Central Bank Allows Standard Chartered to Sell Retail Business to Absa

Standard Chartered Bank Uganda has received the green light to sell its Wealth and Retail Banking (WRB) business to Absa Bank Uganda Limited, following regulatory clearance from the Bank of Uganda. Analysts call this an important milestone for Uganda’s banking sector, which enhances continued confidence in the strength, stability, and regulatory oversight of the country’s financial system.

It is also expected to reinforce Absa’s position as a well-capitalised financial institution with a strong governance framework and a long-term commitment to the Ugandan market.  Sanjay Rughani, CEO and Managing Director at Standard Chartered Uganda, says this approval is a testament to the strength and vital contribution of both banking institutions to the banking industry. “This decision reflects our continued commitment to align our operations with Standard Chartered’s global strategy, focusing on our core strengths in Corporate and Investment Banking. We are proud of the strong retail franchise we have built over the years in Uganda and are confident that Absa Bank is well-positioned to take this business forward, ensuring continuity, innovation, and reliable client experiences.”   

There were public voices over the transaction, with some saying that Standard Chartered was planning to exit the Ugandan market. However, the Bank says it remains “deeply committed to Uganda” and will continue to play a leading role in supporting the Country’s economic growth by facilitating trade, unlocking capital, and advising clients across key sectors of the economy. “The Bank of Uganda’s approval is an important milestone that reinforces confidence in Uganda’s banking system and in Absa’s long-term commitment to the market. David Wandera, Managing Director of Absa Bank Uganda, assures the country and the clientele that they have adequate experience, from the Barclays to Absa transition in 2019. 

“Absa brings proven capability in managing complex banking transitions under regulatory oversight, with a strong focus on customer continuity and operational stability,” he says, adding, “We remain committed to maintaining service continuity while delivering stable, responsible, and customer-focused banking solutions that contribute to Uganda’s economic development.” The transaction is expected to enable Absa Uganda to further strengthen its retail and wealth banking capabilities by leveraging its existing infrastructure, digital platforms, and experienced teams to continue delivering high-quality, reliable, and customer-focused banking services.

There is no immediate change for customers, and day-to-day banking operations will continue as usual. The two promise that clients will continue to access banking services through the same channels, and any future changes will be communicated clearly and in advance, in line with regulatory requirements. The transaction is expected to become effective once the remaining conditions set out in the transaction agreement have been fulfilled. Standard Chartered Uganda and Absa Bank Uganda will continue to engage with regulators, customers, and other stakeholders as the process progresses.

Absa Uganda has 39 branches, 85 ATMs, and 25 Cash Deposit Machines (CDMs) across the country, which shows its readiness to adequately serve this business segment. “Absa Uganda is committed to finding local solutions to uniquely local challenges, and everything we do is focused on bringing people’s possibilities to life. To this end, we offer our clients a range of retail, business, corporate, and investment solutions. The Bank is committed to being a force for good, which to us means working to improve lives and strengthen communities in which we operate.”   

Now, clients of Standard Chartered holding accounts in the Wealth and Retail Banking segment will have their accounts moved to Absa. This includes personal or retail banking, like savings/current accounts, loans, and cards, and wealth management offerings. All WRB clients are transferring as part of the portfolio acquisition. Both banks have repeatedly stated they will work together for a smooth handover. During the transition period (which is now advancing after Bank of Uganda approval), clients should experience business as usual: continued access to their accounts, funds safety, and protection by the Deposit Protection Fund.