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Afriland First Bank says it is looking for partners to strengthen its Liberian subsidiary, a move that could bring capital and expertise to a lender that has struggled to match rivals. Executives declined to detail talks.
Africa Business Plus reported Tuesday that the Cameroon founded group, led by banker Paul Kammogne Fokam, is weighing a capital raising effort focused on Afriland First Bank Liberia, which the publication described as one of the group’s weaker units.
The bank’s Liberian management team, led by Robert Nkous, is pitching the search as a reset aimed at faster growth. Executives are prioritizing a broader shareholder base and operational improvements that would let the branch compete more aggressively in retail and small business banking, the report said.
The publication said the bank is seeking strategic investors and business partners as it tries to boost performance and fund expansion. It did not say how much money the unit hopes to raise or when a deal could be completed.
Liberia’s banking sector remains concentrated in the capital, and lenders face pressure to extend services beyond Monrovia while keeping costs under control. Mobile money has expanded quickly, pushing banks to invest in technology and customer service as credit risk remains a concern in an economy tied to commodity exports and government spending.
Afriland First Bank entered Liberia in 2011 as part of its regional expansion. In Liberia, it has promoted lending to small and medium sized firms and agriculture, often working with partners on risk sharing arrangements and targeted credit lines.
The partner drive comes as regulators across West Africa press banks to meet tougher standards on capital adequacy, governance and anti money laundering controls. Banking executives say those requirements can make outside investment attractive for smaller institutions that want to keep expanding.
Afriland has not publicly disclosed the size of the capital it hopes to raise or the timeline for bringing in new shareholders. Any deal would require regulatory approvals and could take months of due diligence, the report said.
