Equity Group Holdings, a financial services conglomerate led by Kenyan businessman James Mwangi, has announced its plan to acquire a controlling stake in Compagnie Générale De Banque Plc (Cogebanque) for RWF54.68 billion ($48.2 million).
This move further solidifies Equity Group’s regional expansion and strategic intent to diversify its earnings and revenue.
Just two months after acquiring an additional 6.6 percent stake in its subsidiary, Equity Bank CDC, for Ksh9.24 billion ($86 million), the company is now set to acquire a 91.9 percent stake in Cogebanque.
The deal values the Rwandan bank at Ksh7.26 billion ($52 million). The acquisition is a strategic move by Equity Group to strengthen its presence and bolster its position in Rwanda’s thriving banking sector.
Equity Group will purchase the stake from the Government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc, and Judith Mugirasoni. After the acquisition, the company plans to extend an offer to acquire the remaining shares.
James Mwangi, the CEO of Equity Group, expressed his excitement about the acquisition, stating, “The acquisition of Cogebanque will enable us to expand our reach and solidify our foothold in Rwanda.”
Equity Group’s regional expansion strategy has proven successful, with a balanced distribution of business between its anchor operations in Kenya and its regional banking subsidiaries and non-banking ventures.
The company currently operates in Uganda, Tanzania, South Sudan, Rwanda, and the Democratic Republic of the Congo, making it the largest financial services group in East and Central Africa.
Under the leadership of James Mwangi, who owns a 3.38-percent stake in the company, Equity Group saw a 15 percent increase in profit in 2022, rising from Ksh40.07 billion ($304.2 million) to Ksh46.1 billion ($350 million).
This growth was primarily driven by a 25 percent rise in net interest income, reaching Ksh85.99 billion ($653 million), and a 34 percent expansion in non-interest income, which amounted to Ksh59.94 billion ($455.1 million).
Equity Group’s acquisition of Cogebanque highlights the company’s commitment to expanding its reach and diversifying its revenue streams. With its strengthened presence in Rwanda, Equity Group is poised to capitalize on the country’s growing banking sector and contribute to its economic development.
