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Equity Invests in Techonology to Meet Customers Needs

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Equity has deepened its investment in technology and innovation to meet the emergent needs for its business clients.

This is in response to the financial institution’s dynamic customer desires and the changing business environment.

The move to implement a new and robust trade finance system is aimed at improving turn-around time and boost supply chain financing.

At its trial phase, it has seen a recorded increase in earnings through non funded income business revenue as well as registering growth in contingent liabilities for the past one year.

This new strategy will see a shift from focusing primarily on large corporate clients to including MSMEs and SMEs into the business mix. In line with this, Equity has enlarged its international outreach through collaborations with top global correspondent banks across the globe.

This will enable the bank to handle more trade finance transactions for large international commodity traders, global construction giants, blue chip corporate manufactures and MSMEs and SMEs.

Leveraging off the new technology paradigm, the lender has successfully kept a breast with the dynamic customer needs and the changing business environment.

The technology has enabled the digitization of services, real-time exchange of data and assets, faster processing and more efficient verification of compliance with customs and international trade regulations as well as improved transparency and tracking of trade assets.

SMEs and MSMEs are set to benefit from a wide range of solutions which includes the issuance of collateral-free, bid bonds, performance guarantees, advance payment guarantees, letters of credit, invoice discounting, and Local purchase order (LPO) which forms the core of Equity’s key offering.

These collateral-free services are readily available at any Equity branch in the country enabling MSMEs and SMEs to compete effectively against well-established businesses that previously dominated tendering processes within the country.

Small and medium-sized enterprises remain a pivotal economic growth engine for the country. As the outbreak continues to weight on the country’s growth outlook, SMEs are facing cash flow challenges like never before.

In Kenya, SMEs create 30 percent of the jobs annually and contribute 34 percent to Kenya’s GDP.

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Business

Equity Suspends Dividends Payout

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Equity Center, Nairobi (May 26, 2020)…  The Board of Directors of Equity Group Holdings Plc, the largest bank on the Nairobi Securities Exchange by market capitalization has suspended its dividends payout.

The financial institution withdrew its recommendation of a Ksh. 9.5 billion dividend payout to its shareholders.

The withdrawal of the dividend payout speaks to the Board’s assessment of risk, post balance sheet date of December 31, 2019 and of the Group’s approach to prudent risk mitigation and management.

 The COVID-19 global health pandemic has led to a great lockdown which has induced a complex and multi-faceted global crisis of health, economic, and social challenges of an unprecedented magnitude.

The pandemic’s effects have created a significant drop in the global GDP, and a substantial loss of employment leading to an economic recession which economists are projecting will evolve into a global depression worse than the Great Depression of the 1930’s.

“The Equity Group Holdings Board took a conservative approach that recognizes the emerging unquantified risk of the pandemic and opted to preserve capital in the face of the prevailing uncertainty,” said Dr. James Mwangi, the Group CEO and Managing Director.

The global economic outlook has worsened considerably since the beginning of the year. The United Kingdom has entered a severe recession last experienced in the 17th Century, while the United States unemployment rate is expected to reach 25% by the end of 2020 with 39.6 million people already unemployed.

The most recent global growth projections from the International Monetary Fund (IMF) have revised the global economic outlook to below the 2.9% achieved in 2019 from an initial projection of 3.3% to -3.0% (negative 3.0%) of GDP growth rate, which they feel is optimistic.

 Cautiously, the IMF also projects that if the pandemic fades in the second half of 2020 and if policy actions taken around the world are effective in preventing widespread bankruptcies, extended job losses, and system-wide financial strains, global growth could rebound to 5.8% in 2021.

 “A strong capital and liquidity position gives us the strength and capacity to cushion our business and accommodate and walk with our customers during these challenging times,” said Mwangi.

 Further, the Board encouraged the Bank’s customers to seek opportunities to innovate in the age of the pandemic, and to keep looking for growth possibilities even in this trying time in order to preserve cash and capital, and to not just survive the crisis but to be ready to thrive in the New Normal.

By withdrawing the recommendation for a dividend payout the Board is exercising financial prudence so as to conserve cash to enable the Group to respond appropriately to the unfolding crisis in terms of supporting its customers, and to be able to direct cash resources to potential opportunities that may arise as economies in which Equity Group Holdings operates begin to recover.

“If the economic crisis mutates into a financial crisis, Equity Group will be well placed to weather the challenge with a strong capital base, strong liquidity and an agile balance sheet that improves its leverage, and would allow the financial services group to shield and accommodate its customers throughout this period of uncertainty,“ said Dr. Mwangi.

