Summary:
- Access Bank from Nigeria has successfully acquired BancABCT in Tanzania, marking a strategic move to expand its presence in East Africa’s banking sector. This acquisition strengthens Access Bank’s foothold in the region and aligns with its broader growth strategy across Africa.
Nigeria’s Access Bank Plc has completed its acquisition of the African Banking Corporation Tanzania (BancABCT), marking a significant move to strengthen its presence in East Africa’s banking sector. Listed on the Nigerian Stock Exchange (NSE), Access Bank has taken a majority equity stake in BancABCT, a subsidiary of Atlas Mara Ltd, a London-listed firm with diverse banking interests across Africa. The acquisition was initially announced on July 14, 2023.
Roosevelt Ogbonna, CEO of Access Bank, stated, “This strategic acquisition is a crucial step towards enhancing intra-African trade in the East African region and beyond. It demonstrates our commitment to building a strong banking network in East Africa, fostering innovation and positive change. We look forward to leveraging our combined strengths to provide exceptional financial solutions to our customers in Tanzania.”
Following the deal’s completion, ABCT will merge with the consumer, private, and business banking segments of Standard Chartered Bank Tanzania, forming Access Bank Tanzania.
John Imani, Managing Director of ABCT, commented, “Our partnership with Access Bank underscores their confidence in our operations and the Tanzanian market, offering new opportunities for our customers, employees, and stakeholders.”
In August 2023, Access Bank and Standard Chartered Bank agreed to acquire the British bank’s majority shares in subsidiaries across Angola, Cameroon, Gambia, Sierra Leone, and its Tanzanian operations. These transactions are pending approval from local and Nigerian regulators.
This deal with Standard Chartered is part of Access Bank’s broader strategy to develop a robust global franchise that facilitates payments, investment, and trade within and beyond Africa.
Earlier this year, Access Bank acquired an 80.88 percent stake in Uganda’s Finance Trust Bank and entered into a binding agreement with KCB Group Plc to acquire National Bank of Kenya Ltd (NBK).
In 2020, Access Bank acquired Kenya’s Transnational Bank and increased its stake in its Rwandan subsidiary to 91.22 percent. These acquisitions have solidified Access Bank’s foothold in the East African market, with subsidiaries across the region and additional offices in China, Lebanon, and India.
Access Bank now operates 14 subsidiaries in West Africa, East Africa, Southern Africa, and the UK, along with branches in Rwanda, the Democratic Republic of Congo (DRC), and Kenya. Last year, it issued a $300 million Tier 1 capital to support future growth and stability.
Nigerian banks, including UBA, are increasingly investing in the East African market, where Kenyan banks like Equity, KCB, and NCBA dominate. UBA recently increased its stakes in its Kenyan and Ugandan subsidiaries, raising its ownership to 94 percent in Kenya and 80 percent in Uganda, enhancing its presence in a market of over 300 million people.
