{"id":883533,"date":"2026-11-10T12:30:36","date_gmt":"2026-11-10T10:30:36","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=883533"},"modified":"2026-11-10T12:30:39","modified_gmt":"2026-11-10T10:30:39","slug":"south-africas-third-largest-bank-eyeing-international-growth","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/883533\/south-africas-third-largest-bank-eyeing-international-growth\/","title":{"rendered":"South Africa’s third-largest bank eyeing international growth"},"content":{"rendered":"\n

South Africa\u2019s third-biggest bank is stepping up its expansion plan as it looks to broaden its footprint on the continent, laying the groundwork for future earnings growth.<\/p>\n\n\n\n

Absa plans to complete the reorganisation of its rest-of-Africa business within the next two years as it works to diversify earnings away from key markets of South Africa, Kenya and Ghana, which accounted for more than 80% of profit in the six months through June.<\/p>\n\n\n\n

\u201cWe\u2019re all a little bit impatient, and we want to move,\u201d Absa Group Executive for Africa Regions Charles Russon said in an interview. <\/p>\n\n\n\n

\u201cSome of the things that are being explored are much more growth-oriented, which I think is generally quite exciting, because we are thinking about new things, new markets, new products, new capabilities, new platforms.\u201d<\/p>\n\n\n\n

The lender has already begun the process of converting its representative office in Nigeria into a merchant bank, and it\u2019s also setting up a new representative office in oil-rich Angola, where Russon spoke last week on the sidelines of the African Financial Industry Summit in Luanda, the capital.<\/p>\n\n\n\n

\u201cWe are busy applying for licenses,\u201d Russon said. \u201cFrom application to up and running, I would hope it is done in 12 to 18 months.\u201d<\/p>\n\n\n\n

Nigeria\u2019s economy has become more attractive as investors look to capitalise on a raft of reforms implemented by President Bola Tinubu that are boosting growth and improving the investment landscape in the country. <\/p>\n\n\n\n

A merchant-banking license would allow Absa to take corporate deposits and offer loans, investment banking and project finance.<\/p>\n\n\n\n

A focus on expansion<\/h2>\n\n\n\n
\"\"<\/a>
Absa CEO Kenny Fihla<\/figcaption><\/figure>\n\n\n\n

The push marks a shift for Absa from restructuring under Chief Executive Officer Kenny Fihla to expansion, bringing it into competition with its larger South Africa-based rivals, Standard Bank and FirstRand, as well as Nigeria\u2019s own Access Holdings, Zenith Bank, and First Bank of Nigeria.<\/p>\n\n\n\n

In Angola, President Jo\u00e3o Louren\u00e7o\u2019s administration has also been working on a reform agenda that has sought to modernise the economy and attract private investment. <\/p>\n\n\n\n

Higher oil prices driven by the Middle East conflict have also bolstered export revenue and eased pressure on the country\u2019s public finances, which have boosted the country\u2019s attractiveness to investors.<\/p>\n\n\n\n

\u201cIt\u2019s evident that this is a market that feels like it is turning, is becoming more open, more transparent and I think in due course, much more investable,\u201d Russon said. \u201cYou are going to see more business activity in Angola.\u201d<\/p>\n\n\n\n

In Uganda, Absa has completed the integration of Standard Chartered’s wealth and retail-banking unit that it bought in 2025, and it\u2019s also working on plans to consolidate its two banks in Tanzania to give it scale to leverage the infrastructure investments in the country.<\/p>\n\n\n\n

\u201cThe East Africa region is a big growth region, and Tanzania is a key part of it, a key market, a big market, and represents a big opportunity,\u201d he said.<\/p>\n\n\n\n

In Kenya, the bank is planning to slowly raise its shareholding in the local unit to 85% by 2028. <\/p>\n\n\n\n

The lender made a $238.7 million tender offer in June to buy an additional 16.5% stake, but only managed to raise it by 3.5 percentage points to 72%.<\/p>\n\n\n\n

Absa retains a \u201cstrategic intent\u201d to increase that holding over the next couple of years, Russon said.<\/p>\n\n\n\n

\u201cHopefully we\u2019re able to get up near where we want it to be because the closer we are to 100% \u2014 not that we can go to 100% \u2014 then the more the economics make sense,\u201d he said. <\/p>\n\n\n\n

\u201cIf you believe in the market, then clearly you want to be able to benefit from everything the franchise does as opposed to holding 100% of the risk-weighted assets and only getting 70% of the profits.\u201d<\/p>\n\n\n\n

The changes should position the lender to compete effectively across the continent, unlock new markets, and facilitate better client support across its footprint to drive earnings into the future.<\/p>\n\n\n\n

\u201cWe\u2019ve gone through a lot of what I would call material foundational change that we can now start to build on for the next phase,\u201d Russon said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Absa is looking to step up its expansion plans as it increases its footprint in Africa.<\/p>\n","protected":false},"author":59,"featured_media":816384,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"failed","_sma_x_autopost_error":"Instagram publishing failed: Instagram returned HTTP 400: Media ID is not available","_sma_x_post_id":"2120103180746842294","_sma_facebook_post_id":"191437357620492_2268071260679939","_sma_instagram_post_id":"","_sma_x_attempts":1,"footnotes":""},"categories":[961],"tags":[29,20158,23003],"class_list":["post-883533","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-absa","tag-charles-russon","tag-kenny-fihla"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/883533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=883533"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/883533\/revisions"}],"predecessor-version":[{"id":883538,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/883533\/revisions\/883538"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/816384"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=883533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=883533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=883533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}