Nigerian and South African banks reshape African finance, with Access Bank leading expansion charge

Major African banking groups are increasingly relying on foreign subsidiaries to drive profits and growth, signalling a fundamental shift in how the continent's financial sector is structured. According to Fitch Ratings, a leading international credit assessor, contributions from cross-border banking operations have accelerated sharply since the COVID-19 pandemic, driven by strategic acquisitions and currency movements in key markets like Nigeria.

Access Bank Plc, one of Nigeria's largest financial institutions, has emerged as the standout performer in this continental expansion race, recording the fastest cross-border growth among African banking groups in recent years. The bank's success reflects broader trends reshaping African finance, as Lagos-based and Johannesburg-headquartered lenders capitalise on opportunities left vacant by retreating European competitors.

Why it matters for Ghana

Ghana's banking sector should pay close attention to this regional consolidation wave. As larger West and Southern African banks expand their footprints, Ghanaian banks face both competition and partnership opportunities. The withdrawal of European banks from Africa creates openings for local and regional players to capture market share, particularly in cross-border trade and remittances—sectors vital to Ghana's economy. Ghanaian banks with sufficient capital and expertise may find acquisitions or partnerships with expanding regional giants necessary to remain competitive. Additionally, Ghana's participation in the African Continental Free Trade Agreement (AfCFTA) means businesses need banking partners capable of facilitating complex multi-country transactions; regional banks are better positioned to offer this than purely domestic lenders.

The expansion drivers

Fitch Ratings identified several factors accelerating cross-border banking activity across Africa:

• Support for customers conducting international business, particularly under the AfCFTA framework
• Macroeconomic challenges in home markets, prompting diversification strategies
• Currency devaluation effects, especially in Nigeria where the naira's weakness has pushed banks to seek foreign earnings
• Strategic acquisitions filling the gap left by European bank retreats
• Regulatory capital requirements across African nations encouraging consolidation

Kenya has become a particular magnet for expansion, attracting new entrants from both Nigeria and South Africa. Meanwhile, francophone West Africa—a region that includes neighbours like Côte d'Ivoire and Senegal—is increasingly targeted by expanding banking groups seeking growth and diversification.

Regional patterns and exceptions

Not all African banking groups are pursuing the same strategy. Moroccan banks present a notable exception, with contributions from foreign subsidiaries declining in recent years. This divergence reflects Morocco's strong domestic banking market and limited acquisition activity, contrasting sharply with the aggressive expansion seen in Nigeria, South Africa and Kenya.

Fitch's analysis covers 12 of 14 major African banking groups examined in their report—all institutions with subsidiaries spanning at least five African countries and consolidated total assets exceeding US$15 billion as of end-2025. This elite cohort represents the continent's financial heavyweight class, and their expansion strategies will shape financial flows across Africa for years to come.

For Ghana, the broader message is clear: regional banking integration is accelerating, and domestic institutions will need strategic responses—whether through partnerships, targeted acquisitions, or enhanced specialisation—to thrive in an increasingly interconnected African financial landscape.