Standard Chartered Plc is exploring the sale of its entire stake in Standard Chartered Bank Botswana Limited, raising the prospect of a full exit from the Botswana market as the London-headquartered lender accelerates a broader retreat from parts of Africa.
In a statement on Tuesday, Standard Chartered said interested parties had highlighted “significant value” in the combined scale of the full Botswana franchise, citing opportunities around more efficient funding, operational leverage and expanded client coverage.
“The group has therefore decided to explore the potential sale of the full Standard Chartered Botswana franchise,” the statement said. The process is expected to take 12 to 15 months to complete and will be subject to regulatory and other approvals.
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In November 2024, the banking group noted that it would explore strategic options for its Botswana Wealth and Retail Banking (WRB) business as part of efforts to sharpen its focus on markets and segments that deliver stronger growth and returns. Following subsequent engagement with potential bidders, the scope of the process has now widened.
A full exit would mark another milestone in Standard Chartered’s strategic recalibration across Africa. Over the past few years, the bank has exited or scaled back operations in Zimbabwe, Angola, Cameroon, Gambia, Sierra Leone, Zambia, and Tanzania, as it concentrates resources on higher-return markets and businesses, particularly in Asia, the Middle East and wealth management.
Standard Chartered is not alone. Several global lenders — including Société Générale, BNP Paribas, HSBC, Groupe BPCE, and Atlas Mara — have steadily reduced their African footprints. Pressured by weaker profitability, rising compliance and capital requirements, and intensifying competition from fintechs and agile local banks, international lenders are reassessing the economics of operating in smaller or less scalable African markets.
These exits are reshaping Africa’s banking landscape, estimated to be worth about $17.7 billion, and creating openings for local and regional banks to deepen their presence through acquisitions and consolidation.
For Botswana, the potential sale underscores both the challenges and opportunities facing the sector. While the market is relatively stable and well regulated, its small size limits scale for global banks with increasingly strict return thresholds.
At the same time, strong domestic players and regional lenders may see value in expanding their footprint in one of Southern Africa’s more resilient economies.
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Mpho Masupe, chief executive and head of coverage at Standard Chartered Botswana, said the decision reflects confidence in the underlying strength of the franchise. “The strength and attractiveness of the full Botswana franchise is a testament to the hard work of the entire Standard Chartered Botswana team, and we remain committed to securing the best possible outcome for them, our clients and our shareholders.”
Masupe added that the business is well-positioned to thrive under new ownership with the necessary local scale, as Africa’s banking industry continues to tilt away from global lenders toward homegrown and regional champions.