Nigerian banking giant Access Bank has announced a groundbreaking acquisition of Bidvest Bank, marking a major expansion into South Africa’s lucrative financial sector. The deal, valued at R2.8 billion, is set to position Access Bank as a formidable player in Africa’s most developed banking market.
The agreement, unveiled by Bidvest Group in December 2024, will see Access Bank acquire 100% of Bidvest Bank Holdings Limited. This move signals Access Bank’s ambitious strategy to strengthen its foothold in the Southern African region.
Bidvest Group revealed that proceeds from the sale would be directed towards settling existing debts. “Bidvest will continue to support Bidvest Bank to ensure that it remains financially sound and operationally stable throughout the disposal process,” the company said in a statement.
A New Chapter for Bidvest Bank
Bidvest Bank, which primarily focuses on lease financing, loans, and advances, reported assets worth R6 billion and deposits totaling R8 billion as of December 2024. The bank’s financial performance included a trading profit of R371 million and an operating income of R377 million in its most recent fiscal year.
Access Bank plans to integrate Bidvest Bank with its existing South African subsidiary, acquired in 2021 when Access Bank took over Grobank Limited. This merger will create a stronger platform to anchor Access Bank’s regional growth strategy across the Southern African Development Community (SADC).
Strategic Expansion Across Africa
Access Bank’s Managing Director and CEO, Roosevelt Ogbonna, emphasized the importance of the acquisition. “This acquisition supports our ambition to expand across Africa and solidify our presence in key markets, with South Africa being a top priority,” he said.
Ogbonna highlighted how Bidvest Bank’s strong local expertise would complement Access Bank’s trade and retail banking capabilities. “We aim to create a platform for long-term growth and value creation,” he added, underscoring the bank’s commitment to a diversified and sustainable business model.
With operations spanning 16 African countries, as well as international offices in the UK, China, India, and beyond, Access Bank serves over 60 million customers globally. This latest acquisition aligns with the bank’s vision to become a major player in every market it operates.
Unlocking South Africa’s Banking Potential
South Africa’s banking industry, the largest on the continent, is a key target for Access Bank’s expansion strategy. With a combined Tier 1 capital exceeding $42.2 billion as of 2022, the sector has shown resilience despite economic challenges, achieving a return on equity (ROE) of 17% in the first half of 2024.
Access Bank plans to leverage Bidvest Bank’s local capabilities to enhance its offerings in business and SME banking, foreign exchange services, and trade finance. The bank also intends to introduce new services tailored to the South African market.
This deal follows Access Bank’s earlier success in transforming Grobank, a former agricultural-focused institution, into a retail banking operation. By merging Bidvest Bank with its current operations, Access Bank aims to create a robust financial institution capable of driving regional trade and economic integration.
Broad-Based Black Economic Empowerment (BBBEE)
In line with South Africa’s regulatory framework, Access Bank has committed to implementing Broad-Based Black Economic Empowerment (BBBEE) ownership, including an Employee Stock Ownership Plan. This initiative underscores Access Bank’s efforts to align its operations with local priorities while fostering inclusivity and economic growth.
Implications for Bidvest Group
The Bidvest Group’s decision to sell Bidvest Bank is part of a broader strategy to streamline its portfolio. In addition to the bank’s sale, Bidvest announced the disposal of its financial emigration service, FinGlobal, to Momentum Group. The company is also entertaining offers for Bidvest Life, its insurance arm.
Bidvest’s CEO, Johann le Roux, commented on the sale of FinGlobal, stating, “This acquisition supports our strategic intent to invest in financial advice to drive growth. FinGlobal’s capabilities will enhance holistic financial planning and fiduciary services in the industry.”
Closing the Deal
The acquisition of Bidvest Bank by Access Bank is expected to be finalized in the second half of 2025, subject to regulatory approvals in both South Africa and Nigeria. Analysts predict the deal will significantly boost Access Bank’s capacity for intra- and inter-Africa trade, fostering greater economic connectivity on the continent.
With this acquisition, Access Bank demonstrates its commitment to redefining banking across Africa, leveraging its extensive network and technological innovations to meet evolving customer needs. As Ogbonna succinctly put it, “This is more than just an acquisition; it’s a bold step toward building a stronger, more integrated African financial system.”
