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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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IMF mission concludes 4th loan program assessment in Egypt

Published

3 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

5 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.