StanChart enters sale agreement for its retail business in Tanzania with Access Bank

London. Standard Chartered Bank and Access Bank Plc have entered into agreements for the sale of its consumer, private and business banking in Tanzania plus shareholding in its subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone.

The sale of the Tanzanian business remains subject to the approval of the respective regulators in both Tanzania and Nigeria. The value of the transaction was not disclosed.

In April 2022, Standard Chartered strategically decided to divest from a number of markets, namely; Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Jordan, and to exit the CPBB (Consumer Private and Business Banking) business in Côte d’Ivoire and Tanzania.

The announcement was made at Standard Chartered’s Headquarters in London in the presence of senior representatives from both banks and was signed by, Sunil Kaushal, Regional CEO, Africa & Middle East, Standard Chartered and, Roosevelt Ogbonna, Group Managing Director, Access Bank Plc.

The banks in a statement said the agreement with Access in Sub-Saharan Africa is in line with its global strategy, aimed at achieving operational efficiencies, reducing complexity, and driving scale.

As part of the agreement, 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.

In a statement the bank said,  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, Sunil Kaushal, Regional CEO, Africa & Middle East, Standard Chartered, said that following on the announcement we made in April last year, the project is now substantially completed with the announcement for the sale of the 5 markets and the furtherance of a partnership with Access Bank.

“This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential, ultimately enabling us to better support our clients. We look forward to working closely with Access Bank’s team over the coming months to achieve a successful conclusion to this transaction while safeguarding the interests of our valued clients and prioritising our employees,” he said.

On his part, Roosevelt Ogbonna, the group managing director, Access Bank Plc, said they were pleased to sign the agreement and expressed their appreciation for being selected as the preferred partner to Standard Chartered through the transaction in which it is exiting four African markets and refocusing in one.

As a distinguished regional and International bank with a rich heritage spanning over 150 years, Standard Chartered Bank has built a solid presence in these markets for over 100 years.

“For Access Bank, this strategic transaction represents a key step in its journey to build a strong global franchise focused on serving as a gateway for payments, investment, and trade within Africa and between Africa and the rest of the world, anchored by a robust capital base; a relentless focus on execution; and best-in-class customer service & governance structures,” he said.

Mr Ogbonna then added: At Access Bank, we are committed to reshaping the global perception of Africa and African businesses, even as we continue to build toward our vision to be the World's Most Respected African Bank. Our 5-year growth plan will see us build a world-class class payments gateway leveraging the power of technology and a robust network of relationships across our operating countries.

The Bank announced its sale of its business in Zimbabwe earlier in June and in Jordan in March this year.