Russian bank mulls merger, acquisition of Nigerian banks, others
Russia’s leading largest privately-held bank, Promsvyazbank, is closing in on investing in Nigeria, Kenya, Rwanda, Tanzania, Uganda, Zambia and other countries before the end of the year.
The bank’s Head of Transaction, Documentary and International Businesses, Alexander Meshcheryakov, said in an interview in Moscow that the move was due to sluggish loan demand at home.
He said “There is growing interest in Africa among (Russian) clients,” stressing that “Many clients come to us with this topic and ask to help them with financing projects in Africa”.
“To cater to its clients’ needs, Promsvyazbank is now studying business opportunities in Nigeria, Kenya, Rwanda, Tanzania, Uganda, Zambia and other countries, Meshcheryakov said.
According to him, Africa’s economies were predicted to grow faster than the global economy over the next decade as they try to attract foreign investors with tax breaks and guarantees.
“Africa is basically one of the fastest growing regions and could be the only economic region that has not yet unlocked its potential … From a growth point of view, it’s likely to be the most promising one on the world map.
“In the future, we expect that the ‘Made in Russia’ tag would be regarded as decent and worth the money,’’ Meshcheryakov said, declining to elaborate on the details of the projects the bank is involved in.
Already, Promsvyazbank has already signed an agreement with the African Export-Import Bank (Afreximbank), and it is setting up contacts with certain governments.
Key areas of focus in Africa would include financing projects in Africa, but may eventually consider opening a branch there.
With its Africa expansion plans, Promsvyazbank will join other Russian banks already operating in the region, such as VTB, Gazprombank and Renaissance Capital. Promsvyazbank is Russia’s 10th largest bank by assets.
