Arise B.V. acquires 34.9% of Rabobank stake in NMB Bank Tanzania
African investment company Arise has acquired a 34.9% shareholding previously owned by Rabobank in NMB Bank Plc listed on Dar es salaam Stock Exchange (DSE) in Tanzania.
On 28 December 2020, The Capital Market and Securities Authority (CMSA) in Tanzania approved the transfer of 174,500,000 NMB Bank Plc shares owned by Rabobank to Arise, an African investment company that partners with sustainable, locally owned financial services providers in Sub -Saharan Africa. The share transfer process was completed on 31 December 2020.
Arise Chief Executive Officer; Deepak Malik said that the conclusion of the share transfer is a significant milestone for Arise. “The organization’s core mandate is to partner with local sustainable financial institutions to strengthen and develop effective, inclusive financial systems in Africa to contribute to economic growth and poverty reduction. Tanzania is a key investment destination in Sub-Saharan Africa for Arise and we are excited about the collaborative partnership with NMB, which is set to further advance financial inclusion in Africa”, said Mr. Malik.
Speaking on the share transfer, NMB Chief Executive Officer, Ruth Zaipuna, said, “The successful completion of the share transfer is a testament of investors’ confidence on the Institution and the Country at large. ‘’The collaborative partnership between Arise and NMB is envisaged to deliver substantial operational, commercial, organizational and financial benefits with long-term market returns that go beyond stakeholders’ expectations’’, she added.
NMB is Tanzania’s largest bank by assets according to the third quarter 2020 financial results. Its total assets increased to a record TZS 7.0 Trillion in the third quarter last year up from TZS 6.1 Trillion from the third quarter in 2019. NMB is also the most profitable bank in Tanzania, having recorded an impressive TZS 145 Billion net profit in the quarter ended 30 September 2020 up from TZS 82 Billion registered in 2019.
Undoubtedly this long-term investment by Arise will support NMB’s future growth aspirations and spur economic growth and the prosperity of Tanzanian’s, through increased financial inclusion, and the growth of Retail, Small Medium Enterprises (SMEs) and Agriculture sectors. Arise will support the growth and development of NMB through providing amongst others access to international standards of best practice and expertise across an array of business areas.
“We are confident that this partnership will yield positive benefits for both NMB and Arise in the future”, concluded Mr Malik.