Equity Group eyes Angola, Zambia, Mozambique acquisitions

Equity Group Holdings, Kenya’s most profitable lender, has officially signalled a major southward expansion, setting its sights on bank acquisitions in Angola, Zambia, and Mozambique.

The move, announced Wednesday via Kenya Wall Street following record-breaking financial results, marks a strategic pivot to anchor the bank’s operations along the continent’s vital mineral and trade corridors.

Chief Executive James Mwangi revealed that the expansion is specifically designed to leverage the Lobito Transport Corridor, a US-backed trade route connecting the Atlantic coast of Angola to the mineral-rich regions of the DRC and Zambia.

For Equity, the logic behind the new frontier is rooted in the movement of goods and capital across borders. Angola sits at the Atlantic end of the corridor, while Mozambique serves as the gateway for minerals flowing toward Asian markets.

“There is an opportunity we can get in Angola, Zambia and Mozambique. So, it’s not just about countries; it’s about following our customers and following trade routes,” Mwangi told Reuters on Wednesday.

A massive capital war chest backs the regional push. Equity Group recently posted a historic 55 per cent rise in profit after tax to KSh75.50bn for the 2025 financial year. Notably, regional subsidiaries outside of Kenya now contribute 51 per cent of the group’s banking profit, proving that the lender’s pan-African strategy is paying off.

The Democratic Republic of Congo has served as the successful blueprint for this model. After acquiring two banks there, Equity’s DRC subsidiary saw a 58 per cent jump in profit, reaching KSh24.70bn.

“You can’t do Mozambique without Zambia,” Mwangi added, highlighting the interconnected nature of Southern African trade.

The focus on Angola represents a strategic re-prioritisation. While Equity had long eyed the Ethiopian market, regulatory hurdles, including a 40 per cent cap on foreign ownership in individual banks, have slowed entry. In contrast, Angola offers a clearer path through the acquisition of a majority stake in a Luanda-based bank, a deal Equity aims to finalise at the “earliest opportunity”.

Diplomacy is also playing a key role in the expansion. Mwangi credited President William Ruto for facilitating high-level introductions, including a scheduled meeting this week with Mozambique’s President Daniel Chapo.

If the Mozambique entry proceeds, it will become Equity’s sixth subsidiary outside Kenya. This is part of a broader “Africa Recovery and Resilience Plan”, which aims to see the bank operating in 15 African countries by 2030.

“Angola, Zambia, Mozambique, Ethiopia, and Libya are all on the target list,” the group confirmed, noting that the goal is to position the bank as a primary financial intermediary for the continent’s emerging trade hubs.

With half of its profits now coming from outside Kenya, Equity Group is no longer just a local giant; it is rapidly becoming the financial backbone of the African trade routes.