By Devon Maylie
JOHANNESBURG--South African bank Nedbank Group Ltd. (NED.JO)
said it plans to double its country presence in southern and east
Africa in the next three to five years as more South African
businesses trade across the continent.
Nedbank's Chief Operating Officer Graham Dempster told Dow Jones
Newswires that currently the bank is in five countries in the
southern and east African region but it hopes to increase that to
between 8 and ten, without elaborating which countries it is
looking at.
The bank will also make a decision about taking on a 20%
shareholding in west Africa-focused Ecobank Transnational Inc.
sometime from November 2013.
"The underlying driver...is very significant client bases that
are increasing their own trade across the continent," Mr. Dempster
said. "So it's important to expand our services."
Nedbank isn't the only financial institution looking to tap into
high growth rates across the African continent.
Bigger global banks have also been increasing their presence on
the continent, with J.P. Morgan Chase & Co. (JPM) expanding an
office in Nigeria and opening offices in Ghana and Kenya last
year.
Private-equity money has followed, with big names like Carlyle
Group LP and Blackstone Group LP closing recent deals in sectors
such as agriculture and infrastructure.
But Mr. Dempster said growth outside of South Africa is a still
a "longer-term strategy."
"The economic profit pool is still larger in southern Africa,"
he said.
Old Mutual PLC (OML.LN) has a 51.5% stake in Nedbank.
Write to Devon Maylie at devon.maylie@dowjones.com
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