Standard Bank Group, Africa’s largest bank by assets, led by South African banker Sim Tshabalala, plans to double its West African business by 2030, betting that economic reforms, recovering currencies and renewed investor interest will unlock opportunities in Nigeria, Ghana and Ivory Coast. The Johannesburg-based lender wants the region to become as significant to its earnings as its home market of South Africa.

West Africa’s growth ambition

Luvuyo Masinda, Standard Bank’s head of corporate and investment banking, said earnings from West Africa are currently about half the size of the group’s South African operations. Regional teams aim to close that gap over the next four years as the bank expands its reach across the region.

“One of the things we will want is for this West Africa region to as quickly as possible be the same size as South African business,” Masinda said in an interview. He added that the teams have an ambition to double the business within four years.

Nigeria is central to that strategy. Reforms to the foreign exchange market, broader economic policy and the energy sector have helped improve investor confidence, creating openings in natural resources and infrastructure. Africa’s most populous nation is seeking to attract more capital into assets and projects that could benefit from a more predictable investment climate.

Reforms attract fresh capital

Ghana and Ivory Coast offer additional growth prospects. Ivory Coast remains one of the region’s faster-growing economies, while Ghana is recovering from its 2022-2023 sovereign debt crisis, with easing inflation, lower interest rates and a more stable currency supporting a gradual return of investor confidence.

Standard Bank sees room to expand across these markets, where Masinda believes the lender remains smaller than the opportunities warrant. The group plans to finance and structure transactions in power, renewable energy, ports and other infrastructure, drawing on its balance sheet and international capital markets connections.

Offices in New York, Dubai, London and Beijing give the bank access to investors beyond Africa. Standard Bank also plans to recruit more staff in West Africa and use financial technology to reach additional retail customers and small and midsize businesses, Masinda said.

IPO pipeline faces delays

Beyond West Africa, the lender is targeting growth in Kenya, Angola and Egypt. Masinda said clearer regulations, transparent floating exchange rates and more predictable monetary policies are helping attract financing and private equity to several African markets.

“That, more than anything, is attractive to capital,” he said, referring to the improvements in economic and regulatory conditions. However, planned initial public offerings across retail, financial technology, telecommunications and infrastructure have faced delays as valuations shift and investors reassess market conditions.

Conflict in the Middle East has added uncertainty by affecting prices and weakening confidence, Masinda said. The delays underscore how global risks can complicate Africa’s efforts to attract investment even as domestic reforms create new opportunities.

Founded more than 160 years ago, Standard Bank is one of Africa’s largest financial institutions. The group employs more than 49,000 people, including Liberty employees, and serves more than 18 million clients through more than 1,000 branches and about 6,000 ATMs across its African markets.