Business
West African Ecobank set to becoming major player in Africa
(Reuters) – Pan-African Ecobank Transnational is near the end of its geographic expansion across Africa and now plans to focus on organic growth to be among the top three banks in each of the over 30 countries it operates in, its CEO said on Wednesday.
The independent lender, which began as a corporate bank in the 1980s, has expanded into retail banking, especially in the past two decades, with total assets of nearly US$12 billion and US$804 million in revenues in the nine months to September 2011.
“The expansion is really coming to an end. We are opening in Equatorial Guinea at the end of the second quarter this year,” CEO Arnold Ekpe told Reuters in telephone interview from Tanzania, adding that the bank would also like to be in Angola, Mozambique, Southern Sudan, Madagascar and possibly Ethiopia.
“We are in 32 countries, we only have about four or five to go,” Ekpe said of the bank’s plans to have a presence in all countries which it calls ‘middle-Africa,’ which includes all sub-Saharan African countries excluding those of Southern Africa such as South Africa.
However, he added that the bank was still keen on acquisitions as a growth strategy “if an opportunity arises that will enable the bank to increase its market share,” after about 14 acquisitions in the past years in its expansion drive.
Ecobank last year completed the acquisition of Ghana’s Trust Bank in a deal worth US$135 million, making it the top bank in the cocoa, gold and oil producing West African nation. A merger with Nigeria’s Oceanic bank, also completed last year, will enable it to become one of the top lenders in Africa’s major oil producer.
“With the Oceanic transaction, we are one of the top five largest banks in the country. I think it is a significant platform to continue to grow. Our strategy in Nigeria is one of organic growth,” Ekpe said.
