Nairoberry
JF-Expert Member
- Mar 7, 2012
- 933
- 525
The
latest addition to Nairobis regional
hub status comes from South
African bank FirstRand, which
opens a representative office in
Kenya this week.
The bank joins three others that
have opened up in Nairobi in the
past four years, along with
corporates such as Samsung and
PwC and companies set on regional
expansion such as Nestlé and Dow
Chemicals, the $60bn company
whose CEO Andrew Liveris visited
Nairobi this week.
Wolfgang Fengler, the World Banks
lead economist for the country,
says Kenya is perfectly situated for
companies bent on regional
expansion thanks to an expanding
population of working age, access
to the sea and the hinterland, a
developing education system and
better macroeconomic policies
than in preceding decades. He says
Kenya also stands to gain from
rising labour prices in China if it can
ready its nascent manufacturing
sector for the fallout. The World
Bank expects China to shed 85m
manufacturing job in the next ten
years.
Jabu Khethe, head of Africa at
FirstRand, shares the enthusiasm.
We believe theres a gateway, a
pipeline of business that exists
between India and Africa coming
through Kenya, he told a Nairobi
dinner audience that included
bankers, private equity funds and
senior government officials.
Khethe said the bank hoped to
have full banking status within two
years, setting up a retail branch
network on top of suitcase
banking operations through which
it is already assessing deals worth
more than $650m in Kenya, in
areas from project finance to
commodity services.
To gain its full banking licence,
FirstRand will most likely negotiate
with a local bank and make an
acquisition, Khethe said.
Robinson Githae, Kenyas new
minister of finance, said a new
minimum capital requirement for
banks of 1bn shillings ($12.5m) by
the end of the year was likely to
spur mergers and acquisitions
among the countrys 43 banks. He
also called on banks to open more
branches and said employers
would soon be required to pay
workers through bank accounts
rather than in cash to boost
financial inclusion.
We intend to expand the middle
class, he said.
Njuguna Ndungu, central bank
governor, said banking was among
the strongest investment draws in
Kenya. He said a fifth banking
entrant was waiting for its letter of
approval, due soon.
Ndungu said banks continued to
make massive profits even in last
years hostile macroeconomic
environment, characterised by high
inflation and shilling depreciation.
The financial sector grew 8.8 per
cent last year, well above 5.6 per
cent overall growth.
The hub is likely to develop more spokes yet
latest addition to Nairobis regional
hub status comes from South
African bank FirstRand, which
opens a representative office in
Kenya this week.
The bank joins three others that
have opened up in Nairobi in the
past four years, along with
corporates such as Samsung and
PwC and companies set on regional
expansion such as Nestlé and Dow
Chemicals, the $60bn company
whose CEO Andrew Liveris visited
Nairobi this week.
Wolfgang Fengler, the World Banks
lead economist for the country,
says Kenya is perfectly situated for
companies bent on regional
expansion thanks to an expanding
population of working age, access
to the sea and the hinterland, a
developing education system and
better macroeconomic policies
than in preceding decades. He says
Kenya also stands to gain from
rising labour prices in China if it can
ready its nascent manufacturing
sector for the fallout. The World
Bank expects China to shed 85m
manufacturing job in the next ten
years.
Jabu Khethe, head of Africa at
FirstRand, shares the enthusiasm.
We believe theres a gateway, a
pipeline of business that exists
between India and Africa coming
through Kenya, he told a Nairobi
dinner audience that included
bankers, private equity funds and
senior government officials.
Khethe said the bank hoped to
have full banking status within two
years, setting up a retail branch
network on top of suitcase
banking operations through which
it is already assessing deals worth
more than $650m in Kenya, in
areas from project finance to
commodity services.
To gain its full banking licence,
FirstRand will most likely negotiate
with a local bank and make an
acquisition, Khethe said.
Robinson Githae, Kenyas new
minister of finance, said a new
minimum capital requirement for
banks of 1bn shillings ($12.5m) by
the end of the year was likely to
spur mergers and acquisitions
among the countrys 43 banks. He
also called on banks to open more
branches and said employers
would soon be required to pay
workers through bank accounts
rather than in cash to boost
financial inclusion.
We intend to expand the middle
class, he said.
Njuguna Ndungu, central bank
governor, said banking was among
the strongest investment draws in
Kenya. He said a fifth banking
entrant was waiting for its letter of
approval, due soon.
Ndungu said banks continued to
make massive profits even in last
years hostile macroeconomic
environment, characterised by high
inflation and shilling depreciation.
The financial sector grew 8.8 per
cent last year, well above 5.6 per
cent overall growth.
The hub is likely to develop more spokes yet
. Share your bile buddy....give me a page if necessary al take it to the lab.
