Absa Group Ltd. is nearing a deal to merge its Tanzanian banking operations. National Bank of Commerce (NBC) will acquire the assets of Absa Bank Tanzania. Absa currently holds a 55% stake in NBC. The Tanzanian government maintains a 30% shareholding in the bank.
The consolidation will create a lender with approximately $3 billion in assets. This R49.2 billion entity will rank as the third-largest bank in Tanzania. The new lender will trail only CRDB Bank and NMB Bank Plc in total market size.
The move aligns with Absa’s strategy to scale in high-growth markets outside South Africa. The group recently increased its stake in its Kenyan unit and acquired assets in Uganda. The Tanzanian transaction is expected to finalize in the coming months.