Dear Wazuans,

Interesting scenario with a local company here in Kenya. This company mainly deals with financial asset classes (stocks, bonds, CPs etc) and having heavily invested in the NSExchange, they are looking to divest into the existing but rather illiquid neighbouring bourses (Uganda, Tanzania, Malawi, Rwanda) with a long term- view on the counters they invest in.

So far, so good...however, the challlenge and risk faced by the Firm is currency losses arising from Foreign exchange conversions every time they anticipate to receive dividends or pay into their foreign CDS accounts (due to skewed exchange rates favouring the Bank coupled with high Swift transaction charges)

Two Queries then...is it possible/feasible to open a foreign company accounts in these foreign nations especially that the A/cs won't be active in nature and only for the said purposes- dividends, transfer/payemnts to & fro CDS Account (for now)...? As well, won't they be subject to rigorous opening procedures for such a ''small'' matter (such as required to apply for a business license to prove business is existing)?

Two, none of the local banks that has subsidiaries offers an account that faciltates East African trade transactions in line with EAC trade opening up, do they? Perhaps those in the banking sector here should look into that...so, is it a feasible strategy play for the company in the said respect?

How would YOU go about it?