Countries
Kenya, Tanzania, Uganda

Local Project Partners
Association of Savings Banks of East Africa (ASBEA)

Donator
Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)

Duration
01.01.2002 - 31.12.2003

In this project the postal savings banks of the East African Community (EAC), Kenya Post Office Savings Bank, Tanzania Postal Bank and PostBank Uganda, have been supported in the preparation of founding the Association of Savings Banks of East Africa. The three postal savings banks are major providers of financial services for the low income groups, particularly in rural areas. In a market of more than 88 million inhabitants, thereof 74% rural, they account for approx. 15% of all savings accounts with 6.2% of the savings deposits. Out of 1,450 bank branches in the EAC 650 or 44% are maintained by the ASBEA members.

Due to similar mandates and challenges, the project aimed at supporting the founding process of ASBEA and elaborating possible synergies to make efficient use of the limited resources. In a comparative study on the respective business plans synergy areas have been worked out. The EDP set-up of the banks have been analysed, user requirements for the PostBank Uganda have been developed and shared with the other ASBEA members regarding the methodology and content of the fundamental basis of successful EDP implementation.

A study on possible co-operation in the area of training has recommended on balancing the joint use of scarce resources against travelling cost for joint training activities. A workshop for the managing directors and top managers of the ASBEA members and of some postal companies of the EAC has been conducted on the co-operation and Service Level Agreements between postal companies and postal savings bank.

ASBEA’s constitution has been signed in May 2003 followed by the registration of the association in Tanzania.

Services provided

• Comparative study of the strategic development plans of the ASBEA members and elaboration of possible synergies,
• Development of an ASBEA development plan and of joint activities,
• Recommendation on areas of joint training activities for the ASBEA members, and delivery of training,
• Study on the EDP situation of the ASBEA members and development of a proposal for harmonised processing of transactions,
• Preparation of a regional payment system of the ASBEA members aiming at the ordinary savers and working migrants in the EAC