Access Bank has become the first Nigerian lender to venture into South Africa after it invested around $60 million to acquire a stake in South Africa’s Grobank.
The bank’s Chief Executive Officer, Herbert Wigwe, disclosed this yesterday during a programme with CNBC Africa Television. He said the bank invested in both equity and debt in the South African bank as part of a regional expansion drive to tap into correspondent and trade banking deals on the continent.
Wigwe said Access bank will expand its trade finance capability within Grobank which is currently focusing on the agricultural sector in South Africa.
The bank had on Friday said it had received regulatory approvals for the acquisition which is expected to close in the second quarter of 2021. In August, Access Bank agreed to buy loss-making Cavmont Bank from the Zambian arm of Namibian financial services group Capricorn, for a nominal fee of 1 kwacha ($0.0014).
Access Bank is restructuring into a holding company and has received approval from the Central Bank of Nigeria (CBN).