Equity Group completes acquisition of Rwanda’s 5th largest bank

By Peter Ochieng

Kenya’s Equity Group Holdings (EGH) has completed the full acquisition of Rwanda’s fifth largest bank, Compagnie Générale de Banque (COGEBANQUE) for Sh6.7 billion.

The move marks a significant milestone in EGH’s regional expansion strategy. The acquisition follows the fulfilment of conditions precedent to the acquisition, including regulatory and corporate approvals and was completed on 30th November 2023.

EGH now holds 198,250 shares representing 99.1250% of the issued share capital of COGEBANQUE, officially making COGEBANQUE its subsidiary.

Managing Director and CEO, Dr. James Mwangi, said they are delighted to welcome COGEBANQUE's employees and clients to the EGH family. “We are delighted to welcome COGEBANQUE's employees and customers to Equity Group.

Through our focus on innovation, cutting-edge technology, and superior service, we aim to provide enhanced financial services, improve lives, expand opportunities for wealth creation, and deliver significant value to all our stakeholders in Rwanda,” said Mwangi.

“The eventual merger of COGEBANQUE and Equity Bank Rwanda will consolidate Equity Group’s position in Rwanda and support delivery of its overarching strategy, the Africa Recovery and Resilience Plan. The expansion of Equity Group’s business in Rwanda aims to bolster Rwanda’s financial services landscape and fortifies the Group's commitment to catalyzing socio-economic development across the African continent.”

On June 14, 2023, EGH publicly disclosed its entry into a binding term sheet for the acquisition of 91.93% of COGEBANQUE's issued shares from the Government of Rwanda, Rwanda Social Security Board, Sanlam Vie Plc, and Judith Mugirasoni (the Sellers).

The completion of the acquisition was subject to various conditions, including confirmatory due diligence, execution of definitive agreements, regulatory approvals from the Central Bank of Kenya, the National Bank of Rwanda, the COMESA Competition Commission, and corporate approvals.

“By synergizing the operations of COGEBANQUE and Equity Bank Rwanda, EGH is strategically positioned to deliver an expanded array of competitive, customized financial services. This strategic alignment is designed not only to meet the diverse needs of our customers but also to catalyze economic growth, empower local communities, and contribute to the realization of the Group’s vision as Sub-Saharan Africa's premier financial institution,” added Dr. Mwangi.