Access Bank, a major bank operating across Africa, has recently made a significant investment in Tanzania. The bank is set to pay Fairfax Financial Holdings, the previous owners of African Banking Corporation Holdings Limited (often referred to as ABC), a total of ₦23.32 billion, which is equivalent to about $13 million. This payment will take place in three years. This move marks Access Bank’s successful purchase of ABC Tanzania and is part of the bank’s larger plan to strengthen its presence in East Africa.
According to Access Bank’s financial reports, this payment amount has been adjusted to account for an 8.86% interest rate. This rate is based on a specific type of government bond that was available at the time of the report and reflects how future payments are valued in today’s money.
In June 2024, Access Bank, which is the largest bank in Nigeria by assets, announced its acquisition of ABC Tanzania to expand its operations further into East Africa. To bolster its position in Tanzania’s banking sector, Access Bank decided to merge ABC Tanzania with its existing business operations, which included services for individual consumers, private clients, and businesses that were provided by Standard Chartered, another bank. This strategic merger has resulted in a stronger and more competitive banking entity now known as Access Bank Tanzania.
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The results from this new bank have been encouraging. In the nine months that ended in September 2024, Access Bank Tanzania reported a profit of ₦136 million, which translates to around $79,515. The bank also recorded impressive operating income of ₦13 billion (about $7.96 million) and saw its assets grow to ₦171 billion (around $100 million) during the same period.
With this acquisition and the successful merger, Access Bank now operates in four East African countries: Rwanda, Mozambique, Kenya, and Tanzania. Although Nigeria remains the bank’s largest and most important market, its activities in Rwanda and Tanzania are showing strong growth and present good prospects for the future.
