Ecobank board member Alain Nkontchou (pictured right) is to acquire Nedbank’s 21.22% stake in Ecobank Transnational Incorporated for a reported $100m.
The deal, conducted with Nkontchou’s private investment vehicle, Bosquet Investments, will see the Cameroonian banker cement his influence at the pan-African lender, where he has served as a member of the board of directors since 2014 and chairman from 2020 to 2024.
“I am very pleased to have come thus far with the Ecobank Group, and I look forward to supporting the institution in advancing its strategic objectives of growth, transformation and returns. I am confident that, together, we will seize the opportunities ahead and lead the organisation into a new era of sustained success,” Nkontchou said.
Nedbank’s exit from Ecobank follows the South African bank’s decision to realign its strategy towards its core markets in Southern and Eastern Africa, where it owns and controls businesses. The bank became Ecobank’s largest shareholder in 2008 through a $500m investment that was formalised into a partnership in 2014.
Lomé, Togo-based Ecobank is primarily concentrated in West and Central Africa but also maintains subsidiaries in Eastern and Southern Africa.
Nedbank chief executive Jason Quinn said regulatory uncertainty and potential increases in capital requirements were behind the disposal. Synergies between the two businesses had not been forthcoming, Nedbank said, while the deterioration of the Nigerian economy and the exit of South African clients from the region had impacted business.
Ecobank chief executive Jeremy Awori (pictured centre) said that Nkontchou’s deal represents a significant moment for the lender.
“We are pleased to welcome Bosquet Investments Ltd. as a significant shareholder of ETI. This important milestone reflects a deep and enduring commitment to our Group’s growth and success. Their investment is a strong vote of confidence in our Growth, Transformation and Returns strategy, our performance, and our people.”
Awori said that Nkontchou had “demonstrated unwavering dedication, strategic vision, and leadership that have significantly contributed to the bank’s achievements, bringing the bank to an era of profitability.”
‘A business that is fundamentally changed’
Nkontchou’s deal comes at a time of significant evolution for the bank, which is present in 35 sub-Saharan African markets.
In an interview this month with African Business, Awori said that the bank is adopting artificial intelligence to boost its offering to customers.
“We’re also looking very much at AI. How does AI transform, not automate? We’re looking at how this changes the way we do business because with generative AI. You can do things in a fraction of the time that you could do them before. So you’ll be seeing a business that is fundamentally changed.”
The bank recently signed a strategic partnership with Google Cloud is expected to deploy AI and cloud technology to transform digital banking across over 33 African countries. According to the bank, the collaboration is “aimed at transforming financial services with advanced analytics and AI and driving digital empowerment across Africa.”
In recent months Ecobank has strengthened its funding position by tapping the Eurobond market – initially for $400m in October 2024, followed by an additional $125m in March.
