Co-op Bank launches in South Sudan

• South Sudan officials said during the signing ceremony in Juba on Tuesday that the government would sell 11 per cent of its stake after three years.
• Officials said the bank would help farmers to sell products as South Sudan, with the help of the United Nations and expand agricultural production to overcome food shortages
• While South Sudan is one of the world’s least developed countries with few people having a bank account, several foreign banks have entered the market, including KCB Group, CFC Stanbic and Equity Bank ,Qatar National Bank and a bank funded by Dubai Islamic Bank.
• South Sudan is undergoing a severe economic crisis but business prospects have improved since the government reached an agreement with Sudan on how much it should pay to export oil through the north.

Kenyan lender Co-operative Bank and South Sudan on Tuesday launched a bank set to benefit from government plans to boost local food production.

The listed bank has established the Co-operative Bank of South Sudan in which managing director Gideon Muriuki earlier told the Business Daily it would hold 51 per cent stake while Juba would hold the balance in the Sh1.2 billion venture.

READ: Co-op Bank in Sh1.2bn South Sudan venture

South Sudan officials said during the signing ceremony in Juba on Tuesday that the government would sell 11 per cent of its stake after three years.

Mr Muriuki signed for the bank while South Sudan Agriculture minister Betty Achan Ogwaro signed for that country.

Officials said the bank would help farmers to sell products as South Sudan, with the help of the United Nations and expand agricultural production to overcome food shortages.

“It is only through the bank that we will be able to support the farmers. When the government does not have money, the bank will have the resources to support the farmers,” Ms Ogwaro told Reuters.

While South Sudan is one of the world’s least developed countries with few people having a bank account, several foreign banks have entered the market, including KCB Group, CFC Stanbic and Equity Bank, Qatar National Bank and a bank funded by Dubai Islamic Bank.

KCB and Equity are already making tidy profits in the virgin market. Other Kenyan banks are lining up to enter the country. South Sudan is undergoing a severe economic crisis but business prospects have improved since the government reached an agreement with Sudan on how much it should pay to export oil through the north.