Equity Group, led by James Mwangi, plans to acquire a majority stake in an Angolan bank in 2026, following delays in its entry into the Ethiopian market due to regulatory restrictions.
The decision comes after several years of attempts to expand into Ethiopia, which had been a strategic priority for the group. Despite the formal opening of Ethiopia’s banking sector to foreign investment in December 2024, regulatory constraints have slowed progress for international investors.
Key restrictions include a 40% cap on foreign ownership in local banks, a 49% ceiling on total foreign shareholding, and high minimum capital requirements to be paid in foreign currency. Equity has maintained a representative office in Addis Ababa for seven years but has yet to complete a deal in the country.
In response, the group has shifted focus to Angola, where the banking sector is undergoing consolidation driven by new minimum capital requirements. These measures are forcing smaller banks to merge or exit the market, creating opportunities for regional investors.
The target bank has not been disclosed, but the acquisition is expected to strengthen Equity’s footprint in Africa, where it currently operates in seven countries.
Interest in Angola is not limited to Equity. Other institutions, including Nigeria’s Access Bank and South Africa’s Standard Bank, are also exploring opportunities in the market.
Angola, Africa’s second-largest oil producer, has been pursuing economic diversification and has a relatively underdeveloped banking sector compared to the size of its economy, factors that enhance its attractiveness to investors.
The move comes at a time of strong financial performance for Equity Group, which reported a 55% increase in profit in 2025, reaching 75.5 billion Kenyan shillings (approximately $580 million).
The group aims to operate in 15 African countries by 2030. Entry into Angola would mark another step toward that goal, while expansion into Ethiopia remains dependent on regulatory developments.
24/03/2026
