Absa Group Ltd. is nearing an agreement to consolidate its banking operations in Tanzania, creating a lender with about $3 billion in assets as the South African bank seeks to expand its footprint in East Africa’s fast-growing markets, Bloomberg reports.
Under the plan, National Bank of Commerce Ltd., 55% owned by Absa and 30% held by the Tanzanian government, would absorb the assets of Absa Bank Tanzania Ltd., according to people familiar with the matter who asked not to be identified because the discussions are private. The combined entity would rank as the country’s third-largest bank, behind CRDB Bank Ltd. and NMB Bank Plc.
The transaction, if completed, would mark the latest step in Absa’s strategy to build scale outside its South African home market through targeted consolidation and partnerships. Tanzania, with one of East Africa’s more dynamic economies, offers opportunities in retail, corporate and digital banking as financial inclusion expands.
East Africa’s banking sector has seen steady consolidation in recent years, with several competitors streamlining operations amid pressure for greater scale and capital strength. In Tanzania, Access Bank Tanzania absorbed African Banking Corporation in 2024, while Exim Bank took over Canara Bank’s operations the same year; NMB Bank also acquired the assets of failed Yetu Microfinance Bank in 2023, and Letshego merged its two local entities. Kenya has witnessed larger moves, including Access Bank’s 2025 acquisition of National Bank of Kenya from KCB Group and Nedbank’s proposed majority stake in NCBA Group in 2026
Absa declined to comment on the talks. The deal remains subject to a final agreement and regulatory approvals from Tanzanian authorities, and could take shape in the coming months.
The move comes as African banks grapple with the need for greater size to compete, invest in technology and navigate regulatory pushes for local control. By folding its dedicated Absa unit into the established NBC franchise, the group would operate under a single, larger platform with enhanced market presence.
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