Absa targets African expansion push as regional reorganisation nears completion

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Absa’s African expansion

Highlights

Absa aims to complete its rest-of-Africa business reorganisation within two years, shifting focus to expansion with licensing drives in Nigeria and Angola.
In Nigeria, Absa seeks a merchant banking licence to offer corporate deposits, loans, and project finance, capitalizing on reforms under President Bola Tinubu.
Absa finalized integration of Standard Chartered Plc's Uganda unit acquired in 2025, plans to consolidate two Tanzanian banks, and targets 85% ownership in Kenya by 2028, up from 72%.

Licensing drive supports next growth phase

As reported by Moneyweb, citing Bloomberg, Absa is working to complete the reorganisation of its rest-of-Africa business within the next two years, shifting from an internal restructuring effort toward expansion in new and existing markets.

The bank has already started converting its representative office in Nigeria into a merchant bank and is establishing a new representative office in Angola. Charles Russon, Absa Group executive for Africa regions, says the lender is applying for licences and hopes the new operations can move from approval to launch within 12 to 18 months.

In Nigeria, a merchant banking licence would allow Absa to take corporate deposits and provide loans, investment banking and project finance services. The move comes as investors reassess the country after reforms under President Bola Tinubu that are aimed at improving growth and the broader investment climate.

Competition and regional earnings strategy

Absa's expansion marks a change in emphasis after a period of restructuring under Chief Executive Officer Kenny Fihla. The strategy brings the South Africa-based lender into sharper competition with Standard Bank Group, FirstRand and major Nigerian banks including Access Holdings Plc, Zenith Bank Plc and First Bank of Nigeria.

Angola is also becoming more central to that strategy as the government pursues economic reforms and seeks more private investment. Higher oil prices linked to the Middle East conflict are increasing export revenue and easing pressure on public finances, improving the country's appeal to foreign investors.

Elsewhere, Absa has completed the integration of Standard Chartered Plc's wealth and retail banking unit in Uganda after acquiring it in 2025. It is also planning to consolidate its two banks in Tanzania to gain scale, while in Kenya it continues to pursue a higher stake in its local subsidiary, with a stated goal of reaching 85% ownership by 2028 after a June tender offer raised its holding to 72% from 68.5%.

As highlighted earlier, the IMF raised its 2026 growth forecast for sub-Saharan Africa to 4.5% while warning of worsening inflation.

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