Standard Chartered Bank has agreed to sell its Zimbabwean business to FBC Holdings (FBC), the two parties said on Friday, as the London Stock Exchange-listed lender presses ahead with plans to exit seven markets in Africa and the Middle East.
“The agreement with FBC for the sale of Standard Chartered’s business in Zimbabwe is in line with the bank’s global strategy, aimed at achieving operational efficiencies, reducing complexity, and driving scale,” said Sunil Kaushal, Regional CEO, Africa & the Middle East.
“This strategic decision allows us to redirect resources within Africa & the Middle East region to areas with significant growth potential, ultimately enabling us to better support our clients.”
The bank entered into an agreement with FBC, subject to the Reserve Bank of Zimbabwe’s approval, which will see Standard Chartered’s entire operations in the Southern African nation being migrated to FBC including the custodial services business that is wholly owned by the London-headquartered bank.
FBC will also acquire the economic interest in Africa Enterprise Network Trust whose main asset is a 20.7% shareholding in Mashonaland Holdings as part of the deal.
The two banks agreed to work closely in the coming months to provide a seamless transition for clients and staff. FBC will continue to employ all of Standard Chartered Zimbabwe’s employees.
Dr John Mushayavanhu, Group CEO of FBC said Standard Chartered has been present in Zimbabwe for more than 130 years while emphasising that Standard Chartered’s clients can expect the continued provision of seamless trade finance and cross-border payments by FBC.
Standard Chartered strategically decided to divest from several markets in April 2022 including Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Jordan as well as exiting the consumer private and business banking business in Côte d’Ivoire and Tanzania.
The bank agreed to sell its Jordanian business to Arab Jordan Investment Bank in March 2023.
