Wakati wenzetu wanang'aka kuhusu vita DRC, Waganda tayari wameanza kuchangamkia fursa, Wakenya tusichelewe

MK254 said:
Huwa mnachelewa sana kwenye kila kitu na ndio imesababisha bado mko maskini wa kutupwa hadi leo, raslimali zenu zinaliwa na kuchukuliwa kisa huko kuchelewa kwenu.
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Nyinyi kunyaland tunawajua sana tangu mlipovunja EAC mwaka 1977 na mkakimbia na ndege zetu. Hivyo tumeshajifunza sana tu.
 
Wacha ujinga wewe. Unadanganya eti TZ ina bandari 200? Hata USA hawajafika huko ba mdogo. Usipende uongo.
 
Sawa point yako imeeleweka.
 
Tony254 said:
Wacha ujinga wewe. Unadanganya eti TZ ina bandari 200? Hata USA hawajafika huko ba mdogo. Usipende uongo.
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Hizo ni pamoja na bandari bubu, bandari kubwa rasmi kabisa si chini ya 15, hii ni kutokana na DRC kupakana na mikoa mingi ya Tanzania



DRC inategemea Tanzania kwa chakula na Tanzania inauza chakula kingi DRC kuliko inavyouza Kenya hata biashara Tanzania inafanya biashara kubwa na DRC zaidi ya Kenya

 
Nilichofurahi ni kwamba CRDB Bank na Air Tanzania wanaenda kuwanyang'anya hata wale wateja waliokuwa wakitumia mabenki na ndege zao! Hamna kampuni ya DRC itaenda Mombasa port wakati kuna Dar port ipo linked na direct flights za Air Tanzania!
 
DRC kuingia EAC anafanya Tanzania iwe ndio biggest beneficiary wa intra EAC trade by far / largest intra community exporter
 
Geza Ulole said:
Nilichofurahi ni kwamba CRDB Bank na Air Tanzania wanaenda kuwanyang'anya hata wale wateja waliokuwa wakitumia mabenki na ndege zao! Hamna kampuni ya DRC itaenda Mombasa port wakati kuna Dar port ipo linked na direct flights za Air Tanzania!
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Wakuambie kiherehere na mtu alie kilometers 2000 apart wanatoa wapi wakati wana Ethiopia, Sudan, Somali karibu?

Tanzania tunaishi vizuri na majirani zetu ndio maana tunaenjoy markets zao na tumedominate biashara, biashara kati ya Kenya na Ethiopia wanaoshare mpaka sidhani hata kama ina thamani ya $50 million.
 
Tony254 said:
Wacha ujinga wewe. Unadanganya eti TZ ina bandari 200? Hata USA hawajafika huko ba mdogo. Usipende uongo.
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Wafanyabiashara wa Uganda wameambiwa Kwa kipindi hiki cha vugu vugu la uchaguzi Kenya inabidi watumie bandari ya Dar ili kuepuka hasara.

Kwa efficiency iliyopo Dar.. Tukiji adjust kwenye customer and customs service support. Ni automatically tutabadilisha upepo hata baada ya kumaliza uchaguzi wenu itakuwa ngumu kuwarudisha waganda msa port.

Dar Kuna good competitive price compare to Kenya... From Port charges, accommodation, foods and recreations.. U name it all.. Hao wafanyabiashara wa UG watahamia Bongo mazima.. Kama wale wa Congo, Rwanda and Burundi.

Natamani UG nao wapatiwe special desk on customs hapa Bongo. Yatakiwa tuwakabe mazima round hii.. Kufa kufaana... Hadi nyang'au wakitoka kwenye hangover ya uchaguzi wanakuta show imeshaisha...
 
Equity seals deal to become biggest foreign bank in DRC
Asilimia kubwa ya hela huko DRC zinapita kwenye benki kutoka Kenya, Equity Bank. Equity Bank ndio biggest foreign bank huko DRC na second biggest bank. Benki nyingine KCB, kampuni kama Jubilee Insurance zina 'presence' DRC. Wakenya wanawekeza DRC, wewe endelea tu kuimba hiyo chorus yako ya boda na kilomita.
 
pingli-nywee said:
Equity seals deal to become biggest foreign bank in DRC Asilimia kubwa ya hela huko DRC zinapita kwenye benki kutoka Kenya, Equity Bank. Biggest foreign bank in DRC na second biggest bank. Wewe endelea tu kuimba hiyo chorus yako ya boda na kilomita.
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Well and good, biashara ya Tanzania itakuwa wired kupitia bank za Tanzania


MY TAKE
CRDB Bank should try to enter Ugandan and Zambian markets too! The benefits of EACOP should not bypass them on their watch!
Ikumbukwe Equity bank ipo Tanzania since 2012 with over 14 branches na haijaweza ku-capture hata 1% of the market share!
 
