The managing Director of Access Bank Plc, Herbert Wigwe said the acquisition of BancABC Botswana is strategic in the lender’s quest to dominate the African market and make more returns for its shareholders.
“We remain committed to a focused and deliberate expansion strategy in Africa, which we believe will generate solid, long-term returns,” Wigwe said, in a memo by the bank, where the new generation bank stated that the deal has finally been sealed to acquire Botswana fifth largest bank.
The bank’s chief executive further stated that “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 in across the SADC and COMESA regions.”
The development comes barely a month after the Wigwe-led bank sealed a $60 million deal to acquire the controlling stake in Grobank of South Africa. The bank had earlier made big acquisitions in South Africa, Zambia and Mozambique as part of the ongoing Pan-African expansion drive to position the lender as the biggest commercial bank in the continent.
According to the details of the deal, Access Bank has acquired more than 78 per cent of the Botswana bank shares, held by Atlas Mara, a financial services group based in British Virgin Islands, in a transaction to be completed by the middle of the year.
The bank said the acquisition will increase profitability as well as provide opportunity for Botswana customers to enjoy Access Bank’s digital banking.
The “BancABC Botswana is the fifth largest Bank in Botswana and is a very well-capitalised banking institution poised for growth and success in its local market.
“The bank has been perennially profitable, given an existing high-quality retail loan book with opportunities and scope for diversification and further expansion into corporate and SME lending,” the bank said.
