By Dennis Musau
The Kenyan lender will pay Ksh.6.7 billion (USD 48.1 million) for a 91.93% controlling equity stake.
Cogebanque is Rwanda’s fifth largest bank, and its subsequent amalgamation with Equity Group’s existing banking subsidiary in Rwanda is set to make Equity Bank the second largest bank in Rwanda.
Rwanda has been Equity Group’s highest-return business.
The bank will have a total combined assets market share of 18% and a deposits market share of 19% based on audited accounts as of December 31, 2022.
“Rwanda’s economic growth is expected to be supported by a continued ease of doing business, recovery of global travel that will underpin its tourism and Meetings, Incentives, Conferences and Exhibitions (MICE) strategy targeting Foreign Direct Investments, regional integration, supporting trade and increasing contribution to its manufacturing sector. An underpenetrated financial services sector, with private sector credit and GDP being below 30% provides a well-defined secular growth opportunity for the financial services Group,” James Mwangi, Equity Group’s Managing Director and CEO, said.
The group intends to make an offer to the remaining shareholders to own 100% of Cogebanque.
“Equity Group's acquisition of Cogebanque reflects the trust and confidence placed in Rwanda's economic prospects and the resilience of our financial industry. The consolidation of these two institutions will undoubtedly contribute to the growth and stability of Rwanda's banking sector, enabling us to provide better financial services to our citizens and facilitate economic empowerment,” said Dr Uzziel Ndagijimana, Rwanda’s Minister of Finance and Economic Planning.
The amalgamated Rwanda subsidiary now joins Equity Bank Kenya and Equity BCDC in the Democratic Republic of Congo, which also have the second-largest market share in their respective markets.
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