Uganda clears Absa takeover of Standard Chartered's retail and wealth banking business

The Bank of Uganda has given Absa Bank Uganda the regulatory green light to acquire Standard Chartered Bank Uganda's Wealth and Retail Banking business, clearing one of the final major hurdles in a deal that is set to redraw Uganda's retail banking landscape.

The approval reinforces Absa's standing as a well-capitalized institution with a strong governance framework and a stated long-term commitment to the Ugandan market.

David Wandera, managing director of Absa Bank Uganda, said the central bank's sign-off was an important milestone that reinforces confidence in Uganda's banking system. He pointed to the lender's experience managing the Barclays-to-Absa transition in 2019 as evidence that Absa can handle complex banking handovers under regulatory oversight, with a focus on continuity for customers.

The deal, first announced in October 2025, will transfer all Standard Chartered retail and wealth clients and staff to Absa. There is no immediate change for customers, and day-to-day banking operations will continue as usual. Any future changes will be communicated clearly and in advance, in line with regulatory requirements.

Standard Chartered will retain its corporate and investment banking arm in Uganda, keeping a foothold in the country while shedding the higher-cost consumer segment.

Sanjay Rughani, CEO and managing director of Standard Chartered Uganda, said the approval was timely. He described it as a testament to the strength and vital contribution of both institutions to Uganda's banking industry, and said the decision reflected Standard Chartered's commitment to align with its global strategy of focusing on corporate and investment banking. Rughani said the bank was proud of the retail franchise it had built in Uganda over the years, and expressed confidence that Absa was well-positioned to take the business forward.

The backdrop to all this is a sweeping strategic shift by Standard Chartered's global leadership. Under CEO Bill Winters, the bank has been overhauling its business model, looking to exit wealth and retail banking in Botswana, Uganda and Zambia to concentrate on more profitable segments. The strategy had already seen Standard Chartered sell its Tanzanian retail business to Access Bank in June 2025, along with a complete exit from Angola, Cameroon and Zimbabwe.

Kariuki Ngari, CEO of Standard Chartered Kenya and Africa, had called the Uganda sale an important milestone in accelerating the group's income growth and returns. He said both banks would work closely over the coming months to ensure a smooth transition while safeguarding client interests and prioritizing staff.

On the Absa side, the acquisition is not just a defensive play. Sources close to the transaction say the deal is expected to bring approximately 900 billion Ugandan shillings (roughly $245 million) in customer deposits and another 300 billion Ugandan shillings in loans onto Absa's balance sheet. That kind of inflow could shift Absa's ranking in Uganda's competitive market of roughly 25 banks.

The transaction will enable Absa Bank Uganda to further strengthen its retail and wealth banking capabilities by leveraging its existing infrastructure, digital platforms and experienced teams.

Charles Russon, Absa Group executive for Africa Regions, had previously said the deal supports Absa's strategic pan-African growth ambitions and strengthens the lender's position in Uganda's financial services sector. He said the transaction would enable Absa Uganda to broaden its retail and wealth management offerings and deliver increased convenience and value to customers.

With the Bank of Uganda's approval granted, the two banks can now proceed with the transfer, subject to the fulfilment of remaining conditions in the transaction agreement. Absa Bank Uganda's managing director indicated earlier this year that the transaction is expected to close in 2026.