KCB, CFC Stanbic get approval to open shop in Ethiopia

Kenya Commercial Bank and Standard Bank Group which trades under the CFC Stanbic brand in Kenya are eyeing a share of the fast growing Ethiopian economy with new offices.

KCB and Standard Bank, the largest banks in Kenya and South Africa by assets respectively said on Thursday they received licenses to open representative offices in Ethiopia, boosting plans to enter more markets in the region.

"KCB received the license to open a representative office in Ethiopia on Oct. 14, opening up the bank to opportunities in Africa's second-largest market by population," KCB said in a statement.

Ethiopia is the second-most populous country in Sub-Saharan Africa with a population of 96.5 million with its economic growth averaging 10 per cent in the last 10 years, it is also one of world's poorest economies.

Facilitate trade

KCB also operates in Tanzania, Burundi, Uganda, South Sudan and Rwanda while CFC Stanbic has a footprint in 20 African countries.

"The bank hopes to use its presence in Ethiopia to facilitate trade between Ethiopia and other East African countries while playing part in driving economic expansion in the country," Standard Bank chief executive, Ben Kruger said.

KCB also has annouced a 10 per cent growth in net profit helped by a significant increase in interest income.

The second top tier bank to release its quarter three results after Equity Bank’s announcement on Monday, said its net earnings to September 30, was Sh13.7 billion compared Sh12.48 billion posted during a similar period last year.