July 18, 2024

Access Bank Completes Long-Awaited Acquisition of African Banking Corporation Tanzania

Access Bank Completes Long-Awaited Acquisition of African Banking Corporation Tanzania

Access Bank has successfully completed the long-awaited acquisition of African Banking Corporation of Tanzania (ABCT) Limited, marking a significant milestone in its ambitious expansion strategy across Africa. This acquisition, first announced in July 2023, aligns with Access Bank’s vision to establish a strong foundation in Tanzania, strategically positioning itself to facilitate intra-African trade within East Africa and beyond.

The plan moving forward involves merging ABCT with the consumer, private, and business banking operations of Standard Chartered Bank Tanzania. This unified entity will operate under the name Access Bank Tanzania.

With a focus on customer satisfaction, financial inclusion, and technological advancements, Access Bank Tanzania, under the leadership of CEO Julius Justin Ruwaichi, promises to drive positive change and growth throughout the nation. Access Bank Tanzania currently has eight branches spread across the country in regions of Dar es Salaam, Mwanza, Tabora, Kahama, Iringa and Mbeya.

Roosevelt Ogbonna, Managing Director of Access Bank, emphasized the strategic importance of this acquisition: “We are excited about the opportunities this acquisition presents for our operations in Tanzania and are eager to leverage our combined strengths to deliver exceptional financial solutions and experiences to our customers.”

John Imani, Managing Director of ABCT, echoed the sentiment, highlighting the benefits for all stakeholders: “The new entity is poised to enhance our service offerings, leveraging Access Bank’s extensive resources and expertise to deliver even greater value to our clients.” This merger promises positive advancements for customers, employees, and stakeholders alike.

The acquisition of ABCT marks Access Bank’s fourth successful deal with Atlas Mara, following previous acquisitions in Zambia, Mozambique, Botswana, and Tanzania. Access Bank has been particularly active in strengthening its foothold across East Africa. This includes a recent agreement to acquire an 80% stake in Uganda’s Finance Trust Bank.

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Additionally, in June 2023, Access Bank agreed to acquire a majority equity stake in Standard Chartered’s shareholding in its subsidiaries in Angola, Cameroon, The Gambia and Sierra Leone, as well as its consumer, private and business banking business in Tanzania. Diamond Bank was also acquired by Access Bank in December 2018.

In the official announcement, Access Bank, which is a Nigerian multinational commercial bank owned by Access Bank Group, highlighted that the acquisition of ABCT brings them closer to their vision and significantly bolsters their near-term strategy.

The bank aims to target local, regional, and international revenue opportunities in East Africa, particularly in trade and payment solutions. This strategic move aligns perfectly with Access Bank’s mission to drive financial inclusion and innovation across the African continent.