focus on customer relationships in a timely and cost effective manner is key to achieving competitive advantage and long - term sustainability. the journey towards realising the vision ladies and gentlemen, the banking system policy has evolved from financial sector restructuring during the late 1990s to institutional development and capacity building, and the development of supporting infrastructure to enhance efficiency and the strengthening of prudential regulation to enhance resilience and preserve stability. in terms of the development of the financial infrastructure, efforts were intensified towards evolving a more diversified financial infrastructure to facilitate the economic transformation into a more diversified economic structure. this has involved the development of a more diversified financial structure anchored by a more efficient and resilient banking system, to support economic transformation and growth. the strategies to achieve this vision are outlined in the financial sector masterplan launched in march 2001. three years into the financial sector masterplan, positive results have been achieved on several fronts. • the capacity of the banking sector now has strengthened with the level of capitalisation at its strongest, reflected by the risk - weighted capital ratio of the banking system that has been consistently maintained at above 13 %. this has enhanced the resilience of the banking sector and is reflected in the ability of the banking system to weather a number of adverse external developments in the recent period, without any destabilising and disruptive consequences. • following the consolidation exercise in 2002, the banking system today is characterised by larger and better - capitalised domestic banking institutions operating within larger banking groups, benefiting from economies of scale to provide a wider range of products and services to cross sell, and therefore widen the reach nationwide. • domestic banking institutions have also embraced a higher level of technology and improved business processes. • there have been marked improvements in the level of efficiency. operating cost of domestic banking institutions has declined from 41. 2 % in 2001 to 40. 3 % of total income in 2003. there have also been improvements in turnaround time in processing loans and in response time in resolving customer problems. • there has also been a higher level of innovation and introduction of new products and services to meet the customer needs that are becoming increasingly complex and sophisticated. these services include wealth management, structured investment products, bancassurance and islamic financial products. • new delivery channels through innovative technology - based mechanisms such as internet and mobile banking have enhanced the delivery of products and services as well as widened access to banking services. • despite a more competitive environment, domestic banking institutions have been able to sustain their market share

today and also recognize the following parties who were very important to ensuring this transaction was concluded professionally and in good time : the transaction advisor african alliance uganda, the legal advisors in uganda sebalu & lule, the legal advisors in kenya iseme, kamau, maema advocates and finally the reporting accountants pricewaterhousecoopers. thank you.