Absa Group, one of Africa’s largest diversified financial services providers, is closing in on a $2.9 billion transaction to combine its banking operations in Tanzania, a move that would strengthen the South African lender’s position in one of East Africa’s fastest-growing financial markets.

The proposed transaction would see National Bank of Commerce (NBC), which is 55% owned by Absa Group and 30% owned by the Government of Tanzania, acquire the assets of Absa Bank Tanzania, according to people familiar with the matter who requested anonymity because discussions remain private.

Merger creates one of Tanzania’s biggest banks

The combined institution would manage approximately $3 billion in assets, making it Tanzania’s third-largest lender behind CRDB Bank Plc and NMB Bank Plc. The transaction aligns with Absa’s strategy of expanding its presence in high-growth African banking markets through larger regional franchises.

The deal also simplifies Absa’s operations in Tanzania while increasing its scale in a market benefiting from rising trade, infrastructure investment and expanding financial inclusion.

During a visit to Tanzania this month, Chief Executive Officer Kenny Fihla described the country as “a market of immense potential,” adding that Absa’s role extends beyond banking to supporting long-term economic development through partnerships and investment.

East Africa remains a strategic growth market

The Tanzania transaction follows another major regional expansion. In Uganda, Absa recently secured regulatory approvals to acquire Standard Chartered Plc’s wealth and retail banking business, strengthening its footprint in the country.

Absa also increased its ownership in Absa Bank Kenya Plc to 85% from 68.5%, marking one of the most significant banking transactions in East Africa in recent years and reinforcing its commitment to the region.

Pan-African banking expansion

Absa Bank Tanzania operates as a wholly owned subsidiary of Absa Group, providing retail, business, corporate and investment banking services across Tanzania.

Headquartered in Johannesburg, Absa Group operates in 16 African countries, employs more than 41,000 people, and offers retail and business banking, corporate and investment banking, wealth management and insurance services.

Under Fihla’s leadership, the lender has accelerated investments across Africa while focusing on customer growth, digital banking and regional expansion.

Absa Group posted strong 2025 financial results, with headline earnings rising 12% to R24.8 billion ($1.5 billion), fueled by higher pre-provision profit and lower credit impairments. Revenue climbed 5% to R115.7 billion ($7 billion), underscoring the South African lender’s resilient performance despite a challenging economic backdrop.

The Tanzania merger would further cement Absa’s ambitions to build one of Africa’s most influential cross-border banking franchises while capitalizing on East Africa’s expanding financial sector.