This archive report was first published on 9 September 2019.
Published on September 9, 2019, Equity Group Holdings #ticker:EQTY announced its plan to acquire a controlling equity stake in Commercial Bank of Congo (BCDC) to merge with its existing subsidiary in the Democratic Republic of Congo (DRC).
Equity Bank, a Nairobi Securities Exchange-listed company, first entered the DRC market in 2015 by acquiring a 79 percent stake in Pro Credit Bank. The bank later increased its stake to 86 percent in 2017.
ProCredit was the seventh-largest bank in the DRC by assets, with total assets exceeding $200 million, net assets of $25 million, and a customer base of over 170,000 at the time of the acquisition.
Equity Bank rebranded the subsidiary to Equity Bank Congo last year, making it the most profitable in the region.
Despite being a resource-rich nation, access to banking services in the DRC is low, with about 90 percent of the population being unbanked.
Equity Group Holdings' CEO, James Mwangi, stated, "By acquiring BCDC, Equity will be able to expand its footprint in Africa. Further, through the proposed transaction, EGH aims to provide access to competitive, tailored financial services to improve people's lives and livelihoods whilst also delivering significant value to its stakeholders."
BCDC is the second-largest bank in the DRC, with about 29 branches across the country, including key cities Kinshasa, Goma, and Lubumbashi. It has an asset base of about $700 million.
