SA’s Nedbank acquires 20% stake in Ecobank


3 October 2014

Nedbank’s 20% stake in Ecobank Transnational Incorporated (ETI) will provide its clients access to banking solutions across 39 African countries, and afford the South African bank ground to tap into the growing markets in Sub-Saharan countries.

Nedbank’s shareholding in ETI “represents an important step in the consolidation and deepening of the strategic and technical banking alliance we have with ETI’, said Mike Brown, Nedbank Group Chief Executive in a statement on 2 October.

“Nedbank Group’s clients are increasingly expanding their business operations into the rest of Africa, and Nedbank Group’s own operations in Southern and East Africa, combined with ETI’s unrivalled pan-African footprint and strength in West and Central Africa provides our clients with access to banking solutions across 39 African countries. This investment also offers our shareholders participation in earnings growth from the faster growing markets in sub-Saharan Africa.”

Nedbank, South Africa’s fourth-largest bank, said it would pay US$493.4 million for 4.5 billion new shares in ETI. As a reciprocal measure, ETI will repay Nedbank’s loan of USD285 million granted to ETI in 2011 out of the subscription proceeds.

Nedbank second-largest shareholder

Nedbank becomes the second-largest shareholder in ETI after Qatar National Bank which has a 23.5% stake in Ecobank. South Africa’s Public Investment Corporation (PIC), which has an almost 20% stake, is now the third-largest shareholder.

Commenting on the investment, ETI Group Chief Executive Officer Albert Essien said ETI welcomes Nedbank’s investment in the bank, a move which has increased ETI’s capital base.

“It is a win-win for ETI and Nedbank Group. Our two institutions have been strong strategic partners since we formed our unique one-bank alliance six years ago, and it is in our mutual interest to ensure that this alliance grows from strength to strength. It will remain steadfast as we continue to provide the best quality banking services to our numerous clients across the largest banking network in Africa.” 

ETI and Nedbank Group established their strategic business alliance in 2008, with the aim of providing seamless banking services across the continent to each other’s clients. This transaction deepens the alliance and includes a commitment to reciprocal technical banking expertise and management support. Together, ETI and Nedbank Group will offer a unique one-bank experience to their clients across the largest banking network in Africa, comprising more than 2 000 branches and offices in 39 countries.

About Nedbank Group

Nedbank Group is a Johannesburg Stock Exchange (JSE) listed bank holding company with a market capitalisation of R117.8 billion as at 30 June 2014. Its principal banking subsidiary is Nedbank Limited and the group is 52% majority owned by Old Mutual plc which has a primary listing on the London Stock Exchange and secondary listings on several African exchanges including the JSE.

Old Mutual and ETI are joint venture partners in insurance in Nigeria. Nedbank Group owns subsidiaries and banks in Namibia, Swaziland, Malawi, Mozambique, Lesotho, Zimbabwe, Isle of Man, Guernsey and Jersey, and has representative offices in other Southern Africa countries, including Angola, Kenya and key global financial centres to provide international banking services for SA-based multinational and high-net-worth clients in London, Toronto and Dubai (UAE).

As at 30 June 2014, the Nedbank Group had total assets of R783.8 billion (US$73.7 billion) and is South Africa’s fourth largest banking group, providing a wide range of wholesale and retail banking services and a growing insurance, asset management and wealth management offering through five main business clusters, namely Nedbank Capital, Nedbank Corporate, Nedbank Business Banking, Nedbank Retail and Nedbank Wealth. In addition the group has more than 1 000 outlets and 3 500 ATMs, servicing over 6.9 million clients. Nedbank employs more than 30 000 staff.

About Ecobank Transnational Incorporated

ETI is a full-service banking group which provides wholesale, retail, investment and transactional banking services to governments, financial institutions, multinationals, local companies, small and medium enterprises and individuals.


ETI has operations in 36 countries across the African continent. It currently operates in countries in West, Central, East and Southern Africa, namely Angola, Benin, Burkina Faso, Burundi, Cape Verde, Cameroon, Central African Republic, Chad, Congo Brazzaville, Democratic Republic of Congo, Cote d’Ivoire, Equatorial Guinea, Ethiopia, Gabon, Ghana, The Gambia, Guinea, Guinea Bissau, Kenya, Liberia, Malawi, Mali, Mozambique, Niger, Nigeria, Rwanda, Sao Tome & Principe, Senegal, Sierra Leone, South Africa, South Sudan, Tanzania, Togo, Uganda, Zambia and Zimbabwe. The Group also has a licenced operation in Paris and representative offices in Beijing, Dubai, Johannesburg, London and Luanda.

As of 30 June 2014, ETI had US$23.4 billion in assets and US$2.3 billion in total equity. It has a network of 1 241 branches, 2 500 ATMs and 16 425 point of service machines servicing over 10.8 million customers. The ETI group employs 20 114 people and is listed on the Ghana Stock Exchange, the Nigerian Stock Exchange and the Bourse Regionale des Valeurs Mobilieres in Cote d’Ivoire.