Nedbank Group, South Africa’s fourth-largest bank by assets, has begun formal steps to sell its 21.2% stake in Ecobank Transnational Incorporated (ETI), a stake currently valued at around $115.95 million based on market prices.
This move would mark the end of its 17-year relationship with the Togo-based pan-African lender and underscores a significant markdown from its original $500 million investment.
The planned divestment is part of Nedbank’s broader strategy to exit West African markets and reallocate capital toward Southern and East Africa, where it holds operational control.
The bank said its board has approved the disposal and that it is actively engaging potential buyers to conclude what it described as a “clean deal,” meaning a complete disposal.
“The bank has approved a formal plan to dispose of the investment, and we are currently engaging interested parties and, if a sale is concluded, it will be a clean deal,” said Jason Quinn, Nedbank’s CEO” This change represents a reset of our strategy on the rest of the continent with a clear focus on the Southern African Development Community and East African regions in businesses we own and control.”
The decision follows Quinn’s earlier remarks on June 24, 2025, confirming that the group was reviewing its West African exposure due to persistent currency pressures. Nedbank originally invested in ETI in 2008, with a stake estimated at around $285 million, and later increased its holding to approximately $500 million in 2014
The exit plan follows a year-long internal review, during which Nedbank reclassified its stake in Ecobank from a “strategic investment” – reflecting a long-term operational partnership – to a “financial investment” held solely for capital appreciation, unlocking shareholder value.
Solid H1 Performance
Nedbank also reported a solid set of first-half results, underpinned by higher fee income and falling loan impairments.
According to the bank, headline earnings climbed 6% to R8.4 billion ($469 million) in the six months through June.
Meanwhile, the lender’s impairments shrank 18% to R3.82 billion($182.26 million).
The drop in bad debts allowed the lender’s credit loss ratio to drop to 81 basis points, falling within the board-approved target of 60 to 100 basis points for the first time since 2023.
The bank also declared an interim dividend of R10.28 per share, surpassing a median estimate of R9.95 ($0.57).
Behind the deal
While Nedbank has not disclosed an expected deal price or named a buyer, Ecobank’s current market capitalisation provides a reference point.
As of August 5, 2025, ETI was valued at ₦836.15 billion (approximately $546.96 million), with shares trading at ₦34.00. Based on that, Nedbank’s 21.2% stake equates to about ₦177.26 billion, or $115.95 million, pointing to a significant capital loss from its peak investment.
Even so, the deal could still be strategically advantageous by freeing up capital and reducing exposure to currency volatility across the West African monetary zone.
Nedbank’s move mirrors that of Barclays PLC, which in 2022 sold its remaining 7.4% stake in Absa Group for €526 million ($687 million) as part of its broader retreat from Africa to refocus on Europe and North America.
If concluded, Nedbank’s exit is expected to reshape Ecobank’s shareholder base, possibly welcoming new investors or increasing institutional ownership, depending on who steps in.
Note: The figure reported in South African Rand has been converted using $1 = R18.00 as of August 5, 2025
