The Kenyan banking group Equity Group is evaluating acquisition opportunities in Mozambique as part of a regional expansion strategy focused on markets with strong growth potential, driven by natural resources and infrastructure investments.
According to Reuters, the intention was announced by the institution’s CEO, James Mwangi, who also identified Angola and Zambia as priority destinations. According to Mwangi, the bank’s approach involves following its clients and the region’s main trade routes, rather than limiting itself to a purely geographic logic. “There is an opportunity we can capitalize on in Angola, Zambia, and Mozambique. It’s not just about the countries, but about following our clients and the trade corridors,” he said.
Founded 35 years ago as a rural credit cooperative in Kenya, Equity Group has become the country’s most profitable bank, consolidating its position through expansion into neighboring markets. The Democratic Republic of the Congo (DRC) is currently a prime example of this strategy, following the acquisition of two banking institutions in 2015 and 2020, transactions that enabled the group to achieve a 24% market share.
The DRC plays a central role in the bank’s plans, particularly because it forms part of a regional logistics and trade corridor that Equity intends to exploit. This corridor gains additional significance with the development of the Lobito Corridor, supported by the United States, which aims to facilitate the transport of strategic minerals such as copper and cobalt from the African interior to the Atlantic coast.
The identified markets, including Mozambique, offer advantages linked to an abundance of natural resources, such as oil, natural gas, and critical minerals, as well as ongoing infrastructure projects. Nevertheless, the banking sector in the region remains fragmented, with low credit penetration and high exposure to public debt.
Given this context, Equity has prioritized a growth strategy through acquisitions over building operations from the ground up. Mwangi emphasizes that entering new African markets can be hindered by structural, linguistic, and cultural differences, making it more effective to acquire already established institutions and subsequently transform and expand them.
“Our performance in the DRC has demonstrated that we are effective in mergers and acquisitions,” the manager noted.
At the same time, the group remains interested in Ethiopia, where it has operated a representative office for seven years, awaiting the opening of the banking sector to foreign investors to proceed with a potential acquisition.
Equity Group has also strengthened its resilience to external shocks by diversifying into areas such as insurance and adopting technologies, including artificial intelligence, which contributed to cost reductions and improved profitability in the last fiscal year.
