Nigerian Access Bank has acquired a majority stake in Grobank in South Africa. The transaction is valued at around $ 60 million and will allow the South African bank to consolidate its capital.
With this acquisition, Access becomes the first Nigerian bank to enter the South African market and thus extends its presence in 9 African countries. The South African acquisition is the third in eight months, following the takeover of Transnational Bank of Kenya in July 2020, and Zambia-based Cavmont Bank in January 2021.
“We have a full retail banking license in South Africa (…). We will be pursuing a wholesale bank franchise. We will continue with trade finance, ”said Herbert Wigwe, Managing Director of Access Bank.
Access Bank is seeking to create new ways to boost profits beyond Nigeria as an economic slowdown has lowered government bond yields and accelerated the incidence of restructured loans, aided by the pandemic.
With the implementation of the African Continental Free Trade Area (Zleca), the Nigerian bank aims to enter Morocco, Algeria, Egypt, Côte d’Ivoire, Senegal, Angola, Namibia and Ethiopia. Access Bank Plc is a full-service commercial bank operating in Nigeria, Sub-Saharan Africa and the United Kingdom. Listed on the Nigerian Stock Exchange in 1998, the Bank serves its various markets through 4 business segments: Individuals, Businesses, Commercial and Corporate & Investment Banking
