S/A’s Absa deepens East Africa push with Tanzania bank merger

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.

The deal also underscores Absa’s broader strategy to expand its East African franchise through acquisitions and internal restructuring.

The Tanzania transaction comes weeks after Absa launched a KES30.6 billion ($238 million) tender offer to increase its stake in Absa Bank Kenya to 85 percent from 68.5 percent, reinforcing its long-term commitment to the region’s largest banking markets.

The offer, priced at KES34.50 per share, is scheduled to close on August 11.

Absa has been reshaping its East African operations at a time when regional banking groups are seeking greater scale to improve profitability, spread technology investments and compete more effectively as financial integration accelerates across the continent.

Neither Absa nor NBC has publicly commented on the proposed Tanzania transaction.