Bank of Uganda approves Standard Chartered retail business sale to Absa

The Bank of Uganda has approved the sale of Standard Chartered Bank Uganda’s Wealth and Retail Banking (WRB) business to Absa Bank Uganda, clearing a major regulatory hurdle in one of the country’s most significant banking sector transactions in recent years.

The approval paves the way for the transfer of Standard Chartered’s retail and wealth management portfolio to Absa, while reinforcing confidence in Uganda’s banking sector and regulatory framework. Industry observers say the decision demonstrates the strength, stability, and effectiveness of oversight within the country’s financial system.

The transaction is expected to strengthen Absa Bank Uganda’s position in the market by expanding its retail and wealth banking footprint and increasing its customer base. The bank is expected to leverage its existing branch network, digital platforms, and operational infrastructure to absorb and serve the incoming customers.

Sanjay Rughani, Chief Executive Officer and Managing Director of Standard Chartered Bank Uganda, described the approval as a significant milestone for both institutions and the wider banking industry.

He said the move aligns with Standard Chartered’s global strategy of focusing on its core Corporate and Investment Banking business while ensuring that its retail customers continue to receive quality services under a capable institution.

Rughani emphasized that Standard Chartered remains committed to Uganda despite public speculation that the transaction signaled an exit from the market. He said the bank will continue supporting the country’s economic development through trade facilitation, capital mobilization, and advisory services across key sectors of the economy.

“Standard Chartered remains deeply committed to Uganda and will continue to play a leading role in supporting the country’s growth agenda,” he said.

For Absa Bank Uganda, the acquisition represents an opportunity to deepen its presence in the retail banking space while building on its experience managing major institutional transitions.

Managing Director David Wandera said the bank successfully navigated the transition from Barclays to Absa in 2019 and has the expertise required to ensure a smooth integration of the new business.

According to Wandera, Absa remains focused on maintaining service continuity, operational stability, and customer confidence throughout the transition process.

The bank currently operates 39 branches, 85 automated teller machines (ATMs), and 25 cash deposit machines across Uganda, a network that is expected to support the integration of Standard Chartered’s retail and wealth banking customers.

The transaction affects customers within Standard Chartered’s Wealth and Retail Banking segment, including holders of personal savings and current accounts, loan products, debit and credit cards, and wealth management portfolios. These customers will eventually transition to Absa as part of the acquisition.

Both banks have assured customers that there will be no immediate changes to banking services. Customers will continue accessing their accounts through existing channels, and all deposits and funds will remain protected under the country’s regulatory framework, including the Deposit Protection Fund.

The institutions have also pledged to communicate any future changes well in advance and in accordance with regulatory requirements.

The transaction will become effective once all remaining conditions outlined in the sale agreement have been fulfilled. Until then, Standard Chartered and Absa say they will continue working closely with regulators, customers, and other stakeholders to ensure a seamless handover process.

Beyond the immediate transfer of customers, the deal is expected to reshape Uganda’s retail banking landscape by strengthening Absa’s market position while allowing Standard Chartered to concentrate on its corporate and investment banking operations. Analysts say the transaction reflects broader shifts within the banking industry, where institutions are increasingly refining their business models to focus on areas of strategic advantage while maintaining customer confidence and regulatory compliance.