Does this mean if you own an account with one of Africa’s largest banks Barclays, then perhaps it is time to slowly withdraw your funds and transfer your savings to another registered commercial bank in Zambia? Or if you are an entrepreneur and your company bank account is with Barclays, then you should make effort to look up another local bank with accommodating rates to avoid being inconvenienced?
It is relevant to know answers to these questions because Barclays has finally decided to exit the African continent and is about to commence winding up procedures and protocols.
This decision to close down operations in Africa comes after a comprehensive review of business in Africa led by Jes Staley; to this effect the board of Barclays Banks officially decided last week that closing down business operation on the African continent is in the best interest of the bank.
It is alleged that the new chief executive of Barclays’ is scheduling Tuesday (1/03/2016) next week as the date to officially announce the board’s decision to exit African markets after almost a century of being active in Africa and focus on UK and US markets.
To ensure a smooth transition and exit from Africa, the board has delegated appropriate authority to a subcommittee to thoroughly examine the relevant options of how and when to sell Barclays Africa which is one of Barclays’ four main lines of business.
The sale of the Barclays Africa subsidiary that is listed in on the Johannesburg Stock Exchange depends on how regulators will react as well as prevailing market conditions at the time of sale. The equity stake is valued at approximately K50 trillion (3.5 billion pounds).
This exit could be linked to plummeting African currencies that are losing value and failing to match up against international currencies. This will definitely affect business in Zambia as Barclays has played a key role in shaping how the monetary transactions are made in Zambia between customers and businesses as well as business to business transactions.
Find out more of Manic’s reviews on how the financial sector in Zambia is performing as well as how other nations surrounding Zambia are reacting to the closure of banks by clicking the related articles below.