Kampala — After setting up shop in Uganda and Tanzania and the Kenya licence not too far off, West Africa's largest bank, United Bank for Africa (UBA) is looking to increase its footprint in East Africa by expanding to Rwanda and Burundi.

"Yes we are looking at Rwanda and Burundi as well. At the moment, we are analysing those two economies," Mr. Rashid, the executive director of the Africa operations said.

This expansion stance is part of a larger agenda by the Nigeria-based bank to open up shop in 25 African countries. Just over a year ago, UBA could only talk of its large Nigerian operation but has since expanded to 13 other African countries.

In East Africa, UBA has already acquired licences and is operational in Uganda and Tanzania while the Kenya licence should be in the bag sooner rather than later.

Last week, the Uganda operation, which is just six months old held its first board meeting in Kampala. UBA applied for licences in Uganda, Kenya and Tanzania at the same time but the Kenya operation has taken longer to mature.

"Kenya has taken longer but it will not take longer than another week now," Manz Denga, the East Africa region chief executive officer said.

"We knew when we came into East Africa that Kenya would not be easy because they have for long been pushing the view that they are over-banked. Kenya has not licensed a new bank in 10 years and has a total of 43 banks today," he added.

Having invested US$12 million in UBA Uganda, given the sophisticated Kenyan market, UBA will enter the Kenyan market with a kitty of some Ksh15 billion ($220 million).

Denga revealed that as is company policy, UBA Uganda will be listed on the Uganda Securities Exchange (USE) soon.

Talking about UBA Uganda's performance over the last six months since it opened its doors to clients, Denga, the man who has overseen the operation said the bank has been well received in the market.He said over the past six months, the bank has opened five branches including the headquarters at Jinja Road in the central business district, Kansanga, Ndeeba, along William Street and in the eastern town of Jinja.

Denga said the Mbale branch is scheduled to open for business in two weeks' time.

Re-modeling works at four other pipeline branch locations at Fort Portal, Mbarara, Mukono and Gulu are also in advanced stages and are expected to be operational by December 2008.

As at October 31, 2008, UBA Uganda had recorded about 10,000 customer accounts. Averagely, banks in Uganda have between 800,000 and 1 million customers.

UBA Uganda has rolled out ATMs, e-statements, and e-alerts products as part of the bank's key e-electronic product platform.

"We plan to rollout VISA cards, Mobile Money, Point of Sale (POS) and Internet banking as part of the bank's cohesive approach," Denga said.

From an initial staff of 80 people, the bank has grown the number to 130 and more jobs will be created when the bank expands from the current six branches to ten by the second quarter of next year.

Denga also said a significant number of the bank's senior management positions are held by Ugandans.

After completing a six-month regulatory hurdle before opening its loan book, Denga revealed UBA has now commenced lending at competitive interest rates.

"There was a six-month hurdle we had to jump before we were allowed to start lending but I am happy to announce that with a deposit base of Ushs110 billion (US$64.7 million) we are ready," Denga said.

According to Denga, the rate of growth of their deposit base has amazed them because no bank has grown deposits that fast in a space of six months.

Asked at what lending rate UBA intends to come into the market with, Denga said the bank's prime lending rate will be 17%.

He said they have calculated the rate after taking in the prevailing conditions of inflation.

"When we came into this market we promised to price our loans cheaply. I am happy that even as a new bank, our prime lending rate will be 17% and that is very low compared to other banks but should the costs of lending go down, we will lower our rate," Denga explained. UBA has an ambitious plan of becoming Africa's biggest financial services provider.

In line with this, its operations on the continent have been zoned into Southern Africa, Central Africa, the Maghareb (Northern Africa) and East Africa.

The East African operations will take in Uganda, Kenya, Tanzania, Zambia and Southern Sudan at the moment.