Standard Bank Group has identified Nigeria and four other markets as strategic growth hubs as it seeks to tap a 250 billion rand ($15.4 billion) revenue opportunity driven by expanding small and medium-sized enterprises (SMEs) and rising intra-African trade.
The bank disclosed the plan through the Chief Executive Officer of its Business and Commercial Banking (Standard Bank Group) division, Bill Blackie, who outlined the lender's growth strategy in an interview with Bloomberg.
Under the strategy, Standard Bank will deepen its presence in Nigeria, Ghana, Kenya, Uganda and Tanzania while consolidating its dominance in South Africa. The five markets account for about 85 per cent of the estimated revenue opportunity available to the group's BCB operations.
The expansion forms part of the lender's broader ambition to accelerate earnings growth through 2028, leveraging increasing demand for banking services among businesses across the continent.
According to Blackie, the BCB division has recorded robust growth over the past five years, supported by rising business activity and greater demand for financial services across Africa. He said the division doubled both headline earnings and return on capital between 2020 and 2025, with return on capital increasing from 19 per cent to 38 per cent during the period. Earnings from operations across the continent also expanded at an average annual rate of 30 per cent.
Building on this performance, the bank is targeting compound annual growth of between eight and nine per cent through 2028, although Blackie expressed confidence that growth could reach double-digit levels as the strategy gains traction.
A key pillar of Standard Bank's growth strategy is expanding support for SMEs and mid-sized businesses, which account for most enterprises across Africa. The bank is particularly positioning itself to benefit from opportunities created by the African Continental Free Trade Area (AfCFTA), which is expected to accelerate economic integration and cross-border commerce across the continent.
According to the International Trade Centre, nearly half of Africa's small businesses export to other African countries, compared with only 14 per cent of larger firms, underscoring the critical role of SMEs in driving regional commerce.
The lender is also leveraging its extensive African footprint and strategic partnership with the Industrial and Commercial Bank of China (ICBC) to attract businesses seeking access to international markets, particularly China.
