Standard Chartered Plc is selling its Wealth and Retail Banking (WRB) business in Uganda to South Africa’s Absa Group as part of the UK multinational’s strategy to streamline its operations across Africa and focus on more profitable segments.

 

The agreement, signed on Friday between Standard Chartered Bank Uganda and Absa Bank Uganda, will see the transfer of all WRB clients and staff to Absa. Both banks have committed to working closely over the coming months to ensure a smooth and seamless transition for all stakeholders.

The transaction, which is still subject to specific conditions—including regulatory approvals—represents a strategic step in Absa’s journey as a pan-African, customer-centric financial institution.“In November last year, we set out how the bank is doubling down on our affluent and cross-border strategy. The sale of our Wealth and Retail Banking business in Uganda to Absa marks an important milestone as we continue to accelerate income growth and returns,” said Kariuki Ngari, managing director and CEO of Standard Chartered Kenya and Africa, in a statement.“We look forward to working closely with Absa’s team over the coming months to ensure a smooth transition while safeguarding the interests of our valued clients and prioritising our employees.”Absa Group Executive for Africa Regions Charles Russon said the transaction supports Absa's strategic pan-African growth ambitions and further strengthens the lender’s position in Uganda’s financial services landscape.“It will enable Absa Uganda to broaden its retail and wealth management offerings and deliver increased convenience and value to our customers,” Mr Russon said.

Absa says the deal will enable it to deepen its presence in key markets, broaden service offerings, and respond more effectively to the evolving needs of clients across the continent.

It also marks a significant milestone for Absa Bank Uganda in its journey to become a market leader in providing innovative, customer-centric financial solutions.“It represents an opportunity to welcome new customers and colleagues into the Absa family, while reaffirming our long-term commitment to Uganda’s economic development,” said David Wandera, Absa Bank Uganda managing director.

African countries exitStanChart, which is listed on the London Stock Exchange (LSE), announced in 2022 plans to exit five African countries—Angola, Cameroon, Gambia, Sierra Leone, and Zimbabwe—and to withdraw from the Consumer, Private, and Business Banking (CPBB) segments in Tanzania and Côte d’Ivoire, citing the complexity and high cost-to-income ratio of operating in these markets.

“This agreement marks an important step in the execution of our global strategy to focus on the segments where we are most differentiated. We remain fully committed to Uganda, and our Corporate and Investment Banking clients will continue to receive the high-quality service they expect from Standard Chartered,” said Sanjay Rughani, managing director of Standard Chartered Bank Uganda.“We are confident that our WRB clients and colleagues will be in excellent hands with Absa.”Britain’s Standard Chartered Plc, which has operated in Africa for around 150 years, is progressively reducing its footprint.

The bank says it is streamlining its global operations to concentrate resources on its most profitable businesses. These exits are part of a global strategy to enhance focus on wealth management and cross-border transactional services, it added. The lender has also ceased operations in Jordan and Lebanon.“In our Wealth & Retail Banking (WRB) business, we are solidifying our position as a leading wealth manager in Asia, Africa, and the Middle East with a differentiated, fast-growing, and high-returning international affluent franchise,” Standard Chartered Plc stated in its latest annual report (2024).“This will be enabled by investing $1.5 billion over five years in our wealth and digital platforms, client centres, people, brand, and marketing to accelerate income growth and returns. This investment will be funded by reshaping our mass retail business to focus on developing a strong pipeline of future affluent and international clients.”The bank expects its footprint markets across Asia, Africa, and the Middle East to outpace global growth, with Asia projected to expand by 4.8 percent in 2025, Africa by 4.3 percent, and the Middle East (including Pakistan) by 3.6 percent.

Standard Chartered’s move follows that of its rival Barclays Plc, which began selling most of its stake in African operations in 2016 to reduce the risk and capital burden associated with majority ownership.

Barclays Plc, whose operations in Africa spanned more than 100 years, completed its exit from the continent in December 2017 by reducing its shareholding in South Africa’s Barclays Africa Group from 62.3 percent to a non-controlling stake of 14.9 percent.

In 2016, the lender announced plans to exit the African market by selling off its entire 62.3 percent shareholding in Barclays Africa Group—the holding company of its African subsidiaries—or reducing it to a non-controlling interest over a two- to three-year period.

Following Barclays Plc’s exit, Barclays Africa Group rebranded its African operations to Absa. The group, now Absa Group Ltd, is listed on the Johannesburg Stock Exchange (JSE) and operates in 10 African countries, including Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania, Uganda, and Zambia.

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