Saturday, April 20, 2024

Nigeria’s United Bank of Africa spreads to Zambia

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Nigeria’s United Bank of Africa (UBA) has started operating in Zambia with a capital investment of $15 million as it seeks to expand its influence on the African continent, Chief Executive Officer Abba Bello said on Thursday.

Bello told Reuters one UBA branch was already operational in Lusaka and the bank planned to open two more in the country’s mining towns on the Copperbelt and another in Solwezi, which hosts two key mines in Africa’s largest copper producer.

“Our focus is on wholesale and retail and we play in all sectors of any economy that we are in, so when you say mining, yes we will be in mining but we will be in all sectors of wholesale space in Zambia and we will support that with retail play,” Bello said.

Bello said UBA hoped its growing influence in Africa would help boost trade and spur the continent’s economic growth.

“UBA is here as a vehicle to ensure that Africans have their own bank that can assist in empowering indigenous Africans in growing intra-African trade and trade between Africa and the rest of the world,” he said.

Bello said with the start of operations in Zambia, UBA was now present in 17 countries in Africa.

In October, UBA launched its Kenyan operation to compete with pan-African group Ecobank Transnational Inc, which began working in Kenya in 2008.

Bello said the competition, brought about by the opening of more banks in Zambia, which now has 18 banks, and favourable economic indicators in recent months would help bring down interest rates.

[Reuters]

9 COMMENTS

  1. Zambians why are we so hopeless , how come foreigners see opportunities and yet yourselves wallop in abject poverty and feel safe to be workers.Its a big shame to a nation of 45 years.Imwe ba mbuli mu diaspora organise yourselves ,very soon BP is leaving Zambia imwe muli ce ndwi , foreigners will come in to take over BP areas ifwe ninshi tulifye mu diaspora languishing

  2. good show. welcome to zambia UBA! this goes to show amoung other things that there is wealth potential in our country. would urge all to support such good investments! viva more job creation!

  3. Wealth potential when foreigners are making money out of you. Maybe because as Zambians, we don’t see potential. It is sad and now we are trusting Nigerians??? Scary development

  4. following canucks comments, it is sad reality that we have allowed foreigners to make money out of us. but i am not scarred that nigerians have come on board. but this is a wake up call!

  5. Nigerian banks are able to open in Zambia because at 15% interest rates, if you lend $10million of that capital, you will be making $1.5million return a year. Even accounting for operating costs you have an investment that gives an amazing return! The same money deposited in an account in the UK for example will give you a return of up to 4%. The profits will ultimately by externalised and Zambia will have to find the US$ for that. We have a strange outlook on investment in Zambia.

  6. Nigerians establishing a bank in Zambia? Someone is not serious in this country. Nigerians are not even allowed to do business on EBAY for example. All the scammers online are from that country. And then they find the cheek to come and camp in ZAMBIA!!!!!!! Some one at the heart of GRZ has been paid very HANDSOMELY to allow scammers into this beautiful country. Who will save us?

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