JOHANNESBURG (Reuters) – Unemployed South African construction worker Daniel isn’t sure how he fell so deeply in debt. All he knows is that African Bank Investments (ABLJ.J: Quote, Profile, Research, Stock Buzz), which was bailed out this month, kept offering him money and he kept taking.
“I can’t remember now, I can’t remember each and every cent I spent,” he said. At 62 and with a junior high school education, he admits he doesn’t understand how interest works.
JOHANNESBURG, Aug 20 (Reuters) – Unemployed South African
construction worker Daniel isn’t sure how he fell so deeply in
debt. All he knows is that African Bank Investments,
which was bailed out this month, kept offering him money and he
“I can’t remember now, I can’t remember each and every cent
I spent,” he said. At 62 and with a junior high school
education, he admits he doesn’t understand how interest works.
JOHANNESBURG, Aug 14 (Reuters) – South Africa’s Standard
Bank took an $80 million hit from its exposure to
suspected metal financing fraud in China, wiping out first-half
earnings growth at Africa’s largest lender.
Johannesburg-based Standard Bank, one several global lenders
ensnared by the scandal at the Qingdao port, said on Thursday it
was still unclear if further writedowns would be needed given a
lack of available information from China.
JOHANNESBURG, Aug 11 (Reuters) – Shares in bailed-out South
African lender African Bank Investments (Abil) were
suspended on Monday, as investors shrugged off a financial
meltdown that appeared to pose no wider risk to the banking
The central bank and commercial banks stepped in on Sunday
with a $1.6 billion plan to rescue Abil from a flood of bad
debts mostly racked up on risky payday loans to unsecured
PRETORIA, Aug 10 (Reuters) – South Africa’s central bank
stepped in to rescue unsecured lender African Bank Investments
on Sunday, placing it under external supervision and announcing
plans for a $940 million capital injection underwritten by local
The rescue, which will see the South African Reserve Bank
acquire the lender’s 17-billion-rand ($1.6-billion) bad loan
portfolio, follows an investor exodus from African Bank
earlier this week after it warned of a full-year loss and said
it needed a massive capital raising.
JOHANNESBURG, Aug 7 (Reuters) – Investors fled African Bank
Investments on Thursday, sending its shares tumbling to
a near-20 year low as the South African lender looked unable to
plug a $790 million hole in its finances from a tide of
unsecured loans that have gone bad.
The bank, widely known as Abil, shocked the market on
Wednesday when it said it needed to raise 8.5 billion rand ($790
million) in new capital after warning of a massive annual loss,
following which its chief executive quit.
JOHANNESBURG, Aug 6 (Reuters) – African Bank Investments
warned on Wednesday it needs to raise nearly $800
million after it flagged an annual loss and its chief executive
quit, prompting a shareholder to liken the South African
mass-market lender to a “bottomless pit”.
The news wiped out 60 percent of the bank’s value, with its
shares hitting their lowest level since 1997 on widening
concerns about its ability to ride out the downturn.
ABUJA, Aug 6 (Reuters) – With all the skill of a master
weaver at a loom, Esther Ogble stands under a parasol in the
sprawling Wuse market in Nigeria’s capital and spins synthetic
fibre into women’s hair.
Nearby, three customers – one in a hijab – wait for a turn
to spend several hours and $40 to have their hair done, a hefty
sum in a country where many live on less than $2 a day.
JOHANNESBURG, July 24 (Reuters) – Shares in Alexander Forbes
surged 12 percent on their return to the Johannesburg bourse on
Thursday, valuing the retirement fund manager at almost $1
billion as it dazzled investors with the prospect of steady
earnings and growth across Africa.
The company, which was taken private by a group of investors
led by buyout firm Actis in 2007, returned to the bourse after a
3.7 billion rand ($353 million) public offering last week, South
Africa’s largest flotation in four years.
JOHANNESBURG, July 20 (Reuters) – Labour unions representing
striking South African metalworkers have submitted a lower wage
demand to employers, union representatives said on Sunday, to
try to end the walkout battering Africa’s most developed
More than 200,000 metal and engineering workers downed tools
at the start of the month demanding wage increases of between 12
to 15 percent and disrupting the supply of auto components and
construction work at two crucial power stations.