South Africa’s Absa eyes Angola return nearly two decades after exit, weighs Nigeria licence

On Aug 19, 2026

Absa Group is preparing to return to Angola nearly two decades after exiting the market and is considering a merchant banking licence in Nigeria as one of the top South African lenders seeks to diversify earnings beyond its three main markets of South Africa, Ghana and Kenya.

According to BusinessDay South Africa, the lender plans to establish a representative office in Angola, Africa’s third-largest oil producer, as part of a broader strategy to expand its corporate and investment banking opportunities across the continent.

Absa already operates a representative office in Nigeria but is evaluating whether to deepen its presence by obtaining a merchant banking licence, which would give it access to capital markets, underwriting, advisory and other wholesale banking opportunities in Africa’s most populous country and largest crude oil producer.

The moves come as Absa seeks to reduce its earnings concentration in its three core markets. South Africa accounted for 72 percent of the group’s earnings in the six months to June, while the broader Africa portfolio recorded a weaker performance, particularly in corporate, investment and business banking.

Kenny Fihla, Absa Group chief executive, said the lender’s strategy is focused on diversifying its business across three levels: client segments, products and geographies.

“We are looking at opening a representative office in Angola, which will be critical for the CIB [corporate and investment banking] business because even if we don’t have a full banking licence, if we have a presence in-country, we will be able to identify trade opportunities and undertake some of the global market activities,” Fihla told BusinessDay on Tuesday.

In Nigeria, Absa is assessing whether to maintain its representative office or pursue a merchant banking licence.

“In Nigeria, we are evaluating whether we should stay with a representative office or whether we should be exploring other alternatives, including a merchant banking licence. That work is under way, and at the right time we will communicate what route we will be following,” Fihla said.

“We think we understand Nigeria well enough to be able to take the next step.”
Merchant banks in Nigeria operate under a wholesale banking model, focusing on corporate finance, asset management, debt structuring and trade finance. They are prohibited from accepting retail deposits or offering retail savings and current accounts.

Angola comeback

Absa’s return to Angola would mark a significant reversal of its previous strategy in the oil-rich market.

In 2009, the bank sold its 50 percent stake in Banco Comercial Angolano after failing to secure outright control of the operation.
Its planned representative office would initially give the group an on-the-ground presence to identify trade and corporate banking opportunities without requiring a full banking licence.

The move is part of a wider push by Absa to deepen its pan-African operations while reducing its reliance on South Africa.
The group recently announced a R4 billion deal to increase its stake in its Kenyan bank to 85 percent from 68.5 percent. The transaction came shortly after Absa agreed to acquire Standard Chartered’s wealth and retail banking business in Uganda, where it already has an established presence.

Absa’s African footprint spans Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, Tanzania, Uganda and Zambia. The group also has a representative office in Namibia, securities entities in the UK and US, a non-banking advisory subsidiary in China and a technology support office in the Czech Republic.

In Tanzania, Absa is seeking to combine its two businesses into a single enterprise that can be backed with additional capital to drive scale.
The group also opened a branch at the Dubai International Financial Centre in April, strengthening its ability to serve African clients with cross-border and offshore needs.

Although Absa’s Africa regions have a considerably smaller balance sheet, accounting for just 19 percent of the group’s total customer deposits and equity, the business is more sensitive to falling interest rates and accounts for almost 60 percent of the group’s interest-rate sensitivity.

Building a pan-African franchise
Fihla has reorganised the group into three pan-African-facing business units: personal and private banking, business banking, and corporate and investment banking.

The lender is also strengthening its wealth proposition by expanding capabilities in Mozambique and Kenya and establishing a wealth hub in Mauritius to serve offshore and cross-border clients.

“We are strengthening key propositions, including wealth, by expanding our capabilities in Mozambique and Kenya and establishing a Mauritius wealth hub as a gateway for offshore and cross-border client needs,” Fihla said.

“Together, this enables us to connect clients, deepen relationships, and capture a greater share of Africa’s long-term growth potential.”

The strategy signals a broader effort by Absa to turn its extensive African footprint into a more diversified earnings engine, particularly as its South African operations continue to account for the bulk of group earnings.

“These are just a few of the actions under way across the group to strengthen our competitive position and capture a greater share of Africa’s long-term growth opportunity,” Fihla said.

Faith Omoboye

Faith Omoboye is a foreign affairs correspondent with background in History and International relations. Her work focuses on African politics, diplomacy, and global governance.

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