BANKING

9 WAYS TO MANAGE FINANCIAL CRISIS

Published

2 years ago

9 WAYS TO MANAGE A FINANCIAL CRISIS

It’s that time of the month when you look at your account balance before initiating any transaction. P.s this is still a good phase. Usually, it worsens to having to split the bill between your multiple accounts, take 5k from here, then remove 2k from this one.

Sometimes you will give part cash and part bank transfer – again, this is not the worst. You still paid for it, didn’t you? If you’re already in the described situation or on a bullet train headed in that direction, here are nine tips to help you manage a financial crisis.

Identify the Cause

Hear us out; how do you intend to solve a problem if you don’t know where it is coming from? The first step to solving your financial crisis is identifying its root.

If you skip this step, you may trim branches while the root of your problem burrows deeper. You can achieve this step by going over the activities that have a share in your income. It will give you an idea of what usually tips the boat over.

Be Prudent with What’s Left

Stress has a way of blocking our thinking faculties. It’s easy to get overwhelmed, thinking you don’t have enough money to handle your difficulties.

However, it is unlikely that you are entirely out of money. There’s usually a small amount left, and the key to getting past your financial crisis is being as prudent as possible with that little.

You can start by categorizing your expenses into needs and wants. Then, postpone wants for a later period when you can afford them and divert your remaining income to the essentials.

Make a Budget

It is one of the easiest ways to deal with a financial crunch. The wonderful thing about budgets is that they allow you to kill two birds with one stone. Not only do you get to manage your spending activities, but you can also save for the future. A budget shows what happens to your money for some time.

With this knowledge, you can make the necessary changes to get your money life back on track. In addition, there are lots of applications that help with keeping track of your expenditure.

You can do it in Excel or Google Sheets if you’re old-fashioned. Of course, there’s also the good old pen and paper. A good place is to take note of your monthly take-home and recurring expenditure such as electricity, gas, fuel, etc.

Avoiding the Plague – Debt

Debt is a lot like fire. It can be good or bad, depending on how it is utilized. Through debt (loans, debentures, etc.), people can finance their businesses or investments that return revenue in the future. This revenue is used to repay the debt and set them up for life. But on the other hand, poor debt management can get you in serious trouble.

You may find yourself diverting all your funds to repaying loans with interest and borrowing more money to stay afloat. It’s a dangerous cycle.

We advise avoiding taking debt to handle recurring expenses during a financial crunch. Instead, work out a comfortable plan to repay any debt you have so you can enjoy your money in the future.

Earn Some Extra Cash

If you thoroughly went through your inventory, you’d be surprised how many items are of little to no use in your homes.

A financial crisis could be your cue to declutter your home and earn extra cash. Many online marketplaces, such as eBay, Kusnap, and Etsy, make it easy for you to carry out such transactions.

If you have valuable skills like graphic designing, content writing, or social media management, you can also start making money off this.

Platforms such as Upwork, Toptal, and Fiverr are just a few examples of mediums that make it hassle-free for talented persons like yourself to connect with potential clients and make money.

Build an Emergency Fund

For some of us, a financial crisis results from a sudden loss of your income stream and not poor money management. Or perhaps an unforeseen circumstance like an illness or a major car accident.

Life is unpredictable, and these things can happen to anyone. However, they leave us in a lot of turmoil when they happen. It is especially true for those unable to deal with these circumstances rather than those who were financially challenged after dealing with them.

Building an emergency fund for such instances can be a lifesaver because you never know when you will need it. Place priority on saving up living expenses for three-six months before contributing towards a long-term savings goal such as an emergency fund.

The best way to do this is to set up an automatic savings system that regularly deducts a fixed amount or percentage.

Take a Loan

Yes, we know we said to avoid debts like the black plague but hear us out. Many people have the potential to startup viable businesses but lack the capital needed to do so. A loan from your bank or any financial institution(FI) can help. FIs are more willing to loan their money to people who invest them in activities that generate income.

Depending on the viability of your startup, you should be able to generate enough revenue to repay the capital and any interest on it.

