(Ecofin Agency) - FirstRand plans to replicate in Ghana its successful economic model implemented in South Africa. The company’s Ghanaian subsidiary -FirstRand Bank Ghana- was strengthened at the end of 2019 through the acquisition of Ghana Home Loans (GHL Bank) and the new entity founded through this merger will offer diversified banking services, mainly focusing on car and home loans, according to information published by Bloomberg.
The interest in the automotive sector stems from changes in legislation in Ghana prohibiting the entry of vehicles more than 10 years old and encouraging the establishment of assembly plants. FirstRand hopes this will benefit Ghana's middle class, whose purchasing power has been increased by a 6.5% growth over the past three years.
In the real estate segment, the bank wants to take advantage of the housing shortage, which has now reached 2 million units in the country. FirstRand Ghana, which can count on a strengthened total balance sheet with assets worth $364 million, intends to build on this organic growth to reduce its financing costs for the benefit of its customers.