SNG: Absa accelerates African banking expansion across key markets

By Zawya14 hours ago Updated

By Staff Writer

Absa group is accelerating its African expansion strategy, with plans to reorganise its operations outside South Africa within the next two years as it seeks to diversify earnings, strengthen its regional footprint and capitalise on growing business opportunities across the continent.

The strategy includes establishing a merchant banking operation in Nigeria, opening a representative office in Angola, integrating recent acquisitions in Uganda, consolidating its Tanzanian operations and increasing its ownership of its Kenyan subsidiary.

Charles Russon, Absa group executive for Africa regions, said the group was exploring opportunities to expand its markets, products, capabilities and platforms as it moves into its next phase of growth following an extensive restructuring process.

"We are busy applying for licenses," Russon said. "From application to up and running, I would hope it is done in 12 to 18 months."

In Nigeria, Absa is working to convert its existing representative office into a merchant bank, subject to the necessary regulatory approvals. The proposed operation would enable it to accept corporate deposits, provide lending and offer investment banking services. The group hopes to have the business operational within 12 to 18 months.

In Angola, Absa is establishing a representative office to strengthen its access to a market where economic reforms and investment opportunities are attracting renewed interest.

Expanding African footprint

Meanwhile, the group has completed the integration of Standard Chartered's wealth and retail banking business in Uganda, acquired in 2025. In Tanzania, it plans to consolidate its two banking operations to achieve greater scale and improve its ability to participate in infrastructure investment opportunities.

Absa is also seeking to increase its shareholding in its Kenyan subsidiary from 72% to 85% by 2028. A $238.7m tender offer launched in June 2026 resulted in a 3.5 percentage-point increase in its holding, short of its initial ambitions.

The expansion is intended to reduce the group's reliance on a relatively small number of markets. South Africa, Kenya and Ghana accounted for more than 80% of Absa's profits in the six months to June 2026, highlighting the importance of geographical diversification.