Access Bank Plc, the largest lender in Nigeria, has recently been strategically expanded to other African nations in keeping with its desire to become Africa’s gateway to the world and in keeping with its mission to become the World’s most respected African Bank.
A month after purchasing a South African bank, the bank announced ambitions to purchase a controlling interest in the African Banking Corporation of Botswana.
According to an Atlas Mara statement, Access Bank will purchase slightly more than 78 percent of BancABC Botswana for an undisclosed cash sum of about 1.13 times book value plus a two-year delayed payment.
According to some observers, the bank’s decision is part of a deliberate effort to combat stagflation and dollar shortages in Nigeria, which have upset companies and shrunk the loan market.
READ ALSO: External Reserves In May Fell by $640M – CBN
According to Uju Ogubunka, president of the Banks Customers Association of Nigeria (BCAN), the expansion move allows the bank to diversify its risks.
“The bank should be nurtured as long as it has the capability to grow,” said Ogubunka.
Grobank Limited has been renamed Access Bank South Africa Limited once all regulatory processes have been completed. The transaction was completed following Access Bank’s acquisition of controlling shares in the erstwhile Grobank Limited in South Africa.
Access Bank South Africa Limited is now better positioned to operate a solid banking business that connects important African markets.
Bennie van Rooy, CEO of Grobank, stated,
“This is an extremely exciting day for the South African banking industry. Our corporate customers will now have increased access to trade finance, treasury, international payments, and loans through the wider distribution network offered by Access Bank’s presence in the key trade corridors that connect Africa to the rest of the world.
“Banking with Access Bank South Africa means greater security as well as access to more products and services through a best-in-class digital platform, and a full retail banking suite will soon be on offer,” Van Rooy said.
Herbert Wigwe said:
“Today’s ceremony in South Africa seals our 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.
Wigwe recently outlined the Bank’s opportunity for development in Africa as a diversified retail bank, as well as its aim to deliver cutting-edge digital payment solutions across the continent, in an interview with Bloomberg.
We look forward to the many opportunities our collective experience and deep understanding of the African market brings to our valued clients, and the journey ahead being one of great promise for our institution and the continent.
We want to have subsidiaries across 22 countries over the next five years, with strategic plans to be present in the major trade corridors in the African continent. Building on our successful expansion into Kenya, we will also be making entries into Angola and Mozambique.
He feels that Africa has huge potential and that there are prospects for an African bank that is well-run, understands compliance, and has the capability to assist commerce as well as the proper technical infrastructure to handle payments and remittances without taking on additional risks.