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


Formation of “TGoNU” without Constitutional Amendment: Is it a right of necessity? 2016-02-09 20:30:29 By Mabor Maker Dhelbeny In its 55th Extra-ordinary Meeting, held on 30th – 31st January, 2016 in Addis Ababa, Ethiopia, the IGAD Council of Ministers in the communiqué on South Sudan: (1) (...)

Terrorism Tops African Summit Agenda: Lip service or strategic move? 2016-02-07 04:56:59 By Trayo A. Ali In Africa, terrorism is not only strategic threat to continent political security and destabilization, but more importantly it also constitutes fundamental challenge and eminent (...)

South Sudan and the nation building! 2016-02-06 11:47:08 " Disagreement does't mean disapproval." Oprah Winfrey. By Dhano Obongo I have been delving in a debate within myself as to what could possibly be the proper way to expound a presentation to (...)


MORE






Latest Press Releases


Civil society group decries delay of S. Sudan transitional gov’t 2016-01-29 18:08:53 South Sudan Civil Society Alliance Date: 29.1.2016 For the immediate Release Press Release Following the passing of deadline of the formation of Transitional Government of National Unity in the (...)

Africa: Strengthen steps to end child marriage 2015-12-14 08:04:41 December 10, 2015 African governments should coordinate action to improve laws, education, health care, and public awareness to end the scourge of child marriage, Human Rights Watch said today (...)

Professor Akolda, it is too early for you to go 2015-12-06 06:36:15 I learnt from social media of the untimely departure of Professor Akolda Maan Tier on the 30th Nov 2015, whom I knew and admired, as one of the great, committed sons of both Sudans, who dedicated (...)


MORE

Copyright © 2003-2016 SudanTribune - All rights reserved.