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Nedbank Takes Control Of Kenya’s NCBA
Nedbank, one of South Africa’s largest banks, has taken control of NCBA Group, a Kenyan banking group. Nedbank said on 19 October that regulators had approved its offer, giving Nedbank about two-thirds of NCBA. Shareholders offered more than Nedbank wanted to buy, so each will sell part of what they put forward. They will be paid in a mix of cash and Nedbank shares from 3 November.
The deal gives Nedbank its first full banking business outside Southern Africa. Until now, its only presence in Kenya was a representative office, which did not offer full banking services. NCBA runs banks in Kenya, Uganda, Tanzania and Rwanda, and digital banking in Côte d’Ivoire and Ghana.
Before the offer, NCBA’s three largest family shareholders held about a third of the group. They include the family of former Kenyan president Uhuru Kenyatta. NCBA keeps its own brand and management, and the remaining third of its shares stays listed in Nairobi.
Dangote Buys A Quarter Of Kenya’s Fuel Pipeline Company
Aliko Dangote, Africa’s richest man, has bought about a quarter of Kenya Pipeline Company. The company runs Kenya’s fuel pipelines. Dangote told the Financial Times Africa Summit in London on 21 October that one of his companies paid about $327m.
The shares came from Kenyan public institutions, including pension funds. Kenya sold most of the pipeline company on the stock market in March. Seven months later, public institutions sold a quarter of it to Dangote, for about the price the public paid in March. None of the sellers has been named.
Opposition MP Ndindi Nyoro has made two claims. In early October, he said pension funds were pressured to buy shares in March. Parliament suspended him on 8 October when he refused to give evidence. On 21 October, he said the funds were then told to sell to a private investor at a loss. Parliament’s majority leader, Kimani Ichung’wah, said the public service pension fund made money on its shares.
Ivorian Group To Take Over Chad’s Housing Bank
Atlantic Financial Group, founded by Ivorian businessman Bernard Koné Dossongui, is set to take control of Chad’s state-owned housing bank. Chad’s finance ministry said on 19 October that the group will become the majority shareholder of Banque de l’Habitat du Tchad (BHT). No price was given.
BHT opened in 2017 to lend to Chadians buying homes; however, a 2020 World Bank report found it made no mortgage loans in its first years because it lacked long-term funding. The state housing fund that was meant to provide that money had not been set up.
Chad is in a $655m International Monetary Fund programme, which includes restructuring its state-owned banks. BHT’s owners (the state, the national pension fund and the state oil company) approved a restructuring and new capital on 14 October. The deal needs approval from the Central African Banking Commission (COBAC). If approved, Chad would become Atlantic Financial Group’s third Central African market, after Cameroon and Gabon.
Also This Week…
Chery To Build Cars At Former Nissan Plant
- Chinese carmaker Chery said on 21 October it will build the Omoda C4 at a plant near Pretoria it bought from Nissan this year.
- Production starts in the second half of 2027 at about 15,000 cars, rising to 50,000 a year.
UBA Owes $600m In November
- Nigeria’s United Bank for Africa (UBA) must repay a $300m Eurobond on 19 November and a $300m trade loan from the African Export-Import Bank in the same month.
- Fitch expects UBA to repay the bond from its own cash. It isn’t known whether the trade loan has been renewed.
Dutch Lender Funds Ivorian Solar Plant
- FMO, the Dutch development bank, is lending about €55m ($62m) for a 50MW solar plant near Kong, in northern Côte d’Ivoire.
- Madagascar’s AXIAN Energy part-owns the project, which is due to start supplying power in 2028.
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