Access Holdings has announced a binding agreement to acquire a majority stake in Afrasia Bank, a Mauritius-based commercial bank with over $5.7 billion in assets. Access Bank UK Limited, a subsidiary of the financial services conglomerate, executed the transaction on behalf of the parent company, underscoring Access Holdings’ ongoing international expansion strategy.
The acquisition aligns with Access Bank’s vision to become a top player in African financial services, just five weeks after the Nigerian lender received regulatory approval to establish a presence in Namibia. Afrasia Bank, currently Mauritius’s fourth-largest bank and boasting a representative office in South Africa, reported a net profit of $152.4 million for the fiscal year ending June 2024.
“This acquisition marks a pivotal moment in our African growth strategy, reinforcing our position as a leading pan-African financial institution,†said Access Bank CEO Rosevelt Ogbonna. He emphasized Mauritius’s role as an international financial hub, adding that Afrasia Bank offers strategic opportunities to support trade, business development, and economic inclusion across the region.
The acquisition is expected to boost Access Bank’s capabilities in trade finance, facilitating cross-border transactions and reinforcing its position to leverage the African Continental Free Trade Area (AfCFTA) to enhance intra-African trade. The bank has set a goal to become one of Africa’s top five banks by 2027, with a strategy of establishing a strong presence in each market it enters.
Jamie Simmonds, CEO of Access Bank UK, highlighted the strategic advantage of Afrasia Bank’s established brand in Mauritius, saying, “With a strong balance sheet and brand in Mauritius, Afrasia Bank provides us a sustainable platform to scale and achieve long-term profitability.” He noted that this acquisition will allow Access Bank to offer tailored financial solutions, enabling clients to access global markets.
To finance its expansion, Access Holdings plans to issue two tranches of dollar-denominated bonds. The first tranche targets individual Nigerian investors, using the Nigerian Government’s diaspora bond as a model. The second tranche, set for issuance by June, aims to attract development finance institutions.
Access Holdings’ strategy reflects a commitment to long-term growth, focusing more on expanding across Africa rather than short-term shareholder returns. The company has allocated over 70% of its equity to African banking acquisitions and diversification within financial services to support its ambitious expansion plans.
