Ghana’s GHL Bank has been sold to First National Bank by international investment group Actis, only a year after it took ownership.
London-headquartered private equity investor Actis has sold its majority stake in Ghana’s GHL Bank to First National Bank Ghana .
Actis’ ownership of GHL began when it took control of Abraaj Africa Fund III in July 2019 , one of two Africa-focused funds it gained following the collapse of Dubai-headquartered private equity investor Abraaj Group. The fund’s investment in GHL dated back to 2016, providing the backing to transition GHL from a mortgage lender to a commercial bank for the retail sector.
First National Bank is a subsidiary of South African financial services provider FirstRand Group .
The deal was effective on 4 May, following regulatory approval by the Bank of Ghana and South African Reserve Bank, which regulates FirstRand.
Chief executive of First National Bank Ghana, Richard Hudson said in a statement: “Plans are well under way to merge the operations of the two banks. We further believe that this merger will demonstrate and further cement our commitment to the Ghanaian market. We recognize that the economy is under a lot of pressure as a result of the Covid-19 pandemic but we remain excited about the future of banking in Ghana.”
Actis previously exited from Abraaj Africa Fund III investments in the form of stakes in Nigeria’s Custodian & Allied Insurance , and West African food producer Fan Milk International , headquartered in Ghana.
A report from the International Monetary Fund last month warned of an economic and development crisis in Sub-Saharan Africa due to the Covid-19 crisis .
