Fetero wrote:watesh wrote:mlennyma wrote:watesh wrote:Ericsson wrote:Equity Bank has put South Sudan subsidiary in exit position meaning the subsidiary is on the verge of shutdown
CEO said no exit plans. They are now bagging a huge deal with UN and other NGOs to handle all the funds they send. Plus they handle embassy funds...retail banking though isnt vibrant
ask cfc the risk of relying on that kind of business without sustainable retail business
Even with currency devaluation and conflicy SS still makes more profit than Uganda and Rwanda subsidiaries. So i say run the business as long as its profitable
But it is no longer profitable as long as conflict escalation is on. KCB closed two branches in SS. from 22 to now 20. You can always retreat to help you live to fight again.
Look at the balance sheet 0.4bn ksh is coming from SS in terms of profit, THAT IS MONEY, not just mere numbers. Thats profitable than many companies here in kenya. The problem last year with SS is currency devaluation due to lack of dollars in the market. Oil production had been reduced by more than 50%, Then prices sank and they were giving out 80%-90% of the revenue to Sudan for transport. Govt was busy using money to buy weapons and pay soldiers.
So far negotiations with Sudan about the reduction of $25 per barrel charge has started, more oil fields are back into production and oil prices are back at $40.
So its not yet time to close shop yet