Standard Bank, Africa’s largest bank, is directing its growth strategy toward East Africa, focusing on critical industries such as energy, agriculture, and infrastructure.
Under CEO Sim Tshabalala’s leadership, the bank intends to capitalize on the region’s high levels of integration, allowing for easier trade and movement of commodities and people. Partnerships and acquisitions are also under consideration to support this goal.
The bank emphasizes that one of the most appealing aspects of East Africa is its high level of integration, which enables trade and migration.
Tunde Macaulay, head of Africa regions and offshore for business and commercial banking, stated that, given their strong positions in Southern and Central Africa, the organization hopes to expand into West Africa as well.
“A year ago, the Standard Bank Group leadership council identified three growth areas: East Africa, becoming a top private banking bank in Africa, and leading in renewable energy,” he said.
East Africa stands out for its integrated policies and borderless trading environment, making it the continent’s most integrated area. Kenya, the region’s largest economy, is essential to this plan.
According to the African Development Bank, East Africa is expected to dominate Africa’s growth, with rates of 5.1% in 2024 and 5.7% in 2025. Rwanda, Tanzania, Uganda, Ethiopia, Djibouti, and Burundi are predicted to expand by more over 5% in 2024.
This growth is being driven by increased government spending and smart investments in connectivity and trade, as well as modernization of agriculture and services.
Standard Bank’s group CEO, Sim Tshabalala, raised the prospect of acquisitions in East Africa. However, Macaulay highlighted that the current focus is on organic growth, with prospective collaborations being sought to improve market coverage without requiring substantial branch expansion.
“In South and Central Africa, we are in the top three and plan to expand our market share. Due to our current low market share, East and West Africa offer considerable prospects,” Macaulay remarked.
The bank has a 4% market share in Kenya, 3% in Nigeria, and 6-7% in Ghana.
Standard Bank, valued at around R350 billion ($24.5 billion) on the Johannesburg Stock Exchange, operates in 20 African countries. Its activities outside South Africa now account for more than 40% of its headline earnings. Since 2012, gross loans from other African countries have expanded from 13% to 20% of the bank’s loan portfolio, while deposit liabilities have increased from 15% to 22%.
Despite Nigeria and Ghana’s economic reforms, the African Development Bank expects West African GDP to reach 4% in 2024 and 4.4 percent in 2025. Other countries in the region are predicted to increase at least 4% by 2024.
Sim Tshabalala’s focus on increasing Standard Bank’s market share in East and West Africa is consistent with the company’s goal of capitalising on these regions’ strong growth potential. With strategic investments and a significant presence, the bank is well-positioned to capitalize on Africa’s dynamic economic landscape.
Under Tshabalala’s leadership in 2017, Standard Group’s financial performance improved significantly.The bank’s latest annual report shows a 27% increase in headline earnings and a 20% rise in overall net income.
Tshabalala’s vision goes beyond the current targets.Standard Bank’s commitment to sustainable finance is on course to exceed its initial objective of R250 billion ($15.6 billion) by 2026, demonstrating the bank’s ambition for Africa’s green transition.
