Nigeria has emerged as one of the key markets in Standard Bank Group’s next phase of expansion as Africa’s largest lender by assets positions itself to capture an estimated 250 billion rand ($15.4 billion) revenue opportunity tied to the growth of small and medium-sized enterprises (SMEs) and increasing intra-African trade.
The banking giant revealed the strategy through the Chief Executive Officer of its Business and Commercial Banking (BCB) division, Bill Blackie, who outlined the group's medium-term growth plans in an interview.
Under the expansion blueprint, Standard Bank intends to strengthen its footprint in Nigeria, Ghana, Kenya, Uganda and Tanzania, while maintaining its leadership position in South Africa. Together, these markets represent approximately 85 per cent of the revenue opportunity identified for the bank’s Business and Commercial Banking operations.
The move reflects growing confidence in Africa’s long-term economic prospects, particularly as businesses across the continent increasingly seek financing, trade support and digital banking solutions to drive expansion.
According to Blackie, the strategy forms part of a broader effort to accelerate earnings growth through 2028 by capitalising on rising demand for financial services among entrepreneurs, SMEs and mid-sized companies operating across Africa.
"Our Business and Commercial Banking division has experienced strong growth over the last five years," Blackie said, noting that increased business activity and deeper financial inclusion have created significant opportunities for the bank.
The executive disclosed that the BCB division doubled both its headline earnings and return on capital between 2020 and 2025. During the same period, return on capital climbed from 19 per cent to 38 per cent, highlighting the profitability of the segment and the success of the bank’s expansion strategy.
He further revealed that earnings from the division’s operations outside South Africa grew at an average annual rate of 30 per cent, underscoring the increasing contribution of the rest of Africa to the group’s overall performance.
Encouraged by those results, Standard Bank is now targeting compound annual growth of between eight and nine per cent through 2028. However, Blackie indicated that actual performance could surpass those projections and move into double-digit territory as investments in key markets begin to yield stronger returns.
A major component of the bank’s strategy is the expansion of banking services tailored to SMEs and medium-sized enterprises, which collectively account for the overwhelming majority of businesses across the continent.
Industry analysts have long argued that SMEs remain one of Africa’s most under-served economic segments despite their crucial role in job creation, innovation and economic development. As a result, financial institutions are increasingly competing to provide financing, payment solutions and advisory services to this fast-growing market.
Standard Bank believes the sector will become even more important as the African Continental Free Trade Area (AfCFTA) continues to gain momentum.
The trade pact, which aims to create a single African market, is expected to boost cross-border trade, strengthen regional supply chains and open new opportunities for businesses seeking to expand beyond their domestic markets.
The significance of SMEs in driving continental commerce is already evident. According to the International Trade Centre, nearly half of Africa’s small businesses export goods and services to other African countries, compared with just 14 per cent of larger firms. The figures highlight the central role smaller enterprises are expected to play in unlocking the full potential of AfCFTA.
To strengthen its competitive position, Standard Bank is also leveraging its extensive network across Africa and its longstanding strategic partnership with the Industrial and Commercial Bank of China (ICBC), one of the world's largest financial institutions.
The partnership provides African businesses with easier access to international markets, investment opportunities and trade financing, particularly for companies seeking to build commercial relationships with China, Africa’s largest trading partner.
For Nigeria, the renewed focus by Standard Bank signals growing international confidence in the country’s economic potential despite prevailing macroeconomic challenges. With Africa's largest population, a rapidly expanding entrepreneurial ecosystem and increasing participation in regional trade, Nigeria is expected to remain a critical growth market for multinational financial institutions seeking to deepen their presence on the continent.
As competition intensifies among African lenders, Standard Bank’s latest strategy underscores the growing importance of SMEs, trade finance and regional integration in shaping the future of banking across Africa.