New Frontiers: FirstBank Sets Sights on Ethiopia, Angola, and Cameroon

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Olori Uwem

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Mar 18, 2024
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New Frontiers: FirstBank Sets Sights on Ethiopia, Angola, and Cameroon

A Bold Expansion Plan for Africa’s Largest Markets

FirstBank, Nigeria’s oldest financial institution with over 130 years of operations, has announced its intention to expand into Ethiopia, Angola, and Cameroon, among other key African markets. This strategic move aligns with the bank’s growth phase, as it seeks to capitalize on emerging opportunities across the continent’s rapidly evolving financial landscape.

The Vision
Speaking to The Africa Report, FirstBank’s Deputy Managing Director, Ini Ebong, highlighted the bank’s ambition to penetrate large economies with expanding financial markets. Ebong noted, “There are a number of large economies with large banking pools that are of interest to us because their financial markets are opening up. So, you look at countries like Ethiopia and Angola. In francophone West Africa, we want to expand our presence in places like Côte d’Ivoire and Cameroon.”

The bank’s strategy reflects a broader trend of African nations liberalizing their financial systems, which mirrors the growth trajectory witnessed in larger African markets in the early 2000s. Ebong emphasized that this is a pivotal moment for FirstBank to leverage these growth opportunities.

Ethiopia Opens Its Banking Sector to Foreign Competition

A notable driver of FirstBank’s interest in Ethiopia is the recent legislative change allowing foreign banks to establish subsidiaries in the country. In December 2024, Ethiopia’s parliament passed a law permitting foreign firms to own up to 49% of shares in local banking institutions. Mamo Mihretu, Ethiopia’s central bank governor, declared the market “open for business,” marking a significant milestone for East Africa’s largest economy.

FirstBank’s Proven Track Record in Regional Expansion

FirstBank is no stranger to extending its footprint beyond Nigeria. In 2011, it began its African expansion by acquiring Banque Internationale de Crédit in the Democratic Republic of Congo. Between 2013 and 2014, the bank further solidified its presence in West Africa by acquiring International Commercial Bank (ICB) subsidiaries in The Gambia, Sierra Leone, Ghana, Guinea, and Senegal. Beyond Africa, FirstBank operates in London and Paris and has a representative office in Beijing, China.

Why These Markets?

1. Ethiopia: The country boasts East Africa’s largest economy, a burgeoning population, and significant untapped banking opportunities.

2. Angola: As one of Africa’s largest oil producers, Angola presents vast financial opportunities.

3. Cameroon and Côte d’Ivoire: These francophone West African nations are key players in the Economic and Monetary Union of West Africa (UEMOA), making them vital hubs for regional trade and finance.

Looking Ahead

As FirstBank prepares to expand into these new territories, the move signals its readiness to remain a key player in Africa’s financial sector. The bank’s rich history and successful track record in navigating diverse markets position it strongly for this next phase of growth.

With its eyes firmly set on Ethiopia, Angola, and Cameroon, FirstBank is poised to reinforce its role as a leading financial institution shaping Africa’s economic future.
 
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