South Africa’s Absa Group is nearing a deal to consolidate its banking operations in Tanzania, a move that would create a lender with about $3 billion in assets and deepen the group’s presence in one of East Africa’s fastest-growing banking markets.
According to Bloomberg, citing people familiar with the matter, National Bank of Commerce (NBC) Limited is expected to acquire the assets of Absa Bank Tanzania Ltd. The transaction would combine Absa’s banking interests in the country under a single entity.
Absa owns 55 percent of NBC, while the Government of Tanzania holds a 30 percent stake.
If completed, the merged institution would become Tanzania’s third-largest lender with close to $3 billion in assets, trailing only CRDB Bank and NMB Bank, according to the people, who requested anonymity because the discussions are private.
The consolidation is expected to improve operational efficiency, simplify the group’s corporate structure, and strengthen its competitive position in Tanzania, where rising credit demand, expanding financial inclusion and sustained economic growth continue to attract regional lenders. Related News Dangote picks London over Dubai for cement unit’s secondary listing Nigeria transitioning off-grid sector toward bankable utility markets Presidency berates Atiku for hiring international lobbyist against Tinubu
