Absa eyes Tanzania expansion deal

JOHANNESBURG - Absa is close to consolidating its operations in Tanzania.

The banking group is looking to grow its presence in some of the continent's fastest-growing markets.

The proposed transaction would see the National Bank of Commerce, majority-owned by Absa, absorb Absa Bank Tanzania.

This will create a lender with around $3 billion in assets and forms part of Absa's strategy to increase its exposure in East Africa.

The bank has also launched a bid to raise its stake in its Kenyan business and expand its operations in Uganda.

With Tanzania's economy expected to grow close to 6% this year, the country is increasingly becoming an attractive destination for regional banking expansion.

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