Standard Chartered Bank and Access Bank Plc (Access) announced on Friday to enter agreements for the sale of the bank’s shareholding in its subsidiaries in Angola, Cameroon, Gambia, and Sierra Leone, and its consumer, private and business banking business in Tanzania.
This progress is a follow up from April 2022 when the bank strategically decided to divest from a number of markets, namely Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Jordan, and to exit the CPBB business in Côte d’Ivoire and Tanzania.
In Tanzania, the bank shall exit CPBB”) also known as retail banking operations to focus solely on its Corporate, commercial and institutional banking (CCIB) business also commonly referred to as corporate and institutional banking.
According to the bank’s statement circulated to the press yesterday, the agreement with Access for the sale of the bank’s business in Sub-Saharan Africa is in line with Standard Chartered’s global strategy, aimed at achieving operational efficiencies, reducing complexity, and driving scale.
Access Bank will provide a full range of banking services and continuity for key stakeholders including employees and clients of Standard Chartered’s businesses across the five aforementioned countries.
The statement says that Access Bank and Standard Chartered will work closely together in the coming months to ensure a seamless transition, with the transaction expected to be completed over the next 12 months.
Commenting on the agreement, Herman Kasekende, CEO, Tanzania, Standard Chartered, said: “We have been present in Tanzania for over 106 years and we believe passionately in this country’s immediate and longer-term future. Under the agreement, Access Bank will only acquire the CPBB business in Tanzania. Pending regulatory approvals and execution of the sale, we would like to assure our clients that all our products, services and banking channels will operate seamlessly with our agreement with Access Bank.”
He said the bank believes that it has achieved a good outcome by finding the best home for its businesses with the best interests for its employees.
Following this announcement, he said, the bank will continue its operations in Tanzania with a focus on the CCIB business. The bank will keep clients informed throughout the process appropriately.
He asserted that Access Bank has the scale, know-how and product range to provide a seamless transition and continuous high standard of service to StanChart clients. The two banks will work closely to ensure smooth transition to the clients with minimal disruption.
“As we look into the future, we are excited about the continued growth and prosperity of Africa and remain committed to Tanzania. Our enhanced focus on supporting foreign direct investment;
Commercial entities and large-scale catalytic infrastructure development is aimed at leveraging our global footprint through the group to connect international companies to activities in this market,” he emphasized.
The bank’s focus is also aimed at facilitating the growth of local businesses and assisting with the development of enabling infrastructure and improving access to services for Tanzanians.
“We are committing resources to grow the franchise in Tanzania. As a systemically significant provider of financial services, we are committed to continue offering services to our stakeholders and communities and stand true to our brand promise to be Here for Good.” he added.
This transaction remains subject to the approval of the local regulators and the banking regulator in Nigeria.
Access Bank is a wholly owned subsidiary of Access Holdings Plc and a leading full-service commercial bank operating through a network of more than 600 branches and service outlets, spanning three continents, 18 markets, and 52 million customers.
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