A South African financial services provider, Absa Group Limited has disclosed that it is seeking to extend its reach to Ethiopia and other growth markets, including Nigeria and Angola. It is hoping to increase its banking revenue through expansion into the East African country.
The government had closely managed the country’s banking sector and has continued to reject foreign ownership. Following the introduction of Ethiopia’s privatization agenda by Prime Minister Abiy Ahmed in 2018, Absa and others who are giving banking revenue are hoping that the sector will be constructive, therefore creating an avenue for foreign investments.
The Chief Financial Officer of Absa, Jason Quinn has explained the organization’s intention of acquiring existing retail banking businesses as opposed to building one from scratch. With Ethiopia’s population of 100 million people alongside its growing economy, the planned expansion will be in line with the company’s strategy for growth.
The goal of Absa is to become a banking group of which Africa can be proud of, and a forward looking African business that recognizes the African heritage, rooted in Africa, with global reach. Also Absa has a clear and undiluted ambition to double our market share of African banking revenues to 12 percent.
The South African bank, formerly Amalgamated Banks of South Africa, had laid out an expansion plan as part of its strategy following the divestment of British investment bank, Barclays, in 2017.
Absa, which currently has a presence in about 11 African countries, wants to double its share of revenues on the continent to 12 per cent. According to its annual results, earnings from its operations in Africa grew by 9 per cent in 2018.
Absa Bank is now rated as South Africa’s third-biggest lender even as it continues to map out aggressive plans to expand its business across the African continent.