Home | News    Saturday 22 February 2014

Zain telecom vows to continue Sudan operations despite currency woes

separation
increase
decrease
separation
separation

February 21, 2014 (KHARTOUM) – The chairman of the board of directors of the Kuwait-based telecoms Zain, Asa’ad Al-Banwan, has said the company would continue its presence in Sudan saying that selling of its branch in the East African nation at this time would not be feasible.

JPEG - 11.1 kb

Al-Banwan said in the annual general meeting that they hope the economic situation would improve and they will earn profits.

"We are hopeful that the continual currency devaluation of the local SDG will abate once the country’s social and economic issues settle," he said.

Zain’s market share in the Sudanese telecom industry exceeds 50% but its revenues have fallen sharply in 2013 due to sharp drop in the value of the Sudanese pound against the US dollar.

Zain’s profits have declined by 14% in 2013 reaching 216 million Kuwaiti Dinar (KWD) ($764.9 million) compared to 252 million KWD in 2012.

Zain said its 2013 net profit has been negatively impacted by the sharp fluctuation in the exchange rate which caused it to lose $92 million besides losing $57 million due to the currency revaluations on the profits.

The chief executive officer of Zain Kuwait, Scott Gegenheimer, said that Zain Sudan has achieved great success in 2013 at the level of the operating performance and the financial indicators in local currency, pointing those indicators have fallen by 35% due to the decline in the value of the Sudanese pound against the US dollars.

Al-Banwan stressed on Thursday that Zain seeks to reach an agreement with the Kuwaiti government which has significant investments in Sudan to exchange currencies so that Zain could overcome the impact of the fluctuations of exchange rates.

Foreign companies operating in Sudan are suffering from the shortage in hard currency and continue to complain about losing millions of dollars when buying it from the black market.

Telecommunication companies continue to report losing money due to unfavorable exchange rate of the Sudanese pound relative to other major currencies.

Sudan’s economy was hit hard since the southern part of the country declared independence in July 2011, taking with it about 75% of the country’s oil output. As a result Sudan had been unable to come up with hard currency needed by individuals or businesses who want to import or send profits overseas.

The US dollar is trading for 8.15 pounds in the black market. The official exchange rate is around 5.7 pounds to the dollar.

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.

Comment on this article


 
 

The following ads are provided by Google. SudanTribune has no authority on it.


Sudan Tribune

Promote your Page too

Latest Comments & Analysis


On the need to redefine Pan-Africanism from Nkrumah to Museveni 2015-05-21 07:11:10 By Trayo A. Ali “It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change”- Charles Darwin May 25th is African Day. On May 25-2015 the (...)

Will Sudan allow rights experts to do their job? 2015-05-14 06:50:04 By Jehanne Henry Sudan is set to receive not just one, but three visits from international human rights experts this month: the United Nations special rapporteur on violence against women and (...)

Chaos in Libya poses big threat to Sudan and Egypt 2015-05-13 05:56:16 By Amira Khair Speaking to journalists after briefing the Security Council Mr. Bernardo Leon, special representative of the secretary general to Libya, said "chaos in Libya is a huge problem not (...)


MORE






Latest Press Releases


European Union helps treat malnutrition in Sudan 2015-05-25 06:49:48 WFP Press Release European Union helps treat malnutrition among Sudan’s most vulnerable 24 May 2015 KHARTOUM - The United Nations World Food Programme (WFP) today welcomed a contribution of €9 (...)

HRW calls to stop arbitrary detention in Sudan 2015-04-30 21:53:00 Sudan: Surge in Detention, Beatings, Around Elections Free Those Held Arbitrarily; Investigate Abuses (Nairobi, April 29, 2015) – Security forces in Sudan<https://www.hrw.org/africa/sudan> (...)

Sudan’s 2015 Elections: A huge step in democratic consolidation 2015-04-22 13:12:25 EMBASSY OF THE REPUBLIC OF THE SUDAN 3 CLEVELAND ROW, ST.JAMES'S LONDON SW1A 1DD TEL: 020-7839 8080 PRESS AND INFORMATION RELEASE (2/2015) Sudan’s 2015 Elections: A Huge Step in Democratic (...)


MORE

Copyright © 2003-2015 SudanTribune - All rights reserved.