South African banking group Absa has acquired a 50% controlling stake in Banco Comercial Angolano, a financial services provider based in Luanda, Angola.
The stake, which entitles Absa to board and management control of BCA, was acquired for $7,5-million. The balance of shares will continue to be privately owned by Angolan residents.
The acquisition is part of Absa’s strategy to expand its retail footprint on the African continent.
Absa Group CE Dr Steve Booysen said the acquisition fitted perfectly into Absa’s African expansion strategy and was based on a model Absa had already successfully applied in investments elsewhere on the continent.
At present, Absa has interests in operations in Tanzania (55%), Mozambique (80%), Zimbabwe (26%) and Namibia (36,6%), the group said in a statement on Monday.
The increasing business in retail, mineral and trade opportunities in Angola, present an opportunity for Absa to participate in the financing of such trade and commodity finance. Angola’s gas and electricity sectors are to be opened to private investments and the government has similar plans for its water, sanitation, telecommunications and transport services.
Foreign banks currently carry out a significant portion of the country’s merchant banking needs and there are major opportunities for Absa within the Angolan merchant banking context.
BCA currently has four branches in Luanda and Absa’s investment will include further development of staff; expansion of the infrastructure of the bank; alignment of key policies and procedures with that of Absa as well as a growth in BCA’s business by introducing new products and services, the group added. – I-Net Bridge