Consumer Protection in Finance is a Big Deal, Overview of The New Currency Changes in Zimbabwe and More on Tanzania's Court of Appeal Rules Amended

Afriwise Insights

Consumer protection in finance is a big deal

The financial sector is one of the most heavily regulated sectors. Consumer protection in this sector is a matter of particular concern for regulators in many countries.

The Competition Authority of Kenya recently punished several banks for overcharging customers charges they had not disclosed during lending. The authority investigated alleged consumer violations for refusal to refund and non-disclosure of fees and charges by the banks. The banks were forced to refund money they had wrongly charged their customers. More cases are under active investigation by the authority.

Last month, Ethiopia's biggest bank suffered a system glitch that allowed customers to withdraw more money than they had in their accounts. The Commercial Bank of Ethiopia recovered about 80% of the lost cash after nearly 15 000 people voluntarily returned the funds wrongly withdrawn. The bank then reportedly published the names of those it said had not returned the money – a step that is questionable due to privacy and consumer protection concerns.

Some other developments in financial regulation across the continent so far this year are:

• Mozambique published new regulations to: establish transaction limits that apply to electronic money institutions; establish the procedures for opening and managing bank accounts; establish the standards and procedures for carrying out foreign-exchange operations; and establish rules on own funds and prudential limits for companies providing payment services.
• Angola published a law prohibiting the mining activity of cryptocurrencies and other virtual assets throughout the national territory.
• In Egypt, the Central Bank, in collaboration with the Financial Regulatory Authority, finalised the technical settings for the draft law that regulates alternative financing activities and FinTech services related to banking.

These developments illustrate how important it is for players in the financial sector to stay up to date with changing regulation and comply with their obligations.

Selected Articles

Zimbabwe - Muvingi Mugadza

Overview of The New Currency Changes in Zimbabwe

On Friday the 5th of April 2024, the President of Zimbabwe through Statutory Instrument 60 of 2024 Presidential Powers (Temporary Measures) (Zimbabwe Gold Notes and Coins) Regulations 2024, passed into law a new currency law. The new currency introduced is to be known as the ZiG; it replaces the Zimbabwean Dollar. In terms of section 2 (3)?of the Regulations, the new currency is backed by a composite basket of foreign currency reserves and precious metals as well as valuable minerals held by the Reserve Bank of Zimbabwe. Continue reading

South Africa - Garlicke & Bousfield

Can affidavits be commissioned virtually?

The Covid-19 pandemic caused a rapid and widespread adoption of video conferencing platforms such as Teams and Zoom. As governments worldwide implemented social distancing measures and encouraged remote work, organisations swiftly turned to virtual collaboration tools to maintain productivity and connectivity. The pandemic propelled video conferencing into an indispensable tool for both professional and personal interactions, reshaping the way we perceive and engage with virtual communication platforms. Virtual platforms have since been utilised for all manner of activities, sometimes challenging the traditional way of doing things. One such challenge arose recently in the Gauteng Division of the High Court in ED Foods S.R.L. v Africa’s Best (Pty) Ltd where the Court had to decide whether an affidavit could be commissioned virtually. Continue reading

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Tanzania - FB Attorneys

Tanzania Court of Appeal Rules amended

?In a bid to continue to leverage technology, modernize and expedite pending matters at the Court of Appeal, the Chief Justice, His Lordship Prof Ibrahim Juma, issued the Tanzania Court of Appeal (Amendment) Rules, 2024 (Gn. 188 of 2024) in March 2024. One of the commendable aspects of the amendment is its embrace of technology. By recognizing decisions published on official online platforms managed by the Judiciary of Tanzania as reported decisions, the rules facilitate easier access to legal precedents and streamline the citation process. This move will ensure that legal practitioners and scholars have access to up-to-date and authoritative sources, thereby fostering more informed and robust legal discourse.?Continue reading

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by Africa Risk Consulting (ARC)

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