Exim Bank’s ambitions in Uganda appear hinged on quite notable growth recorded in cross border trade between Uganda and Tanzania in recent times.
“Uganda generally offers higher returns in the banking business compared to Tanzania and Kenya. We also intend to exploit opportunities created by some of our clients that are engaged in trading activities between Uganda and Tanzania,” noted Dinesh Arora, Exim Bank’s Chief Executive Officer.
Uganda’s imports from Tanzania increased to $29.56 million in the third quarter of 2015 but dropped to $17.24 million during the subsequent quarter, BoU data shows.
Exim Bank started operations in Tanzania during 1997 and has increased its branch network to 37 outlets to date, according to company records.
It owns two subsidiaries in Comoros and Djibouti. The Bank’s total assets were valued at $580 million by end of December 2015 while shareholder funds amounted to $90 million. Profit after tax stood at $14 million at the end of last year.