Saturday, January 23, 2021
  • About Us
  • ImagiNATION
  • Adverts
  • Rate Card
  • Contact Us
The Nation Online
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

NBM seals Tanzania bank acquisition deal

by Steve Chilundu
08/12/2020
in Business News
3 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

The Tanzania Fair Competition Commission (FCC) has cleared National Bank of Malawi (NBM) plc to acquire a 75 percent stake in Akiba Commercial Bank (ACB) of Tanzania, making it the first local bank to buy stake in a bank from the northern neighbour.

The move comes after NBM plc signed a share subscription agreement with ACB on January 31 2020.

RelatedHeadlines

Malawi trade balance to face continued pressure—firm

Bank charges Scaring consumers

Firm outlines 3 economic risks

NBM corporate affairs and marketing manager Akossa Hiwa confirmed in a written response yesterday that they have been cleared to acquire the shares with relevant processes being finalised before the official announcement.

national bank | The Nation Online

She said: “We have currently received all the necessary approvals for the acquisition of Akiba Commercial Bank and we are attending to actions that have to be made before the acquisition may be considered completed.

“Additionally, when this process is finalised, NBM plc will make a formal announcement to all its stakeholders and the public.”

Meanwhile, a financial market analyst believes the acquisition  of majority stake in ACB will enable the Malawi Stock Exchange (MSE)-listed bank to grow and improve its footprint across borders.

NBM will become the second MSE-listed bank to have a stake in regional banks after First Capital Bank which has stakes in banks in Botswana, Zimbabwe and Mozambique.

Reacting to the development, Centre for Financial Inclusion and Literacy Consultancy executive director Abel Mwenibanda in a written response yesterday said NBM plc has taken a move in the right direction.

He said this speaks volumes about the potential  growth of the country’s economy and attainment of financial inclusion agenda.

Said Mwenibanda: “This gesture will help to facilitate trade between Malawi and Tanzania and beyond. It will enhance foreign investors’ confidence on the local economy.

“The deal will also assist in strengthening our banking systems, considering that National Bank is one of top banks in the country. In the same vein, there will also be a positive move on the Malawi Stock Exchange which is good news to investors.”

He appealed to NBM plc to consider coming up with products that are need-based and affordable if Malawians are to benefit from its success.

It is located in Dar es Salaam, Tanzania and is part of the Banks and Credit Unions Industry.

ACB has over 207 employees across all of its locations and generates $13.67 million (about K10 billion) in sales.

In 2016, the bank posted an after-tax profit of $3.68 about (K2.7 billion) million.

Last year, the bank posted a net profit of Sh1.2 billion (K396 million) and was targeting to double the profits this year to Sh2.5 billion (K800 million).

ACB is a full-fledged Tanzanian commercial bank providing banking, financial and other related commercial banking services.

ACB was established in 1997 by 300 Tanzanian entrepreneurs and had total assets of Sh155 billion (K51 billion), according to the latest bank’s audited annual report for 2018.

Previous Post

RBM moves to boost digital payments

Next Post

Commission warns traders of uncertified herbal medicine

Related Posts

Business News

Malawi trade balance to face continued pressure—firm

January 23, 2021
Some Malawians are still using cash to run away from bank charges
Business News

Bank charges Scaring consumers

January 23, 2021
economy | The Nation Online
Business News

Firm outlines 3 economic risks

January 22, 2021
Next Post
herbal warning | The Nation Online

Commission warns traders of uncertified herbal medicine

Discussion about this post

Trending Stories

  • Not yet given retirement benefits: Mutharika

    Tonse faulted on former presidents’ benefits

    0 shares
    Share 0 Tweet 0
  • FAM ex-co approves women’s national league

    0 shares
    Share 0 Tweet 0
  • Covid-19 initiative raises K18.3m in 2 days

    0 shares
    Share 0 Tweet 0
  • India’s vaccine drive

    0 shares
    Share 0 Tweet 0
  • Legendary Patani Mwase remembered

    0 shares
    Share 0 Tweet 0

Opinions and Columns

Bottom Up

Thanks Team Onjezani Kenani; our turn now

January 23, 2021
My Thought

Cloud hangs on Mtambo’s head

January 23, 2021
Off the Shelf

Goodbye Trump, you were a joke

January 23, 2021
Back Bencher

Chakwera’s ‘politics’ rant was in bad taste

January 23, 2021
  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2021 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Opinion
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.