NAIROBI, 22 February 2010 (Daily Nation - The deal was reached by Kenya's Cooperative Development and Marketing minister Joseph Nyagah and the Southern Sudan President Salva Kiir.
Mr Nyagah on Friday led a delegation from the Co-operative Bank of Kenya to South Sudan where they met, among others, the governor of the Central Bank to discuss various business investment opportunities.
After the discussions, which also included the Minister of Cooperatives in South Sudan, the greenlight was given to start the process of setting up the joint venture, to be known as the Cooperative Bank of South Sudan, and which will be majority owned by Co-op Bank.
"We have worked tirelessly for the last one year to assist the Southern Sudan develop a strong cooperative movement.
This Sh1 billion investment is a sign of our commitment to the future of South Sudan," said Nyagah.
It is expected that once well established in South Sudan, the cooperative movement would take over government shareholding in the bank.
"Am happy that our sister country, Kenya has shown great confidence in us especially at a time when we are about to hold elections and referendum", said South Sudan's Co-operatives minister Peter Abdel-Rahman Sule.