall financial stability and overall wellness of the country, it entails evaluating a range of economic indicators, financial performance, and market movements.

In this article, we will delve into the fundamentals and importance of financial analysis in evaluating a country’s economic situation.


Ancient Beginnings:

The roots of financial analysis can be traced back thousands of years. The ancient Mesopotamians, Egyptians, and Greeks were among the pioneers of documenting financial transactions, creating basic records of assets and liabilities. These early attempts laid the groundwork for the concept of financial analysis through the study of financial statements and ledgers.

Medieval Europe:

During the Middle Ages, Europe witnessed the rise of merchant guilds and the emergence of double-entry bookkeeping. Italian mathematician and Franciscan friar, Luca Pacioli, is often credited with formalizing double-entry bookkeeping, publishing his seminal work “Summa de arithmetica, geometria, proportioni et proportionalita” in 1494. The concept of balancing debits and credits within financial records formed the basis for modern financial analysis techniques.

Industrial Revolution:

The Industrial Revolution in the 18th and 19th centuries revolutionized business and the need for financial analysis grew rapidly. As companies expanded and diversified, investors began demanding more comprehensive financial reports to assess the potential risks and returns of their investments. The birth of limited liability companies further accelerated the need for financial analysis, as shareholders sought transparency in the performance of their investments.

Modern Era:

The 20th century witnessed significant advancements in financial analysis techniques. The advent of electronic computing in the mid-1900s enabled the processing and analysis of vast amounts of financial data, leading to the development of sophisticated financial models and ratios.

The Great Depression of the 1930s laid the groundwork for modern financial analysis as regulators sought effective ways to prevent future economic crises. The establishment of the U.S. Securities and Exchange Commission (SEC) in 1934 brought about standardized reporting requirements, including the filing of audited financial statements. This increased transparency and standardized financial reporting provided analysts with a more accurate and consistent basis for their analysis.

The Rise of Quantitative Analysis:

In the latter half of the 20th century, the growth of computing power and the availability of large data sets propelled financial analysis into new territory. Quantitative analysis, utilizing statistical models and mathematical algorithms, started gaining prominence. Financial analysts began incorporating complex mathematical methods to assess investment opportunities, risk management, and portfolio optimization.

Modern Financial Tools:

With the advent of the internet and the digital age, financial analysis has become even more accessible and data-driven. Sophisticated software programs, data analytics tools, and artificial intelligence have revolutionized the way financial data is analyzed and interpreted. In recent years, technologies like machine learning have been leveraged to develop predictive models that can assess future trends and make accurate financial forecasts.


Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a monetary investment.

Financial analysis is a fundamental tool that allows organizations and individuals to assess the past, present, and future financial health of a business or investment. Through a systematic examination and interpretation of financial statements, ratios, and other key indicators, financial analysis helps in making informed decisions, optimizing resources, and improving overall financial performance. In this article, we will delve into the meaning of financial analysis, its prominent components, and its significance across various sectors.

Financial analysis involves scrutinizing financial data to evaluate the performance and profitability of an entity. It assists in quantifying the effectiveness of financial decisions, identifying trends, predicting future outcomes, and benchmarking against industry standards. By analyzing financial statements, investors, analysts, and other stakeholders gain valuable insights into the financial position, liquidity, solvency, and operational efficiency of an organization.


  1. Gross Domestic Product (GDP): GDP is a primary indicator used to gauge the economic performance of a nation. Financial analysts analyze GDP growth rates and its components, such as consumer spending, government expenditure, investments, and net exports. This analysis helps in determining the overall strength of the economy and identifying areas of potential growth.
  2. Trade and Balance of Payments: Trade analysis focuses on a country’s imports, exports, and balance of payments. Evaluating trade patterns helps identify sectors driving the country’s economic growth, trade imbalances, and potential risks to the economy from external factors such as changes in global demand or disruptions in supply chains.
  3. Inflation and Interest Rates: Analyzing inflation rates and interest rates provides insights into the stability of a country’s economy. High inflation erodes purchasing power, while high-interest rates can impact borrowing costs, affect consumer spending, and investment behavior. Financial analysts assess the impact of inflation and interest rates on an economy’s overall competitiveness and economic growth potential.
  4. Government Debt and Fiscal Policy: Analyzing a country’s government debt levels and fiscal policy is crucial in understanding its financial sustainability. A high level of government debt may lead to increased borrowing costs, reduced investor confidence, and potential risks to economic stability. Evaluating fiscal policies helps determine whether a country is managing its finances effectively and implementing sustainable economic growth strategies.
  5. Stock Market Performance: The stock market reflects investor sentiment and provides valuable insights into a country’s economic outlook. Analysts evaluate key stock market indices, such as the country’s primary exchange, sector-specific indices, and market capitalization trends. Monitoring stock market performance allows for an understanding of investor confidence, economic growth expectations, and potential risks to the financial system.
  6. Banking Sector and Financial Institutions: A robust banking sector is essential for economic stability. Financial analysts assess the health of the banking system by evaluating indicators such as non-performing loans, capital adequacy ratios, and the overall stability and soundness of financial institutions. Understanding the well-being of financial institutions helps gauge the potential risks to the overall economy, including credit availability, liquidity, and financial contagion.
  7. Regulatory Environment and Governance: The regulatory environment and governance play a critical role in attracting investment and fostering economic growth. Financial analysts assess the effectiveness of regulatory frameworks, transparency in financial transactions, and the overall credibility and efficiency of institutions responsible for enforcing regulations. Evaluating the regulatory environment aids in understanding potential risks and opportunities for sustainable economic development.


Financial analysis plays a vital role across various sectors, serving the following purposes:

  1. Evaluating Financial Performance: By conducting a comprehensive financial analysis, companies can assess their performance, profitability, and financial stability. This, in turn, helps in identifying areas for improvement, developing strategic plans, and making sound financial decisions.
  2. Assessing Investment Viability: Investors rely on financial analysis to evaluate the profitability and risks associated with potential investments. Through detailed scrutiny of financial data, investors can determine the financial health and growth prospects of a company, aiding in making informed investment decisions.
  3. Facilitating Lending Decisions: Financial institutions utilize financial analysis to assess the creditworthiness of loan applicants. By analyzing financial statements, evaluating ratios, and assessing the risk profile, lenders can ascertain the borrower’s ability to repay loans and make sound lending decisions.
  4. Supporting Strategic Decision-Making: Financial analysis aids in strategic decision-making, such as expansion, diversification, or mergers and acquisitions. Understanding a company’s financial position and performance provides a foundation for evaluating the feasibility and potential outcomes of such decisions.


Conducting a comprehensive financial analysis provides valuable insights into the economic landscape of a country. By evaluating indicators such as GDP, trade patterns, inflation rates, government debt, stock market performance, banking sector health, and regulatory environment, financial analysts can gauge the overall financial health, identify potential risks, and recommend strategies for sustainable economic growth. Accurate and timely financial analysis acts as a compass, guiding policymakers, investors, and businesses to make informed decisions and contribute to the overall prosperity of the nation.

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