(Bloomberg) -- After a decade of growth that saw assets balloon nearly 12,000%, Sofibanque SA sees itself as the next natural bank acquisition target in the Democratic Republic of Congo.

At an attractive valuation, the family-controlled Sofibanque could part with a portion of, or the entire bank, according to Chief Executive Officer Henry Wazne.

“Everything is for sale at the right price,” he said in an interview last week in New York, adding that he estimates the bank’s equity will be around $110 million by the end of 2023. “That makes the bank quite valuable. The entry ticket today to get into the DRC market is just getting higher.” 

While rich in minerals and other natural resources, Congo has one of the least-developed banking sectors, attracting attention from acquisitive lenders on the continent. Kenya’s two-biggest banks, Equity Group Holdings Plc and KCB Group Plc, have bought stakes in three Congo lenders in recent years. 

Equity took about 67% of Banque Commerciale Du Congo at $95 million in 2020 and 79% of ProCredit Bank Congo SA for $35 million in 2015.

Those valuations were a steal for Equity, “but these kind of deals won’t happen again in the DRC,” Wazne said.

Only about a quarter of Congolese above the age of 15 years have a bank account and private credit in the country is well below the African average, which the International Monetary Fund blames on an unfavorable business climate in the country of about 100 million people. 

Despite the challenges, Sofibanque last year reported pretax profit of $30 million, the best return on equity in the country, according to Wazne. Such success has piqued the interest of potential buyers, he said.

“We’re looking for investors who will come with added value, who will help take the bank to the next step,” Wazne said. 

Headroom for Growth

Wazne took over Sofibanque with his cousin Abdallah Wazni in 2012 and has increased its total assets to $1.2 billion from $10 million. The family controls 96% of Sofibanque, with Wazni holding about 88%. 

The bank focuses on corporate clients like Barrick Gold Corp.’s Kibali project, their subcontractors and employees. The two men also run an insurance business with some of Congo’s biggest mining companies for clients. 

There’s plenty of headroom left for the bank to grow in an economy that expanded nearly 9% last year, according to Wazne. The entire banking sector has assets of less than $10 billion for the economy conservatively estimated at $50 billion, he said.

Rawbank SA, Congo’s biggest lender, is looking to expand throughout the continent. Sofibanque could take the same route with some government support, he said.

“We can become a Pan-African bank and we will be a success story for the DRC - whether it’s Rawbank or us,” Wazne said. “Or we don’t and remain a local bank. When you’re a local bank, you’re a target for others who want to expand.”

(Updates with CEO comments from sixth paragraph)

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