FirstRand To Open Investment Bank In Africa

FirstRand, one of   South Africa’s two biggest banks has revealed plans 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 Africa bank is disclosed its intent to make a foray into the Nigeria 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, according to Reuters report.

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.