Kenya’s listed lender Equity Bank is eyeing new markets within Southern Africa as the bank stretches forth it’s Africa footprint to tap the immense potential in technology, mining and agriculture sectors. CNBC Africa’s Aby Agina had a sit down with the bank’s Group CEO, James Mwangi for more.
Kenya’s listed lender Equity Bank is eyeing new markets within Southern Africa as the bank stretches forth it’s Africa footprint to tap the immense potential in technology, mining and agriculture sectors. Well, I had a sit down with the bank’s Group CEO, James Mwangi for more insights. We are in one of the fastest growing regions in the world. Of the six countries that we have full operations, four of them are Rwanda, Tanzania, Uganda and DRC, in the top ten fastest growing economies and we feel very, very lucky that we are in such an environment. The second thing, this is happening at a time that we have maybe the largest balance sheet in the entire region, but for sure we have the most valuable financial bread in the region and the most iconic financial bread in Africa. That asset alone gives us the credibility and feasibility. At the same time, we match it with a $14 billion balance sheet of funding for that matter and 21 million customers. So this has given us the capacity and the opportunity to invest substantially in systems and processes and people who have made us come up with a dream of being 100 million customers organisation by 2030 because we are now leveraging on technology, online capabilities and customers are able to serve themselves. The second thing, we are entering a phase of a digital generation that will want to serve themselves on their devices. That ability to use technology to leapfrog gives us a huge opportunity to be a driver of this group, to facilitate this group and to enable this group as a financial service provider. We are also very lucky that we are anchored in terms of shareholding by allies, which is Norfad, FMO, Labo Bank on one hand and IFC, the private sector, as the two largest shareholders with more than 20% of the shareholding. That brings trust to the organisation and together with our shareholders and development banks that we have been working with, we have been able to come up with what we call the African Recovery and Resilient Plan. Some people call it the Marshall-like African Plan and broadly what we are saying is that Africa requires an integrated transformational and development plan. We felt as an African-leading organisation we should put something on the table and that has now been collaborated by the United Nations, the national governments of the countries we operate in and we are excited that we are contributing to the transformation we are seeing in the region. We are able to attract through trade and investment global companies that are leading focus on increasing productivity of our agriculture and to do value addition, not only on the agricultural produce but to our mining wealth and in the process also generate renewable energy as the new source and leverage on technology while ensuring small and medium enterprises populate the value chains of these global countries. That is what is happening and we see equity in a very low position and that is why we can see ourselves by 2030 having 100 million customers leveraging on our brand, the opportunities particularly on the agricultural space, on the mining space, on the energy and technology space. That is where we are and we have not seen a moment like this in history and because of that we see ourselves and Africa generally bring a critical role in resetting the global economic order as we try to address the issue of food security and climate change globally. Finally, Dr. Mwangi, I do know that you have been making serious advancements especially in the region. I do know in Rwanda you are setting up some major investments and you also have your eyes on Ethiopia. I am glad to say that out of the six countries that we are operating in, we are now in the top three companies in five of those countries. We have become a systemic financial group within the region, the most significant. One of the advantages of that is that we are able to anchor across border trade and I am glad that we have become the champion of African continental free trade area. We are seeing closer integration being led now by business and financial systems. As I said, when we look at it, we have deepened significantly in the market we are in to be in the top three. There is now an opportunity to add and I am glad Ethiopia has liberalized its market. We have a rep office so we are studying the new environment we find ourselves. We are also looking out to neighboring countries like Zambia, Angora, and Mozambique so that we can close the circuit between DRC and Tanzania that passes through Zambia and Angora out of that market. Those value chains, we need to complete them from the mines to the shipping ports on the eastern and western seaboard. Your closing thoughts to President Kagame who has been quite vocal when it comes to spurring investment in Africa. What would be your parting shot, sir? President Kagame has been a great inspiration to the African continent. One, from his governance practices that has seen Rwanda make the transformation it has made. His time as the chair of the African Union was very transformational. A foundation was laid and I see this weekend he has assembled 50 of us, the top businesses in Africa, to discuss the future of Africa and what the private sector and business can, what role it can play. And that is the type of convening power that we need our leaders to have so that business can speak to the political leaders and particularly to the African Union on what the political leadership needs to do to create an enabling environment for private capital. The countries that have transformed have not been transformed by government. They have been transformed by private capital and government partnering together to create an enabling environment. So that conversation to me is a great beginning at a time the world is resetting. And hopefully we use that forum to ensure the voice of Africa is heard globally and maybe the private sector in Africa can partner with global capital to open up the markets globally and to open Africa for investment so that we can see the transformation of Africa in the next generation.
Theme: Equity Bank's Expansion and Growth Strategy in Southern Africa
Kenya's Equity Bank Group is strategically eyeing new markets within Southern Africa to expand its footprint in the region. The bank aims to tap into the vast potential in technology, mining, and agriculture sectors as part of its growth strategy. In a recent interview with CNBC Africa, the bank's Group CEO, James Mwangi, shed light on the organization's expansion plans and vision for the future. Equity Bank has already established a strong presence in countries like Rwanda, Tanzania, Uganda, and the Democratic Republic of Congo, all of which are among the top ten fastest-growing economies in the region. Mwangi emphasized the significance of operating in such a dynamic and rapidly developing environment, citing the bank's robust balance sheet, financial credibility, and substantial customer base as key drivers of its success. With a $14 billion balance sheet and 21 million customers, Equity Bank is well-positioned to invest in technology, streamline processes, and enhance customer experience. The bank envisions reaching 100 million customers by 2030 by leveraging technology and digital innovations to cater to the evolving needs of the market. One of Equity Bank's strategic advantages is its strong shareholder base, which includes prominent institutions like Norfund, FMO, Rabobank, and the International Finance Corporation (IFC). This backing not only instills trust in the organization but also enables strategic collaborations for initiatives like the African Recovery and Resilient Plan. Working in tandem with development partners and national governments, Equity Bank is actively contributing to Africa's transformation through inclusive growth and sustainable development. The bank's focus on attracting global companies to invest in Africa's agricultural, mining, and renewable energy sectors underscores its commitment to driving economic progress and fostering innovation. Mwangi highlighted the importance of promoting small and medium enterprises (SMEs) and integrating them into global value chains to enhance productivity and create sustainable growth opportunities. Looking ahead, Equity Bank aims to capitalize on the untapped potential in the regional market by expanding into new territories like Ethiopia, Zambia, Angola, and Mozambique. By strategically positioning itself along critical trade routes and transit corridors, the bank seeks to facilitate seamless cross-border trade and enhance economic connectivity within the region. Mwangi's closing remarks emphasized the role of visionary leaders like President Paul Kagame in championing investment and economic development across Africa. He commended Kagame's transformative leadership and emphasized the need for collaborative efforts between the private sector and governments to create an enabling environment for sustainable growth. Mwangi underscored the importance of private capital in driving economic transformation and urged for deeper engagement between business leaders and policymakers to unlock Africa's full potential on the global stage.
"President Kagame has been a great inspiration to the African continent... and hopefully we use that forum to ensure the voice of Africa is heard globally and maybe the private sector in Africa can partner with global capital to open up the markets globally and to open Africa for investment so that we can see the transformation of Africa in the next generation."
['Equity Bank', 'Southern Africa', 'Expansion', 'Technology', 'Mining', 'Agriculture', 'Financial Services', 'Sustainable Development', 'Private Sector', 'Investment']