Tanzania: Akiba Bank, Malawi Lender Transact Sh17 Billion in Merger

Dar es Salaam — Akiba Commercial Bank (ACB) has received Sh17 billion strategic investments from the National Bank of Malawi (NBM) in a merger that was concluded last month.

Through the investment, ACB has strengthened its capital base to meet requirements of the Bank of Tanzania (BoT) for operations of commercial banks in the country.

Addressing a press conference yesterday, ACB's acting managing director Juliana Swai said the merger aimed at strengthening the bank's capital as required by the BoT.

"ACB has been looking on market demands as well as a strategic investor or shareholder in order to strengthen the bank and improve its services as well as starting more other services required in the country's market," she said.

She pledged major and positive changes in services delivery as well as systems of services delivery, saying customers will be serviced with highest integrity and professionalism based on experience from both institutions.

"We also understand the bilateral relations between the two countries in various areas including trade and creating an enabling environment for trade prosperity through easy access of financial services.

"The investment will create an enabling environment of doing business for countries in the Southern African Development Community (Sadc)."

Media outlets in Malawi reported that NBM - which is the country's largest lender by market capitalization and assets - had acquired a 51 percent stake in Tanzania's ACB in a deal worth $7.31 million.

A statement from NBM, which is listed on the Malawi Stock Exchange, said its investment in ACB was worth only two percent of its market capitalization which is valued at 304 billion Malawi Kwacha.

"The acquisition is in line with NBM's current strategic plan which has regional expansion as one of its key thrusts," reads part of its statement.

Established in 1997, ACB has strong roots in small and medium size businesses, and operates 18 branches across Tanzania, whose port city Dar es Salaam is a major source of imports bound for Malawi.

ACB that has been providing loans to Micro, Small and Medium entrepreneurs (MSMEs) has successfully reached 200,000 Tanzanians in Dar es Salaam, Arusha, Mwanza, Mbeya, Kilimanjaro, and Dodoma by providing them with entrepreneurial loans and savings deposits through the Junior, Youth, Adults, Business and Company accounts.

More From: Citizen

Don't Miss

AllAfrica publishes around 800 reports a day from more than 130 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.