Volume of trade between TZ and DRC is over $500M, between Kenya na DRC haizidi $20M, Sasa kitu gani tena unataka, hivi hata hamsikii aibu kushindana na sisi?
 
Una wazimu wewe Exporter mkubwa wa bidhaa kuelekea DRC hapa Afika Mashariki ni Rwanda, wa pili Uganda. Rwanda ambayo huwa mnasema ni 'kamkoa' kenu wamewazidi kibiashara nchini DRC. Uganda pia, acha longolongo zako wewe, kama una takwimu za kudhibitisha hayo madai yako zilete humu tuzichambue. Jisomee mwenyewe; Opportunities and burdens DR Congo brings to EAC table
 
joto la jiwe said:
Volume of trade between TZ and DRC is over $500M, between Kenya na DRC haizidi $20M, Sasa kitu gani tena unataka, hivi hata hamsikii aibu kushindana na sisi?
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Hawa jamaa ni wapumbavu! Halafu wakati wanajipambanua na COW, AfDB imetoka kutoa $3.3 bln ya SGR kuunganisha Tanzania, Burundi, Rwanda na DRC! Mimi naita wivu unawasokota baada ya kuambulia patupu South Sudan walipokuwa wakijitapa pia!

Kenyan banks make losses in South Sudan and why they stay on​



MONDAY APRIL 04 2022​


Customers in a KCB banking hall in South Sudan capital, Juba. The lender cut its presence in the war-torn State. FILE PHOTO | NMG

​

Summary​

  • KCB started operations in the country in 2006, Equity in 2009 and Co-operative Bank was the latest entrant in 2013.
  • In 2014, KCB shut three branches in South Sudan after the war broke out while in 2017, Equity Bank followed suit and closed seven out of its 12 branches in the country.
  • The civil war, which started in 2013 and ended in 2020, led to a massive write-down of assets, loss of revenue and hyperinflation, which resulted in banks reporting monetary losses due to reassessment of assets and liabilities.


By JAMES ANYANZWA
More by this Author

Kenyan top retail banks are struggling to navigate the rough terrain in the war-ravaged South Sudan with Co-operative bank falling to an accumulated loss of Ksh3.29 billion ($28.85 million) in the last eight years of operation.

A review of the audited financial statements for KCB, Equity and Co-operative bank show that the latter has made losses amounting to about $28.85 million from the year 2014 to 2021, translating to a loss of Ksh411.78 million ($3.61 million) per annum.

The only profit for the lender which started operations in South Sudan in September 2013 came in the year 2015 at Ksh849.72 million ($7.45 million).

The lender exported its cooperative banking model in South Sudan by investing Ksh2.72 billion ($23.85 million) for a 51 percent shareholding in a joint venture with the Government of South Sudan.

The government of South Sudan holds 49 percent shareholding in the bank on behalf of the country’s cooperative moment.

Last year, Co-op Bank extended this joint venture by three years, arguing that the transfer of the minority stake to the South Sudanese Cooperative movement has been delayed by economic and political challenges in the country.

The civil war, which started in 2013 and ended in 2020, led to a massive write-down of assets, loss of revenue and hyperinflation, which resulted in banks reporting monetary losses due to reassessment of assets and liabilities.

Equity Group Holdings (EGH) Ltd recorded an estimated Ksh1.86 billion($16.31 million) in net profit during the period under review translating to about Ksh206.77 million ($1.81 million) per annum, with losses coming in the year 2016 and 2021 at Ksh660 million ($5.78 million) and Ksh200 million($1.75 million) respectively.

Oil export drought​

On the other hand, KCB’s subsidiary in South Sudan returned a total profit after tax of Ksh6.03 billion ($52.89 million) during the same period, translating to Ksh754.12 million ($6.61 million) per annum.

The seven years of civil war significantly affected the South Sudanese economy primarily because of the collapse in oil production in areas affected by the war.

