Access Bank Acquires Majority Stake in Afrasia Bank
By Patience Ikpeme
In a bold strategic move, Nigeria’s leading financial institution, Access Bank Plc, has announced an agreement to acquire a majority stake in Afrasia Bank Limited, the fourth-largest bank in the Republic of Mauritius by total assets, which stood at $5.7 billion as of mid-2024.
This acquisition aims to position Access Bank as a key player in trade finance and regional connectivity, enhancing its capacity to facilitate cross-border transactions across Africa and beyond.
The acquisition was disclosed in a corporate notice filed by Access Holdings Plc, the parent company of Access Bank, on the Nigerian Exchange Limited on Thursday. The filing outlined that the addition of Afrasia Bank to Access Bank’s growing international portfolio is expected to transform Mauritius into a strategic hub for Access Bank’s trade finance operations.
Mauritius has built a reputation as a stable and thriving financial center, with its financial services sector contributing approximately 13.4 percent to the nation’s Gross Domestic Product. This acquisition allows Access Bank to tap into Mauritius’ role as an international financial hub, fostering stronger trade links across Africa and supporting the expansion of Access Bank’s service offerings.
In a statement, Roosevelt Ogbonna, the Managing Director and CEO of Access Bank Plc, emphasized the significance of the acquisition in advancing the bank’s Pan-African growth strategy. “This acquisition marks a pivotal moment in our African growth strategy, reinforcing our position as a leading Pan-African financial institution,” Ogbonna remarked. “Mauritius offers immense potential as an international financial hub, and through Afrasia Bank, we are excited to unlock new opportunities to drive trade, support businesses, and foster economic inclusion across the region as we continue our mission to be the World’s Most Respected African Bank.”
Jamie Simmonds, Managing Director of Access Bank UK, echoed Ogbonna’s sentiments on the strategic benefits of the acquisition. “With a strong balance sheet and a well-established brand in Mauritius, Afrasia Bank provides us with a sustainable platform to scale and achieve long-term profitability,” Simmonds stated. “The deal aligns with our strategy to diversify and future-proof our earnings, while offering bespoke solutions that enable our clients to access global markets with ease.”
This acquisition marks another significant milestone in Access Holdings’ expansion journey, as the institution solidifies its presence on the African continent and beyond. Earlier this year, Access Bank extended its global footprint with the opening of an office in Hong Kong, demonstrating a commitment to becoming a formidable player in international finance.
Afrasia Bank’s fiscal performance underscores its strong position in the Mauritian financial market, with total assets of over $5.7 billion and a net profit after tax of $152.4 million as of June 30, 2024. Access Bank is expected to leverage Afrasia Bank’s existing infrastructure and regional knowledge to drive further expansion, scale its operations sustainably, and support the continent’s economic transformation through intra- and inter-African trade.
The acquisition is expected to be a game-changer for Access Bank’s UK operations, empowering Access Holdings to deliver innovative financial solutions and support businesses and individuals through new opportunities in the African market. Access Bank’s robust acquisition strategy reflects its commitment to driving sustainable growth and enhancing economic inclusion across Africa.
As Access Bank Plc continues to cement its status as a global financial leader, its ongoing acquisitions underscore the bank’s dedication to providing world-class financial services and promoting economic transformation within and beyond Africa.
