Table of Contents
Key Points
- African Bank finalizes a $28 million acquisition from Grindrod’s GFS Holdings, strengthening its asset base.
- The deal aligns with African Bank’s expansion under CEO Kennedy Bungane, following its acquisition of Grindrod Bank’s assets to diversify its financial services portfolio.
- Grindrod’s divestment supports its logistics-focused strategy, while African Bank gains exposure to property and financial markets.
African Bank Limited, led by South African business executive Kennedy Bungane, has finalized the acquisition of key property assets from GFS Holdings, a subsidiary of Grindrod. The R500 million ($28 million) deal is part of the bank’s ongoing efforts to expand its portfolio.
Strengthening African Bank’s asset base
First announced on Oct. 22, 2024, the deal involves acquiring loans and property investments on South Africa’s KwaZulu-Natal North Coast. With this move, African Bank aims to strengthen its asset base and gain a strategic foothold in the region’s property and financial sectors.
The transaction, having met all suspensive conditions on March 14, 2025, is set to close on March 20, 2025. This acquisition aligns with African Bank’s broader growth strategy under Bungane’s leadership. Over the past year, the bank has seen a 36-percent surge in customers, growing from 3.97 million in 2023 to 5.4 million in September 2024, driven by new business initiatives and strategic partnerships.
For Grindrod, the sale supports its strategy to streamline operations and focus on its core logistics and freight services business. The proceeds will help strengthen its balance sheet and fund expansion efforts in its primary business segments.
Expanding African Bank’s reach
The acquisition includes loans to the Royal Shaka Property Group, Selwa Trust, and Ushukela Milling, as well as a 19-percent stake in two property development firms—Trevally Group and Sherpa Trade. The deal also includes mortgage bonds and profit-sharing agreements tied to future developments in the region.
Under Bungane’s leadership, African Bank has been aggressively expanding into new financial sectors. This latest acquisition builds on its earlier purchase of Grindrod Bank’s assets, reinforcing its commitment to growth across multiple financial sectors.
By securing a foothold on the KwaZulu-Natal North Coast, African Bank diversifies its revenue streams while advancing its long-term strategy of financial inclusion. The deal not only strengthens its position in South Africa’s banking sector but also signals its intent to play a larger role in the country’s evolving financial landscape.
