The Bank of Uganda has granted regulatory approval for Standard Chartered Bank Uganda to sell its Wealth and Retail Banking (WRB) business to Absa Bank Uganda Limited, ending months of discussions over a transaction that could realign the country’s financial industry. For Absa, the deal is the latest move in a deliberate pan-African march. The financial institution, which is listed on Johannesburg Stock Exchange, has been deepening its presence in Uganda since it separated from Barclays in 2020. “This acquisition is a significant milestone in our journey to become a market leader in providing innovative, customer-centric financial solutions,” David Wandera, the managing director, Absa Bank Uganda. The transaction transfers Standard Chartered’s entire retail client base and wealth management portfolio to Absa, along with all staff attached to those operations. Absa brings what it describes as proven muscle in managing large-scale banking transitions. Combined with its existing 39 branches, 85 ATMs and 25 Cash Deposit Machines, the enlarged Absa Uganda is poised to offer the kind of scale and product breadth that can rival any competitor in the market. “Drawing on our experience from the Barclays to Absa transition in 2019, Absa brings proven capability in managing complex banking transitions under regulatory oversight,” said Wandera, the managing director, Absa Bank Uganda Standard Chartered’s calculated exit. For Standard Chartered, this is not a retreat from Uganda. The bank has been executing a global strategy to concentrate on Corporate and Investment Banking and its affluent cross-border client segment, the areas where it commands the greatest differentiation. Retail banking in smaller markets such as Uganda, it has concluded, is better left to institutions built for it. Standard Chartered has already transferred its retail banking business in Tanzania to Access Bank, and has divested subsidiaries across Angola, Cameroon, The Gambia and Sierra Leone. “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,” Sanjay Rughani, CEO & Managing Director, Standard Chartered Uganda. Standard Chartered’s Corporate and Investment Banking unit, focused on trade finance, capital markets, and advisory services for large enterprises, remains active and, in management’s view, strengthened by the removal of the retail overhead. For Uganda’s financial industry, experts see the approval as a signal of health. The Bank of Uganda’s green light affirms the stability of the country’s financial system and its capacity to absorb significant structural transactions without systemic risk. Standard Chartered customers retain access to the same accounts, the same channels, and the same services. Any migration of platforms or products will be communicated in advance, in line with regulatory requirements. The priority, both institutions insist, is continuity. Bank of Uganda’s approval of the transaction means Uganda’s retail banking sector – still characterised by relatively low formal financial inclusion – now has a better-resourced Absa that can compete more aggressively on digital services, wealth management, and mass-market products.The post BoU approves Stanchart, Absa transaction appeared first on The Observer.