Kenya's leading bank to open branch in southern Sudan
State-owned Kenya Commercial Bank (KCB) announced Friday in Nairobi that it would open a new branch in Rumbek, the provisional capital of southern Sudan at the end of this year.
KCB Chief Executive Terry Davidson said the bank would push ahead with its plans to open a subsidiary despite the tragic demise of Sudan vice president John Garang.
"The tragic demise of Garang was a major shock to us and that may slow our plans. (But) all logistics are on track. We are working with Sudanese authorities to open a new branch in Rumbek by the end of this year," Davidson told an investor briefing in Nairobi.
"We should have the branch on the ground when we get over the regulatory issues that may take three to four months," he added.
Davidson said the bank made the decision after touring the region and concluding that it lacks "adequate banking facilities."
Garang, ex-rebel leader and recently appointed first vice- president of Sudan, had since January pushed to revive the economy in southern Sudan, and his invitation to companies to invest in the region has received strong support.
However, the deadly clashes following his death last week has slowed the activities in the vast region.
Sudanese authorities have reassured that a key north-south peace pact is still in place and the former rebel Sudan People's Liberation Movement (SPLM) quickly named Garang's deputy, veteran commander Salva Kiir, as leader.
Dozens have been killed in riots in the northern capital Khartoum, since Monday when angry southerners took to the streets after the official announcement of Garang's death.
"We are looking at the entire situation. If it deteriorates, then we will put our plans on hold," said Davidson.
African firms including the international ones have been positioning themselves to exploit opportunities in southern Sudan, focusing on sectors as diverse as construction, oil, banking and farming, and hoping to share the billion of dollars pledged by donors.
"As soon as we clear the relevant authorities, we will be on the ground to provide our services to the people by December," said Davidson.
Kenya, which hosted peace talks that led to January's peace agreement, is particularly keen to beat South African rivals in the race for opportunities in southern Sudan and aims to build a railway to connect its neighbor to its Indian Ocean port city of Mombasa.
Rumbek is the provisional capital city of southern Sudan's autonomous region which created by the accord signed in Kenya early this year between the Khartoum government and southern rebels.
It now serves as the headquarters of the United Nations and various aid agencies working in southern Sudan.
The little economic activity seen there has been concentrated on the work of aid organizations.
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