Nedbank to End 17-Year Partnership with Ecobank by Selling 21.2% Stake
South Africa’s Nedbank Group Ltd. has announced plans to divest its 21.2% equity in Ecobank Transnational Incorporated (ETI), effectively ending a long-standing partnership that helped expand its footprint across Africa.
“The board has approved a formal plan to dispose of the investment, and we are currently engaging interested parties,” the bank said in a statement quoted by Bloomberg.
“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 Africa regions in businesses we own and control.”
Nedbank CEO Jason Quinn cited regulatory complexities and possible capital obligations as the reasons behind the decision.
The move follows a year-long strategic review, which resulted in reclassifying ETI’s shares as a financial investment instead of a strategic asset. This reclassification is expected to enable a more value-driven exit.
Despite the sale, Nedbank reported robust half-year results, with headline earnings increasing by 6% to R8.4 billion ($469 million). The group also reported a notable 18% drop in impairment charges, reducing the credit loss ratio to 81 basis points, within its 60–100 basis point target range.
The bank declared an interim dividend of R10.28 per share, ahead of market expectations.
Analysts believe the sale could pave the way for new investors eager to strengthen ETI’s influence across West Africa.
ETI recently reported Q2 2025 unaudited earnings showing a pre-tax profit of ₦352.92 billion, representing nearly a 46% year-on-year rise.
Moody’s also upgraded ETI’s outlook from “negative” to “stable,” affirming key credit ratings and citing improved financial resilience. As of March, ETI’s subsidiaries operated across 38 countries, with total assets valued at $28.9 billion.
