Standard Bank Group Ltd., Africa’s largest lender by assets, is targeting Nigeria and four other key African markets as it seeks to capture a share of a 250 billion-rand ($15.4 billion) revenue opportunity driven by growing intra-African trade and the expansion of small and medium-sized businesses across the continent.
This was disclosed by Bill Blackie, Chief Executive Officer of Standard Bank’s Business and Commercial Banking (BCB) division, during an interview with Bloomberg, where he outlined the lender’s strategy to accelerate earnings growth through 2028.
As part of the plan, the bank will focus on strengthening its position in South Africa while expanding across Nigeria, Ghana, Kenya, Uganda and Tanzania, markets that collectively account for about 85% of the estimated 250 billion-rand revenue pool available to its business and commercial banking operations.
What they are saying
Blackie said the division has delivered strong financial performance over the last five years, supported by growing demand for banking services among businesses across the continent.
According to him, the unit has doubled both its earnings and return on capital since 2020, while maintaining robust growth across African markets.
- “From 2020 to 2025, we have doubled headline earnings, and doubled the return on capital in the business from 19% to 38%,” Blackie said, adding that earnings across the continent averaged 30% annually over the period.
He also emphasized the importance of maintaining a strong position in South Africa, where the lender already commands significant market share but faces increasing competition from rivals.
Blackie said the bank intends to strengthen its leadership position in the country’s business banking market over the long term.
- “We think that it is very important to be strong in South Africa and long term, we will be wanting to challenge for that No. 1 position,” Blackie said.
Looking ahead, the executive expressed confidence that the division could exceed its current growth targets as opportunities from regional trade and business expansion continue to emerge.
He said the bank is targeting annual compounded growth of between 8% and 9% through 2028 but expects growth to accelerate into double-digit territory as the period progresses.
- “We target 8% to 9% compounded annual growth rate for BCB until 2028, but actually we see it growing into the double digits as you get close to 2028,” Blackie said.
More insights
Standard Bank’s strategy is anchored on increasing support for small and medium-sized enterprises and mid-sized companies, segments that account for the vast majority of businesses operating across Africa.
- The lender, which operates in 21 African countries, estimates that it currently holds about 15% of the continent’s SME banking market. It sees significant opportunities emerging from the growth of intra-African trade, particularly under the African Continental Free Trade Area (AfCFTA), which is expected to deepen economic integration across the continent.
- The bank expects increased trade between African countries to drive demand for services such as trade finance, payments, foreign exchange, working-capital facilities and cash-management solutions.
Standard Bank is also leveraging its extensive African footprint and its partnership with the Industrial and Commercial Bank of China (ICBC) to attract businesses seeking access to international markets, particularly China.
The push comes as African lenders increasingly position themselves to benefit from rising trade flows within the continent. According to the International Trade Centre, nearly half of Africa’s small businesses export to other African countries, compared with just 14% of larger firms.
What you should know
The strategy being pursued by Standard Bank, which has operated for more than 170 years, is increasingly becoming a model that other African financial institutions are seeking to emulate.
- On June 11, Nairametrics reported that the Group Chairman of Access Holdings Plc, Aigboje Aig-Imoukhuede, said the bank’s long-term ambition is to build an institution comparable to Standard Bank.
Nigeria remains a key market for Standard Bank’s continental ambitions. The group, which owns Stanbic IBTC Holdings, one of Nigeria’s leading full-service financial institutions, has continued to deepen its engagement in the country.
- In a recent sign of that commitment, Standard Bank Group Chief Executive Officer, Sim Tshabalala, paid a courtesy visit to South Africa’s High Commissioner to Nigeria, Thami Mseleku, in Abuja, highlighting the strategic importance of Nigeria to the bank’s long-term growth plans across Africa.
