Standard Chartered eyes full exit from Botswana in strategic Africa pullback

Standard Chartered Plc has launched a process to sell its entire stake in Standard Chartered Bank Botswana Limited, signaling a potential complete withdrawal from the Botswana market as the UK-based lender intensifies its retreat from select African operations.

In a statement released, the bank revealed that initial market soundings for its Wealth and Retail Banking (WRB) unit—first flagged for strategic review in November 2024—have evolved. Potential buyers emphasized the “significant value” in acquiring the full Botswana franchise, highlighting benefits from enhanced funding efficiency, greater operational leverage, and broader client coverage.

“The group has therefore decided to explore the potential sale of the full Standard Chartered Botswana franchise,” the statement read. The transaction is anticipated to span 12 to 15 months, contingent on regulatory clearances from the Bank of Botswana and other authorities.

The shift marks a broadening of Standard Chartered’s recalibration across Africa. Initially focused on offloading its WRB segment in Botswana alongside similar businesses in Uganda and Zambia, the lender has progressively scaled back or exited markets including Zimbabwe, Angola, Cameroon, Gambia, Sierra Leone, Zambia, and Tanzania in recent years. The strategy prioritizes higher-return segments, particularly in Asia, the Middle East, and wealth management, amid pressures from subdued profitability, elevated compliance costs, capital demands, and competition from fintechs and nimble local players.

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Standard Chartered is part of a wider trend among international banks divesting from Africa. Peers such as Société Générale, BNP Paribas, HSBC, Groupe BPCE, and Atlas Mara have similarly reduced footprints in smaller or lower-scale markets, reshaping the continent’s $17.7 billion banking sector and opening doors for regional and domestic institutions to consolidate through acquisitions.

Botswana’s banking environment, while stable and well-regulated, remains constrained by its modest size, making it challenging for global institutions to meet stringent return thresholds. Yet, the franchise’s attractiveness—bolstered by strong local performance—could draw interest from domestic heavyweights or regional expanders seeking to strengthen their positions in one of Southern Africa’s more resilient economies.

Mpho Masupe, Chief Executive and Head of Coverage at Standard Chartered Botswana, underscored the positive fundamentals driving the move. “The strength and attractiveness of the full Botswana franchise is a testament to the hard work of the entire Standard Chartered Botswana team,” Masupe said. “We remain committed to securing the best possible outcome for them, our clients, and our shareholders.”

He added that the business stands ready to “thrive under new ownership with the necessary local scale,” as Africa’s banking landscape increasingly favors homegrown and regional champions over global incumbents.

Standard Chartered Botswana, tracing its roots to 1897 as the country’s first commercial bank, operates a network serving both retail and corporate clients. The bank assured stakeholders of continued focus on smooth operations during the process, with minimal disruption expected for customers.