Finance Minister Approves African Bank’s R3.25 Billion Sasfin Deal
Banking News
Finance Minister Enoch Godongwana has officially approved African Bank’s acquisition of key parts of Sasfin Bank for R3.25 billion.
The deal, which includes Sasfin’s Capital Equipment Finance and Commercial Property Finance businesses, is a major step in African Bank’s ongoing efforts to expand its services.
All Part of the Master Plan
This acquisition is part of African Bank’s strategy to grow and diversify their offerings. It follows the bank’s previous successful purchases of Grindrod Bank and Ubank (in 2022), which helped African Bank re-enter the business and commercial banking sectors. Basically, by adding these new services, African Bank aims to reach more customers and offer a wider range of financial products.
Kennedy Bungane, the CEO of African Bank, said he is very happy with the approval, and says that this deal allows the bank to further strengthen and expand its operations. He emphasized that this acquisition also closely aligns with the bank’s ‘Excelerate25’ strategy, which focuses on serving underserved entrepreneurs and businesses.
Sasfin’s CEO, Michael Sassoon, is also very positive, saying that while it’s challenging to part with parts of the business (as they will be doing), the deal will create new opportunities for both clients and staff.