MERGER OF NIC BANK TANZANIA AND COMMERCIAL BANK OF AFRICA TANZANIA TO FORM NCBA BANK TANZANIA LIMITED FROM 8 JULY, 2020

The merger has received approval from key regulators 

NIC Bank Tanzania Limited (NIC) and Commercial Bank of Africa (Tanzania) Limited (CBA) has received all approvals to merge and start operations from Wednesday, 8 July 2020 as NCBA Bank Tanzania Limited.

The merger will be made through the acquisition of the majority of the assets and all of the liabilities from CBA by NIC.

The implementation of the merger shall be through the transfer of assets and liabilities, which have been approved by the Bank of Tanzania and the Fair Competition Commission. Once the merger is completed the new entity, NCBA Bank Tanzania Limited, will assume all liabilities, obligations and rights of the assets transferred from CBA. NCBA Bank Tanzania Limited will also assume all existing CBA customers and creditors.

Both CBA and NIC are in the process of concluding other regulatory conditions.

The Bank of Tanzania approved the merger through a letter dated on 14 February 2020, by the Deputy Governor of Bank of Tanzania, Dr Bernard Y. Kibesse.

Once completed NCBA Bank Tanzania Limited will move to be a Tier 2 Bank.

NCBA Bank Tanzania Limited will be part of the NCBA Group PLC, which was formed on Tuesday, 1 October 2019 following approval by the Central Bank of Kenya and the Kenya National Treasury approved the merger of NIC Group PLC (NIC) and Commercial Bank of Africa Limited (CBA).

“The name NCBA Bank symbolises the coming together of two great banks, NIC and CBA. This is the beginning of a new journey, bringing the best of both banks to build a bigger, stronger institution to support Tanzania’s economy,” Commercial Bank of Africa (Tanzania) Limited, Chief Executive Officer, Gift Shoko, said.

“As part of the merger journey, we will spend the next month finalising the process of harmonising our systems so that our customers can enjoy seamless services across our channels in Tanzania. Our roll-out plans will also include the unveiling of the new NCBA Group identity,” NIC Bank (Tanzania) Limited, Managing Director, Margaret Karume, said.

As part of the regional integration of the NCBA Group regional the businesses merger in Rwanda was completed earlier in the year and is expected to be completed in Uganda by the end of this quarter.