Dar es Salaam – Exim Bank Tanzania has successfully completed the acquisition of Canara Bank Tanzania Limited’s assets and liabilities, representing a pivotal moment in its growth strategy.
This acquisition marks Exim Bank’s third since 2016, as the bank announced yesterday. The transaction follows a binding offer made in 2024, which received all necessary regulatory approvals, leading to its finalization.
Established in 1997, Exim Bank has evolved into one of Tanzania’s leading financial institutions by leveraging strategic acquisitions for domestic and regional expansion. Its acquisition trajectory includes a bank in Uganda in 2016, UBL Bank Tanzania in 2019, FNB Bank Tanzania in 2022, and now Canara Bank Tanzania in 2024.
The bank also operates a representative office in Ethiopia, emphasizing its ambitions for regional growth. Exim Bank’s Chief Executive Officer expressed a warm welcome to former Canara Bank Tanzania clients, assuring them of a seamless integration process.
Mr. Matundu stated, "We are thrilled to welcome Canara Bank Tanzania’s customers into the Exim Bank family. This acquisition reinforces our commitment to providing innovative financial solutions and exceptional service, ensuring a smooth transition for all involved." He further added, “This strategic move redefines banking in Tanzania and the region, enabling us to innovate, grow, and provide impactful financial solutions to meet the evolving needs of our customers while supporting sustainable economic development.”
The consolidation of banks is essential for enhancing efficiency and strengthening the banking sector in Tanzania. Exim Bank’s strategy has facilitated the organized exit of smaller or less efficient banks, leading to the formation of stronger, competitive institutions with better financial standing and broader market reach.
This approach not only bolsters industry resilience but also reduces compliance and technology costs, fostering sustainable banking practices.
Mr. Sumit Shekhar, Exim Bank’s head of strategic initiatives, reaffirmed the bank’s dedication to driving economic growth and financial inclusion in Tanzania. “We are more than mere participants in the country’s economic progress; we are actively shaping it. Our efforts span supporting SMEs to leveraging technology for enhanced financial inclusion," he stated.
Despite Tanzania’s banking sector being smaller than those of South Africa and Nigeria, it is crowded with financial institutions. The current wave of consolidation, through acquisitions, aims to foster resilience, inclusivity, and a sustainable credit flow.
Furthermore, Mr. Shani Kinswaga, Exim Bank’s Chief Financial Officer, provided an overview of the bank’s robust financial position, essential for facilitating strategic expansions. He reported that as of December 31, 2024, Exim Bank’s total assets reached Sh3.1 trillion, with a net loan book of Sh1.8 trillion and a deposit base of Sh2.5 trillion.
