Nigeria’s biggest lender Access Bank has bought a controlling interest in South Africa’s 74 year-old Grobank for around $60 million (R896-million) its CEO said the acquisition signals the culmination of the tier 1 lender’s aspiration to venture into South Africa.
The transactions significantly strengthened Access Bank’s presence in Southern Africa and its footprint for growth in the SADC region. Once signed off, the proposed transactions will result in Access Bank having a presence in 10 African countries.
Banks in Nigeria have been seeking new avenues to boost profit amid slow economic growth at home, a drop in government bond yields and a rise in restructured loans due to the impact of the coronavirus pandemic.
“We have consistently looked to focus on building the scale required to become a leading African bank; one that leverages our experienced and growing talent base and key stakeholder partnerships towards driving sustainable impact and profitability.
“The proposed transactions will accelerate the bank’s momentum towards delivering world class banking services to an expanded customer base across Africa. Our goal remains to reach and impact 100-million unique customers across the continent by 2022,” Herbert Wigwe, CEO of Access Bank says.
“The entry of Access Bank Plc into the South African banking sector will enable us to provide sustainable support to our existing customers and target new customers with a presence across the African continent.
“We are excited about joining the Access Bank family and look forward to contributing meaningfully to the achievements and ambitions of the group,” Bennie van Rooy, CEO of Grobank, says.
