The Nation Newspaper

Category: Money

  • Power sector needs $6b, says Stanbic CEO

    Fixing the power sector will cost investors $6 billion, about N957 billion, Managing Director, Stanbic IBTC Bank, Yinka Sanni has said.

    Speaking yesterday at a briefing ahead of the 2014 Standard Bank West Africa Investors’ Conference holding in Lagos from February 3 to 6, he said there are lots of opportunities in the power sector that investors will be discussing with distribution and generation companies during the conference.

    He said: “We expect both the distribution and generation companies to rob minds on what next for the power sector.”

    According to the bank chief, the understanding of the economy is very important for investors, adding that the 2015 election fears will not deter investors from coming to Nigeria.

    Group Chief Executive Officer, Stanbic IBTC Bank Holdings, Mrs. Sola David-Borha, said the conference, which is the fifth, has become flagship investors’conference in Africa.

    She said the theme of this year’s conference is: ‘Nigeria, time to deliver’, adding it will focus mainly on the power sector. She said the sector reforms have reached critical milestone and key stakeholders need to support the reform process.

    David-Borha said: “The power sector is capital intensive. Our effort at Standard Bank Group will facilitate investment in the sector. We believe the conference will be attended by between 150 and 200 participants.”

    According to her, the bank does things that are enabling and creates right economic environment for investment to thrive. She said the conference will be attended by Central Bank of Nigeria Governor, Sanusi Lamido Sanusi; Minister of Trade and Investment, Olusegun Aganga; and Lagos State Governor, Babatunde Fashola, among others.

  • Sterling Bank boosts CSR

    Sterling Bank Plc has presented cheques to beneficiaries from the bank’s ‘Raise a Child’ initiative.

    Speaking at the presentation of the cheques to the beneficiaries, the bank’s Executive Director, Mr Lanre Adesanya said the lender came up with the initiative to put smiles on the faces of the Nigerian child and give him or her hope for a better tomorrow as a responsible corporate citizen.

    “Specifically, the project was designed to support the society, particularly the children; especially the less privileged children in the society in continuation of the Bank’s Corporate Social Responsibility (CSR) philosophy. It is a fundraising drive structured in a way that the bank, the staff and members of the general public, who are passionate about supporting genuine charitable causes, are provided the necessary platform and channels to contribute with the sole objective of putting smiles on the faces of millions of children through different charities across Nigeria,” he said.

    Responding on behalf of the benefiting charity homes, Mrs. Sola Fatola, the Chief Executive of 234 Give Limited, commended the bank for coming-up with the initiative that will bring smiles on the faces of less privileged children in the society.

    She further stated that ‘with this gesture, Sterling Bank has revalidated its position as a responsible corporate citizen of the country with a heart of gold to enrich the lives of these children who live with one challenge or the other.

  • Visa backs financial literacy mobile app

    Visa International, a global payment firm, has announced a mobile application development challenge, meant to stimulate the development of innovative web, mobile applications and games. The platform is also expected to assist in teaching money management skills and supporting the advancement of financial literacy in the country.

    In a statement, the firm said the Financial Literacy Challenge is sponsored by Visa and delivered by the Co-Creation Hub Nigeria, using their unique approach of involving stakeholders in the co-creation of new products and services.

    “The challenge will bring key financial services players like the Central Bank of Nigeria, commercial banks, personal finance Non- Governmental Organisations and other stakeholders together with software developers and designers, to create interesting applications and games. These applications and games will advise Nigerians on how best to manage their money and financial affairs, and also educate them on the tools available to meet their financial needs,” the statement said.

    Country Manager for Visa in West Africa, Ade Ashaye, said these applications and games will advise Nigerians on how best to manage their money and financial affairs, and also educate them on the tools available to meet their financial needs.

    “At Visa, we are dedicated to increasing financial literacy among the unbanked through strategic partnerships and educational programs. This is the motivation behind the Financial Literacy Challenge,” the statement quoted him saying.

  • Defining banks’, telcos’ role in financial inclusion

    Defining banks’, telcos’ role in financial inclusion

    Financial inclusion, the brainchild of the Central Bank of Nigeria (CBN) needs the backing of financial institutions, telecommunications firms, development finance institutions and other government agencies to succeed. But customers insist that getting more people into the banking system will depend on the financial sector’s stability, writes COLLINS NWEZE.

