African banks push cross-border growth as regional trade expands

Fitch Ratings highlights a wave of regional expansion among leading African banks from Kenya, Morocco, Nigeria and South Africa, aimed at capturing growth from the African Continental Free Trade Area. The report points to a sharp rise in foreign-asset exposure for Nigeria’s Access, UBA and Zenith between 2021 and 2025, reflecting a strategic shift toward cross-border operations. Kenyan banks are increasingly entering the Democratic Republic of Congo following Kinshasa’s 2022 accession to the East African Community, while banks from Nigeria and South Africa are drawn to Kenya’s expanding retail-lending market.

These moves are designed to widen income streams and reduce vulnerability to economic shocks in any single country, thereby strengthening the institutions’ overall creditworthiness. Fitch argues that such diversification aligns with the anticipated surge in intra-African trade and investment. The trend underscores a broader regional integration effort that could reshape the continent’s financial landscape.