The big picture: Rwanda-Burundi relations are at an all time low. Uganda’s Museveni has lent his parental hand to try to fix the tensions; two civilians in Rwanda have reportedly been killed by attacks from Congo. Kenya has hit a roadblock amid economic distress in face of rising debt.
The still growing central banks in the region and foreign aid most can’t come to the rescue
Eastern Africa banks have recently been marked by growing strength in depth. Banque of Kigali secured 15th position in East Africa Business Magazine survey last year with core capital of $28 m; and despite almost doubling the value of its capital base in this year’s table to $54 m, Rwanda’s biggest bank now ranks just 20th. Ethiopia’s Dashen Bank needed $82m to take 15th place for 2011.
Unsurprisingly, Kenya has the most banks in our table; its six entrants demonstrate that the country has one of the most competitive banking sectors on the African continent.
The point is these banks are still very small in capital.
The economy in the region isn’t imminently coming to a recession, but the fragile nature of security in the region is always a cause for concern. Good decision and policy making has seen consistent economic growths with Tanzania and Rwanda at the helm of it all. Security and stability are needed to maintain the great momentum.