    The Central Bank of Nigeria (CBN) intends to implement a National Financial Inclusion Strategy (NFIS) that will reduce the percentage of adults excluded from financial services from 46.3 per cent in 2010 to 20 per cent by 2020.

    Achieving the feat will require collaboration among the regulator, banks, telecommunications firms, development finance institutions (DFIs), among other key stakeholders in the economy.

    CBN Governor Sanusi Lamido Sanusi said the bank had taken steps to simplify banking, making it available to rural and urban dwellers. He said the literate and the illiterate could open and run accounts on the agent bank model by simply allowing the agents to take their fingerprints.

    The CBN, he said, was committed to providing access to affordable financial services and products for every Nigerian, adding that the financial inclusion strategy target is to help reduce the number of adult Nigerians excluded from formal Financial Services from 46.3 per cent in 2012 to 20 per cent in 2020 with specific targets for payments, savings, credit and insurance.

    He said sustaining the country’s development would ensure that at least 80 per cent of all adult Nigerians have access to affordable financial services as well as the right environment within which to flourish economically.

    Sanusi said the CBN had over the years identified barriers to achieving inclusion some of which include distance to bank branches, cumbersome account opening requirements, lack of awareness of financial products and services, among others.

    “As a regulator, we also recognise the challenges deposit money banks face in trying to reach the underserved communities which include the cost incurred by the banks in catering to lower valued accounts and the cost of expanding their branch networks to excluded communities,” he said.

    Sanusi said mobile money operators were being encouraged to increase access to financial services through mobile phones that are either directly linked to a bank account or use of mobile wallets as intermediary virtual money accounts.

    According to the NFIS report released at the weekend, the apex bank projected that the number of Nigerians included in the formal banking sector would increase from 36.3 per cent in 2010 to 70 per cent by 2020, especially, with the collaboration of key stakeholders.

    Speaking at the launch of Agent Banking Operation in Lagos, Baale of Makokoland, Chief Raymond Adekunle said bank customers needed to be assured that their money is safe in the banks.

    He said the loss of funds in many of the banks in the past is still discouraging many people from banking.

    Also Managing Director, Enhancing Financial Innovation and Access (EFINA), Modupe Ladipo said success of financial inclusion will be a game changer for the economy.

    She said encouraging grassroots banking will make more funds available to the banking sector which can also be used to improve lending to the real sector of the economy.

    DMBs

    One of such stakeholders includes deposit money banks (DMBs). Currently, 21 Deposit Money Banks are serving about 20 million clients through a network of 6,000 branches and 10,000 Automated Teller Machines (ATMs). According to the CBN, an adult population of over 84.7 million, shows that a large part of the banking market in Nigeria is still untapped. This has the potential to become a major funding base through the mobilisation of savings, and a source of profit for commercial banks and other financial services institutions.

    In terms of microfinance banks (MfBs), as of July 2011, Nigeria had 866 MfBs with a network that served only 3.8 per cent of the adult population (3.2 million clients).

    Of these 3.2 million clients, 65 per cent used savings products, 14 per cent used credit products, and four per cent used ATM cards. It said the vast majority of MfBs can increase their scale and operating capacity by taking advantage of the opportunities provided by the Financial Inclusion Strategy.

    DFIs

    Also to support drive for financial inclusion are the five DFIs in Nigeria that channel financial resources to critical sectors of the economy that would otherwise not be served by the banking sector. According to the CBN, the NFIS can help DFIs harmonise multiple interventions and increase their impact on the economy.

    Also, non-bank microfinance institutions (MFIs), which include financial non-governmental institutions, financial cooperatives, self-help groups, trade associations, and credit unions, are not regulated by CBN, but the regulator monitors over 600 of them. It said MFIs may benefit from the Financial Inclusion Strategy through increased technical assistance and funding for more effective and efficient member outreach.

    Insurance

    The insurance sector is also not left behind. Nigeria’s recapitalisation exercise of 2007 consolidated the insurance industry into 49 companies. However, as of December 2010, these companies served only one per cent of the population. With 99 per cent of the population still un-served, there is a large untapped market and enormous business potential for the insurance companies.

