Tanzania: New marriage boosts Faidika's status

Letshego Holdings, parent company of Faidika, has acquired 75 per cent of Advans Bank Tanzania to pave way for offering broad base loan solutions for low cadres.

The transaction was concluded by a subscription of new shares at the tune of 15.5bn/- about 7.0 million US dollars. 

The transaction, according to Letshego’s Group Managing Director, Mr Chris Low, will enable Advans Bank to comply with regulator’s new core capital ratio from 5.0bn/- to 15bn/-.

"The deal has the blessing of FCC (fair competition commission) as well," Mr Low, who travelled form Gaborone, Botswana, said. 

The MD of Botswana-based firm added: "The deal will also enable the bank to use Faidika's over 100 branches and satellite offices across the country."

The synergies created, between Letshego and Advans, would enable the bank to serve better its core clientele, micro, small and medium enterprises, as well as low income population thus increase impact backed by a wider geographical spread while expands range of services.

Advans Bank's Director Tanguy Gravot said network expansion would also further diversify of the bank’s products and services offered to clients. 

"The synergy will benefit both parties as a large number will be reached and benefit," Mr Gravot said.

Advans bank has five branches in Dar es Salaam, Mwanza, and Mbeya serving 23,000 depositors of whom 5,000 are borrowers since opening its doors to the public some four years ago.

"The entry of Letshego as a new shareholder will enable the bank to take its growth to next level," Mr Gravot said. Letshego is listed on the Botswana Stock Exchange (BSE), with presences in some 10 countries in East and Southern Africa.

Letshego is the largest indigenous company on the BSE by market capitalisation-over 700 million US dollars-and profitability in excess of 52 million US dollars before tax. The firm serves over 260,000 customers. 
Source: Daily News, reported from Dar es Salaam, Tanzania
Share on Google Plus

About Abduel Elinaza

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.