Afriland buys IBC stake
By Business ReporterCAMEROUN bank, Afriland First Bank Group has acquired 80 per cent stake in Intermarket Banking Corporation (IBC) and taken over control from Sabre Capital, which bought the bank two years.
Afriland First Bank Group executive vice-president for business development and international relations, Joseph Toubi said at a signing in ceremony in Lusaka yesterday that the group was strategically investing in the Zambian bank because it shared its philosophy of promoting small businesses.
Mr Toubi, who is now chairperson of Inter market Banking Corporation, said the Zambian bank which was taken over by the Indian group Sabre Capital two years ago, was focused on developing the Small and Medium Enterprises (SMEs) like Afriland First Bank.
“From the very beginning, we found that the positioning of Inter market was similar to the position of most of our banks in the countries where we operate. Our core business is the development of SMEs,” he said.
He said Afriland First Bank, the third largest bank in Cameroun, which also has operations in Equatorial Guinea, Democratic Republic of Congo (DRC), and Sao Tome and Principe, wants to expand in Africa and saw the strategic position of Zambia to countries where it already operates like DRC.
“Strategically, we are already present in DRC and we are expanding into the Katanga Province.
We think that it makes sense to accompany the flow of business between Katanga and the Copperbelt Province and generally between DRC and Zambia,” he said.
Mr Toubi said the other reason for Afriland First Bank’s interest in Zambia was that the country was also one of the richest especially in human resources, which was the backbone of the bank in all its operations.
He said the bank would continue with expansion and the coverage of many growth sectors and the rural areas provided the investment client was conducive.
The investor would retain the brand of Inter market for a transition period of three years.
Outgoing Intermarket Banking Corporation acting managing director Subhrendu Chatterji, who is also Sabre Capital managing director, said his organisation would maintain the remaining 20 per cent stake and work with Afriland First Bank.
Mr Chattrerji said Sabre Capital had been looking for an equity partner to reduce its share holding in the bank in line with the requirements of the Financial Sector Development Plan (FNDP), and that Bank of Zambia (BoZ) had given it up to the end of this year.
“We were given a weaver by BoZ and allowed up to the end of this year to reduce our share holding to 25 per cent as per requirement under the FSDP for companies that are not listed, and we are proud to have found a good partner in Afriland,” he said.
He said after restructuring the bank over the last one year, and reposition the bank for profitability, Sabre Capital started looking for a partner.
Sabre Capital would remain very much involved in the bank.
He would remain as a board member of Inter market Banking Corporation, while the chief financial officer Ackim Sinkala takes over as acting managing director.
[Times of Zambia]
