Expansion, ECOBANK-Style

For a bank whose genesis is West African, it strikes as rather odd that a bank with the pedigree of ECOBANK would now only in 2008 be opening in the West African country of Gambia.

The news that it has joined the ranks of ECOWAS countres in which ECOBANK operates is great news. ECOBANK now covers all of the ECOWAS countries, reminding us first of its West African roots and, secondly, underscoring the importance of the its expansion into the eponymous role of a "Pan-African Bank".

One of ECOBANK's major tactics is in the acquisition of percentages of the banks in which it now operates. Speaking of which, let us remind ourselves that ECOBANK continues to expand --as exemplified by Ecobank's acquisition of 75% of no less than the East African Building Society Building.

The script runs that ECOBANK has a comparative advantage in mortgage financing, therefore this takeover is both useful in expanding respective portfolios and consolidatiung expertise.

Rememeber when ECOBANK opened a branch in Rwanda? I wondered whether this was carte blanche for the group's entry into East Africa? Well, it's a foregone conclusion now!!

From Rwanda & Burundi With Love...

...to the East African Community!

Well, we knew it was in the works...to the extent that Rwanda would leave the Economic Community of Central African States (ECCAS) at an Eccas inter-ministerial meeting in Brazzaville, Congo two weeks ago.

In leaving, this is what the Foreign Affairs and Cooperation Minister would say:

"The regional economic communities are in the process of creating free trade zones, a common market, monetary unions and eventually political federations which are evolving at different speeds, and puts us in a very difficult situation of being tugged in separate directions"

Rwnada expressed the desire to hold onto joining the SADC region just yet, and has, as we see here, proceeded in its joining of EAC.

To be fair, it makes sense for Rwanda to toe this line, for in joining the performing EAC, the once-genocide-torn country will not only be increasing the regional population to 115 million people, but be joining a regional bloc that is making strides.

The article maintains that some of the institutions both Burundi and Rwanda will benefit from joining are:

the East African Court of Justice;

the East African Legislative Assembly

the Secretariat

Defence Pact

, including...

the Inter-University Council for East Africa and sustainable development of the Lake Victoria basin

There are many other advantages besides this, such as on foreign policy and visa applications:

In respect to foreign policy, the five member states will be able to take a common stand at international fora and assist each other in countries where they do not have diplomatic missions. This entails that any of the five member states can appoint one mission to represent their interests abroad.

Nationals from the five countries will also be able to have visa applications processed in any of the missions representing the region.

With regard to the East African political federation, the consultative process which has been going on in the three partner states, is expected to extend to Rwanda and Burundi. A federal president and parliament is expected in 2013

There are, quite naturally, fears about Rwanda and Burundi joining the EAC, and it has mostly to do with loss of sovereignty.

Either way, the EAC is no longer a three-member bloc, but a fully-fledged five-member one. At least, from 1 July, when the AU Summit will also be in process, here, in Accra.