Commodities

Commercial Bank of Africa returns to Ugandan market

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By Dorothy Nakaweesi

Posted  Wednesday, January 22  2014 at  02:00

In Summary

The bank was forced to close due to political instability.

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Kampala

Bank of Uganda has granted Commercial Bank of Africa (CBA) a licence to operate thus becoming the 25th commercial bank in the country. The Kenyan owned bank returns to Uganda after 47-years since it was forced to close business because of the political instability in the country at that time.

In an interview with the Daily Monitor, CBA Uganda’s chief executive officer Samuel Odeke said: “We received our official license to operate from Bank of Uganda early this month and we are soon opening to the Ugandan market.”

Returning at time when the country has more than 20 commercial banks, Mr Odeke said the bank is ready to face up to the competition. “We have enough capital to take on big deals, meaning we are ready to handle Corporate, Small and medium enterprises, all of which need big capital,” Mr Odeke added.

CBA Uganda has secured a total of $18.2 million (Shs45.4 billion) inclusive of the Shs25 billion minimum balance required by the Central Bank to set-off business. He, however, added that the bank will be able to do this through delivering a number of unique products to their customers like those Ugandans living in the diaspora will be able to transact wherever they are based with convenience and at a cheaper cost.

Mr Odeke noted that businesses coming from the East Africa Community market and increasing natural resources discoveries in the region will be grounds for them to exploit.

Beginning with one branch, CBAU has so far has created direct jobs for more than 20 Ugandans but hopes by end of the year this number will have gone to over 35 people plus the indirect jobs.

dnakaweesi@ug.nationmedia.com