South Africa’s biggest bank in terms of profits, First Rand, has confirmed its entry into Ghana in the coming months.
First Rand however says it is awaiting Bank of Ghana’s approval before it starts operations.
According to the head of corporate communications at First National Bank Virginia Magapatona, “There are still some regulatory requirements that are being met and we are well positioned to start business soon after the final formalities have been satisfied.”
She also adds that, they will be offering full banking services when they start operations “We have applied for a full commercial bank license and will be addressing all banking segments. We shall be bringing the full width of our product suite into Ghana. As a Greenfield business start-up, these products will be phased into the market as and when appropriate.”
First Rand last year secured provisional license from the Bank of Ghana to begin operations in the Ghana.
First Rand has already secured their office premises for their operations which is located around the ridge area in Accra; personnel are also in place to begin operations.
But many are still wondering if First Rand would be able to penetrate the market and make some good returns looking at number of banks operating in the country. Banking analysts however believe there is still space for First Rand , looking at the returns new entrants like Royal Bank are already making in the country.
First Rand is currently financing a lot of huge infrastructure projects, office structures by real estate companies and power projects by GRIDCO, so even if they should concentrate on these areas, then they could be making some good returns when they start their operations.
According to the Chief Executive of First Rand, Sizwe Nzasana the bank will be doing everything as a commercial bank when they start operations in Ghana. First Rand is setting aside some billions of dollars for their entry into Ghana and other West African countries.
After a failed attempt to acquire Merchant Bank in 2013, First Rand now has a plan to come in and grow the company from scratch.
First Rand’s entry will increase the number of banks in the country to 29.
Credit: myjoyonline