Six months after initiating the process, Access Bank Plc, yesterday, announced the completion of a buyout of 78.15% interest in African Banking Corporation of Botswana Limited (BancABC Botswana), the country’s fifth largest lender.
In a note posted at the Nigerian Exchange (NGX) yesterday, the Bank explained that the acquisition is part of its plan to widen the take of Access Bank for trade and payments in the Southern African Development Community (SADC) region and larger Common Market for Eastern and Southern Africa (COMESA) regional economic community comprising 21 countries.
Indeed, the Bank also hopes to leverage the African Continental Free Trade Area (AfCFTA) Agreement to enter Morocco, Algeria, Egypt, Ivory Coast, Senegal, Angola, Namibia and Ethiopia.
Since 2019, when it acquired former Diamond Bank Plc in a strategic purchase, Access Bank has been on a buying spree, with BancABC being the fourth in the series of acquisitions, which also included South African Grobank Limited; Kenya’s Transnational Bank; and Zambia’s Cavmont Bank, respectively.
We are pleased with the successful conclusion of this transaction, which will provide significant synergies by combining BancABC Botswana’s strong retail banking operation with Access Bank’s wholesale banking capabilities.
The acquisitions are in efforts to achieve the bank’s target of at least 30% contribution to the group’s profit for this year from operations outside Nigeria.
Commenting, the Group Managing Director, Herbert Wigwe, said the establishment of Access Bank through this acquisition in the Republic of Botswana will position the bank to deliver a more complete set of banking solutions to its clients active across the SADC and COMESA regions.
“We are pleased with the successful conclusion of this transaction, which will provide significant synergies by combining BancABC Botswana’s strong retail banking operation with Access Bank’s wholesale banking capabilities.
“It will also strengthen the quality of earnings through revenue diversification and growth in the corporate and SME banking segments for BankABC Botswana,” he said.
Access Bank plans to leverage digital banking in Botswana to deepen financial inclusion in the Southern African country to gain traction in the retail sector.
Financial inclusion (Goal 8), is as an enabler of other developmental goals in the 2030 Sustainable Development Goals (SDGs), through efficient allocation of productive resources, thereby potentially reducing the cost of capital.
