Equity Group Holdings Acquires The Largest Bank In DRC

Equity Group is in the process of acquiring one of the largest banks in the Democratic Republic of Congo (DRC).

The Kenyan lender who has roots across East African countries is set to acquire a controlling stale in the Commercial Bank of Congo (BCDC).

Equity Group aims at merging the business with its existing subsidiary in the DRC upon full acquisition.

Equity Group is also in the process of widening its net in Zambia, Mozambique, Tanzania, and Rwanda.

According to Equity Group CEO Dr. James Mwangi, acquiring BCDC will help the Group expand its footprint in Africa.

“Further, through the proposed transition, Equity Group Holdings aims to provide access to competitive, tailored financial services to improve people’s lives and livelihoods whilst also delivering significant value to its stakeholders,” said Mr. Mwangi.

Equity entered the DRC market in 2015 when it acquired a stake worth 69 percent in Pro Credit Bank. Currently, Equity controls 86 percent of the stake in the bank.

ProCredit Bank is the seventh-largest bank in DRC in terms of asset base with assents standing in excess of 200 million dollars with a customer base of more than 170,000. Equity then rebranded the bank to Equity Bank Congo.

According to annual financial results, the Congo subsidiary is the most profitable in the region tapping into the larger banking opportunities in DRC.

Financial inclusion in the Democratic Republic of Congo is still low. More than 90 percent of the population in DRC remains unbanked with no bank accounts and little access to mobile banking.

Commercial Bank of Congo has over 26 branches across the country and analysts see Equity Group’s move as a calculated one aimed at becoming a leader in financial services in Africa.

The move by Equity Group comes at a time KCB Group finalized the acquisition of 100 percent of National Bank of Kenya through a share swap.

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