CBA Group has issued a statement confirming that it has acquired Crane Bank Rwanda, the only Ugandan owned bank that had been operating in a foreign country from dfcu Bank.
In the statement announcing the acquisition yesterday, CBA said it had acquired 100 per cent of the Rwandan bank.
“Commercial Bank of Africa Limited (CBA) is pleased to announce that it has signed a definitive Sale and Purchase Agreement (SPA) to acquire 100 percent of Crane Bank Rwanda from dfcu Bank Limited (dfcu),” reads the notice issued by Mr Isaac Awuondo, the CBA Group Managing Director on Thursday.
In January 2017, dfcu Bank acquired liabilities and assets of tycoon Sudhir Rupaleria’s Crane Bank from Bank of Uganda (BoU) for an undisclosed fee. The acquisition included the Crane Bank Rwanda. It is understood that dfcu Bank did not have any interest in retaining the Crane Bank Rwanda assets on its books.
President Uhuru Kenyatta’s family are major shareholders in CBA and will have now a physical presence in four countries, including Uganda and Tanzania, moving it closer to its target of having operations in 10 African countries.
The bank has two branches in Uganda, 11 in Tanzania and 33 in Kenya. In Rwanda, CBA operates an equivalent of mobile banking service M-Shwari backed by a microfinance licence.
Rwanda state newspaper, NewTimes quoted Derrick Ouma, a top official at CBA, the bank will run their two entities separately for the time being until the completion of the post-acquisition processes.
He said the two banks will be under the parent company based in Nairobi, Kenya.
In regards to the branding, he said the new asset would keep its name for the time being but there are chances of a merger in future.
CBA Rwanda is registered as a micro-finance bank and will remain so for the time being, according to officials.
Staff reassured
Commenting on the implication of the acquisition to staff of the bank, Ouma said they will not be affected at the moment considering that the bank was still operational.
However, as the new owners restructure the bank, he added, there was a chance of normal staff restructuring.
The acquisition by CBA could see Crane Bank Rwanda adopt technology in its expansion and penetration of the Rwandan market. This is due to the fact that the new owner has largely been dependent on technology for growth and expansion.
