Large Nigerian bank expands into South Africa

THIS week saw the launch of a new bank in South Africa: Access Bank South Africa Limited, a subsidiary of Access Bank plc, after the parent company earlier this year acquired a controlling stake in Grobank, which served the agricultural sector.

Based in Nigeria, Access Bank plc is a full-service commercial bank that employs 28 000 people, with a network of more than 600 branches and service outlets spanning 12 countries on three continents and serving 31 million customers.

Listed on the Nigerian Stock Exchange since 1998, the bank has four business segments: retail, business, commercial and corporate.

At the launch, Access Bank chief executive Herbert Wigwe said the South African Development Community region represents the strongest economy on the African continent. “This means that Access Bank SA is firmly seated in one of the principal geographical areas apart from Nigeria, in terms of the size of the economy, and unlocks the gateway to the entire southern African region.”

Spelling out the organisation’s vision of connecting key African markets, Bennie van Rooy, the chief executive of Access Bank SA, said the expansion of an African bank into South Africa was a first for the local banking industry.

On the retail side, Van Rooy said the bank will open at least three branches – in Gauteng and Cape Town – before the end of the year.

It will also launch a digital transactional capability, targeting entry-level consumers, as well as the immigrant population, he said.