Nigerian Access Bank has injected $9.3 million in its Rwandan subsidiary as it seeks to establish its dominance in the African Market. Its total capital investment in the subsidiary now stands at $13.32 million up from $4.02 million, with 75% shareholding. In 2019, Access Bank Rwanda posted a drop in net profit to $0.65 million from $1.46 million in 2018.
The Nigerian Giant has been making strategic investments in other African countries. In February 2020, it fully acquired Kenya’s Transnational Bank, which has 28 branches throughout the country. Similarly, in 2019, the bank merged with its rival Diamond Bank, therefore diversifying its services beyond corporate banking.
Last year, the Central Bank of Guinea approved the bank’s plan to establish a subsidiary through acquiring a local bank. The acquisition costs $14 million.
“In our quest to create an integrated global franchise, we intend to build a presence in key Eastern African countries as well as Asia. By expanding our reach in these regions, we are aiming to make the most of the growth potentials they offer,” The East African quoted Herbert Wigwe, Access Bank MD and Chief Executive.
The bank faces other dominant institutions in the East African market. Banks such as KCB and Equity Bank already have an established foothold in the retail space in the region. The bank also faces NCBA, a new giant from the NIC and Commercial Bank of Africa merger. Besides, other Nigerian Banks like GT Bank and United Bank of Africa lay claim in the East African market.
