[2007-06-08]  ABC to have new portfolios
The pan-African merchant bank, the African Banking Corporation (ABC) Holdings Limited, seems to be making progress in its cash raising endeavours that should see the bank expanding to other markets on the continent.

Already, several unnamed investors have expressed interest in buying ABC shares ahead of the Extraordinary General Meeting (EGM) intended to pave way for private placement. One of the international financiers that have agreed to place a 10 percent equity in the bank worth close to P40 million is the International Finance Corporation (IFC), a subsidiary of the World Bank.
The EGM, which is to be held on June 28, is expected to seek approval of current shareholders for the deal.
The South Africa-based ABC Group chief executive officer, Douglas Munatsi, told a press conference in Gaborone yesterday that the IFC is prepared to cede money for use in the Group's expansion programme. But, he said, the IFC wants to retain its right to sell its stake later.
"Many investors have approached us, and we are looking at investors that have not invested in ABC so that we diversify shareholding. In the past, we used the money we raised to strengthen our business, but we are looking at going into other countries in Africa."
Munatsi added that the investment into the bank by the IFC is a confidence boost for the pan-African bank.
However, he explained that with the coming of more investors that include IFC, they would keep to their spirit of supporting capital markets.
The ABC is listed on the Botswana Stock Exchange (BSE). Some of the countries that the ABC is earmarking for expansion purposes include Angola, the Democratic Republic of the Congo (DRC) and Kenya.
It is also expected that with the money raised, the bank should be able to roll out new products like mortgages and credit and debit cards.
Currently, the bank which operates in Botswana, Mozambique, Tanzania, Zambia, Zimbabwe, offers services in private banking, corporate banking, investment banking and treasury services.
According to Munatsi, there are countries in Africa where "we can merge and grow in size" and even go into green fields.
"We need partners in these markets. There are markets where we might acquire or merge. There are markets where we will do green fields like Angola", he said.


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