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 Export-Import Bank (“Afreximbank”) (www.Afreximbank.com) is pleased to announce that it has successfully acted as Joint Lead Manager and Bookrunner on a USD 400 million 10.125% Rule 144a/RegS senior unsecured note issuance by Ecobank Transnational Incorporated (“ETI”) due in October 2029.

The note issuance achieved peak orderbook oversubscription of 2.1x, backed by more than 70 high-quality and diverse investors comprising development finance institutions, asset managers, commercial banks and insurance companies from Africa, the UK, USA, Europe and the Middle East.

Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commenting on the transaction, said: “We are pleased to have supported Ecobank Transnational Incorporated (“ETI”) in placing the first public Eurobond issuance by any Sub-Saharan African financial institution since 2021, following our bridge financing support earlier in the year. This transaction underscores Afreximbank’s capacity and readiness to structure innovative market access solutions for our pan-African banking partners.”

Afreximbank’s Advisory and Capital Markets (ACMA) department acted as Joint Lead Manager and Bookrunner on the issuance, working alongside international and African partners.

Distributed by APO Group on behalf of Afreximbank.

BANKING

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Published

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International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

These workshops form part of ITFC’s Integrated Trade Solutions (ITS) framework, aligning with the organization’s goal of providing holistic trade financing interventions in OIC member countries.

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-idb.org), a member of the Islamic Development Bank (IsDB) Group, in partnership with the Central Bank of Nigeria (CBN), successfully concluded a workshop on Non-Interest Banking and Trade Finance in Nigeria. Held from 17th to 19th September 2024 in Abuja, the sessions aimed to enhance capacity and knowledge in Islamic banking principles, trade finance products and services, and how different financial toolkits are applied in Islamic finance from operational and business perspectives.

International Islamic Trade Finance Corporation (ITFC) and the Central Bank of Nigeria Successfully

Nigeria’s Islamic finance industry, valued at US$3.8 billion, is one of the major Shariah compliant industries in Africa. Despite some challenges such as low public awareness and a smaller capital base compared to conventional banks, Islamic finance has been substantially contributing to reduce financial exclusion and improve access to affordable finance in the country. The three-day workshop was designed to bridge prevailing knowledge gaps focusing on key areas such as Sukuk issuance and main non-interest banking products basics.

Delivered under ITFC’s Integrated Trade Solutions framework, the workshop equipped professionals with the skills to promote Islamic finance in Nigeria while also highlighting ITFC’s wide range of trade financing services.

Participants reported a significant boost in understanding Islamic banking and trade finance, and the workshop showcased ITFC’s contributions to economic development through sustainable financial solutions.

Eng. Nasser Al Thakair, ITFC, remarked: “ITFC is committed to supporting Nigeria’s efforts in Islamic finance, tailoring this workshop to address the unique challenges faced. We will continue to provide the expertise and financial backing needed to grow Islamic finance in Nigeria and beyond.”

Over 30 professionals from the Central Bank of Nigeria, non-interest banks, and other financial institutions attended, further advancing Islamic finance in the country.

As Nigeria positions itself as a leading market for Islamic finance in Africa, ITFC remains dedicated to advancing trade finance and supporting the growth of the sector for long-term economic impact.

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

About the International Islamic Trade and 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 the socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided over US$75 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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Kazang Pay launches card acquiring service in Zambia

Published

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Kazang (www.Kazang.com), the prepaid value-added services (VAS) and card acquiring business within JSE-listed fintech Lesaka Technologies, has launched its Kazang Pay card acceptance solution for merchants in Zambia. Kazang Pay makes it affordable for merchants to accept card payments on the same Kazang terminal they use to sell prepaid products and services.

Kazang Pay launches card acquiring service in Zambia

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Kazang operates around 12,000 VAS terminals in Zambia. The goal is to enable the majority to accept card payments over the next six months. Benefits to merchants include low transaction fees and no monthly terminal rental fee for those that meet a modest monthly transaction threshold as well as the opportunity to grow their business through card acceptance.

Kazang is Zambia’s largest VAS point-of-sale terminal provider, enabling mobile money payments, bank and mobile money cash in and out, bill payments, airtime, Zesco, and many other prepaid services on one platform. The addition of card acceptance makes the platform even more comprehensive for merchants and consumers alike.

The launch of Kazang Pay in Zambia follows the introduction of the solution in South Africa, where around 60,000 small and micro merchants use Kazang Pay to accept card payments. In Zambia, there are around 3.8 million debit, credit and ATM cards in issue and 41,000 point of sale (POS) terminals in place. The value of POS transactions has grown to K 111.4 billion by 2022 from less than K 20 billion in 2018, according to the Bank of Zambia.

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Distributed by APO Group on behalf of Kazang.

ABOUT KAZANG:
Kazang (www.Kazang.com) is a leading provider of cash and digital solutions to merchants in Southern Africa’s informal economies. Our fintech solutions include a diverse range of value-added services (VAS), card acquiring, secure cash vaults and supplier payments platforms. Operating with a network of approximately 90,000 active devices, we process approximately 2.2 million transactions daily in markets such as South Africa, Namibia, Botswana, and Zambia.

We are dedicated to helping small and medium merchants grow and succeed, through increasing their sales, making their businesses more efficient and reducing their risks with its holistic portfolio of products and services. Kazang is a member of Lesaka Technologies (https://LesakaTech.com).

ABOUT LESAKA TECHNOLOGIES, INC:
The Connect Group and Kazang was acquired by Lesaka Technologies, Inc. in April 2022. Lesaka Technologies, (Lesaka™) is a South African Fintech company that utilizes its proprietary banking and payment technologies to deliver superior financial services solutions to merchants (B2B) and consumers (B2C) in Southern Africa. Lesaka’s mission is to drive true financial inclusion for both merchant and consumer markets through offering affordable financial services to previously underserved sectors of the economy. Lesaka offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-added services to retail merchants as well as banking, lending, and insurance solutions to consumers across Southern Africa.

Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg Stock Exchange (JSE: LSK). Visit www.LesakaTech.com for additional information about Lesaka Technologies (Lesaka ™). $LSK / $LSAK