Zenith Bank has revealed plans to expand into the Francophone African country, the Ivory Coast. This comes weeks after the lender raised its capital by N350.4 billion through a rights issue and public offer.
As part of its expansion plans, Zenith Bank is weighing the option of either acquiring an existing bank in the country or setting up a new operation. The move won’t end there as the lender is also eyeing a presence in Cameroon and fastening its plan in Kenya.
Zenith Bank’s head of strategy, Olukayode Akinbinu, explained that the bank will open in the Ivory Coast this year and then start planning for entry into Cameroon.
“Ivory Coast is likely to open this year, then Cameroon as soon as possible,” he said.
In its financial plan, Zenith Bank will use 40% of the N350.4 billion it raised in July to fund the project. The lender raised the fund through a rights issue and public offer, pushing its share capital to N614.65 billion. This was N114.65 billion above the N500 billion new required minimum capital requirement for a tier-1 lender by the Central Bank of Nigeria (CBN).
The capital raise stems from a N290 billion rights issue and public offer raised last year. The stock offered 5,232,748,964 ordinary shares of 50 Kobo each at N36.00 per share, while the offer for subscription presented 2,767,251,036 ordinary shares of 50 Kobo each at N36.50 per share.
Expansion into these West African Countries represents Zenith Bank’s move to tap into their economy and diversify its resources for more financial gains. The plans will see its presence in West Africa to six markets, having been established in Nigeria, Ghana, Sierra Leone and the Gambia.
Aside from West Africa, Zenith Bank is present in South Africa. Outside Africa, the bank has subsidiaries in the United Kingdom (UK), France and a representative office in China. The UK unit operates a branch in Dubai.
The lender will be aiming to tap into the Ivory Coast economy, acclaimed as one of the fastest-growing in the world, with an average of 6.7% growth in the past five years. The economy has seen the presence of other Nigerian lenders such as EcoBank, Guaranty Trust Bank, Stanbic Bank and United Bank for Africa.
Dangote Cement, Africa’s biggest maker of construction materials, is also planning to open a new plant in the Ivory Coast.
Also Read: See the 9 banks that have fully met the new CBN minimum capital base.
Inside Zenith Bank’s Kenya expansion plans
Two months ago, Zenith Bank said it was working to acquire a tier-two lender in the Kenyan market. This will mark the lender’s first entry into the East African region. The plan is also expected to come alive before the end of 2025.
While Kenya’s banking sector is undergoing some restructuring and recapitalisation, Zenith Bank is leveraging its firm financial records to secure a foothold in one of Africa’s fast-growing markets.
The deal comes amid Kenya’s overhaul of its capital requirements, with pressure on smaller banks to either raise new funds or consider mergers and acquisitions. The Central Bank of Kenya (CBK) increased minimum core capital from $7.7 million (Ksh1 billion) to $24 million (Ksh3 billion) by the end of 2025, and plans to increase this to $77 million (Ksh10 billion) by 2029.
Zenith Bank looks to tap into this opportunity and secure a presence in Kenya. For these plans, the lender’s financial records speak positively.
Zenith Bank recorded a double-digit growth of 86% in gross earnings, increasing from N2.13 trillion in 2023 to N3.97 trillion in 2024. The banking giant also reported N29 trillion in assets and a market cap of N2.3 trillion at the end of 2024. Its profit before tax rose by 67%, reaching N1.3tn in 2024, driven by a 138% increase in interest income.
Like Zenith Bank, other Nigerian banks have been expanding beyond the country. The move is backed by financial expansion and the need to grow beyond their home country.
Recently, Access Bank received regulatory approval from Nigeria and Kenya to acquire National Bank of Kenya Limited (NBK) from KCB Group. UBA, GTBank and others have also gained entry into Kenya and other parts of Africa.