Faidika Tanzania buys into Advans Bank

Dar es Salaam. Letshego, a credit institution which operates as Faidika Tanzania, has acquired a 75 per cent stake in Advans Bank Tanzania, a move aimed at diversifying its customers as well as enhancing financial inclusion services to both lower and middle income sectors.

The firm has paid $7 million (about Sh15 billion) to acquire the shares.Letshego Holdings Limited group managing director Christopher Low said in the city yesterday that the acquisition means that the company will now be taking deposits, conduct payments and issue business loans and savings solutions to a number of clients.

It will build on the footprint of its customers in line with its strategy to diversify its customers and revenues mix.

The acquisition, he said, will allow Faidika and Advans Bank to contribute significantly to the financial inclusion agenda of the government by enabling cross selling of financial services. “Faidika has been focusing mainly on civil servants while Advans is a licensed commercial bank specializing in the provision of financial services to micro, small and medium sized enterprises in developing countries,” he said.

He said that Faidika and Advans will now be working in collaboration to diversify into other segments that will include civil servants as well as micro, small and medium sized enterprises (MSMEs).

He said that Faidika has served over 44,000 Tanzanians through its credit institution accessed through a network of 105 branch and satellite offices. “Scalability of Faidika and Advans integrated operations will enhance financial inclusion through significant cross selling synergies that will become available to low and middle income employees as well as the MSME sector,” he said.

The Faidika chief executive officer, Mbuso Dlamini, said the company has been approved by the Bank of Tanzania as an agent for Advans Bank which will provide the latter’s customers access to 105 points of access to transact.

“The synergies created between the two entities will enable Advans Bank to better serve its core customers MSMEs and low income populations, and most especially increase its services in the rural areas,” he said.