Standard Chartered Bank to exit Zimbabwe

Judith Phiri, Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) has announced that the Standard Chartered Bank Group has made a decision to divest of its business interest in Zimbabwe, Standard Chartered Bank Zimbabwe.

The move comes after Standard Chartered Bank Group said it is leaving seven countries in Africa and the Middle East where it is sub-scaling as it seeks to improve profits by narrowing its focus to faster-growing markets in the region.

The bank will fully exit Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone and Zimbabwe, likely by trying to sell its business in those markets. It will also close its retail banking operations in Tanzania and Ivory Coast to focus solely on corporate banking.

In a statement on Thursday, RBZ Governor Dr John Mangudya said: “The RBZ (the Bank) wishes to advise the public that Standard Chartered Bank Zimbabwe Limited has formally advised that the Standard Chartered Bank Group has made a decision to divest of its business interest in Zimbabwe.”

He said Standard Chartered Bank Zimbabwe Limited has advised that the divestiture from some countries in the Middle East and Africa, including Zimbabwe, is in line with the Group’s new business model and strategic repositioning.

Dr Mangudya said while the divestiture will result in change of ownership and control of Standard Chartered Bank Zimbabwe Limited, the latter which is currently adequately capitalized, liquid and profitable will continue to operate normally under the purview of the Bank.