On 30th July 2020, the Bank of Tanzania (BoT) licensed Mwanga Hakika Microfinance Bank (MHB) following the merger between Mwanga Community Bank (MCBL), Hakika Microfinance Bank (HK MFB), and EFC Microfinance Bank.
The merger between the three banks came into effect on the 12th of September 2019 and subsequently the BoT approved the formation of the microfinance bank–MHB–on the 7th January 2020.
On the 30th of July 2020, the BoT revoked the individual licenses of the bank and issued a license to the newly formed MHB.
The objective of the merger was to enhance compliance, efficiency, and performance of the merged banks. The new bank offers financial services to individuals, MSMEs, and corporate clients.
MCBL started operations in 2000 and in 2009 obtained a Regional Bank license allowing it to operate in the entire Kilimanjaro Region of Tanzania.
The bank is a public limited company whose shareholders are individuals from every village of the Mwanga District, people originating from Mwanga and other places living in Dar es salaam, Arusha, Dodoma, Tanga and Moshi, Institutions and Non-Government Organizations like TGT, Mwanga Pare Community Development Trust Fund, Mwanga District Council etc.
EFC Microfinance Bank was established in 2011 as a deposit-taking microfinance company and in 2016 obtained the license to operate as a microfinance bank, having both local and international shareholders.
HK MFB was established in 2016 to service both the low and middle income earners with collateral-free and low interest micro-credits and loans.
The Tanzanian banking sector has been consolidating in recent years. From over 50 banks a few years ago, there are now 40 banks operating in the country.
In a recent exclusive interview with TanzaniaInvest, Kevin Wingfield, CEO of Stanbic Bank Tanzania, commented: “I think consolidation in any industry is natural as there will always be winners and losers. I think given the current COVID – 19 crises this is going to be accentuated, as those organizations that act swiftly and adapt to ensure they remain relevant to their customers will grow and those that are slower or unable to adapt will disappear or be taken over.”