Johannesburg - The retail banking unit of FirstRand [JSE:FSR] will begin operations in Tanzania by the middle of this year, widening its presence on the rest of the continent, which is fast-growing.
The unit, FNB, said on Thursday it has acquired a banking licence in the eastern African nation, where it ultimately aims to be a "major player".
Entering Tanzania will give it access to the broader East Africa market, FNB said. The bank already operates in six countries outside of South Africa, all of them in southern Africa.
"We will vigorously pursue our African expansion strategy, with Uganda and Nigeria being on our radar screens," Danny Zandamela, chief executive of FNB Africa, said.
FirstRand, South Africa's second-largest bank by market value, and rivals Standard Bank Group [JSE:SBK] and Absa Group [JSE:ASA], are building up their retail businesses across Africa to meet rising demand from a burgeoning middle class.
Consultancy Bain & Company said in a study this month that Africa's financial services industry will continue to grow at a compound annual rate of 15% to 2020, outpacing gross domestic product growth.
Retail banking is expected to grow faster than corporate banking, and is likely to make up nearly 40% of banking revenue by 2020, the study predicted.
FirstRand shares were up 2.9% at R19.10 in Thursday late afternoon trade, outpacing a 0.5% rise in Johannesburg's Top 40.
The unit, FNB, said on Thursday it has acquired a banking licence in the eastern African nation, where it ultimately aims to be a "major player".
Entering Tanzania will give it access to the broader East Africa market, FNB said. The bank already operates in six countries outside of South Africa, all of them in southern Africa.
"We will vigorously pursue our African expansion strategy, with Uganda and Nigeria being on our radar screens," Danny Zandamela, chief executive of FNB Africa, said.
FirstRand, South Africa's second-largest bank by market value, and rivals Standard Bank Group [JSE:SBK] and Absa Group [JSE:ASA], are building up their retail businesses across Africa to meet rising demand from a burgeoning middle class.
Consultancy Bain & Company said in a study this month that Africa's financial services industry will continue to grow at a compound annual rate of 15% to 2020, outpacing gross domestic product growth.
Retail banking is expected to grow faster than corporate banking, and is likely to make up nearly 40% of banking revenue by 2020, the study predicted.
FirstRand shares were up 2.9% at R19.10 in Thursday late afternoon trade, outpacing a 0.5% rise in Johannesburg's Top 40.