Focus More on Liquid Assets/Investments

There are few things as painful as needing money, knowing you have the amount you need, but not having access to it. If you’ve been in this position before, you already know how embarrassing it is to borrow money, with your best line for repayment being “I have the money in x, but I don’t have access to it.”

You can avoid this by saving your money in liquid options, i.e., investments that can easily convert to cash. A great example of this is a Money Market Fund. They are low-risk forms of investment that allow you to recoup your cash at any time.

Get Help

Not everyone is a finance expert that knows how to manage rough patches in their financial habits. Nevertheless, it’s nothing to be ashamed of. Some people are trained in helping you take control of your money life and ensuring you experience these periods less.

Don’t feel bad about admitting you need help. On the contrary, it’s admirable to know when something is beyond your capabilities.

If you have people depending on you, your welfare also affects them. And it would be best if you were always willing to make decisions that benefit you and your dependents, even if it means asking for help.

Key Takeaway

It’s better to identify the root cause of your problems so you don’t proffer temporary solutions to them.
It’s never too late to regain control over your finances; even if you are on your last twenty thousand, you can make it count.
Budgets will help you manage your expenses and save money, so make one today.
You get to dictate how debt should affect your life by being intentional about what you do with the money and how you repay it.
Let go of things that don’t serve you; they’re probably the reason you have no money.
Save! Save!! Save!!!
Don’t be shy to ask for help when you need it.

Conclusion

We hope that reading this piece helped you gain valuable insight into ways you can manage your financial crisis. Remember, it happens to everybody; what’s important is dealing with it.

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African Development Bank and Standard Bank Unite to Support Small, Medium, and Micro Enterprises (SMMEs) and Boost Trade

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African Development Bank and Standard Bank Unite to Support Small, Medium, and Micro Enterprises

The African Development Bank Group (www.AfDB.org) and Standard Bank Group (SBG) on Monday signed a landmark financial agreement to enhance funding for small, medium, and micro enterprises (SMMEs) and expand trade across Africa.

The agreement includes a R3.6 billion investment in a social bond and a $200 million Risk Participation Agreement (RPA) for Standard Bank of South Africa Limited (SBSA). This initiative strengthens Standard Bank’s lending capacity, ensuring greater access to finance for SMMEs, a critical driver of economic growth and job creation in South Africa.

African Development Bank and Standard Bank Unite to Support Small, Medium, and Micro Enterprises

The social bond investment promotes inclusive economic development, particularly for SMMEs with a turnover below R300 million and loan sizes under R40 million. This financing will support up to 4,000 businesses, helping them scale operations, create jobs, and contribute to economic resilience.

Kenny Fihla, Deputy Chief Executive Officer of Standard Bank Group and Chief Executive Officer of SBSA, welcomed the investment, stating: “This landmark partnership strengthens our ability to support SMMEs, the backbone of South Africa’s economy. With approximately 3.2 million SMMEs accounting for 60% of jobs, ensuring access to finance is crucial. This initiative aligns with our Sustainable Finance Framework and our commitment to financial inclusion.”

In addition to the social bond, the $200 million RPA enhances trade finance across Africa, focusing on Low-Income Countries and Transition States. This agreement enables local banks to increase lending by sharing risk, bridging the trade finance gap, and promoting intra-African trade.

African Development Bank and Standard Bank Unite to Support Small, Medium, and Micro Enterprises (SMMEs) and Boost Trade

Leila Mokaddem, Director General for Southern Africa at the African Development Bank, highlighted the broader impact: “This collaboration marks a significant milestone in our long-standing partnership and is a testament to our shared commitment to supporting SMMEs’ growth and enhancing trade finance across Africa. Expanding financial inclusion and trade opportunities empowers businesses to drive economic transformation and regional integration. The Standard Bank Group remains a strategic partner in our shared vision for economic development on the continent.”

This initiative aligns with the African Development Bank’s Ten-Year Strategy (2024–2033), which prioritises industrialisation, regional integration, and improving the quality of life in Africa. It also supports Standard Bank’s Sustainable Finance Framework, reinforcing both institutions’ commitment to fostering green and inclusive growth.