    Another sector that could boost the CBN financial inclusion drive is the pension industry. The 2004 Pension Reform Act established the Compulsory Pensions Scheme (CPS), which has largely been adopted by the Federal Government and the private sector. Annual pension contributions grew to over N3 trillion from N60 billion in 2006. However, only 17 of the 36 state governments and the Federal Capital Territory have passed bills to adopt and implement the CPS. It said the pension system makes allowances for voluntary contributions, which can be tapped by both the formal and informal sectors in the country. It said pension Fund Administrators and Custodians can expand their outreach to this untapped market with appropriately targeted products.

    Technology and

    Telecommunication Companies

    The telecommunications firm operating in the country can be helpful too. Currently, there are nine mobile network operators (MNOs) in Nigeria. MTN, Globacom, Airtel and Etisalat are the market leaders, with a combined market share of about 90 per cent. Payment processing for MNOs is handled by Interswitch, Unified Payments, Cams, and eTranzact.

    Public institutions

    Participation in the Financial Inclusion Strategy would help relevant public institutions achieve their mandates. These institutions include the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), the National Identity Management Commission (NIMC), and the Nigeria Postal Service (NIPOST). The various development partners support financial inclusion initiatives and the strategy provides a blue print for their interventions thereby assisting them in achieving their objectives.

    KYC

    It said the goal would be pursued through a broad range of coordinated interventions with high priority on transformation of existing Know Your Customer (KYC) regulations into a simplified risk-based tiered framework. This allows individuals who do not meet formal identification requirements to enter the banking system.

    According to the CBN, development and implementation of a regulatory framework for agent banking to enable financial institutions bring banking services to the unbanked in all parts of the country will remain a key strategy to be explored.

    It said development and implementation of a National Financial Literacy Framework that would increase awareness and understanding of financial products and services, with the ultimate goal of increasing sustainable usage as well as a comprehensive Consumer Protection Framework to safeguard the interest of clients and sustain confidence in the financial sector.

    The CBN said continued pursuance of Mobile Payment System and other cash-less policies to reduce the cost and increase the ease of financial services and transactions including providing credit enhancement schemes/programmes to empower micro, small, and medium enterprises (MSMEs).

    According to the regulator, the list of beneficiaries also include Micro, Small and Medium Enterprises Development Fund (MSMEDF), 60 per cent of which will support loans from microfinance banks and institutions to women and women-owned enterprises.

    National/Continental comparisons

    The CBN also said Nigeria lags behind some of its peers in Africa when it comes to the provision of financial services, adding that only 36.3 per cent of the country’s adult population, representing 30.7 million out of 84.7 million is served by financial services. This is low when compared to 68 per cent in South Africa and 41 per cent in Kenya, the apex bank lamented.

    “With an adult population of over 84.7 million, this shows that a large part of the banking market in Nigeria is still untapped. This has the potential to become a major funding base through the mobilisation of savings and a source of profit for commercial banks and other financial services institutions,” it said.

    The CBN said the population of Nigeria is distributed unevenly, with an average population density of 150 per square kilometres, adding that densely populated states include Lagos, Anambra and Akwa Ibom. It said the urbanisation rate was estimated at 49 per cent in 2009 and is expected to rise to 75 per cent by 2050.

    “By this time, Nigeria is expected to be among the 20 most urbanised countries in the world. Financial inclusion is most advanced in Nigeria’s urban areas, especially in the Southern parts of the country. Northern Nigeria is particularly disadvantaged, with 68 per cent of adults excluded in both the Northeast and Northwest regions,” it said.

    The CBN said formal inclusion rates range from 49 per cent in the Southwest Region to only 19 per cent in the Northwest Region. The “informally included” primarily live in the Northcentral region, where 23 per cent of adults have access to only informal services.

  • ‘Why banks are reluctant to lend’

    Banks are still hunted by mistakes of 2007 when they gave out a lot of non-performing and delinquent loans that triggered the global financial crisis, report by Renaissance Capital (RenCap) has said.

    In a report released yesterday tagged: “Global emerging and frontier markets: Which markets can boom?” RenCap said such fears have made it difficult for the lenders to increase their loans.

    It said despite those mistakes, there are needs for banks to improve on their lending to offer significant support to equity prices. It said the banks need to lend enough to offer significant support to equity prices.

    According to the investment and research firm, banks having lent 14 per cent of Gross Domestic Product (GDP) in 2007, have suffered and have been cautious ever since. It predicted a modest rise in nominal growth from 13 per cent as at last year, to 16 per cent this year. “We expect a modest uptick in nominal growth, from 14 per cent in 2013 and 16 per cent in 2014,” it said.

