Afriland First Bank has closed its operations in Uganda after two full years due to increasing financial losses.
Bank of Uganda Deputy Governor Michael Atingi-Ego announced that it has approved Afriland First Bank Uganda Limited’s request to apply to the High Court for voluntary liquidation.
“Bank of Uganda (BoU), in exercise of its powers under Section 98 (1) of the Financial Institutions Act, 2004 (as amended), on Wednesday 26th May 2026 approved a request from Afriland First Bank Uganda Limited, to apply to the High Court for Voluntary Liquidation,” Dr Ego announced in a statement released on Thursday, 26 May 2022.
“Afriland First Bank Uganda Limited’s decision for Voluntary Liquidation was an outcome of a strategic business review by the shareholders-Afriland First Group,” read part of the statement.
According to Bank of Uganda, all bank’s depositors will be fully paid from the Afriland First Bank Uganda Limited’s premises.
“All depositors of Afriland First Bank Uganda Limited are encouraged to withdraw their deposits from Afriland First Bank Uganda Limited’s premises. All other verified creditors shall be paid in full by the Liquidator that has been appointed by shareholders of Afriland First Bank Uganda Limited,” the Deputy Governor said.
Afriland First Bank Uganda Limited opened in Uganda in September 2019. However, the bank failed to penetrate and dominate the market. It is currently headed by Aboubaker Mayake as Managing Director.
However, the bank’s audited financial results for the year ended 31st December 2021 show that it was undercapitalized. Whereas BoU’s minimum capital requirement is Shs25bn, Afriland First Bank’s core capital stood at Shs19bn in 2021, down from Shs26.75bn in 2020.
According to the results, Afriland First Bank made a loss of Shs2.67bn in 2021, up from the Shs1.84bn loss recorded a year earlier.
Afriland First Group pools the investments of a group of Africans in Afriland First Bank units across the world since 1987, when the first unit opened. The bank indicates that since 2008, it has made other acquisitions in Liberia, Zambia, Guinea, South Sudan and Ivory Coast.
The closure of the bank comes amid growing closure of international businesses such as telecoms and supermarkets amid increasing economic pressures exacerbated by Covid-19.
There are seven known commercial banks that have been closed by the Bank of Uganda over the last 30 years and these include; Teefe Trust Bank (1993), Greenland Bank (1999), Cooperative Bank Limited, National Bank of Commerce (NBC), Global Trust Bank and Crane Bank.
