IGI gets licence to float bank in Uganda February

Sunday Ojeme
Industrial and General Insurance Company has finalised arrangements to open a commercial bank in Uganda by February 2008 after obtaining an operating licence from the Bank of Uganda.
According to a Uganda-based newspaper, Daily Monitor, IGI received its license from Bank of Uganda to start operations three weeks ago. It will be joining Kenya Commercial Bank that opened early last week, among the new entrants on the country’s increasingly competitive financial services market.
With the development, more than 250 Ugandans would be directly and indirectly employed when the bank starts its operations.
IGI has been operating in Uganda as a dominant insurance firm after acquiring 60 per cent equity in Uganda’s government owned National Insurance Corporation.
According to the Chairman of NIC, Chief Remi Olowude, IGI identified many gaps in the financial services sector that needed to be urgently addressed.
He said, "We are moving beyond insurance to become a financial services provider in the whole East African region."
He spoke at the location where the new bank whose brand name is Continental Trust Bank will be housed.
Olowude said IGI would initially embark on a robust penetration in the rural areas, with longer banking hours and establish a presence with "surprise products," which every Ugandan can afford.
However, NIC customers will have special arrangements when dealing with the bank.
The Nigerian Foreign Affairs Minister, Chief Ojo Maduekwe, said the development would attract more confidence in Nigerian entrepreneurs to invest in Uganda because of its open door policy for investors.
"It's time for business people in Africa to start intra-trade investments to build each other's economies," he said.
Opening the bank comes at a time when NIC in finalising plans to float 40 per cent shares on the Uganda Securities Exchange.
Olowude said the value of the company had increased over the past months thus affecting the share price; but that they are working to ensure that as many Ugandans as possible buy into the company.