Equity Group has announced its acquisition of Rwanda’s Compagnie Générale de Banque (Cogebanque) PLC. The Kenyan lender will pay Ksh.6.7 billion (USD 48.1 million) for a controlling equity stake of 91.93%.
Cogebanque is currently the fifth largest bank in Rwanda, and its integration with Equity Group’s existing banking subsidiary in Rwanda will make Equity Bank the second largest bank in the country.
Rwanda has been the highest-return business for Equity Group. The combined assets market share of the merged entities will be 18%, and the deposits market share will be 19% based on audited accounts as of December 31, 2022.
Equity Group’s Managing Director and CEO, James Mwangi, highlighted Rwanda’s expected economic growth, ease of doing business, recovery of global travel, and the underpenetrated financial services sector as key factors driving the acquisition. The group plans to make an offer to the remaining shareholders to acquire 100% ownership of Cogebanque.
The acquisition reflects the confidence in Rwanda’s economic prospects and the resilience of its financial industry, according to Dr Uzziel Ndagijimana, Rwanda’s Minister of Finance and Economic Planning. The consolidation of the two institutions is expected to contribute to the growth and stability of Rwanda’s banking sector and enhance financial services for citizens, promoting economic empowerment.
With the addition of the Rwandan subsidiary, Equity Bank Kenya and Equity BCDC in the Democratic Republic of Congo, Equity Group now holds the second-largest market share in their respective markets.
