Bloomberg News

Absa’s Tanzanian Unit MD Mafuru Confirms His Resignation

December 27, 2012

National Bank of Commerce Ltd. Managing Director Lawrence Mafuru said he resigned to pursue other interests, a week after announcing the unit of South Africa’s Absa Group Ltd. (ASA) plans to raise capital.

“I am moving on to pursue other opportunities outside NBC,” Mafuru says in mobile-phone text message yesterday. He didn’t comment further.

Absa, which owns 55 percent of NBC, said last week shareholders are in talks to boost capital at the Tanzanian lender to help it grow amid an increase in bad debts and regulatory changes.

Mafuru said in an interview on Dec. 19 the lender is considering boosting the capital it’s required to hold against deposits by 4 percent by raising funds “internally” and a decision will be made next month.

Bad debts increased at four of Tanzania’s top six banks by assets in the three months through September, according to Serengeti Advisors Ltd., a Dar es Salaam-based research group. Impairments at NBC, the East African nation’s fourth-largest lender, grew to 15 percent of total loans in the third quarter, compared with 11 percent three months earlier, it said.

To contact the reporter on this story: David Malingha Doya in Dar es Salaam via Nairobi at dmalingha@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.


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