    According to the report, the growth index suggests the main bid for equities will continue to come from rapidly rising local pension fund money and frontier cash. “In the first quarter of 2014, and perhaps the entire first half of 2014, we see Nigeria outperforming Kenya, due to movements by frontier investors,” the report said.

    RenCap said Nigeria’s rising weight in the Morgan Stanley Capital International (MSCI) index, up from 14 per cent now to 20 per cent in May 2014, is one factor behind this, adding that assumption of naira stability remains critical.

    It said analysis of debt cycles shows that credit booms have tended to drive equity returns. “Conceptually, we think this makes sense, as credit booms have tended to coincide with accelerating economic activity, periods of low interest rates and strong corporate earnings,” it said.

    Continuing, the report said the magnitude of the credit expansion is key especially when credit is growing faster than GDP is expanding; there is a greater opportunity for equity and other assets to perform well.

    Put simply, excess growth of credit tends to spill over into asset prices, including property and equity and can eventually trigger inflation. “Nigeria, Mexico and Turkey also have a somewhat supportive credit-growth trend although Turkish credit growth and pricing are increasingly dependent on the availability of funding,” it said.

  • Fed Govt may hike Diaspora bond to $250m

    Fed Govt may hike Diaspora bond to $250m

    The Federal Government may more than double the size of a planned $100 million Diaspora bond to encourage nationals living outside the country to fund projects back home.

    Bloomberg said the Debt Management Office (DMO) is set to ask lawmakers within two to three weeks for a possible increase to between $200 million and $250 million, Director General Abraham Nwankwo said. The amount will be set before June.

    “There are possibilities that we could go for more,” Nwankwo said. “The market is telling us, ‘look why are you just going for $100 million since it’s Diaspora focused? Suppose they want to invest more in the Nigerian economy, won’t you frustrate them?’”

    Nigeria returned to international debt markets for the first time in two years in July, issuing $1 billion in Eurobonds to fund power projects in an economy set to grow 6.7 per cent this year, according to the World Bank. When the Diaspora bond was announced in August, the DMO said the funds would be used to finance capital projects.

    The Federal Government doesn’t have plans this year to sell another conventional Eurobond until the Diaspora issuance and an N80 billion ($502 million) offering of global depositary receipts planned for the first half are complete, Nwankwo said.

    Nigeria’s outstanding public debt stock was N8.3 trillion by last September 30, with external borrowing accounting for 1.3 trillion of the amount, according to the agency.

    The yield on Nigeria’s $500 million in Eurobonds due July 2023 declined seven basis points, or 0.07 percentage point this month to 5.85 percent. The debt office established a desk seven months ago to look into a possible federal government sale of Islamic debt, or sukuk, said Nwankwo.

    Nigeria’s capital-markets regulator approved rules for selling bonds that comply with Shariah law in February last year. Also, Osun State, an inland region in Nigeria’s southwest, issued the nation’s first sukuk, selling N10 billion in September at a coupon of 14.75 per cent.

    “The sukuk is an area we want to go into to diversify the sources of funding,” Nwankwo said. “It’s most unlikely we issue federal government sukuk in 2014, but I believe in 2014 we will have been able to organize ourselves to have a framework and a strategy of what we want to do with sukuk and related instruments.”

  • World Bank raises hope for global economies

    Five years after the global financial crisis, the world economy is showing signs of bouncing back this year, pulled along by a recovery in high-income economies, says the World Bank’s latest Global Economic Prospects report.

    According to the document obtained from the bank’s website, developing-country growth is also firming.

    It said growth prospects for 2014 are sensitive to the tapering of monetary stimulus in the United States, which began earlier this month, and to the structural shifts taking place in China’s economy.

    The report forecasts growth in developing countries to pick up from 4.8 per cent in 2013 to a slower than previously expected 5.3 per cent this year, 5.5 percent in 2015 and 5.7 percent in 2016.

    “While the pace is about 2.2 percentage points lower than during the boom period of 2003-07, the slower growth is not a cause for concern. Almost all of the difference reflects a cooling off of the unsustainable turbo-charged pre-crisis growth, with very little due to an easing of growth potential in developing countries,” it said.

