Stanlib Eyes Top Spot in East Africa as Asset Management Competition Heats Up

Stanlib Asset Management, South Africa’s second-largest asset manager, is ramping up its presence in East Africa, with a sharp focus on expanding its relatively new units in Kenya and Uganda. The goal? To become a serious contender in the region’s competitive and fast-growing asset management sector.

In an interview, CEO Derrick Msibi shared the firm’s long-term vision to position its East African branches as dominant players within the next three years.

“In Kenya if you don’t get into the top six asset managers, you are going to struggle,” Msibi said, acknowledging the high level of market concentration in the country.

Why East Africa? Growth, Opportunity and Diversification

Stanlib’s expansion plan comes at a time when South Africa’s asset management sector is under pressure—with rising operational costs, stiff competition, and sluggish economic growth eating into margins. East Africa, in contrast, offers fresh prospects.

According to the African Development Bank, East Africa is projected to grow by 5.3% in 2025, outpacing West Africa (4.6%), Central and North Africa (3.9%), and Southern Africa (3%). That kind of growth, paired with a rising middle class and increased pension savings, makes the region attractive for long-term investment managers like Stanlib.

“We are very patient, and our view is that it is going to take us three years to get there,” Msibi said, referring to Stanlib’s ambitions to enter Kenya’s top six fund managers.

Currently, Stanlib Kenya is ranked about 13th, well behind the dominant players who hold 97% of market share—nearly KES 1.7 trillion ($13 billion) in assets under management as of December 2024, according to Kenya’s pension regulator.

Regional Alignment with Standard Bank’s Africa Strategy

Stanlib’s East African push aligns with the broader Standard Bank Group strategy to grow across the continent. Msibi, who also oversees asset management for Standard Bank in countries like Nigeria and Ghana, says the current focus is to solidify the businesses already launched and establish them as key players.

This East African move also mirrors similar ambitions by rivals. FirstRand, South Africa’s largest lender by market value, has signaled interest in Kenya, while Nedbank is eyeing East Africa’s infrastructure and renewable energy sectors through an upcoming investment banking offering.

A Shift in Strategy Amid Tightening Margins

With its home market reaching maturity and facing stagnant economic prospects, Stanlib’s expansion is not just about growth—it’s about diversifying income and reducing dependence on South Africa.

“We’re not spreading ourselves thin,” said Msibi. “We’re focused on building real businesses in markets that have potential and are aligned with our capabilities.”

The Road Ahead

Stanlib’s measured but confident expansion reflects a broader trend of South African financial giants looking beyond their borders for scalable opportunities. While the road to the top in Kenya and Uganda may be steep, the potential payoff is significant—both in financial returns and strategic positioning in Africa’s most dynamic region.

{Source: Money Web}

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