Further banking sector consolidation is on the cards in South Africa, analysts predict, as projected GDP growth of more than 4% for 2005 tempts foreign players in.
FirstRand Bank is top of the list of likely targets, with Standard Chartered and Citigroup said to be among possible contenders.
Fitch upgraded the sovereign to BBB+ from BBB at the end of August, underlining the reasons foreign banks are keen to grab market share. The agency’s decision followed a similar move by rival Standard & Poor’s earlier in the month.
Fitch analyst Veronica Kalema says: “South Africa’s growth performance during the past two years has exceeded expectations.
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