Nib Picks KPMG to Appear Competent, Powerful


The project has an estimated cost of between 20 million Br to 25 million Br




Nib International Bank hires KPMG East Africa Limited to design and formulate the management strategy of the Bank after a 12-month long bidding process. The project has an estimated cost of 20 million Br to 25 million Br.

The contractual agreement was signed by Kibru Fonja, president of Nib and David Leahy, KPMG East Africa director, on April 4, 2017, at the premises of the Bank located on Africa Avenue. The project was officially kicked-off on the same day.

Based on the agreement, KPMG will formulate a five-year strategic plan, a 10-year strategic roadmap and will study the organisational restructuring of the Bank, whose profit bumped up by 45pc to 516.4 million Br in the past fiscal year with a shareholders’ return of 157 Br.

“We expect KPMG to upgrade our standard to be the leading bank in the nation,” said Kibiru.

With the aim a better positioning the bank to be competent in East Africa, NIB announced the bid a year ago. Following the announcement, 23 firms bought the bid document, and eight international and local firms submitted their proposal to the bank.

Only two of them, Palladium Group, a company which was established half a century ago and engages with formulating strategies in over 90 countries and KPMG East Africa, which provides services in Kenya, Uganda, Tanzania, Rwanda, Eastern Democratic Republic of Congo, South Sudan, Burundi, Somalia, Ethiopia as well as Eritrea having 29 partners with over 1,000 staffs, passed the technical evaluation.

And KPMG East Africa, a wing of the KPMG Management Consulting which was formed in 1987 with the merger of Peat Marwick International (PMI) and Klynveld Main Goerdeler (KMG), and employs 174,000 staff in 155 countries around the world, won the bid making the least offer. However, both parties refrained from disclosing the amount stating confidentiality of the agreement.

“KPMG will not fully design a strategic plan, rather consult us with the best global experience, and we will develop our strategy,” Kibru said.

“We will provide best practice helping Nib be competent in the banking industry,” David Leahy, KPMG East Africa director, speaking at the signing ceremony, said.

Joined the Ethiopian Market since 2013, KPMG helped the state-owned giant, Commercial Bank of Ethiopia (CBE) to adopt the International Financial Reporting Standards (IFRS) contracted with close to 16 million Br. The consulting firm took about a year to complete the job. It has completed the formulation of a strategic plan for Awash Bank and is working on the same project for Dashen Bank.

Bank of Abyssinia is the pioneer bank to hire a global company for the project. Delloite Consulting overhauled the bank’s management strategy in 2015. United Bank is in the process of hiring a company which will redesign its management strategy.

For a veteran financial expert, hiring the same company which formulated plans for competitor companies is not justifiable.

“How could a bank being competent hiring the same company which formulate the same thing for its competitors?” he questioned. “It is not a must to outsource a company’s plan to be developed by a consultant unless it brings some new ideas which can be measured.”

NIB, which is constructing a new headquarters, 37 storeys high, at the soon to be a financial district, Senga Tera, has 209 branches and 4,000 employees.



By SOLOMON YIMER
FORTUNE STAFF WRITER

Published on Apr 10,2018 [ Vol 18 ,No 937]


SHARE :
               


Editorial

Our subscribers to the print edition are entitled to get a bonus in a f...


Agenda

Though Addis Abeba is the capital of the country and the seat of major...


Fineline

Our subscribers to the print edition are entitled t...


Commentary

Privatisation has its benefits, but if undertaken it should be done to...


Viewpoint

Our subscribers to the print edition are entitled to get a bonus in a f...


Opinion

Our subscribers to the print edition are entitled to get a bonus in a f...


View From Arada

The feeling of optimism and hope evident in the public continue with th...


Editors Pick
















MEMBERS' LOGIN


ADVERTISEMENT

ADVERTISEMENT

 

SUBSCRIBE TO ADDISFORTUNE


//