Tanzania: Rabobank sees success in Tanzanian privatization
Tanzania's largest bank is sold to Dutch-led consortium
| President Mkapa: retaining
a 30% stake in NMB
A Rabobank-led consortium has beaten two others in the race to buy a 49% stake in Tanzania's National Microfinance Bank (NMB).
The consortium is believed to be paying almost $30 million for the stake.
Consortiums led by Standard Bank and by Tanzania's Akiba Commercial Bank also bid for the stake. Investors putting in bids were required to have an experienced commercial bank leading the consortium.
As well as Rabobank, the winning group comprises domestic partners Exim Bank, National Investment Company of Tanzania and the Tanzania Chamber of Commerce, Industry and Agriculture.
The government is expected to retain a 30% stake in NMB, Tanzania's largest bank, which it might sell on the Dar es Salaam stock exchange at a later date. A further 21% stake will be sold to Tanzanian citizens and companies.
Under the privatization, Rabobank must provide management and technical assistance for the development of NMB.
NMB mainly provides infrastructure for payments, and offers savings products, although it has recently begun to branch out, offering credit products mainly in the form of micro-loans.