Access Bank has announced the acquisition of Standard Chartered Tanzania’s Consumer, Private, and Business Banking division.
The company made this announcement via its Tanzania branch Instagram handle on Monday, claiming the move “significantly expands its capacity to offer inclusive, digitally-driven financial services across Tanzania, East Africa, and beyond”.
Standard Chartered has been decoupling its banking presence across sub-Saharan Africa, having sold its shareholding in subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone.
The bank says these exits become necessary in order to fund incremental investment in its leading wealth management business.
Announcing the acquisition on Instagram, Access Bank says the development allows it to deepen financial inclusion and unlock economic potential for the benefit of all Tanzanians.
“This strategic move significantly expands our capacity to offer inclusive, digitally-driven financial services across Tanzania, East Africa, and beyond. It allows us to solidify drive innovation, deepen financial inclusion, and unlock economic potential for the benefit of all Tanzanians,” the statement reads.
On his part, Chief Executive for Standard Chartered Tanzania, Herman Kasekende, says the handover is a pivotal moment for the bank.
“This transition represents a pivotal moment for Standard Chartered as we refocus our efforts on our core strengths. Our priority throughout this process has been to ensure a seamless transition for our employees and clients, who are at the heart of everything we do,” Kasekende said.
He expressed confidence that under Access Bank Plc, SC’s retail clients and staff will continue to receive the high level of service and support they have been accustomed to.
Meanwhile, Access Bank’s announcement is happening just as the Central Bank of Nigeria (CBN) barred Nigerian banks under forbearance from acquiring assets outside Nigeria.
The CBN, in a circular, instructed banks operating under regulatory forbearance to suspend dividend payments, defer bonuses for executives, and halt investments in foreign subsidiaries or offshore ventures.
This temporary suspension, according to the CBN, is part of a broader strategy to reinforce capital buffers, improve balance sheet resilience, and ensure prudent capital retention within the banking sector.
The directive applies specifically to banks currently benefitting from forbearance in relation to credit exposures and Single Obligor Limit (SOL) breaches, conditions that suggest potential stress in the affected institutions.
However, Access Holdings Plc has pledged it will exit the CBN’s regulatory forbearance on credit facilities by June 30, 2025.
The bank says it has already surpassed the new capital requirement of N500 billion introduced by the apex bank, assuring shareholders that it expects to resolve any temporary regulatory leniency it currently enjoys on certain credit facilities before the end of the month.
Access Holdings’ swift response is likely aimed at calming market nerves as investors reassess the impact of CBN’s tightened rules.
Access Holdings’ swift response is likely aimed at calming market nerves as investors reassess the impact of CBN’s tightened rules.
While some analysts are looking to see if the CBN will react negatively to the development, Naijaonpoint understands that the deal to acquire Standard Chartered assets came well ahead of the CBN forbearance circular.
Meanwhile, Access Holdings Plc (ACCESSCORP) share price has increased by 0.5% in the past 24 hours, reaching N22.4.