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African Bank Limited, a leading retail bank led by South African executive Kennedy Bungane, secured approval from the Reserve Bank’s Prudential Authority for a 25-percent stake acquisition in Grindrod Bank’s assets and liabilities.
Finance minister greenlights African Bank’s $81.3-million deal
A government gazette published Friday confirmed the deal, authorized by the finance minister under Section 54(1)(b) of the Banks Act. The R1.5-billion ($81.3 million) transaction strengthens African Bank’s position in the competitive business banking market.
This strategic move, under the leadership of Kennedy Bungane, aligns with African Bank’s ambitious expansion plan under its “Excelerate25” strategy.
The acquisition bolsters African Bank’s presence within the small and medium-sized enterprise (SME) segment, a key growth area for the bank.
By consolidating assets and operations with Grindrod Bank, African Bank aims to solidify its position as a key player in the South African financial landscape.
African Bank expands with Grindrod deal
Grindrod Bank, part of Grindrod Financial Holdings (GRFH), has been a major player in the financial services industry since 1994.
Grindrod Limited, the parent company with a century-long presence in logistics, transportation, and freight, recently explored the sale of its banking unit and financial services division. South Africa’s richest man Johann Rupert presently holds a $9.92-million stake in Grindrod Limited.
African Bank’s remarkable growth under Kennedy Bungane
Under Bungane’s guidance, African Bank has swiftly expanded, emerging as one of South Africa’s top financial service providers.
The number of active customers skyrocketed from 1.54 million in the 2022 fiscal year to 3.97 million by Sept. 30, 2023, fueled by the launch of business and alliance banking segments.
African Bank’s recent acquisition of Grindrod Bank’s assets and liabilities bolsters its market standing, while also broadening its commercial and industrial property finance services, adding diversity to its portfolio.
