JOHANNESBURG, July 23 – South African lender Absa Group Ltd. is nearing an agreement to consolidate its banking operations in Tanzania as part of its strategy to strengthen its presence in East Africa and build greater scale across the region.
According to Bloomberg report, citing people familiar with the matter, the proposed transaction would see National Bank of Commerce Ltd. (NBC) acquire the assets of Absa Bank Tanzania Ltd.
Under the current ownership structure, Absa holds a 55% stake in National Bank of Commerce, while the Government of Tanzania owns 30% of the lender.
If completed, the combined institution would hold approximately $3 billion in total assets, positioning it as Tanzania’s third-largest bank, behind CRDB Bank Plc and NMB Bank Plc.
The restructuring is expected to enhance operational efficiency by bringing Absa’s Tanzanian banking businesses under a single institution, while expanding the group’s market share in one of East Africa’s fastest-growing banking markets.
The planned merger also reflects a broader trend among African lenders seeking to strengthen their competitive positions through consolidation, improve cost efficiencies and expand their capacity to support lending across key sectors of the economy.
Neither Absa nor the parties involved have publicly announced the transaction, and the discussions remain private. Details of the proposed merger, including regulatory approvals and the expected timeline for completion, have yet to be disclosed.
