Barclays combines Africa operations

Barclays is combining its operations in Africa to standardize its business across the continent.

The strategy, which is in line with the bank’s ‘One Africa’ Project, would lead to the merger of its subsidiary, Absa Group Limited and banking operations in five countries in Ghana, Botswana, Tanzania, Zambia and Kenya, as well as South Africa.

Meanwhile, reports indicate that Barclays’s operations in Egypt and Zimbabwe will be excluded. As a result of the Barclays’ ‘One Africa’ Strategy, the bank last year moved its Africa headquarters from Dubai to Johannesburg.

The combination, which would increase the stake of the British bank in Absa to 62.3 per cent from 55.5 per cent, is expected to take off this year. Kennedy G. Bungane, Chief Executive of Barclays Africa, speaking in Accra during a two-hour forum dubbed the Barclays Africa Economic Outlook, gave an overview of the bank’s One Africa Strategy.

The forum, which is the second edition to be organized by Barclays Ghana, was used to share insights at the global, African and country levels with bank’s key customers and stakeholders.

Mr. Bungane pointed out that “African is a frontier for growth and our aim is to build a bank that will be the bank to go to.” However, he stated that the strategy is subject to approval of the regulatory bodies in the various countries.

He said apart from integrating the operations of the bank, employees also stand to benefit as they would be offered the same package “for being part of the best global entity to enable us compete and be the best.”

Benjamin Debrah, Managing Director (MD) of Barclays Ghana, told journalists that an application for approval had been forwarded to the Bank of Ghana (BoG), adding “we are confident we will get it. Signs from our engagement indicate that we are going to get it.”

He said the bank, which has been in Ghana for close to 100 years, is poised to offer customers the best in the banking sector.

Barclays, based in London, purchased 54 percent of Johannesburg-based Absa in 2005 for $4.5billion and last year the board announced that it had agreed with its subsidiary, Absa Group Limited to combine majority of Barclays Africa operations for the consideration of around 12,954 million Absa ordinary shares, representing a value of £1.3 billion.