Access Bank Accelerates expansion into Southern Africa

AFRICAAccess Bank, a lead pan-African financial institution has disclosed its intent in expanding its territory within the African space, by bolstering its market presence in Mozambique and South Africa.

This is sequel to the bank’s recent transaction with Cavmont Bank in Zambia, and further embeds the Nigeria-based bank’s presence in the SADC region.

As regards to the expansion in Mozambique, the disclosure revealed that Access Bank has received regulatory permission to operate in Mozambique, under the name ‘Access Bank Mozambique’.

The subsidiary also entered into an agreement with ABC Holdings Limited, to acquire African Banking Corporation (BancABC Mozambique) for cash, in a combination of definitive and contingent consideration.

In the South African markets, the Bank disclosed that it has entered into a definitive agreement with GroCapital Holdings, to invest into Grobank Limited over two tranches.

Access Bank in the transaction with GroCapital Holdings will have an initial cash consideration for a 49% shareholding, and an additional increase to a majority stake in the second tranche.

The banks intensified activity in Southern Africa is in line with the Bank’s goal of asserting itself as a key driver in the African banking space, by ensuring a connected and broader Africa.

“Today’s announcement demonstrates further commitment to delivering our strategic aspirations of becoming Africa’s Gateway to the world, in line with our vision to be the world’s most respected African bank.”

Mr. Herbert Wigwe – The GMD/CEO of Access Bank stated.

He further remarked that, “With a broader presence across the continent, Access Bank will be better placed to support our customers, who are increasingly looking towards intra African growth.”

These transactions will remarkably boost the presence of the bank in the SADC region and Africa as a whole.

Financial analysts opine that, holding all other factors constant, the bank’s expansion to South Africa may result in broader customer base, broader market and increased chances for profitability, liquidity, and continuity.

Access Bank Plc. is a leading full-service commercial Bank operating through a network of more than 600 branches and service outlets, spanning three continents, 12 countries and 31 million customers.

The Bank employs 28,000 people in its operations in Nigeria and has subsidiaries in Sub-Saharan Africa and the United Kingdom (with a branch in Dubai, UAE) and representative offices in China, Lebanon and India.

Early last month, Access Bank, in line with its African Expansion Strategy, completed the acquisition of Kenya’s Transnational Bank, a medium sized commercial bank that mainly focuses on Kenya’s agricultural sector, renaming it to Access Bank limited.

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