BOU approves acquisition of StanChart retail banking unit

KAMPALA - The Bank of Uganda (BOU) has approved the sale of Standard Chartered Bank (StanChart’s) wealth and retail banking business to Absa.

The approval from the central bank allows Absa to proceed with the acquisition of StanChart’s Wealth and Retail Banking (WRB) operations.

In a joint statement, officials said the transaction is still subject to the fulfilment of remaining conditions under the transaction agreement.

The deal forms part of StanChart’s strategy to focus on its core strengths in corporate and investment banking, while expanding Absa’s presence in Uganda’s retail and wealth management segments.

"This approval is timely and 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 the Standard Chartered Group’s global strategy, focusing on our core strengths in Corporate and Investment Banking,” Sanjay Rughani, chief executive at StanChart, said.  

David Wandera, managing director at Absa said the regulatory approval marked an important step in the transaction process and reflected confidence in Uganda’s banking sector.

Wandera said the bank would draw on experience gained during the transition from Barclays to Absa in 2019 to manage the integration while maintaining operational stability and customer service.

“We remain committed to maintaining service continuity while delivering stable, responsible, and customer-focused banking solutions that contribute to Uganda’s economic development,” he said.