NCBA Group PLC—a major East African financial services conglomerate, setting its sights on the Ethiopia and Democratic Republic of Congo (DRC) and as its next major frontier markets. This strategic pivot follows the successful completion of a landmark acquisition transaction with South Africa’s Nedbank Group, a deal that positions the Kenyan lender for broader cross-border expansion.
NCBA Group Managing Director John Gachora revealed that the bank is actively evaluating opportunities within the two high-potential markets. Rather than opting to build new operations from scratch, the lender intends to pursue acquisitions as its preferred mode of entry.
“We see ourselves in Ethiopia in a very short time. So we are actually looking for opportunities in those countries,” Gachora stated, emphasizing that the modern banking landscape favors established networks over greenfield ventures. “I do not believe at this point, given where banking is, that green fields work. So if we are actually going to those markets, you can be sure that we still pay for acquisitions.”
The expansion strategy is heavily catalyzed by Nedbank’s agreement to acquire approximately 66 percent of the Kenyan lender in a high-value transaction worth roughly $850 million (Sh110 billion). The deal structure comprises 20 percent in cash and 80 percent in new Nedbank shares. Following approvals from the Central Bank of Kenya in August and other key regional regulators, the transaction paves the way for NCBA to operate as a Nedbank subsidiary while keeping its established brand, executive management, and Nairobi headquarters intact.
This capital injection and expanded capability arrive at an opportune moment as NCBA seeks to capitalize on surging intra-African investment and broader financial-sector consolidation. Currently, NCBA maintains operations in Kenya, Uganda, Tanzania, and Rwanda, alongside digital banking ventures in Ivory Coast and Ghana.
Gachora noted that the broader banking sector must actively address the continent’s structural challenges, pointing out that Africa’s primary hurdle lies in effective financial intermediation rather than a general lack of capital. He highlighted that more than $700 billion in annual financing demand across critical sectors—including infrastructure, climate finance, trade finance, and Micro, Small, and Medium Enterprises (MSMEs)—remains unmet.