Fidelity Bank Nigeria Plc has received a substantial financial boost from the African Export-Import Bank (Afreximbank) to aid its expansion strategy. The $40 million disbursement, sourced from Afreximbank’s intra-African investment facility, signifies a strategic collaboration aimed at facilitating Fidelity Bank’s acquisition and recapitalization of Union Bank UK.
The funds, divided into two tranches of $20 million each, played a crucial role in enabling Fidelity Bank to complete the acquisition of Union Bank UK. Additionally, the second tranche provided the necessary capital infusion to meet regulatory requirements in the United Kingdom.
This acquisition positions Fidelity Bank to establish a pan-African financial institution capable of offering a wide range of banking services to African banks and catering to the needs of the diaspora community.
Kanayo Awani, Executive Vice President of Intra-African Trade Bank and Export Development Bank at Afreximbank, emphasized the transaction’s significance in promoting African control and ownership within the global financial landscape. This initiative underscores Afreximbank’s commitment to fostering financial integration between Africa and its diaspora, in line with Agenda 2063’s objectives.
Awani highlighted Afreximbank’s strategy of empowering African entities to acquire divested financial assets, aligning with the institution’s diaspora strategy to facilitate integration across the continent.
Nneka Onyeali-Ikpe, Managing Director/CEO of Fidelity Bank, expressed appreciation for Afreximbank’s support in their expansion endeavors, highlighting the positive outcomes of their partnership.
The acquisition is poised to enhance intra- and extra-African trade finance and trade flows between Nigeria and the UK, while also facilitating the integration of the African diaspora into regional supply chains. Additionally, it aims to empower small and medium-sized enterprises across the continent, contributing to Africa’s economic growth and development.
The collaboration between Afreximbank and Fidelity Bank represents a significant step towards achieving economic stability and advancing Africa’s agenda for sustainable development.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
12th June, 2024
