Access Bank, a Nigerian financial institution, has successfully finalized its acquisition of a Tanzanian bank

Access Bank Plc has successfully finalized the acquisition of the African Banking Corporation Tanzania (BancABCT), further solidifying its presence in the banking market of East Africa.

The lender, listed on the Nigerian Stock Exchange (NSE), has successfully acquired a majority equity stake in BancABCT. BancABCT is a subsidiary of Atlas Mara Ltd, a London-listed company that focuses on Africa and has investments in various banks across the continent.

The deal was initially announced on July 14, 2023.

“This strategic move is a significant step towards establishing a railroad in Tanzania to facilitate intra-African trade within the East African region, Africa, and the rest of the world,” states Roosevelt Ogbonna, the CEO of the group.

It highlights our dedication to establishing a strong East African banking network, fostering positive transformation and innovation. We are thrilled about the opportunities this acquisition brings for our operations in Tanzania and are enthusiastic about utilizing our combined strengths to provide outstanding financial solutions and experiences to our customers.

After the transaction is finalized, ABCT will join forces with the consumer, private, and banking business of Standard Chartered Bank Tanzania under the ownership of the Nigerian Bank, forming Access Bank Tanzania.

“The completion of our transaction with Access Bank Plc, not only highlights the strong confidence of Access Bank in our operations and the Tanzanian market but brings forth new and exciting opportunities for our customers, employees, and stakeholders,” expresses ABCT Managing Director John Imani.

Last year in August, Access Bank Plc and Standard Chartered Bank made agreements to acquire the majority shareholding of the British lender’s subsidiaries in Angola, Cameroon, Gambia, and Sierra Leone, as well as its consumer, private, and business banking business in Tanzania.

Every transaction must still be approved by the appropriate local regulators and the banking regulator in Nigeria.

Access Bank highlighted the agreement with the British lender, Standard Chartered Bank, as a significant milestone in its mission to establish a robust global franchise that prioritizes facilitating payments, investment, and trade within Africa and between Africa and other regions.

In January of this year, Access Bank made an announcement about acquiring 80.88 percent shareholding in Uganda’s Finance Trust Bank. Two months later, in March, they entered into a binding agreement with KCB Group Plc to acquire the entire issued share capital of National Bank of Kenya Ltd (NBK) from KCB.

In 2020, the lender successfully completed the acquisition of Kenya’s Transnational Bank and further expanded its ownership in its Rwandan subsidiary by 16.22 percent, valued at $9.55 million. This strategic move aimed to enhance the lender’s presence and influence in the East Africa region.

Access Bank’s investments have significantly increased its shareholding in the Rwandan subsidiary to 91.22 percent, and it has also established a strong hold on the Kenyan subsidiary with a 99.98 percent shareholding.

In 2023, the company had a total of 14 subsidiaries across West Africa, East Africa, Southern Africa, and the United Kingdom. They also had business offices in the Republic of China, Lebanon, and India.

It has a presence in seven branches in Rwanda, 16 branches in the Democratic Republic of Congo (DRC), and 25 branches in Kenya.

Last year, the lender successfully completed the issuance of a $300 million additional Tier 1 capital to strengthen its ability to support future growth and withstand any potential macroeconomic shocks.

Nigerian banks are eagerly establishing their presence in the East African banking market, which is currently dominated by top retail banks from Kenya such as Equity, KCB, and NCBA.

Nigeria’s United Bank for Africa (UBA) has further expanded its ownership in its Kenyan and Ugandan subsidiaries.

In 2022, the lender increased its shareholdings in UBA Kenya Ltd by 13 percent and UBA Uganda Ltd by 11 percent. This indicates the lender’s increasing interest in investing in a market that boasts a population of over 300 million people.

It also operates subsidiaries in Tanzania and the Democratic Republic of Congo (DRC).

UBA Plc’s latest annual report (2023) revealed that the share sale resulted in an increase in the company’s shareholding in the Kenyan and Ugandan units. The Kenyan unit’s shareholding rose from 81 percent to 94 percent, while the Ugandan unit’s shareholding increased from 69 percent to 80 percent.