Bank of Uganda has approved Afriland First Bank Voluntary liquidation request as the company seeks to quit Ugandan market after 2 years.
Founded in Cameroon, Afriland opened operations in Uganda in 2020 just a year after obtaining license from Bank of Uganda in September 2019.
Bank of Uganda said that that Afriland First Bank asked to voluntarily exit Uganda market a request that was granted.
The bank is said to have not administered any commercial loan in its 16 months of operation and had managed to amass deposits of 958M which is 0.08% of Uganda’s market share according to Bank of Uganda.
Failure is partially due to stiff competition in the banking sector with a total of 26 banks having been operating in Uganda struggling to get a share on the small sized banking economy.
The other attributing factors include the ongoing COVID-19 Pandemic which had a strong effect on the economy of Uganda.
Afriland by December 2021 had a total asset base of UGX 31.4b, liability of Shs 11.13b, Shareholders equity of 8.2b while other liabilities stood at shs 2b.
Being a solvent company, bank of Uganda says that all creditors and depositors will be paid in full.