Six markets Africa’s biggest bank is targeting in its hunt for $15.4bn in revenue

Standard Bank Group is ramping up its push into Africa’s fast growing business banking market, targeting a revenue opportunity worth about R250 billion, equivalent to nearly $15 billion, as regional trade increases and small businesses become a stronger force in the continent’s economy.

The bank’s Business and Commercial Banking division is focusing its expansion strategy on some of Africa’s largest and fastest growing markets, including South Africa, Nigeria, Ghana, Kenya, Uganda and Tanzania, where most of the opportunity is concentrated.

Read also:Standard Bank closes $250m strategic financing for Aradel Energy

Bill Blackie, chief executive officer of the division, said around 85 percent of the targeted revenue pool is located in these key markets, reflecting their importance to the bank’s long term growth plans.

The strategy is part of Standard Bank’s broader goal to accelerate earnings growth through 2028 by strengthening its position among small and medium sized enterprises and mid sized companies.

Small and medium sized enterprises make up nearly 95 percent of businesses across Africa and contribute as much as 40 percent of the continent’s gross domestic product, making the sector a major growth area for banks seeking new customers.

Read also: Access Holdings sees Standard Bank as North Star, pauses 20-year expansion plans

Standard Bank estimates that the opportunity includes about R100 billion in enterprise banking and R150 billion in the mid market segment. The Business and Commercial Banking division currently serves companies with annual revenues ranging from less than R100 million to as high as R2.5 billion, as well as selected larger corporate clients.

Blackie said the division has recorded strong performance in recent years.

“From 2020 to 2025, we have doubled headline earnings and doubled the return on capital in the business from 19 per cent to 38 per cent,” he said.

He added that earnings from the bank’s operations across the continent grew by an average of around 30 percent each year during the period.

A key driver of the bank’s future growth strategy is the expected rise in trade between African countries under the African Continental Free Trade Area agreement, which aims to create a single market of more than 1.3 billion people across over 50 countries.

Read also: Dangote Cement backs local food production with farm inputs, trains 60 farmers

According to World Bank estimates, the agreement could more than double trade exports within Africa by 2035, creating greater demand for financial services such as trade finance, foreign exchange, payments, cash management and working capital support.

“The biggest trade bloc for us today is trade into the continent, and it continues to be the fastest growing trade segment,” Blackie said.

Standard Bank also plans to use its partnership with the Industrial and Commercial Bank of China to help African companies access opportunities in China, the world’s second largest economy.

Despite its wider African ambitions, South Africa remains the bank’s biggest market. Standard Bank controls about 21 percent of the country’s small business banking market and 28 percent of the mid market segment, where it holds the leading position.

However, competition is increasing from rival banks including Capitec Bank, Nedbank Group and FirstRand Group.

Looking ahead, Standard Bank expects its Business and Commercial Banking division to deliver annual revenue growth of between 8 and 9 per cent through 2028, with stronger growth possible as African economies become more connected and cross border trade gathers pace.

The expansion highlights the growing importance of small businesses in driving Africa’s economic transformation and the crucial role banks are expected to play in providing the funding and financial services needed to support their growth.