IBS Journal February 2015
Africa core banking round-up: system selections from the continent
Africa has proved to be a hub of activity in the last few months, with several core banking system tenders either ongoing or nearing their completion.
Central African States
Central African States Development Bank (also known as BDEAC), the development arm of the Bank of Central African States (Banque des Etats de l’Afrique Centrale, BEAC), has issued an international tender for a range of new software applications. The bank is searching for a consultant to provide a new core banking system, risk management system (including ALM, oper- ational risk and credit risk/scoring) and a cost accounting/budget management application. Interested parties have until the 27th February 2015 to reply to the ten- der, after the initial date of 13th January was pushed back. BEAC has been granted around $60
million from the World Bank to carry out a regional infrastructure modernisation, and has chosen to divert some of this funding towards the enhancement of the financial sector. BEAC itself has undertaken sever- al modernisation initiatives over the last decade, including rolling out Misys’ Sum- mit system in 2011 for its capital markets processing, and a regional real-time gross settlement (RTGS) system from CMA Small Systems. BDEAC’s remit is to provide medi- um and long-term development financ- ing for the six member states (comprising Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea and Gabon) for infrastructure and economic integration projects. The bank has a four- year strategy to increase its share capi- tal from FCA250 billion ($475 million) to FCA1.2 trillion ($2.2 billion). The tender states that the interest-
ed vendors must propose a core banking solution which provides functionality for project finance, loan administration and disbursement, payments and general ledg- er. This is the second time the bank has ten- dered for the new software, after a similar tender floated at the beginning of 2014 failed to deliver an outcome.
20 Lesotho
Central Bank of Lesotho is to replace its legacy core banking system, Misys’ Midas, after a year-long review into its IT infra- structure carried out by Deloitte (Deloitte is also the bank’s auditor) concluded that the bank needs to shift to a new tech- nology platform. The bank issued an RFP inviting consultants to bid to deliver the project, including the new core as well as a new ERP system, with the deadline in mid-December 2014. Central Bank of Lesotho is carrying
out this initiative with ‘the ultimate objec- tive of achieving better service delivery to its customers and ensuring efficiencies and optimisation of banking processes’, it states in the RFP document. The bank has been using Midas since 1990, but sever- al new systems which have been imple- mented over the last decade (including a new HR and payroll system, fixed asset management system and RTGS system from Montran Corporation) ‘have been done with very minimal effort to review and redefine the related business pro- cesses’. This has resulted in ‘inescapable
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misalignments between the system and the processes being supported’. The winning supplier will be required
to manage the entire transition to the new system, including carrying out the system selection, negotiating the termination of the existing contract with Misys, oversee- ing the system roll-out and defining new business processes. There are only a handful of commer-
cial banks in Lesotho, two of which, Leso- tho Post Bank and Nedbank, are on the Oracle FSS user list for Flexcube. The latter is part of a multi-site project initiated by Nedbank last year to unite with the branch network of another pan-African bank, Eco- bank. Standard Bank also has a presence in the country, with its local operations expected to move onto Infosys’ Finacle as part of the bank’s standardisation project for its regional subsidiaries.
Uganda
Pride Microfinance in Uganda is back to market for a new core banking system after an attempt to procure a new plat- form in 2014 ended without a definitive
Maseru, home of Central Bank of Lesotho ©OER Africa, Flickr
news: system selections
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