FirstRand to Spend $9.1 Billion on Acquisitions in Africa, Plans to open Investment bank in Nigeria
FirstRand, one of South Africa’s two biggest banks has revealed plans to open up an investment banking unit in Nigeria, as well as a commercial and retail banking presence.
This is not the first time the South African bank is disclosing its intent to make a foray into the Nigerian economy. FirstRand had attempted to purchase Sterling bank last year but could not come to terms on key metrics such as the purchase price.
Nigeria’s economy is scheduled to overtake South Africa’s by 2025, according to Morgan Stanley. However analysts have said this could occur much sooner, even in this decade.
CEO of FirstRand, Sizwe Nxasana stated, “If we do acquisitions, they will typically be small to medium size. We wouldn’t want to spend more than, I would say, 10 per cent of our capital on new acquisitions or new opportunities.”
This means FirstRand has about US$9.1 billion to spend on acquisitions in Nigeria and other countries it has set its sights on such as Ghana.