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Govt yet to decide on status of 30 pct stake in NBC

7th March 2012
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Finance minister Mustafa Mkulo

The Government is yet to decide on the disposal of 30 percent of its stakes in NBC Tanzania Limited on the Dar es Salaam Stock Exchange (DSE).

Speaking to this paper in an interview on Monday Finance minister Mustafa Mkulo said the government has no plans as of now to float its stake on the bourse.

“We have not even discussed the issue pertaining to NBC shares this year, we will release more information later on,” he said.

At present Absa, a leading South African bank, holds majority shares in the once leading state bank in Tanzania, with 55 per cent stakes.

The government of Tanzania maintains 30 per cent and International Finance Corporation, the World Bank’s finance arm, has 15 per cent shares.

The listing by NBC would make it the fifth bank to trade shares at the DSE. Other banks in the bourse are NMB, CRDB, Dar es Salaam Community bank and the cross-listed KCB.

The Absa group CEO, Maria Ramos, was quoted during the World Economic Forum for Africa (wefa) in Dar es Salaam last year as saying that the IPO would dilute the Tanzania government’s stake.

NBC is currently the third largest bank in Tanzania, out of a total of 34 registered financial entities.

It was formed on April 2000 when NBC (1997) Limited was privatised and sold to Absa Group.

It was established from the restructuring of the then National Bank Commerce in 1997 into three entities, namely NBC Holdings Corporation, National Micro-Finance Bank (NMB) and NBC (1997).

SOURCE: THE GUARDIAN
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