    Global Gross Domestic Product is projected to grow from 2.4 per cent in 2013 to 3.2 per cent this year, stabilising at 3.4 per cent and 3.5 per cent in 2015 and 2016, respectively, with much of the initial acceleration reflecting a pick-up in high-income economies.

  • CBN: banks facing ‘cash crisis’

    CBN: banks facing ‘cash crisis’

    Some of the 23 banks are having cash crisis, according to the Central Bank of Nigeria (CBN) investigation.

    A Capital Adequacy Ratio (CAR) audit of the banks by CBN showed that some have “high level of liquidity crisis”.

    The report showed that only 16 banks have CAR above 15 per cent; five have CAR above 10 per cent, but less than 15 per cent. Also, an analysis of the report showed that a bank’s CAR is below 10 per cent but greater than five per cent. Another one’s CAR was below five per cent.

    The report said the minimum ratio of capital to total risk-weighted assets shall remain 10 per cent for Regional and National Banks and International Banks, 15 per cent.

    According to the CBN Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for 2012 -2013, the banks’lenders should maintain a higher level of capital commensurate with their risk profile.

    The Financial Stability report showed that after a careful study of the liquidity stress test conducted on the banks at the end of June, last year, the CBN mandated them to carry out internal CAR audit at least once yearly to ascertain their liquidity positions. The results showed that the industry liquidity ratio fell to 16.7 and 13.3 per cent after the respective five-day and cumulative 30-day shocks were applied, from the pre-shock position of 67.8 per cent.

    “The banking industry solvency stress test assessed the resilience of the industry based on historical worst case and hypothetical strained macroeconomic situations. The overall banking industry was resilient to liquidity shocks, though a few banks were found to be vulnerable.

    “The diagnostic study earlier commissioned by the CBN to examine the Nigerian financial system, taking into account specific tools required in the light of international developments since the 2007 crisis, was completed in the period under review,” it said.

    The report suggested the enhancement of existing supervisory tools and institutional arrangements based on three major components, namely: macro-prudential policy; micro-prudential policy, and crisis management, necessary for the achievement of financial stability in the country.

    “Henceforth, banks are required to carry out their Internal Capital Adequacy Assessment Process (ICAAP) on an annual basis, as at December 31, and forward copies of the report to the CBN for review,” CBN Director Banking Supervision, Mrs Tokunbo Martins said.

    According to her, the full adoption of Basel Accords will be executed by June but preliminary works would start this month. The Basel Accord is a financial analysis principle expected to give banks’ financials better credibility.

    She said the policies specified approaches for quantifying the risk weighted assets for credit risk, market risk and operational risk for the purpose of determining regulatory capital.

    According to her, the computations are meant to ensure that banks have sufficient high quality capital to support their risk taking activities. The lenders, she said, are also expected to establish effective risk management systems commensurate with their level of operations.

    She said all banks and banking institutions are expected to adopt the basic approaches for the computation of capital requirements for credit risk, market risk and operational risk, adding that the adoption of the Standardised Approach for Operational Risk and other sophisticated approaches will however be subject to the approval of the apex bank.

    “The guidance notes are applicable to all banks and banking groups licensed to operate in Nigeria and should be applied on a solo as well as a consolidated basis. The minimum capital requirement is retained at 10 per cent and 15 per cent for local and internationally active banks,” she said.

    She said banks are reminded of the importance of comprehensive risk management policies and processes that effectively identify, measure, monitor and control their risk exposures in addition to having appropriate board and senior management oversight.

    Associate, Africa Equity International Sales at Renaissance Capital, Akintola, Akinbamidele, said efficient and liquid banks such as GTBank can adapt and have good balance sheets, while banks with high CAR like Zenith, United Bank for Africa may emerge net placers on the interbank market.

     

  • GDP rebasing to raise budget deficit by N400b, says RenCap

    Chief Economist, Renaissance Capital (RenCap), Charles Robertson has said the Federal Government’s plan to rebase the Gross Domestic Product (GDP) by next month could raise this year’s budget deficit by N400 billion to N1.3 trillion.

    In an emailed report, the economist said the GDP revision may affect the 2014 budget, too. “It does nothing to improve budget revenues or expenditure. It does mean, however, that a nominal Federal Government budget deficit of N912 billion could be raised by about N400 billion to N1.3 trillion and still remain at 1.9 per cent of GDP, using the new 2014 GDP estimate we have. This may be very tempting to politicians in pre-election mode,” he said.

