African major Ecobank in talks to buy stake in Mozambican bank
Ecobank brings to Mozambique international expertise, experience and an unparalleled network of subsidiaries, branches and offices across Africa. (Image: Coloribus)
African banking major Ecobank confirmed yesterday that it is in discussions to acquire a 96 percent stake in the Mozambican subsidiary of Germany’s ProCredit Holding.
The deal is expected to increase its presence in Africa to 36 countries.
The transaction is subject to the approval of the regulatory authorities in Mozambique.
According to Helen Alexander, spokesperson forProCredit Holding,“We welcome the talks with Ecobank since its diversified network and broad-based African banking experience will enable it to offer excellent prospects for our clients, our staff and the Mozambican market.”
On his part Ecobank Group Chief Executive Officer Thierry Tanoh said, “(This acquisition) demonstrates our vision to build a world class pan-African bank and to contribute to the economic development and financial integration of Africa.”
Evelyne Tall, Group Chief Operating Officer of Ecobank, affirmed that Mozambique is the missing link in the SADC strategy of Ecobank, as the main gateway to the landlocked countries in the region.
Ecobank brings to Mozambique international expertise, experience and an unparalleled network of subsidiaries, branches and offices across Africa. Having already obtained an approval for a banking license for Mozambique in the second half of 2013, the ProCredit transaction provides an excellent opportunity to accelerate Ecobank’s entry into Mozambique.
Daniel Sackey, SADC Cluster Head for Ecobank: “Should the deal receive the expected go-ahead of the regulatory authorities, it would be a positive step for the Mozambican market. We are interested in BancoProCredit, as its highly qualified staff and loyal client base will provide a quick launching pad for the commencement of Ecobank’s operations in Mozambique.”
Finally, Christina Reifschneider, the General Manager of BancoProCredit reassured with the confirmation that, during transition, BancoProCredit will operate as usual.
BancoProCredit Mozambique is a development-oriented financial institution and part of the international ProCredit group. Operating in Mozambique since 2000, it has extensive experience in supporting very small, small and medium-sized enterprises, and finances a wide range of business activities, including agriculture and fishing. It also provides banking services to non-business clients.
Today, BancoProCredit serves over 67,000 clients via its 14 business outlets. Its total loan portfolio amounts to just under MZN 695m and it has a deposit base of about MZN 930m.
ProCredit group comprises 22 ProCredit banks and financial service providers in developing countries and emerging economies as well as the ProCredit Bank in Germany. As of year-end 2013, the group’s total assets came to €5.8 billion. The total outstanding loan volume was €4.2 billion, against customer deposits totalling €3.8 billion. The group’s equity base amounted to €503 million.
Incorporated in Lomé, Togo, Ecobank Transnational Incorporated (ETI) is the parent company of the leading independent pan-African banking group, Ecobank. It currently has a presence in 35 African countries.
The Group is also represented in France through its affiliate EBI SA in Paris. ETI also has representative offices in Dubai, United Arab Emirates, London, UK and Beijing, China. ETI is listed on the stock exchanges in Lagos, Accra, and the West African Economic and Monetary Union (UEMOA) – the BRVM.
The Group has more than 600,000 local and international institutional and individual shareholders. The Group employs 19,200 people from 40 different countries in 1,250 branches and offices. Ecobank is a full-service bank providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organizations, medium, small and micro businesses and individuals.