African Banks Expanding Across Borders Through New Deals

The continent’s banking industry is witnessing a new era of cross-border expansion where banks are expanding by means of mergers, acquisitions, and integrating regional payment systems. Fueled by the need to meet higher capital requirements, rising trade among neighboring countries, and the emergence of fintech competitors, major banks in Africa are opting for cross-border expansion through acquisitions instead of building up new business ventures.

Leading banks in South Africa, Nigeria, and Kenya have spearheaded the cross-border expansion in search of high-potential opportunities in East, West, and Southern Africa, while the fast-growing integration of the Pan-African Payment and Settlement System (PAPSS) is easing the process of cross-border transactions.

Nedbank Expanding Its Reach to Kenya via NCBA Group Deal

One of the biggest banking deals in 2026 involves South Africa’s Nedbank, which is reportedly planning to complete a deal worth almost $1 billion to buy a majority stake in Kenya’s NCBA Group.

Completion of the deal will see Nedbank have more exposure in East Africa in an effort to diversify away from the somewhat mature South African banking industry. Kenya is among Africa’s key financial centers, therefore making the deal quite strategic for the bank’s plans.

It also shows how African financial institutions have increasingly been making deals to grow in faster-growing markets outside their domestic frontiers.

Access Bank Expands Further into its Pan-African Banking Strategy

Access Bank, Nigeria’s leading regional bank, continues to be among Africa’s most aggressive regional banks.

After acquisitions in Angola, Sierra Leone, and Mozambique, Access Bank continues to expand in East Africa in pursuit of its long-term plan of becoming a fully pan-African bank.

With total assets valued at over $15 billion, Access Bank is well-positioned to serve companies that are trading through the key economic corridors in Africa with the benefit of growing cross-border business facilitated by the AfCFTA.

Expansion of Equity Group and Atlantic Financial Group

Apart from the South African group, Kenya-based Equity Group Holdings is also speeding up its expansion in the region. The bank announced that it will conduct acquisition deals in Angola, Zambia, and Mozambique in order to achieve its target of serving 160 million people by 2028. This is part of the strategy of the company to become one of the biggest players in Africa’s financial service industry by selecting strategic regional expansions.

At the same time, Atlantic Financial Group (AFG) has widened its presence in 15 countries in Africa after making acquisitions in Société Générale Guinea Conakry and some microfinance institutions in Liberia, Nigeria, Zambia, Madagascar, and Rwanda.

These acquisitions have helped AFG to expand its retail banking network and improve access to financial services in several emerging markets.

Cross-Border Banking Through Digital Payment Infrastructure

In addition to acquisitions, digital payment infrastructure is changing African banking in terms of cross-border operations. One of such developments is the Pan-African Payment and Settlement System (PAPSS).

By mid-2026, PAPSS has connected over 190 commercial banks in 28 countries and made cross-border payments easier by using local currencies.

The involvement of the Bank of Central African States (BEAC) has recently expanded the use of PAPSS in the CEMAC, thus improving the payment infrastructure in the region.

It eliminates the need to use foreign currencies in inter-African payments, decreases the cost of settlements, and facilitates increasing volumes of trade between African companies.

Banking Expansion Becomes More Strategic

The African banking industry is moving from expanding through branch establishment to buying up local companies that already have a client base.

Simultaneously, the majority of traditional banks are working with fintech companies instead of regarding them only as rivals. Digital payment solutions, neobanks, and financial technology companies are assisting banks to diversify their offerings, enhance customer experience, and promote financial inclusion.