Major Deals Reshape African Financial Landscape
Two significant developments are impacting the fintech and banking sectors in Africa:
- Nedbank secures CBK approval to acquire 66% of NCBA: This marks a major milestone in Nedbank’s expansion across East Africa, giving them control over one of Kenya’s leading digital-first banks.
- Paystack integrates fintech Allawee: Customers of Allawee have been notified that their accounts will be closed on December 1, 2026, as the startup is fully absorbed into Paystack’s operations.
Nedbank Strengthens Regional Footprint
The Central Bank of Kenya (CBK) approved Nedbank’s acquisition of up to 66% of NCBA on August 28. The deal will provide Nedbank with a robust presence across East Africa, including banking subsidiaries in Kenya, Uganda, Tanzania, and Rwanda.
NCBA reported KES 12.4 billion ($95.7 million) in profit after tax for H1 2026, with total assets reaching KES 739 billion ($5.7 billion). This acquisition aligns with Nedbank’s strategic goal of expanding into high-growth African markets like the Democratic Republic of Congo and Ethiopia.
While regulatory approvals remain, this move signals increased consolidation in Africa’s banking sector as established players seek to expand their reach through acquisitions rather than organic growth.
Allawee Customers Transition to Paystack Services
The integration of fintech startup Allawee into Paystack represents another trend toward platform consolidation. Allawee customers are being directed to:
- Businesses: Paystack MFB (microfinance bank)
- Individuals: Zap (Paystack’s consumer transfer app)
Notably, balances and account history will not automatically transfer, requiring users to re-register for new services.
The acquisition likely reflects Paystack’s interest in Allawee’s card infrastructure technology rather than its customer base, particularly as Paystack has expanded its own financial service offerings.