Five leading banks in Africa are set to channel N575.62 billion from their ongoing capital raise efforts into supporting corporate, SME, and retail sectors. This move is part of a broader initiative to meet the Central Bank of Nigeria’s (CBN) new capital requirements and expand business operations.
The banks—Access Holdings Plc, Fidelity Bank Plc, Guaranty Trust Holding Plc (GTCO), FCMB Group Plc, and Zenith Bank Plc—are all increasing their capital base following the CBN’s March directive. The new regulation mandates commercial banks with international authorization to raise their capital to N500 billion, while national and regional banks are required to meet N200 billion and N50 billion thresholds, respectively.
Access Holdings Leads Investment in Business Expansion
Access Holdings is spearheading the investment efforts, allocating N223.01 billion (65% of its N343.09 billion net proceeds) towards local and international business growth. A significant portion, N154.39 billion, is earmarked for lending to corporate and commercial segments, with N51.46 billion going to the retail sector and N17.15 billion dedicated to SMEs.
GTCO and Zenith Bank Focus on Lending and Technology Upgrades
GTCO is committing N133 billion of its N400 billion net proceeds to corporate, commercial, retail, and SME lending. In addition, the company plans to invest N138.5 billion in branch network expansion and N98.5 billion in technology and infrastructure upgrades.
Zenith Bank, which is offering 5.2 billion new shares at N36.00 each, plans to allocate N68.5 billion of its N185.14 billion net proceeds to loans for corporate entities, SMEs, and retail customers. The bank is also enhancing its working capital to support its expanding operations.
Fidelity Bank and FCMB Group Target Regional and SME Growth
Fidelity Bank, having closed its offering, plans to invest N66.53 billion out of N95.05 billion raised into regional and business expansion. This includes N14.3 billion for SME lending and N40.4 billion for corporate and commercial segments.
FCMB Group, with N108.11 billion in net proceeds, has designated N84.57 billion for loans to corporate, SME, and retail sectors. Notably, N10.27 billion is set aside for agricultural and non-oil export sectors, aligning with the group’s focus on diversification.
These strategic capital allocations by Africa’s top banks underline their commitment to fueling growth in the SME sector, which is critical to the continent’s economic development. With substantial investments in business expansion, lending, and technology, these banks are positioning themselves to drive significant impact across Africa’s financial landscape.
