Seeking sustainable change in Africa’s financial systems. This report summarises a research programme, sponsored by FSD Africa, which investigates drivers of change within the financial sector of sub-Saharan Africa. The research aims to provide the development sector with a better understanding of the dynamics of financial institutions, on which to base improved partnerships towards sustainable development in the financial sector. Accenture Development Partnerships performed the research across several countries in the region, conducting interviews with industry specialists and executives within financial, professional services and telecommunications firms.
Our research identified a set of success criteria for organisations seeking to drive sustainable change:
- Explore and commit to the right ideas: Strategic planning processes need to challenge and explore. Prioritisation processes should give room for “risky” business cases.
- Develop ideas into sustainable designs: New business models require new processes and approaches. It is critical not to be over-reliant on the applicability of existing customer insights.
- Enable the organisation throughout the implementation phase: Stakeholder engagement, communication and change impact analysis should be driven by projects.
- Sustain change on a continuous basis: Sustain C-level support for new ventures, giving time to fail, learn and adjust. Scale up results and celebrate successes.
- Set out a clear strategy for the change capability: Make projects accountable for their role in change management and provide support from central change management functions.
Our research also identified opportunities for development sector organisations to work more effectively with the financial sector on inclusive development. Our findings are differentiated between mid-tier firms and industry leaders. Recommended approaches for working with mid-tier financial institutions are:
- Select a few institutions and establish long-term relationships, prioritising opportunities through a pipeline management process.
- Establish sponsorship from commercial operations, capitalising on urgency and existing momentum. • Initiate relationships by solving concrete issues like process design, market research, data analysis, etc. and involve relationship managers across interventions.
- Develop a trusted advisor role with C-level executives to further increase impact. When partnering with large and wellestablished organisations, we recommend identifying executives known for their agenda to drive growth into new business models. Support them in developing growth cases within the organisation to crowd in private investment.
Learn the Basics on how to Invest in Treasury Bills.
Investing in Treasury Bills has recently become a widespread choice by retail investors, as the yields became more attractive.
Treasury Bills are available for investment in two markets, the Primary market, and the Secondary market.
Treasury Bills in the Primary Market
The Primary Market is where new issues of Treasury Bills are made available for sale by the Central Bank in tenors of 91 days, 182 days and 364 days. All investments are made through bi-weekly auctions, which take place every other Wednesday.
Successful subscribers at the auction are determined based on the Dutch multiple price auction system, under which successful applicants pay for their allotment at the price quoted by them.
The Accounts of the Authorized Dealers with the Central Bank must be funded not later than 24 hours after the auction results are announced.
In the Primary Market, the minimum investment was increased by the Debt Management Office(DMO) in March 2017 from N10,000 to N50 million, just before the launch of the FGN Savings Bond Issuance Program.
Treasury Bills in the Secondary Market
Secondary Market activities cover investments in Treasury Bills of maturities shorter than 91 days, 182 days and 364 days respectively. The Secondary market also accommodates retail investors with less than N50 million to invest.
The Authorized Dealers (Banks) trade Secondary Market Bills with the investing public, by making available the maturities of Treasury Bills(with the implied tenors) and the Bid-Offer discount rates.
The minimum investment in the Secondary Market is much lower, and varies between N50,000 and N100,000 depending on the Authorized Dealer.