Absa Group CEO Kenny Fihla indicated that the bank is considering converting its representative office in Nigeria into a merchant bank, highlighting this as part of a broader African expansion strategy. This move aims to deepen its presence in Africa's most populous country, allowing access to capital markets, underwriting, and advisory services, and diversifying earnings away from its core markets. Currently, Absa relies heavily on South Africa, Kenya, and Ghana for over 80% of its total net income, with South Africa alone accounting for 72% of earnings in the first half of the year.
The expansion strategy also includes exploring opportunities in other commodity-rich African nations like Uganda, Zambia, Tanzania, and Angola. Absa plans to establish a representative office in Angola, nearly two decades after exiting the market in 2009. This Angolan office would initially focus on identifying trade and corporate banking opportunities without requiring a full banking license. The group is also working to combine its two businesses in Tanzania and recently opened a branch at the Dubai International Financial Centre to serve African clients with cross-border needs.
These expansion efforts come after Absa reported a strong financial performance for the first half of 2026, with net income increasing by 12% to 12.58 billion rand, up from 11.23 billion rand year-over-year. CEO Kenny Fihla emphasizes that this strategy is crucial for diversifying the business across client segments, products, and geographies, reducing the group's dependence on a few key markets, and capitalizing on Africa's long-term growth potential. Absa is also strengthening its wealth proposition by expanding capabilities in Mozambique and Kenya and establishing a wealth hub in Mauritius.
