Standard Chartered has initiated plans to sell its Botswana subsidiary, a move that has already drawn early interest from major regional lenders seeking to strengthen their footprint across Southern Africa.
Sources familiar with the development disclosed that first-round bids are expected by mid-2026, according to a report by Bloomberg. Potential bidders are said to include Nedbank Group, Absa Group, Standard Bank Group and First National Bank, a subsidiary of FirstRand.
The proposed transaction is expected to cover corporate and investment banking operations alongside retail and wealth units in Botswana, although insiders cautioned that discussions remain preliminary and there is no certainty a final deal will be reached. All parties approached for comment declined to speak, citing the confidential nature of the process.
Industry analysts note that regional lenders may view the potential acquisition as a strategic opportunity, especially as South African banks continue expanding beyond their domestic market to capture cross-border corporate flows and strengthen continental presence. If concluded, the sale would further reinforce the growing dominance of African banks in driving the next phase of banking sector growth across the continent.
The divestment is reportedly being handled internally by the bank’s mergers and acquisitions team, with a tentative completion target before the end of the year.
Strategic Retrenchment
The planned disposal signals a broader recalibration by the London-headquartered lender as it narrows focus to larger, higher-return markets. In recent years, the bank has exited five African countries and partially sold operations in Zambia and Uganda, with most of those transactions concluded between 2024 and 2025.
Its revised strategy prioritises scale markets such as South Africa, Nigeria and Kenya, where stronger returns and deeper capital markets offer more attractive growth prospects.
In November, the bank indicated it was reviewing strategic options for its Botswana Wealth and Retail Banking business. Since then, discussions with potential buyers have broadened to include the entire local franchise, raising the likelihood of a full withdrawal from the country.
At the same time, the group has intensified focus on wealth management, with its African wealth portfolio reportedly expanding to about $4 billion over the past three years, driven largely by growth in Nigeria and Kenya.
Global Trend
The move reflects a wider pattern of international lenders scaling back operations across Africa amid tightening regulations, rising compliance costs and intensifying competition from fintech firms and increasingly sophisticated domestic banks. Institutions such as Société Générale, BNP Paribas, HSBC, Groupe BPCE and Atlas Mara have all trimmed their African footprints in recent years.
These developments are reshaping Africa’s banking industry, estimated at roughly $17.7 billion, while simultaneously creating acquisition openings for regional institutions seeking scale and market depth.
For Botswana, the potential exit underscores the delicate balance between stability and size. Though widely regarded as well-regulated and resilient, the country’s relatively small market has made it less appealing to global banks operating under stricter profitability thresholds.
