Access Bank Leads Nigerian Banks in African M&A Strategy

Nigerian and South African banks are increasingly diverging in their approaches to expansion across Africa, as highlighted in the "M&A Trends in East Africa Banking Sector" report by Deals & Advisory Report. Nigerian lenders, led by Access Bank and followed by Zenith Bank, are engaging in a series of acquisitions, targeting between 66 percent and 100 percent ownership to gain operational control.

Access Bank has been particularly active, acquiring the National Bank of Kenya for approximately $100 million-$110 million, BancABC Tanzania, and Standard Chartered’s consumer, private, and business banking operations in Tanzania. Zenith Bank has also pursued acquisitions, including Paramount Bank in Tanzania for over $7.7 million.

In contrast, South African banks like Nedbank are making fewer but larger investments, exemplified by their $856 million controlling stake in NCBA Group. This shift indicates a trend where banks are focusing on acquiring capabilities, licenses, and customer relationships rather than merely increasing asset size.