Africa’s largest banking groups are accelerating expansion beyond their home markets as lenders seek new revenue streams, greater exposure to cross-border trade and protection against economic shocks concentrated in individual countries.
A new Fitch Ratings assessment shows that banks from Nigeria, Kenya, Morocco and South Africa are leading the expansion, with the African Continental Free Trade Area emerging as an important part of their long-term strategies.
Three of Nigeria’s biggest banking groups — Access Bank, United Bank for Africa and Zenith Bank — recorded sharp increases in the proportion of assets held outside Nigeria between 2021 and 2025, according to Fitch data.
The expansion reflects a shift from banking models built primarily around individual national economies towards institutions capable of following customers, investment and trade across borders.
AfCFTA Creates New Banking Opportunity
AfCFTA is central to the strategy.
The continental trade agreement is designed to increase movement of goods, services and investment between African countries. As cross-border transactions expand, banks expect businesses to require more payment, financing, foreign-exchange and treasury services across multiple jurisdictions.
For banking groups already operating in several countries, that could translate into additional fee income and lending opportunities.
Fitch said geographical diversification could also strengthen banks’ credit profiles by reducing their exposure to weaknesses and economic shocks in individual countries.
A banking group experiencing weaker conditions in one market, for example, could potentially offset some of that pressure with stronger performance elsewhere.
Kenya, DR Congo Attract Interest
Expansion strategies differ according to the opportunities available in individual markets.
Nigerian and South African banking groups are showing interest in Kenya, where a developing retail lending market provides opportunities to expand consumer and business banking operations.
Kenyan lenders, meanwhile, have increasingly turned towards the Democratic Republic of Congo, particularly after the country joined the East African Community in 2022.
DR Congo offers a large population and considerable economic potential, while its membership of the regional bloc has strengthened commercial links with East African economies.
The trend suggests Africa’s banking landscape could become increasingly interconnected as institutions build networks capable of supporting companies operating across several countries.
For Nigerian banks, international expansion also provides a potential hedge against domestic currency volatility and economic cycles, although operating across multiple jurisdictions introduces additional regulatory, political and currency risks.
The success of the strategy will ultimately depend on whether banks can convert their growing geographic footprints into sustainable earnings without taking excessive risks.
