The acquisition by Britain’s Barclays of a majority stake in retail lender Absa is a great chance for Africa to widen the entry to the world market and attract more investmnents to South Africa.

South Africa’s banking sector has never seen such a big capital inflow - $5.5 billion. Barclays is expected to profit from the deal that will help it expand on South African market. The deal will boost South African forex reserves to an optimal level, analysts say.

"Absa’s brand management since its launch has been strong. Absa has a formidable retail banking presence in South Africa with the greatest reach of branches, ATMs and internet banking," said Chris Steward, of Investec Asset Management in Cape Town. "Absa has the reach into the mass market. Barclays has more expertise in the corporate banking arena and can bring those skills to Absa. Barclays can also add value with its credit card expertise.»

Absa, the biggest retail bank for the country, was formed in 1991 from the merger of Volkskas United, Allied and Trust banks. The name Absa came to the bank in 1998 from the Amalgamated Banks of South Africa.