FNB expands African footprint – Zambia

First National Bank (FNB) is increasing its African banking network with the latest announcement that the bank has been granted a banking license by the Bank of Zambia.

FNB’s Zambia operations, which are set to start in the second quarter of 2009, will add to FNB’s current African footprint which includes Namibia, Botswana, Swaziland, Lesotho and Mozambique.

Zambia provides an investor friendly environment and is a low political risk country. FNB believes that it can add value to the Zambian banking industry with innovative products, services and technology.

According to Jabu Khethe, CEO of FNB Africa, “FNB made the decision to enter Zambia as it has one of the highest GDPs in the region and the economy is growing at a favourable rate.”

“One of the key strategic focus areas of FNB is to grow its profitability by further expanding outside of South Africa. In line with this, FNB’s vision is to be a leading financial services provider in the Southern African Development Community (SADC) and to establish a presence in East and West Africa.”

FNB had a presence in South Africa and Namibia and expanded further into Africa with its move into Botswana in 1991. To date, our other African subsidiaries have shown strong return on investment. “FNB’s expansion into Zambia will use the same tested method of setting up operations and driving profitability,” he adds.

FNB Zambia will provide a full service banking which includes a comprehensive range of retail, business, commercial and corporate banking products. These products will include cheque, transmission and savings accounts, debit cards, personal and commercial loans and overdrafts, investment products, trade services and foreign exchange,” says Khethe.

“The channels will comprise of branches and ATMs as well as electronic and cellphone banking. To ensure efficient execution, products, services and channels will be rolled out in a phased approach.”

Richard Hudson, previously the CEO of FNB Lesotho and temporary CEO of FNB Mozambique, has been appointed as the CEO of FNB Zambia.

Tanzania, Angola, Uganda and Ghana are among FNB’s considerations for further expansion into other African countries.

FNB AFRICA FACT SHEET: