TANZANIA – The Export–Import Bank (EXIM) of Tanzania has officially opened its newest branch in Dar es Salaam’s Mkwepu Street in its plan to spread and expand nationwide.

According to Daily News, this follows the bank’s successful acquisition of UBTL Bank, subsidiary of Pakistan’s UBL Bank,

This makes Exim Bank the first private sector bank to embark in the consolidation of banking sector in the country.

Post-acquisition Exim Bank becomes one of the top5 banks in the country with an asset base of TSh1.7trl (US$737m)

“We are delighted by the diverse base of customers that will be joining Exim bank family and we assure the customers that we are thrilled to have you on board, and we commit to ensure that you continue to enjoy innovative solutions from us,’’ said Mr Jaffari Matundu, Exim Bank’s Chief Executive Officer.

He added: “Tanzania has more banks compared to other larger economies viz. South Africa and Nigeria.

“The banking industry has been witnessing consolidation which will gradually leave well-capitalized players that will be able to catalyze economic growth.

“The consolidation also improves resilience to capital shocks and lowers compliance and technology costs.’’

The new expansion will increase the presence of Exim Bank to total of 33 branches across the country. Exim Bank took over UBTL earlier this year.

“We are delighted that UBTL’s diverse customer base will be joining us. We believe that UBTL’s highly seasoned branch staff combined with our innovative banking style will enable us to offer market-leading banking products to UBTL’s customers,” said Exim Bank deputy chief executive Jaffari Matundu.

“We look forward to welcoming UBTL customers to our bank and extensive branch network. This acquisition will be a natural expansion and strengthening of our existing presence and market share in the country.”

UBTL chief executive Gasper Njuu said: “UBTL and its shareholders have always taken a positive view on the growth opportunities in Tanzania. A turnaround strategy of the business is underway, which includes expansion into digital banking and automation to serve the needs of our customers better.”

UBTL was set up in 2013 as a wholly owned subsidiary of United Bank Limited (UBL), the second largest bank in Pakistan, and has offered retail and wholesale banking services to a diverse range of customers.

According to an official notification issued by UBL to the Pakistan Stock Exchange (PSX) recently, the entity of UBTL and its banking licence will remain intact for the time being