Standard Chartered Bank is exploring a potential divestment of its assets and banking operations in Botswana, Uganda, and Zambia.
The decision comes as the bank is looking to free up capital in the midst of a broad internal shake up of its operations.
Also, the bank is restructuring its business to focus more on wealthy individuals and international companies that have potential for high profit margin.
In addition, this is part of Standard Chartered’s strategic shift from its global focused business empire to leveraging the strong economic growth in the Asian markets.
It said the potential exit from the African market will be the first in a number of divestments in line with the new target of increasing its wealth unit investment.
The bank had while announcing its third-quarter earnings in October said that it was looking at opportunities to sell some or all of a small number of businesses where the “strategic rationale is not sufficiently compelling”.
Standard Chartered has been reaping the benefits of high interest rates and the rapid economic growth in the Asian markets.
The decision to exit Africa is seen as a cost cutting measure which will see the bank save around 1.5 billion dollars over a three year period to manage cost of business operations and rising inflationary pressures
