Nedbank Group has identified Namibia as a priority market for expansion under its revised Africa growth strategy, which will also focus on Mozambique and Kenya.
This follows the bank’s decision to divest from a minority stake in a West African bank.
Group Chief Executive Officer Jason Quinn said the bank’s ten-year investment in the West African operation had been hampered by its limited influence as a minority shareholder, compounded by challenging economic conditions in Nigeria.
These included foreign currency shortages and revised capital requirements, which have weighed on the Nigerian market.
“The stake has now been classified as a non-current asset held for sale,” Quinn said in an interview.
Commenting on future priorities, Quinn singled out Namibia and Mozambique as countries with strong potential, particularly in the context of energy developments.
“And similarly down here, we see Namibia, which has incredible potential, I think — particularly on the back of LNG off the coast — and Mozambique as well, with similar opportunity. Those two markets, I think, have the potential to transform over the medium to long term,” he said.
According to Quinn, proceeds from the West African divestment will be reinvested into markets with stronger growth prospects.
“We’ll use the proceeds of that to not only invest in our South African business, but also, you know, we’re seeing real opportunities in Mozambique and Namibia with the LNG resource finds there. And then slowly and steadily, over time in Kenya, we’d like to build out a business there — in line with areas where we’re strong,” he said.
The group’s focus on Namibia aligns with its existing footprint in mining finance through Nedbank Corporate and Investment Banking (CIB), which has been active in resource financing across the continent.
According to the bank, CIB has originated, arranged, and structured transactions worth N$71 billion (USD 4 billion) over the past 15 years in 22 African countries. These have spanned a wide range of commodities including copper, gold, platinum group metals, nickel, silver, cobalt, diamonds, mineral sands, iron ore, vanadium, and uranium.
