Rabo Commercial Bank has announced it will start commercial banking in the Kollumititi district of Kollupsi, capital of the Kontana province, with a target to become a member of the bank’s commercial banking group in the next two years.
“The decision was taken after several meetings with the central bank and the finance ministry,” Rabo’s president, S.M. Myseni, said in a statement.
Rabo has about 20 employees and has branches in Kontany, Vavala, and the central business district of Vavals.
The bank will also be accepting cheques in cash from customers in Kondamba, Kollumsi, and Vavana.
“We will be a member to a bank and will provide banking services, but not a commercial banking unit,” Mysenyi said.
The Kondamansat Bank was the first bank to offer commercial banking services in Kossu, an area that has been struggling with unemployment, drug addiction and crime.
Rabo is the first commercial bank to launch in Kombi, an impoverished area in central Uganda, the world’s most populous country with a population of more than 8 million.
The government is considering allowing commercial banks in the region to start operations later this year.
It is also a major financial hub, with more than 200 commercial banks operating in the area.
Earlier this month, Rabo announced that it was accepting cheque payments from Kombisat Bank, the country’s largest private bank.
The two entities signed an agreement for Rabo to open a branch in the central capital, Kampala, in 2019.
Read more about Rabo and commercial banking here