Barely two years in Rwanda, Ecobank, a West African bank plans to expand to Uganda. Ecobank’s interest in Uganda is a strategy to position the bank in the competitive but fast growing East African Community (EAC) banking market. Peace Uwase, Ecobank Rwanda’s Financial Controller said, “We are still in the preliminary stages of negotiations.”She adds, “Ecobank being a Pan African bank, aims at covering the whole of Sub Saharan Africa, North and Southern Africa to promote the economic growth of African countries.” The bank promises to turnaround the banking sector in the region by offering better services. Speaking at recent purchase of the Burundian bank, the Ecobank Group Chief Executive Officer, Arnold Ekpe, is quoted in a statement on the bank’s website to have said, “The opening of Ecobank Burundi reaffirms our commitment to bring superior banking services and products to all customers spread across East Africa in particular and the African continent in general.” In the recent past, the Rwandan economy has also witnessed the entry of 3 large banks, including, Fina Bank, Ecobank and Access Bank. Ecobank acquired Bank of Commerce, Development and Industry (BCDI) on July 6 while Access Bank made entry into the Rwandan market with the recent acquisition of 75 per cent stake in Bancor. But another fast growing bank is Fina Bank. From Kenya, the bank entered Rwanda in 2004 and currently has five branches in the country (Rwanda). In a bid to strengthen its regional presence, Fina Bank launched a new cross-border money transfer product, Fina Direct, for residents in Rwanda and Kenya. Fina Bank Group Chief Executive Officer Frank Griffiths is reported to have said “The initiative solidifies our East African presence and also strengthens the financial well being of people” commenting on the development. Fina Bank is now expected to commence operations in Kampala, Uganda by end of October. After Uganda, the bank is targeting Tanzania and Burundi, in the hunt for a regional presence. Among indigenous banks in the East African Community, it’s only Kenya Commercial Bank (KCB) that has stepped up its expansion drive into the region. KCB that currently operates in Uganda, is yet to open branches in Rwanda, Burundi and Southern Sudan. In an interview with The New Times, Francois Kanimba, Governor of Central Bank of Rwanda said the recent entry of foreign banks into Rwanda will increase competition in the banking sector and bring in innovations that will benefit Rwandans. “We do expect these banks through competition to offer better services and customer care. This will also push the prices down.” he said. Kanimba also noted that as the banks continue to expand; this will bolster the outlook of the local banking sector. KCB is expected to start its operations in Rwanda before the end of this year and Burundi in 2009. In June last year, United Bank for Africa [UBA], one of West Africa’s largest banks sunk $12m in Uganda on being licensed. Ends
