Identifier
Created
Classification
Origin
06KHARTOUM257
2006-02-02 12:50:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Khartoum
Cable title:
JUBA OPENS ITS FIRST COMMERCIAL BANK
how-toVZCZCXYZ0000 RR RUEHWEB DE RUEHKH #0257/01 0331250 ZNR UUUUU ZZH R 021250Z FEB 06 FM AMEMBASSY KHARTOUM TO RUEHC/SECSTATE WASHDC 1265 INFO RUEHNR/AMEMBASSY NAIROBI 0412 RUEHKM/AMEMBASSY KAMPALA 0039 RUEHSA/AMEMBASSY PRETORIA 0032 RUEHEG/AMEMBASSY CAIRO 0068 RUEHDS/AMEMBASSY ADDIS ABABA 0071 RHEHNSC/NSC WASHDC
UNCLAS KHARTOUM 000257
SIPDIS
SIPDIS, SENSITIVE
E.O. 12958: N/A
TAGS: EFIN ECON PGOV SU SA UG KE
SUBJECT: JUBA OPENS ITS FIRST COMMERCIAL BANK
UNCLAS KHARTOUM 000257
SIPDIS
SIPDIS, SENSITIVE
E.O. 12958: N/A
TAGS: EFIN ECON PGOV SU SA UG KE
SUBJECT: JUBA OPENS ITS FIRST COMMERCIAL BANK
1. (U) SUMMARY: In a three-hour ceremony on February 1,
a large gathering of influential southern Sudanese,
supported by a large crowd, celebrated the official
opening of the Nile Commercial Bank (NCB),the first
institution of its kind in Juba. NCB was reportedly the
brainchild of John Garang, who pressed for the
development of institutions in areas held by the SPLA.
The NCB was constituted by a group of investors, with
SPLA support, in Yambio in January 2002. It opened its
first branch there in September 2004, in Rumbek in early
2004, and in Juba in September 2005. End Summary.
--------------
Strengths and Weaknesses
--------------
2. (U) Executive Director Aggrey Idris listed the
services the bank would offer: checking and savings
accounts, money transfers between five southern cites and
Nairobi and Kampala, commercial loans and micro finance,
letters of credit, and salary advance loans for those
employed by the GoSS and NGOs. He described NCB's
affiliation with the Standard Bank Group of South Africa
through the affiliate Stanbic of Kenya and Uganda.
Stanbic had provided training for 51 NCB employees, and
in March 2006 NCB expected to be computerized and linked
to the outside world through its own VSAT. They expected
to expand into Malakal, Wau and Renk by the end of the
year.
3. (U) Idris listed the challenges that confront the
NCB. The lack of an autonomous Central Bank of South
Sudan, and the resultant shortage of currency, was
problematic. The bank was not heavily capitalized,
because it had access to neither donor not SPLM
resources, and the low salaries available had attracted
an inexperienced staff. He stressed that the principal
threat was the expressed desire of international and
regional banks to locate in the South, which would create
a competition that the fledgling NCB could not hope to
win. He called for the GoSS to limit outside banking
competition during the CPA interim period, noting that
some of NCB's would-be competitors had "supported the
enemy" during the war. In following remarks, the NCB
Chairman of the Board repeated the call for GoSS
protection, likening the situation to a parent who has
painfully prepared food for his/her children only to see
someone else allowed in the house to consume the feast.
--------------
All Credit to Us, All Blame to the North
--------------
4. (SBU) James Wani Igga, Speaker of the Legislative
Assembly of Southern Sudan, represented the GoSS. He
turned the event into a political pep rally, stressing
that the SPLM was delivering on its promises of a peace
dividend for the people, the opening of the NCB one
important installment. Wani Igga blasted "traders" (read
Northern merchants) as enemies who "milked the South" and
sent their earnings to Khartoum. He called for measures
to oblige traders to bank their money -- "not necessarily
with NCB" (although there are no other options at this
time) -- and said the GoSS must monitor such accounts.
He added that NGOs operating in the South should also
consider using now available local new banking
facilities. A six-person South African banking
delegation attended the inauguration.