For instance, South Sudan produced about 500,000 barrels per day before 2012 which fell to about 65,000 barrels per day in 2020.

The country also suffers from weak rule of law, widespread corruption and unstable security situation, compounded by poor infrastructure, lack of reliable transport routes, and poor access to electricity, internet connectivity and extremely low levels of education and skills amongst the population.

According to James Mwangi, the Equity Bank chief executive officer, political instability, dip in crude oil prices, high inflationary pressures and exchange rate volatility have colluded to slow down the growth momentum of the South Sudanese economy and subsequently impact negatively on businesses including banks.

“We entered the South Sudan in 2009 and in four years, we had become the largest bank there. It was the subsidiary that was able in one year to pay Ksh1 billion ($8.8 million) in dividend. But, in 2013, war broke out and it affected trade,” Mr Mwangi told The EastAfrican in February this year.

“The conflict between South Sudan and Sudan almost made oil exports impossible because Sudan decided to take $26 per barrel as shipment or pipeline fee. Then oil prices went below $30. So, essentially, South Sudan was making nothing and the economy became suffocated. The tensions and political disagreements intensified. The international community seemed to lose hope, funding dried up and the people gave up.”

According to Mwangi the South Sudanese economy ground to a halt, setting off a microeconomic environment where inflation went all the way to 800 percent.

Maturing democracy​

And it was inflationary losses recorded in our books because of the exchange rate, which moved from three South Sudanese pounds to the dollar to 540 pounds to the dollar.

“So you can imagine the imported inflation in a country importing 90 percent of its requirements. Our strategy was to bring down the bank to maintenance and we reduced our branches from 13 to three, and the staff from 480 to 80 just to maintain the licence. There seems to be hope but we have taken a wait-and-see stance. Every year we are hopeful that it will get better.”

According to the World Bank, about 82 percent of the South Sudan which is especially vulnerable to weather, oil price, and conflict-related shock, is poor.

In an earlier interview with Kenya Bankers Association Chief Executive Habil Olaka said Kenyan banks entry into South Sudan is for long term gains.

“Kenyan banks are playing the long game and are not after quick gains. What is happening in South Sudan is the normal speed bumps for a maturing democracy, and it is only those who are focused on the long term and patient enough who will eventually stabilise and reap the benefits,” said Mr Olaka.

“It is for this reason that none of the Kenyan banks have pulled out in the face of a tumultuous spell, because the long term still looks promising.”

The three banks (KCB, Equity and Co-operative) including Stanbic bank rushed to South Sudan following a peace deal in 2005, attracted by a large unbanked population and oil wealth.

KCB started operations in the country in 2006, Equity in 2009 and Co-operative Bank was the latest entrant in 2013.

Branch fold-up​

Analysts at EFG Hermes reckon that while the banks still report monetary losses in South Sudan, the magnitude has declined because the hyperinflation rate has declined, although the profit contribution from South Sudan is much lower than it was at its peak as transaction volumes haven’t recovered.

According to Paul Mwai, chief executive at AIB-AXYS Africa Ltd, regional expansion has not been very successful for Kenyan banks and while there seemed to be a big opportunity when the persistent political conflict has changed the situation and the opportunities are less.

In 2014, KCB shut three branches in South Sudan after the war broke out while in 2017, Equity Bank followed suit and closed seven out of its 12 branches in the country.

Kenyan banks make losses in South Sudan and why they stay on

The seven years of civil war significantly affected the South Sudan economy primarily because of the collapse in oil production in areas affected by the conflict.
www.theeastafrican.co.ke


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East African countries in $8b investment plan

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www.theeastafrican.co.ke
 
Kichaa wewe, Tanzania na Kenya zimepakana na zinafanya biashara, nani amezidiwa?, Kenya tumewazidi tena kwa mbali Sana, Uganda imepakana na Kenya na Tanzania, huko pia tumewazidi tumewafurusha na kulinyakua soko la Uganda, kwasababu mumeshindwa kupambana na Tanzania katika masoko ya Kenya na Uganda, Sasa unataka kuwaingiza Uganda na Rwanda kushindana na Tanzania?.

Kwa taarifa yako, Rwanda Wana imports bidhaa za $273M kutoka Tanzania then they re- export those goods to DRC, while Rwanda exports to Tanzania is only $20M, Sasa unataka kutushindanisha na Rwanda kweli bila hata aibu?
 
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