Exim Bank announces finalises acquisition of Canara bank
Exim Bank CEO Jaffari Matundu (centre) addresses the media to announce the official acquisition of Canara Bank Tanzania, which is now part of Exim Bank Tanzania. This acquisition marks the bank’s third in six years as part of its ongoing efforts to enhance the banking sector both locally and regionally. Joining him at the event, held in Dar es Salaam yesterday, were Chief Finance Officer Shani Kinswaga (left) and Head of Strategic Initiatives Sumit Shekhar. PHOTO | CORESPONDENT
What you need to know:
- The deal follows a binding offer signed in 2024 and the subsequent regulatory approvals, culminating in the transaction’s completion.
Dar es Salaam. Exim Bank Tanzania has successfully finalised the acquisition of Canara Bank Tanzania Limited’s assets and liabilities, marking a significant milestone in its expansion strategy.
The acquisition is Exim Bank’s third in six years, the bank said in a statement yesterday.
The deal follows a binding offer signed in 2024 and the subsequent regulatory approvals, culminating in the transaction’s completion.
Exim Bank, established in 1997, has steadily grown into one of Tanzania’s top five banks, leverage strategic acquisitions to expand both domestically and regionally. Its acquisition journey began in 2016 with a bank in Uganda, followed by 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, underlining its regional ambitions. Commenting on the development, Exim Bank’s chief executive officer, Mr Jaffari Matundu, welcomed former Canara Bank Tanzania customers, assuring them of a seamless transition.
“We are delighted to integrate Canara Bank Tanzania’s customers into the Exim Bank family. This acquisition underscores our dedication to delivering innovative financial solutions and exceptional service, ensuring a smooth transition for all stakeholders,” said Mr Matundu.
“This is a strategic step towards redefining banking in Tanzania and the region. Together, we will continue to innovate, grow, and provide impactful financial solutions that meet the evolving needs of our customers while supporting sustainable economic development,” he added.
Mergers and acquisitions play a crucial role in enhancing efficiency and strengthening Tanzania’s banking industry.
Exim Bank’s expansion strategy has facilitated the organised exit of smaller or less efficient banks, enabling the formation of stronger, more competitive institutions with improved balance sheets and expanded market reach.
This approach enhances industry resilience, reduces compliance and technology costs, and fosters sustainable banking practices.
Exim Bank’s head of strategic initiatives, Mr Sumit Shekhar, emphasised the bank’s commitment to economic growth and financial inclusion.
“We are not just participants in Tanzania’s economic progress; we are actively driving it. From supporting SMEs to leverage technology for financial inclusion, we are committed to making a tangible difference,” said Mr Shekhar.
Tanzania’s banking sector, despite the country’s relatively smaller economy compared to South Africa and Nigeria, hosts a large number of financial institutions.
However, consolidation efforts such as acquisitions aim to foster resilience, inclusivity, and sustainable credit flow.
Exim Bank’s chief finance officer, Mr Shani Kinswaga, highlighted the bank’s financial standing, which has enabled such strategic expansions.
According to him, as of December 31, 2024, the bank’s total assets stood at Sh3.1 trillion, with net loan book standing at Sh1.8 trillion. He said the bank’s deposit base was at Sh2.5 trillion.