“We are proud of this transaction, demonstrating our shared commitment to sustainable financing. By supporting businesses, we create long-term economic opportunities and financial resilience,” stated Ahmed Attout, Director of the Financial Sector Development Department at the African Development Bank.

Kenny Fihla reaffirmed the significance of the collaboration:

“By providing much-needed capital, we are helping enterprises overcome challenges and thrive. This partnership illustrates the power of collaboration in driving meaningful economic and social change in Africa.”

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The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

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2 weeks ago

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The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), a member of the Islamic Development Bank (IsDB), has reinforced its position as a key player in the Islamic syndications market, achieving prominent rankings in the 2024 Bloomberg and Refinitiv League tables.

The International Islamic Trade Finance Corporation (ITFC) Maintains Leadership in Global Ranking of Islamic Syndications for 4 Consecutive Years

For the fourth consecutive year, the ITFC top-tier performance reflects a strategic focus on delivering impactful trade finance solutions. For 2024, Refinitiv ranked ITFC as Globally # 1 Bookrunner and Mandated Lead Arranger (MLA) in their Islamic Syndications League table. Additionally, and Bloomberg also ranked ITFC among the top Bookrunners and MLA in the Islamic Syndications League table. These rankings are a testament to the ITFC ability to consistently deliver value-driven results and maintain a strong position among leading international and regional financial institutions.

The recognition from Refinitiv and Bloomberg confirms that ITFC is a key player in facilitating trade among OIC member countries. This not only reaffirms the ITFC status as the pre-eminent provider of trade solutions but also underscores its remarkable ability to draw investments from a wide spectrum of global investors and financial institutions.

Additionally, it emphasizes the positive impact on the lives and livelihood of people inherent in the ITFC business operating model, demonstrating its effectiveness in meeting the unique financial needs of OIC member countries.

The Refinitiv and Bloomberg League tables rank banks and financial institutions based on their performance in loan syndications, bonds, and mergers and acquisitions (M&A) transactions. The rankings, including arrangers, bookrunners, administrative agents, and advisors, are published quarterly and annually.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$83 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.

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Afreximbank and Kenyan government ink milestone agreements to promote industralisation

Published

2 weeks ago

Christopher

Afreximbank and Kenyan government ink milestone agreements to promote industralisation

Afreximbank will finance the development and operationalisation of industrial parks (IPs) and special economic zones (SEZs) to bolster the country’s industrialisation and export manufacturing

African Export-Import Bank (Afreximbank) (www.Afreximbank.com), Africa’s foremost trade development Bank, today in Mombasa, Kenya, ratified a series of initiatives designed to support Kenya’s industrialisation and export-led development agenda. Under the terms of the initiatives, formalised at a signing ceremony with the Kenyan authorities, Afreximbank will finance the development and operationalisation of industrial parks (IPs) and special economic zones (SEZs) to bolster the country’s industrialisation and export manufacturing.

Afreximbank and Kenyan government ink milestone agreements to promote industralisation

The proposed industrial parks, to be developed by Afreximbank through its affiliate company, Arise Integrated Industrial Platforms (Arise IIP), will create and sustain an environment in which export-oriented industries can thrive, by leveraging economies of scale, shared infrastructure and access to global markets.

Two projects to be undertaken by Afreximbank, with the support of the Government of Kenya and other strategic collaborators, are the development of the Dongo Kundu Integrated Industrial Park and the Naivasha Special Economic Zone II (Naivasha II), for which, having secured leases of the relevant land, Afreximbank intends to leverage the expertise and experience of Arise IIP, a special economic zone developer with experience in the development of integrated industrial parks in Africa.

Both the Dongo Kundu Integrated Industrial Park and the Naivasha Special Economic Zone II are included in the Fourth Medium Term Plan (2023-2027) of the Kenyan government’s Vision 2030, entitled “Bottom-Up Economic Transformation Agenda for Inclusive Growth”, reflecting the high priority which state institutions are giving to measures that strengthen, expand and accelerate Kenya’s capacity to export value-added goods within Africa and globally.

