Tanzania’s central bank has taken the unusual step of clarifying that a potential banking mega-deal, widely reported as imminent, has actually sat dormant for more than two years. The news exposes a critical gap between market speculation and regulatory reality.
The Bank of Tanzania (BoT) confirmed it granted a no-objection approval long ago for Absa Group to combine its two local lenders: Absa Bank Tanzania and National Bank of Commerce (NBC). Bloomberg recently reported the consolidation was close to completion, projecting a combined entity with nearly $3 billion in assets. That would leapfrog the new institution into third place nationally, trailing only CRDB Bank and NMB Bank.
BoT Governor Emmanuel Tutuba moved quickly to correct the record. The South African banking group received the regulator’s initial clearance more than two years ago, he explained, yet no formal merger application has followed. “We gave them a no-objection approval, and they have been continuing with the shareholders’ process,” Tutuba stated. Only after shareholders finalize their internal negotiations can the group submit the official paperwork to merge.
The ownership structure adds complexity to those negotiations. Absa holds a controlling 55 percent stake in NBC, while Tanzania’s government owns 30 percent through the Treasury Registrar and the International Finance Corporation retains 15 percent. Absa Bank Tanzania, by contrast, operates as a wholly owned subsidiary. Shareholders must now decide the merged entity’s architecture: whether one bank absorbs the other or an entirely new brand emerges.
Tutuba stressed the timeline rests entirely with the shareholders. “We do not know when they will be ready because they must first complete the necessary compliance requirements,” he said. “The process could take weeks, months or longer.” The Treasury Registrar’s office declined to comment, saying only that shareholders would speak “at the appropriate time.”
The merger would accelerate a decade-long restructuring of Tanzania’s banking industry. Regulators have consistently pushed weaker institutions toward consolidation, creating a wave of deals. Tanzania Commercial Bank emerged from multiple state-led mergers. Private sector moves include Exim Bank absorbing First National Bank Tanzania’s operations in 2022 and Access Bank Tanzania swallowing African Banking Corporation late last year.
When shareholders finally submit their application, BoT will assess regulatory and compliance benchmarks before issuing any license. The deal’s fate now hinges on private negotiations that have already spanned two years and counting.
