First Bank of Nigeria is set to expand its footprint across the African continent, targeting at least three new markets in its next growth phase. The bank aims to take advantage of emerging opportunities in countries with evolving financial systems and significant economic potential. The targeted countries include Ethiopia, Angola, Cameroon, and Côte d’Ivoire.

Strategic Expansion to High-Potential Markets

Speaking in a recent interview with The Africa Report, the bank’s Deputy Managing Director, Ini Ebong, highlighted the rationale behind the expansion strategy. He noted that the bank is focusing on large economies with substantial banking pools and opening financial markets.

“There are a number of large economies with large banking pools that are of interest to us because their financial markets are opening up,” Ebong said. “You look at countries like Ethiopia and Angola. In francophone West Africa, we want to expand our presence in places like Côte d’Ivoire and Cameroon. The market opportunity is there, and we seek to continue to exploit it.”

Ebong added that the opportunities in these markets resemble those seen in the early 2000s in other major African economies. “We believe it is an opportune time to take part in the phase of growth that we see,” he stated.

Ethiopia: A Key Target Market

Ethiopia is a critical focus for First Bank’s expansion, as the country recently opened its financial sector to foreign investment. In December, Ethiopia’s parliament passed a law allowing foreign banks to establish subsidiaries, a move expected to transform the country’s banking landscape.

Foreign firms entering Ethiopia can only own up to 49% of shares, but the opportunity is significant given the country’s status as East Africa’s largest economy.

Speaking during a panel session at the Africa Financial Industry Summit, Ethiopia’s central bank governor, Mamo Mihretu, emphasized the country’s readiness to welcome foreign banks. “The largest economy in East Africa is open for business for any banks looking to come into the country,” Mihretu said.

First Bank’s Track Record in Expansion

First Bank, a 130-year-old institution and one of Nigeria’s largest banks, has a history of expanding into international markets. The bank began establishing subsidiaries in Africa in 2011 with the acquisition of Banque International de Credit, a leading bank in the Democratic Republic of Congo.

In 2013, First Bank acquired subsidiaries of International Commercial Bank Financial Group Holdings AG (ICBFGH) in The Gambia, Sierra Leone, Ghana, and Guinea. This was followed by the acquisition of ICB Senegal in 2014, completing its acquisition of ICBFGH’s West African assets.

The bank also operates in Europe through subsidiaries in London and Paris, France, and has a representative office in Beijing, China.

Opportunities and Challenges

First Bank’s planned entry into Ethiopia, Angola, Cameroon, and Côte d’Ivoire aligns with its strategy to tap into Africa’s burgeoning banking markets. Ethiopia’s new legislation and Angola’s ongoing economic reforms present promising entry points for foreign banks. Similarly, francophone West Africa offers significant growth potential in its underbanked population and developing financial systems.

However, entering these markets will come with challenges. Regulatory environments, currency risks, and competition from established local and international banks will require careful navigation. Additionally, building trust and customer loyalty in new markets will be critical for sustained growth.

A New Chapter for African Banking

First Bank’s planned expansion reflects the increasing integration and growth of Africa’s financial sector. As economies like Ethiopia and Angola liberalize their banking systems, they provide a fertile ground for well-established banks like First Bank to bring their expertise and financial solutions to new markets.

This strategic move underscores First Bank’s commitment to remaining a leading financial institution on the continent, leveraging its rich history and experience to drive growth and development in Africa’s evolving financial landscape.