Afriland First Financial institution says it’s searching for companions to strengthen its Liberian subsidiary, a transfer that would convey capital and experience to a lender that has struggled to match rivals. Executives declined to element talks.
Africa Enterprise Plus reported Tuesday that the Cameroon based group, led by banker Paul Kammogne Fokam, is weighing a capital elevating effort targeted on Afriland First Financial institution Liberia, which the publication described as one of many group’s weaker items.
The financial institution’s Liberian administration group, led by Robert Nkous, is pitching the search as a reset geared toward sooner development. Executives are prioritizing a broader shareholder base and operational enhancements that might let the department compete extra aggressively in retail and small enterprise banking, the report stated.
The publication stated the financial institution is searching for strategic buyers and enterprise companions because it tries to spice up efficiency and fund enlargement. It didn’t say how a lot cash the unit hopes to boost or when a deal might be accomplished.
Liberia’s banking sector stays concentrated within the capital, and lenders face stress to increase providers past Monrovia whereas preserving prices below management. Cellular cash has expanded rapidly, pushing banks to put money into know-how and customer support as credit score danger stays a priority in an financial system tied to commodity exports and authorities spending.
Afriland First Financial institution entered Liberia in 2011 as a part of its regional enlargement. In Liberia, it has promoted lending to small and medium sized companies and agriculture, usually working with companions on danger sharing preparations and focused credit score traces.
The companion drive comes as regulators throughout West Africa press banks to satisfy harder requirements on capital adequacy, governance and anti cash laundering controls. Banking executives say these necessities could make exterior funding engaging for smaller establishments that need to hold increasing.
Afriland has not publicly disclosed the dimensions of the capital it hopes to boost or the timeline for bringing in new shareholders. Any deal would require regulatory approvals and will take months of due diligence, the report stated.
