8 August 2011
South African financial services group First National Bank has launched in Tanzania with a fully operational branch in Dar es Salaam, and plans to open two more branches in that country shortly.
The group was granted a licence to operate in Tanzania in March this year.
“Having a physical presence here enables us to tap into one of the most attractive markets in East Africa with excellent economic growth and banking sector performance,” FNB Tanzania chief executive Richard Hudson said in a statement last week.
“The roll-out of branches, products and services will be on a phased approach and will be tailored to the needs of the citizens of Tanzania.”
FNB will initially focus on establishing its footprint in Dar es Salaam with the intention of expanding its representation to all regions of Tanzania. In addition to branches and ATMs, the bank’s product offering will also include online banking and mobile phone banking.
Products suited to the market
FNB Africa chief executive Danny Zandamela said the bank believed that Tanzania’s demographic profile offered the perfect market for their innovative products and services. “FNB’s low-cost and convenient products such as cellphone banking will directly address market conditions in Tanzania,” he said.
He added that while many banks already operate successfully in Tanzania, the market is large enough to accommodate another bank and that FNB’s products and services were well suited to the environment.
Hudson concluded that the bank was confident of success in Tanzania and remained committed to continually growing its business in East Africa.
Beyond its South African home market, FNB currently operates in Botswana, Lesotho, Mozambique, Namibia, Swaziland and Zambia.
According to the statement, FNB is considering expanding its footprint into countries like Angola, Ghana, Kenya, Nigeria and Uganda.
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