    Robertson said the wider budget deficit would then require additional borrowing, via either Eurobonds which Nigeria’s debt office is trying to move towards, or domestic debt. Higher supply might offset the benefit to debt holders of the improved debt ratios and a possible rating upgrade.

    “We must emphasise that while per capita GDP would appear to rise from around $1,700 to $2,400, in fact the NBS is just doing a better job in measuring the output that is already happening. No one in Nigeria should suddenly find 53 per cent more naira in their pocket,” he said.

    Robertson said the GDP re-basing could cut the public debt ratio from 20 per cent of GDP to 13 per cent, and cut public external debt below two per cent of GDP, while the current account surplus may still be five per cent of GDP.

    “We suspect the rebasing is supportive of a possible upgrade in Nigeria’s Ba3/BB- ratings over 2014 to 15,” he said.

    He said on the production side, agriculture is expected to revised down from nearly 40 per cent of GDP to about 30 per cent; while on the expenditure side, consumption may be increased from 70 to 80 per cent to 80 to 90 per cent of GDP,” he said.

    Speaking further on the rebasing, Managing Director, Financial Derivatives Company, Bismark Rewane said Nigeria’s GDP, which currently stands at $283 billion are ranked 37 of 192 global economies.

    The financial analyst said GDP rebasing has been done by several countries such as Ghana, South Africa and Malaysia, and has significant implications on the structure of an economy.

    Nigeria, with a five-year average yearly growth rate of seven per cent, has been using a 1990 base year to calculate the growth of its real GDP. “In nominal terms, this is estimated to be $283 billion in 2013. Nigeria has a young and growing populace, estimated at 170 million, who have a per capita annual income of $1,624. Based on the above, Nigeria can be classified as a low-income economy that is heavily dependent on oil,” he said.

    Citing the World Bank, he said Nigeria falls within the category of lower middle-income economies based on certain criteria, such as the GDP and GNI per capita. Similar countries in this cadre include Senegal, Cote d‘Ivoire, Ghana and Cameroon.

    He said one of the aspirations of the Federal Government is for the country to become one of the top 20 economies by 2020 (Vision 20:20).

    Rebasing its GDP, he added, brings it one step closer to this goal.

     

  • AfDB adopts Integrated Safeguards System

    The Board of the African Development Bank (AfDB) has adopted the Integrated Safeguards System (ISS) – a cornerstone of the bank’s strategy to promote growth that is socially inclusive and environmentally sustainable.

    In a statement, the bank explained that safeguards are a powerful tool for identifying risks, reducing development costs and improving project sustainability, thus benefiting affected communities and helping to preserve the environment.

    The ISS was developed through extensive consultations. In particular, five regional workshops – in Nairobi, Lusaka, Libreville, Abuja and Rabat – provided the bank with an opportunity to listen to and address concerns raised by our stakeholders and civil society.

    It said with the ISS, the bank will be better equipped to address emerging environmental and social development challenges. “The Integrated Safeguards System not only promotes best practices in these areas but also encourages greater transparency and accountability. It upholds the voices of people who are affected by Bank-funded operations, especially the most vulnerable communities, by providing, for example, project-level grievance and redress mechanisms – a structured, systematic and managed way of allowing the voices and concerns of affected people to be heard and addressed during project planning and implementation,” it said.

    The AfDB, in accordance with its mandate views economic and social rights as an integral part of human rights, and accordingly affirms that it respects the principles and values of human rights as set out in the UN Charter and the African Charter of Human and Peoples’Rights.

    “These were among the principles that guided the development of the Integrated Safeguards System. The AfDB encourages member countries to observe international human rights norms, standards, and best practices on the basis of their commitments made under the International Human Rights Covenants and the African Charter of Human and Peoples’ Rights,” it said.

    The plan, according to the bank, puts it in the forefront of multilateral development banks, with a clear, integrated package of policies and procedures to address the safeguards issues that arise in development. “We believe the Integrated Safeguards System will strengthen the bank’s ability to carry out its mandate and will help increase the effectiveness and development impact of our operations. But more than that, the Integrated Safeguards System will be one of the strongest tools we have for helping to promote the well-being of our true clients, Africa’s people.