South Africa’s biggest retail banking group, Absa, will pay GijimaAst R960-million over five years for technology services, Absa said on Monday.
Absa is a subsidiary of Britain’s Barclays.
GijimaAst is 37% held by blacks and is a leading information and communication technology services firm.
GijimaAst will offer a fully managed desktop service for Absa and Barclays South African-based operations from December this year, said Absa. More details on the deal would be given at a function to be held on Wednesday, Absa said.
As part of the deal in which Barclays bought a 60% stake in Absa last year, the South African bank will buy Barclays African operations, aiming to become the biggest bank on the continent within five years.
Absa shares were 1,03% higher at R103,70 by 10.06am GMT, outperforming the JSE Securities Exchange’s Top-40 index which fell 0,4%.
GijimaAst, which is listed on the technology sector of the bourse, traded 1,92% lower. – Reuters