Equity Group has abandoned its plans to enter Ethiopian in what it describes as regulatory delays, prompting a change in its pan African strategy towards the oil rich Angola, where an acquisition process is already underway.
Equity Group Regional Footprint
Equity Group already has a footprint in other regional countries, including 50 branches in Uganda, 81 in DRC, 36 in Rwanda, 5 in South Sudan 16 in Tanzania with Kenya its largest market with 221 branches, 14.1m accounts and 1.3 million merchants.
It also has a representative office in Ethiopia, which is yet to turn into a fully-fledged outlet due to structural and legal bottlenecks. The Ethiopian banking sector is currently comprised of a central bank (The National Bank of Ethiopia or NBE), one state owned development bank, a government owned commercial bank and sixteen private banks.
Available data shows that Commercial Bank of Ethiopia (CBE) holds more than 60 percent of total bank deposits, bank loans and foreign exchange.
Equity Group is this market structure, similar to the same web that has woven Safaricom, whose subsidiary is yet to break even largely due to state-control of the telcom’s business.
Angola’s banking sector offers growth potential, supported by ongoing financial market development and structural reforms in the economy.
Equity Group is eyeing Angola’s flouring bank industry, large banking balance sheet and the country’s hast growing economy.
In the years following the end of the civil war in 2002, Angola’s GDP recorded tremendous growth, driven largely by the oil industry. The cash flow originating from petroleum exports helped the impressive expansion of the financial sector.
However, the banking market remains marked by concentration and limited financial inclusion.
According to the latest GDP size in Billion Dollars, Angola has $115Bn ahead of Ghana $112Bn, Ethiopia $109Bn, Cote d Ivoire$ 99Bn, Tanzania$87Bn, DRCongo $82Bn, Uganda $65Bn while Kenya has GDP size worth$136Bn and is placed 6th behind South Africa, Egypt, Algeria, Nigeria and Morocco.
Equity Group, known for its strong branch and experience in 6 African markets is expected to find space in the Angolan financial sector that has 26 commercial banks registered to operate in Angola.
This because five of these – Banco Angolano de Investimentos (BAI), Banco Economico, Banco de Fomento Angola (BFA), Banco BIC Angola (BIC) and Banco de Poupança e Crédito S.A.R.L. (BPC) – control over 80 percent of total banking assets, deposits, and loans.
Commercial banks in Angola are predominately Angolan, Portuguese, and South African. Most traditionally concentrate on short-term commission-related activities, such as foreign exchange operations and trade financing. All major banks offer ATM services. Internationally issued credit cards acceptance is limited to Visa and MasterCard, and only accepted by business hotels and a limited number of service providers.
Why Equity has switched strategy to Angola
Equity has picked on Luanda, which is emerging as a key financial hub in Southern Africa.
Angola represents a strong strategic play due to its growing financial sector and expanding capital markets, reducing dependency on slower‑moving regulatory environments.
This move also reinforces the Group’s broader regional strategy, building on previous successful acquisitions (such as Cogebanque in Rwanda) and market entries across East and Central Africa.
According to analysts, Equity Group is no longer compounding within a market—it is positioning across a continent. It is shifting from growth in earnings to strategic expansion across markets.
The next decade may not be defined by which bank is more profitable today, but by who allocates capital most intelligently across Africa’s fragmented banking landscapes
Investors will be keenly watching how Equity Group’s Angolan acquisition progresses and how it contributes to future earnings and network growth.
Investors watchlist this week:
- 25 March: I&M Group – FY25 earnings results
- 25 March: Kakuzi PLC – FY25 earnings results
- 25 March: HFC Group – FY25 earnings results
- 25 March: DTB – FY25 earnings results
- 26 March: NCBA Group – FY25 earnings results
- 27 March: KPLC – Interim dividend payment (KSh 0.30)
- 27 March: NSE PLC – FY25 audited group results
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