NBC Set to Absorb Absa Bank Tanzania in Proposed $3 Billion Merger

Absa Group Ltd. is nearing a deal to combine its banking operations in Tanzania, with National Bank of Commerce Ltd. (NBC) set to absorb Absa Bank Tanzania Ltd., according to Bloomberg.

The proposed consolidation would create a lender with approximately $3 billion in assets, positioning it as the third-largest bank in Tanzania behind CRDB Bank Plc and NMB Bank Plc, people familiar with the matter told Bloomberg.

NBC is currently 55% owned by Absa Group, while the Tanzanian government holds a 30% stake. Under the proposed plan, NBC would take over the assets of Absa Bank Tanzania, consolidating Absa’s operations under a single banking entity.

Absa said it does not comment on rumours or market speculation. The lender has been in discussions with the Tanzanian government, and the transaction could materialise in the coming months, although there is no certainty that a final agreement will be reached.

Absa’s East Africa Expansion Strategy

The Tanzania consolidation forms part of Absa’s broader strategy to expand its presence in East Africa through a combination of consolidation, acquisitions and regional banking initiatives.

The banking group has been increasing its focus on Kenya, Tanzania and Uganda as it seeks to grow its regional operations.

In Tanzania, the planned NBC and Absa Bank Tanzania combination is aimed at bringing together the group’s separate banking operations in the market. The merged entity would eliminate duplication between the two businesses while creating a larger balance sheet capable of competing with Tanzania’s leading banks.

In Kenya, Absa Group has moved to increase its ownership in Absa Bank Kenya Plc through a proposed buyout of minority shareholders. The group launched a KES 30.6 billion ($238 million) tender offer in June 2026 to raise its stake in Absa Bank Kenya from 68.5% to 85%.

The offer targets the acquisition of up to 895.9 million additional shares while allowing Absa Bank Kenya to remain listed on the Nairobi Securities Exchange.

Absa Bank Kenya reported a 23% return on equity in 2025, compared with Absa Group’s average of 14.9%.

In Uganda, Absa is expanding through the acquisition of Standard Chartered Uganda’s wealth and retail banking business. The Bank of Uganda granted regulatory approval for the transaction in June 2026, allowing Absa Bank Uganda to take over the business.

The deal involves the transfer of an estimated UGX 2 trillion in assets and expands Absa’s consumer and wealth management operations in the country. The acquisition follows the exit of some international banks from retail banking markets in Africa, allowing regional lenders to increase their market presence.