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Standard Chartered shuts operations in 5 African countries, reviews stands in 2. Here’s why

Published

3 years ago

April 16, 2022

Standard Chartered Bank said it has decided to end its operations in seven countries in the Middle East and Africa. According to the Group, the decision is “as set out in its full-year 2021 results presentation to accelerate its strategy, deliver efficiencies, reduce complexity and drive scale.”

The decision was made public in a statement africanewswatch.com retrieved on the company’s website.

“Today the Group announces a set of actions to redirect resources within its Africa and the Middle East (“AME”) region to those areas where it can have the greatest scale and growth potential, in order to better support its clients.” The statement reads.

The decision is however subject to regulatory approval as the Group now intends to exit onshore operations in seven markets in AME. “The seven markets where there will be a full exit of operations are Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone, and Zimbabwe.”

Standard Chartered also reviewed its position in two other African countries. “In Tanzania and Cote d’Ivoire, the Consumer, Private and Business Banking businesses will be exited and the focus will turn solely to CCIB.”

The exit decision is a course for worry, particularly for African countries, many of which largely depends on foreign investment to drive their economy. Exit or lack of foreign investment are developments that threaten fragile economies like Africa. Slamreportsafrica.com reported on Thursday that Ride-hailing company, Uber, has suspended its services in Tanzania as a result of regulations that are not business-friendly which has made its operation in the East African country.

Also recall that Nigeria’s official data source, for one of Africa’s biggest economies earlier this month, released data (Pdf), which indicated that 24 out of 36 states of the Nigerian Federation got no Foreign Direct Investment (FDI) in the year 2021.

As Standard Chartered Group CEO, Bill Winters, said, the group as with other profitably structured companies “focuses on the most significant opportunities for growth while also simplifying business”, African countries most beyond their leaders holidaying across the world in the guise of looking for foreign investors, rather position their economies for growth opportunities for potential investors.

Related Topics:Africa Economy Featured standard bank

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”