Against the backdrop of increasing competition in its home market of South Africa, Standard Bank Group is open to acquisitions in Kenya and Nigeria as it looks to expand its presence across Africa.
In an interview with Bloomberg, CEO Sim Tshabalala said Standard is looking to tap into the growing need for cross-border banking services in the region by expanding beyond its core markets and exploring new geographies.
Referring to Nigeria and Kenya, he said, “if there was an appropriate priced asset with acceptable risk, we would definitely look at acquiring.”
Related: Standard Bank Looks to Expand Amid Rising Competition in South Africa
Standard already has a foot in Nigeria thanks to its controlling interest in IBTC Chartered Bank, and a presence in Kenya where it operates under the Stanbic Bank name.
However, Tshabalala’s comments suggest the banking group recognizes that both Nigeria and Kenya, as two of the continent’s largest and fastest-growing economies, are critical countries in terms of pan-African growth.
Pointing to the slow but steady progress of the African Continental Free Trade Area (AfCFTA), he said, “Unlike five to 10 years ago, there are a number of African multinationals, who have got regional strategies, as well as international multinationals who are operating in countries where we don’t operate in.”
See more: FIs, Startups and Policymakers Drive Intra-African Trade, Payments Within EU-Style Customs Union
Besides Nigeria and Kenya, he also noted a huge opportunity for growth in Ethiopia, which despite being the continent’s second-largest country by population, lags significantly behind South Africa and Nigeria in terms of GDP.
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