Standard Chartered Bank has reached an agreement to sell its wealth and retail banking operations in Uganda to South Africa’s Absa Group for an undisclosed amount. The move is part of the British lender’s broader strategy to streamline operations and focus on more profitable segments across Africa.
The sale, announced jointly by both banks on Friday, will see Absa Bank Uganda take over Standard Chartered’s retail and wealth management portfolios in the country. Standard Chartered, however, will retain its corporate and investment banking arm in Uganda, continuing to serve large multinational and institutional clients.
Kariuki Ngari, CEO of Standard Chartered Kenya and Africa, described the deal as a major step in the bank’s transformation plan.
“The sale to Absa marks an important milestone as we continue to accelerate income growth and returns,” Ngari said.
The move follows Standard Chartered’s earlier announcement that it intended to exit its retail and wealth businesses in Uganda, Botswana, and Zambia. The bank is concentrating its efforts on affluent clients and corporate banking, which have proven to deliver higher returns.
Standard Chartered reported better-than-expected profits in July 2024 after scaling back less-profitable operations and focusing on international corporate clients and wealthy individuals.
For Absa, this acquisition supports its broader goal of strengthening its presence across Africa. The Johannesburg-based lender, which separated from Barclays in 2020, has been working to expand its retail footprint under new CEO Kenny Fihla.
Charles Russon, Absa Group Executive for Africa Regions, emphasized that the deal aligns with Absa’s long-term strategy.
“This transaction supports Absa’s strategic Pan-African growth ambitions,” Russon stated.
Once completed, the transaction is expected to enhance Absa’s retail banking presence in Uganda and provide customers with access to a wider range of digital and financial products. The sale underscores the continued reshaping of Africa’s banking landscape as regional players strengthen their positions amid evolving market dynamics.
