Global financial services giant, Standard Chartered has announced that it will exit Zimbabwe and six other countries in Africa and the Middle East as it seeks to augment profits by narrowing its focus to faster-growing markets in the region, it has emerged.
The bank will exit Angola, Cameroon, Gambia, Sierra Leone and Zimbabwe in Africa with other exits in Jordan and Lebanon in the Middle East.
The bank will also close its retail banking operations in Tanzania and Ivory Coast and concentrate on corporate banking.
Standard Chartered is one of Zimbabwe’s oldest financial institutions employing around 390 employees after it cut down its distribution channels, adopting digital channel.
“We remain disciplined in our assessment of where we can deliver significantly improved shareholder returns,” said group Chief Executive Bill Winters.
The development will be a huge blow to Zimbabwe which has been seeking to attract global investors to spur its relatively stagnant economy.
The bank will focus on emerging markets such as Saudi Arabia where it has opened its first branch, and Egypt.
Zimbabwe’s economy is experiencing structural challenges that have complicated the operational environment such as currency depreciation and hyper-inflation.
Standard Chartered Bank Zimbabwe was early this involved in alleged misconduct involving senior management where its chief executive Mr Ralph Watungwa was suspended on allegations of abusing foreign currency from the Reserve Bank of Zimbabwe run auction system.