Speaking on the signing, the President of the Republic of Kenya, H.E. Dr. William S. Ruto said; “We have a responsibility to steer the country in the right direction, harnessing the immense potential of manufacturing, industrialization, agro-processing, and value addition within Special Economic Zones. The signing of these agreements today marks a significant milestone in Kenya’s development, expanding opportunities to enhance our manufacturing sector and create a more conducive environment for investment. We convene here today to sign an investment – and not a loan – undertaken by people whose faith in this country and its possibilities motivates their decision. This is our country, let’s continue to do whatever it takes to make it an attractive destination for those who want to invest.”

In his own comments, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said:

“Africa has been heralded as a land of opportunity, blessed with resources that power the world. Yet, we have struggled to translate this wealth into lasting prosperity for our people. For decades, we have watched as others reap the rewards of our natural resources, leaving us tethered to a cycle of dependency—exchanging our riches for aid and loans that kept us on the fringes of the global breadbasket.

“Those days are behind us. Today, Kenya takes a bold step to reshape this story in a profound and impactful manner. These Parks are an integral part of the Government’s plan to boost the country’s economic growth under the Vision 2030 development blueprint.

Today’s signatures are more than ink on paper—they are a promise to the people of Kenya, a pledge that the country will rise as a beacon of industrial might and self-reliance.”

Mrs. Oluranti Doherty, Managing Director of Export Development at Afreximbank, and Captain William K. Ruto, Managing Director of the Kenya Ports Authority, signed the Dongo Kundu Special Economic Zone agreement. Dr. Kenneth Chelule, Chief Executive Officer of the Special Economic Zones Authority, and Mrs. Doherty signed the Naivasha Special Economic Zone agreement, with H.E. Dr. William Ruto, President of the Republic of Kenya, and Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, witnessing the signing of both agreements for the State and for the Bank, respectively.

The Dongo Kundu Industrial Park within the Mombasa SEZ is expected, upon completion, to boost the area with a state-of-the-art industrial park that will contribute significantly to economic growth and industrialisation efforts in Mombasa County and in Kenya as a whole.

The Naivasha II Special Economic Zone – Naivasha II project is located at Mai Mahiu and will include a free trade zone, an industrial park, a logistics zone and a public utility area with a supporting road network. The project will occupy an area of approximately 5000 acres.

The Naivasha II project will also derive value from its strategic geographic position as it sits on the gateway to East and Central Africa through the Northern Corridor Transport System, which comprises both a standard gauge railway and a major highway. Moreover, the SEZ will be close to the Naivasha Inland Container Depot, which serves the East African hinterland countries of Burundi, the Democratic Republic of Congo, Kenya, Rwanda, South Sudan and Uganda.

Other dignitaries in attendance included Mrs Oluranti Doherty, Managing Director, Export Development, Afreximbank; Hon. Davis Chirchir E.G.H, Roads and Transport Cabinet Secretary; Hon. Hassan Ali Joho, Cabinet Secretary for Mining, Blue Economy and Maritime Affairs; Hon. Salim Mvurya, Cabinet Secretary for Youth Affairs, Creative Economy and Sports of Kenya and Honourable Lee Kinyanjui, Cabinet Secretary, Ministry of Investment, Trade and Industry. Additionally, Captain William K. Ruto, Managing Director, Kenya Ports Authority; Dr. Kenneth Chelule, Chief Executive Officer, Special Economic Zones Authority; His Excellency Abdulswamad Shariff Nassir, Governor of Mombasa County; the Honourable Benjamin Tayari, Chairman, Kenya Ports Authority, and Mr. Fredrick Muteti, EBS, Chairperson, Special Economic Zones Authority attended the event.

Distributed by APO Group on behalf of Afreximbank.

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 industralisation 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 effectively participating in the AfCFTA. At the end of December 2023, Afreximbank’s total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. 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.