--------------
Comment
--------------
5. (SBU) NCB's opening represents yet another step
toward rebuilding southern institutions shattered by more
than two decades of war. It is on balance a positive
step, but one that bears watching. While it may have
been only political bombast, Wani Igga's suggestion that
the GoSS might consider monitoring private traders was
noteworthy. We have also heard unofficially that the
GoSS intends to give NCB special, possibly monopolistic,
privileges that could -- considering NCB's under-
capitalization and lack of expertise -- hamper the
establishment of a formal, competitive banking sector
throughout the South. In a side meeting, Idris commented
on a report that the Kenya Commercial Bank is seeking a
license for operations, saying that "no one wants them
down here." A large banner festooning the front of the
bank building read: "Our vision is to become the leading
finance service provider in the New Sudan." The rhetoric
suggested that NCB's desire is that it be the only one.
HUME
SIPDIS
SIPDIS, SENSITIVE
E.O. 12958: N/A
TAGS: EFIN ECON PGOV SU SA UG KE
SUBJECT: JUBA OPENS ITS FIRST COMMERCIAL BANK
1. (U) SUMMARY: In a three-hour ceremony on February 1,
a large gathering of influential southern Sudanese,
supported by a large crowd, celebrated the official
opening of the Nile Commercial Bank (NCB),the first
institution of its kind in Juba. NCB was reportedly the
brainchild of John Garang, who pressed for the
development of institutions in areas held by the SPLA.
The NCB was constituted by a group of investors, with
SPLA support, in Yambio in January 2002. It opened its
first branch there in September 2004, in Rumbek in early
2004, and in Juba in September 2005. End Summary.
--------------
Strengths and Weaknesses
--------------
2. (U) Executive Director Aggrey Idris listed the
services the bank would offer: checking and savings
accounts, money transfers between five southern cites and
Nairobi and Kampala, commercial loans and micro finance,
letters of credit, and salary advance loans for those
employed by the GoSS and NGOs. He described NCB's
affiliation with the Standard Bank Group of South Africa
through the affiliate Stanbic of Kenya and Uganda.
Stanbic had provided training for 51 NCB employees, and
in March 2006 NCB expected to be computerized and linked
to the outside world through its own VSAT. They expected
to expand into Malakal, Wau and Renk by the end of the
year.
3. (U) Idris listed the challenges that confront the
NCB. The lack of an autonomous Central Bank of South
Sudan, and the resultant shortage of currency, was
problematic. The bank was not heavily capitalized,
because it had access to neither donor not SPLM
resources, and the low salaries available had attracted
an inexperienced staff. He stressed that the principal
threat was the expressed desire of international and
regional banks to locate in the South, which would create
a competition that the fledgling NCB could not hope to
win. He called for the GoSS to limit outside banking
competition during the CPA interim period, noting that
some of NCB's would-be competitors had "supported the
enemy" during the war. In following remarks, the NCB
Chairman of the Board repeated the call for GoSS
protection, likening the situation to a parent who has
painfully prepared food for his/her children only to see
someone else allowed in the house to consume the feast.
--------------
All Credit to Us, All Blame to the North
--------------
4. (SBU) James Wani Igga, Speaker of the Legislative
Assembly of Southern Sudan, represented the GoSS. He
turned the event into a political pep rally, stressing
that the SPLM was delivering on its promises of a peace
dividend for the people, the opening of the NCB one
important installment. Wani Igga blasted "traders" (read
Northern merchants) as enemies who "milked the South" and
sent their earnings to Khartoum. He called for measures
to oblige traders to bank their money -- "not necessarily
with NCB" (although there are no other options at this
time) -- and said the GoSS must monitor such accounts.
He added that NGOs operating in the South should also
consider using now available local new banking
facilities. A six-person South African banking
delegation attended the inauguration.
--------------
Comment
--------------
5. (SBU) NCB's opening represents yet another step
toward rebuilding southern institutions shattered by more
than two decades of war. It is on balance a positive
step, but one that bears watching. While it may have
been only political bombast, Wani Igga's suggestion that
the GoSS might consider monitoring private traders was
noteworthy. We have also heard unofficially that the
GoSS intends to give NCB special, possibly monopolistic,
privileges that could -- considering NCB's under-
capitalization and lack of expertise -- hamper the
establishment of a formal, competitive banking sector
throughout the South. In a side meeting, Idris commented
on a report that the Kenya Commercial Bank is seeking a
license for operations, saying that "no one wants them
down here." A large banner festooning the front of the
bank building read: "Our vision is to become the leading
finance service provider in the New Sudan." The rhetoric
suggested that NCB's desire is that it be the only one.
HUME