He added, “However, should the crisis not play out as anticipated, the Board will explore various options and make suitable recommendations that will enhance shareholder value.”

 With this approach, the Group leadership and management can focus on strategically positioning the business, in order to protect and preserve its customer base through loan accommodations and rescheduling/restructuring to enable them to go through the prevailing turbulence while at the same time preserving cash to shore up the financial revival and growth of its customers’ businesses post the COVID-19 crisis.

The Board continues to evaluate the potential impact of the pandemic on the Group and to formulate and implement strategic plans to mitigate any effects, and will, in the usual manner ensure that it keeps the shareholders and other stakeholders informed.

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Safaricom’s Sanda Ojiambo to Head United Nations Agency

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By Agencies for Kenyaonlinenews.com
Nairobi, Kenya – 22nd May 2020… Sanda Ojiambo, Safaricom’s Head of Sustainable Business and Social Impact has been appointed as the Executive Director of the United Nations Global Compact (UNGC), the world’s largest corporate sustainability initiative.

The announcement was made by United Nations Secretary-General António Guterres. Sanda who will assume the role from June 17th will take over from Denmark’s Lise Kingo who has been with the UN Global Compact since 2015.

“Sanda brings 20 years of experience to lead the Global Compact in its next phase to mobilize a global movement of sustainable companies and stakeholders and bring the full weight of the private sector to achieve the SDGs”, Said António Guterres, United Nations Secretary-General.

Sanda has served as Safaricom’s Head of Sustainable Business and Social Impact since 2010. Before that she was the Senior Manager of Safaricom and MPESA Foundations during which she led the implementation of several public-private partnership initiatives between Safaricom and UN organisations.

She holds a Master of Arts in Public Policy from University of Minnesota, USA, and a Bachelor of Arts in Economics and International Development from McGill University, Canada.

Launched in July 2000, the United Nations Global Compact is a strategic policy and advocacy initiative calling for the alignment of business operations and strategies with ten universal principles in the areas of human rights, labour, environment and anti-corruption, and motivates companies to integrate the SDGs into their core operations and funding activities.

“Sanda has been instrumental in leading our Sustainable Business team that focuses on Sustainability, Shared Value, Corporate Social Investment and Technology for Development.

She has also played a major role in the integration of the Sustainable Development Goals (SDGs) into our business operations,” said Peter Ndegwa, Safaricom CEO.
Safaricom are active members of the UN Global Compact and the only African Global Compact LEAD company. LEAD companies are identified for their high levels of engagement.

As a highly engaged participant of the UN Global Compact, Global Compact LEAD companies are uniquely positioned to inspire widespread uptake of sustainability solutions among businesses around the world. Other Global Compact LEAD companies include Unilever, Accenture and Nestle.

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Business

Samsung Upgrades Galaxy Buds with New Software Updates

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By Agencies for Kenyaonlinenews.com
Samsung Electronics has brought into the market new connectivity features to Galaxy Buds through a software update, available starting on Thursday, May 21st, 2020.
Previously available on Galaxy Buds plus, the features allow Galaxy Buds users to now go completely wireless and take their music more easily than ever before – whether it’s on a run, at your workspace or around your home.
Here’s a look at how these new features will enable you to do more with your Galaxy Buds.
Easily Pair Galaxy Buds with Your PC
With Microsoft Swift Pair feature, you can now more easily pair your Galaxy Buds to your Windows 10-based PC.2 This allows you to utilize Galaxy Buds’ innovative sound quality on work-related tasks, such as remote video meetings, or listening to the music that helps you power through the workday.
With the addition of Swift Pair compatibility, Galaxy Buds join Galaxy Buds+ to support multiple pairing experiences across mobile and PC devices, giving you the freedom to easily connect to, and switch between, your favorite devices.
Tune In, or Out, of the World Around You
With this update, and for the first time on Galaxy Buds, you can now experience Ambient Sound4 automatically by simply putting your Buds on, you can now hear your surroundings and remain aware of the world around you, even when you’re watching movies or listening to your favorite tunes with the volume up.
In addition, you can now experience Ambient Sound even with only one earbud in, giving you more options of how you tune in, or tune out, of your surrounding environment.
Instantly Listen to Your Personalized Playlist with a Single Press
Spotify users can now instantly listen to personalized music on their Galaxy Buds with a single press through a simple ‘Tap & Hold’ gesture, users can launch Spotify and start listening to music wherever you left off.
Not feeling it? Tap and hold again and Spotify will recommend playlists just for you so you can effortlessly discover your new favorite song through your Galaxy Buds.
With these updates, you can start playing your personal soundtrack instantly, as soon as you need it – whether you’re starting a workout or starting your day.

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