StanChart not exiting entire operations, re-affirms commitment to Tanzania
The Group is currently present 59 markets and serves clients in a further 83.
Three days after it was announced that Standard Chartered Bank had reached an agreement with Access Bank Plc for the sale of its retail business in Tanzania, the bank has re-affirmed its commitment to drive the socio-economic development of Tanzania.
In a statement, the bank said it was not closing its entire unit in Tanzania but instead concentrating on other focus areas.
Commenting on the agreement, Standard Chartered Bank Tanzania’s CEO Herman Kasekende said their presence in Tanzania for over 106 years shows that they believe in the country’s immediate and longer-term future.
“Under the agreement, Access Bank will only acquire the Consumer, Private & Business Banking (“CPBB”) business in Tanzania. Pending regulatory approvals and execution of the sale, we would like to assure our clients that all our products, service, and banking channels will operate seamlessly.
He added: With our agreement with Access Bank, we strongly believe that we will achieve a good outcome by finding the best home for our businesses - with the best interests for our employees. Following this announcement, Standard Chartered will continue its operations in Tanzania with a focus on the Corporate, Commercial and Institutional Banking (CCIB) business”
According to Mr Kasekende , Standard Chartered Bank will keep its clients informed throughout the process appropriately.
He said that Access Bank has the scale, know-how and product range to provide a seamless transition and continuous high standard of service to our clients. Standard Chartered and Access will work closely to ensure smooth transition to our 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 largescale catalytic infrastructure development is aimed at leveraging our global footprint through the group to connect international companies to activities in this market.
“This focus is also aimed at facilitating the growth of local businesses and assisting with the development of enabling infrastructure 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 gere for Good.” Mr Kasekende added.
On Friday, July 14, Standard Chartered Bank entered into sale agreement of its Consumer, Private & Business Banking (“CPBB”) business in Tanzania with Access Bank Plc. 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.
Standard Chartered Bank and Access Bank Plc (Access) entered into agreements for the sale of Standard Chartered’s shareholding in its subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone, and its Consumer, Private & Business Banking business in Tanzania.
This progress is a follow up from April 2022 when 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.
In Tanzania, Standard Chartered shall exit Consumer, Private & Business Banking (“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 & Institutional Banking.
The announcement was made on Friday, 14th July 2023 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 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.
