Absa Bank Uganda is set to acquire the wealth and retail banking unit of rival, Standard Chartered Uganda. In a market update on Friday Absa Group said its Ugandan subsidiary has entered into a purchase agreement with Stanchart as part of deepening the groups presence in the continent.

The deal will see all Standard Chartered WRB clients and staff will transfer to Absa. The acquisition represents a strategic step in Absa’s journey as a pan-African lender as it seeks to broaden service offerings, and respond more effectively to the evolving needs of clients across the continent.

“In November last year, we set out how the Bank is doubling down on our affluent and cross-border strategy. The sale of our Wealth and Retail banking business in Uganda to Absa marks an important milestone as we continue to accelerate income growth and returns," explained Kariuki Ngari, Managing Director and CEO, Standard Chartered Kenya and Africa.

He added: "We look forward to working closely with Absa’s team over the coming months to ensure a smooth transition while safeguarding the interests of our valued clients and prioritising our employees.”

Absa Group Executive for Africa Regions Charles Russon said: “This transaction supports Absa's strategic Pan-African growth ambitions and further strengthens Absa’s position in Uganda’s financial services landscape. It will enable Absa Uganda to broaden its retail and wealth management offerings and deliver increased convenience and value to our customers.”

David Wandera, Managing Director of Absa Bank Uganda, said: “This acquisition is a significant milestone in our journey to become a market leader in providing innovative, customer-centric financial solutions. It represents an opportunity to welcome new customers and colleagues into the Absa family, while reaffirming our long-term commitment to Uganda’s economic development.”

Sanjay Rughani, Managing Director of Standard Chartered Bank Uganda, noted: “This agreement marks an important step in the execution of our global strategy to focus on the segments where we are most differentiated. We remain fully committed to Uganda, and our Corporate and Investment Banking clients will continue to receive the high-quality service they expect from Standard Chartered. We are confident that our WRB clients and colleagues will be in excellent hands with Absa.”

The transaction is subject to specific conditions being fulfilled, including regulatory approvals, as is customary for a transaction of this nature, and further updates will be provided once all relevant approvals have been secured.