Zambia’s objective and analytical online publication; MANIC Zambia, recently published an informative article bordering on equity transfer and market segmentation concerning one of Africa’s largest banks, Barclays bank. The published article contains information that Barclays bank has decided to withdraw from Africa to focus on core UK and US markets, the article Say goodbye to Barclays bank as they prepare to exit Africa discussed the vulnerability of African stakeholders especially the registered retail and corporate clients.
To this effect, Barclays Bank Zambia Plc has categorically stated that even though the fate of Barclays Africa Group Limited (which is the holding company for Barclays Bank Zambia Plc) is unknown; the Zambian division will not be affected because Barclays Bank Zambia Plc operates as a franchise business unit. Below is the official statement from Barclays Bank Zambia Plc:
“Following social media blogs (MANIC Zambia) speculating about the future of Barclays Bank Zambia we wish to state the following;
While we do not usually comment on market speculation, it is factually incorrect that Barclays Bank Zambia Plc is shutting down operations in Zambia. We would like to add for further context that Barclays Africa Group Limited is the holding company for Barclays Bank Zambia Plc.
Barclays Africa Group Limited is a separate listed company on the Johannesburg Stock Exchange and is regulated by the Reserve Bank of South Africa. The speculations concerns shareholding of Barclays Africa Group Limited and will not impact the operations of Barclays Bank Zambia Plc. Customer deposits are safe and will not be impacted in any way.
The strategy for Barclays Africa Group in Zambia has not changed and operations will continue as normal and the Group continues to see the Barclays Bank Zambia Plc franchise as a sound and solid business unit that will operate as a going concern. Barclays Bank Zambia Plc has been in Zambia for 99 years.
We have a clear strategy in Zambia and we remain focused on executing that strategy to the benefit of our customers and other stakeholders. Barclays Bank Zambia Plc is a profitable business that is well capitalised, highly liquid and customers should not be worried about the safety of their deposits. We have continued to grow our Zambia business over the last 99 years offering our customers cutting edge financial products and innovative solutions.
We are in a strong financial position and we will continue to ensure that we are able to deliver services and value to all our stakeholders and are particularly proud to be named the 2015 Bank of the Year in Zambia by the prestigious Banker magazine due to our strong financial performance and the high standards we have set in service delivery to which we are committed to continue delivering in the many years to come.
We remain at your service and thank you for your continued support.
Head Marketing and Corporate Relations
Barclays Bank Zambia Plc”
As an official statement coming from Barclays Bank Zambia Plc, we are able to understand two fundamental facts:
1.) the Zambian division is operating as a franchise and the decisions made concerning the holding company Barclays Africa Group will not be binding on the Zambian division therefore there shall be no impact on how Barclays operates in Zambia.
2.) As clients, both retail and corporate; the bank has just confirmed that your deposits are in safe hands.