Access Bank, a pan-African bank present in 16 markets, will credit Fairfax Financial Holdings, sellers of African Banking Corporation Holdings Limited (ABC) in Tanzania, the sum of ₦23.32 billion ($13 million) at an agreed-upon date in three years. This deal indicates Access Bank’s successful acquisition of ABC Tanzania, which is part of the lender’s strategy to expand its footprint in East Africa.
“The consideration has been discounted at a rate of 8.86% which is a 3-year Government Eurobond at the time of this reporting,” statements from Access Bank’s nine-month financial statement [PDF] read.
In June 2024, the commercial bank, which is Nigeria’s biggest bank by assets, announced the acquisition of ABC Tanzania to deepen its East African network.
To enhance its market position in Tanzania, Access Bank merged ABC Tanzania with Standard Chartered’s consumer, private, and business banking operations. This strategic move created a competitive and robust banking entity.
The combined entity, Access Bank Tanzania, has already shown promising results, reporting a profit of ₦136 million ($79, 515) in the nine months ended September 2024, the financials show.
Additionally, the bank posted an impressive operating income of ₦13 billion ($7.96 million) and steady asset growth of ₦171 billion ($100 million) in the same period.
Access Bank now has a presence in four East African countries: Rwanda, Mozambique, Kenya, and Tanzania. While Nigeria remains the bank’s largest market, its operations in Rwanda and Tanzania have shown significant growth and promise.
