Deloitte Seals A Sweet Deal to Overhaul Mang’t Strategy For United

The deal will make United Bank the fifth private bank for same management strategy project

Deloitte East Africa sealed a deal to redesign a 12-year management strategy for United Bank, dubbed as “strategy 2030” for an estimated cost of 21 million Br to 25 million Br.

The agreement was signed yesterday April 14, 2018, at the premises of the bank’s headquarters located on the Sierra Leone Street. Rodger George, advisory leader of Deloitte East Africa and Taye Dibekulu, president of the bank inked the deal.

The deal makes United the fifth private bank to hire an international firm for the redesign of its strategy. Bank of Abyssinia pioneered the trend three years ago by hiring Deloitte Consultancy. Awash, Dashen and Nib International Bank followed the course awarding KPMG East Africa Limited for the same project.

United chose Deloitte in its second attempt of the bid, as the initial tender had failed. In the first round, seven companies showed interest, with two of them reaching the final stage. However, Deloitte Consultancy withdrew from the process due to the disbanding of the company, as the shareholders HST Consulting Plc and Deloitte Consulting broke ties.

In the second attempt of the Bank, which was established in 2005 and netted 381.7 million Br of profit last year, only Frankfurt School of Finance & Management and Deloitte East Africa showed interest in submitting their financial and technical offers.

“The process appeared very complicated and tiresome,” said Taye. “Though, we believe that the project will lift us a bit higher than where we are currently.”

In the coming four months, Deloitte will tailor the bank’s strategy and cascade the whole banking structure as to innovative it with high-tech services, according to the terms of reference. Deloitte plans to install an office in Ethiopia and recruit experts for the project. Within Deloitte East Africa, six Ethiopian professionals are working in various networks.

“We will make United a fast-tracking bank, getting our previous experiences,” said Rodger during the agreement signing ceremony.

Deloitte Consultancy Kenya Ltd is part of Deloitte Global, which also includes networks across the East African countries of Uganda, Tanzania, Rwanda, and Burundi. It has 100 plus employees in Uganda and Tanzania.

Sewale Abate (PhD), assistant professor of Accounting and Finance at Addis Abeba University (AAU), sees that such kinds of outsourcing projects could impair the capacity of local professionals.

“It undermines the capacity of local professionals who can do even better,” he said. “The banks also pay in foreign currency.”


Published on Apr 15,2018 [ Vol 18 ,No 938]



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