Barclays Africa Group Limited, which owns the 10 Barclays Banks in Africa, says the sell-down of London-based Barclays PLC’s shareholding in the African group will unlock a number of opportunities.
The sell-down marks the evolution and the next phase of the Group as a standalone Pan-African financial group committed to the transformation of the continent
Speaking to a group of journalists at its headquarters in Johannesburg last week, Maria Ramos, Barclays Africa Group CEO said: “Our shareholding structure may change but our values and ambitions have not. We will continue to deepen and grow our position as one of the leading financial service providers on the continent”
She said the Group, which currently employs 42,000 people, is here to stay and contribute immensely towards the socio-economic development of the continent.
Independence from the Barclays PLc is expected to create a number of opportunities such as increasing African ownership of the business, greater freedom in its strategic decisions and also provide it with the opportunity to modernise and harmonise system across the various markets.
Barclays PLC has agreed to contribute £765million primarily to fund the investments required for the Group to complete the separation process.
Part of the funds will be invested in modern infrastructure to enhance the capacity of banks under the Barclays Africa Group.
So far, Barclays Plc and the Barclays Africa Group Limited have worked closely with regulators to ensure that the divestment and separations proceed in an orderly manner since Barclays PLC announced on March 1, 2016 that it will sell its majority shareholding in Barclays Africa Group; after the 2008 global financial crisis prompted new regulations that made it less profitable for international banks to own banks abroad.
The Group Deputy CEO Peter Matlare said the Group is well positioned to extend its position as a leading, socially engaged and independent Pan-Africa financial services provider on the continent.
“We are looking forward to growing the revenue and earnings contributions made by our markets outside of South Africa to the Group, he said.
The 11 banks that have housed the Barclays Africa have largely been led by highly-skilled and experienced local staff with a deep knowledge and understanding of their markets since the formation of the Group in 2013. The PLc sell down does not affect the shareholding of Barclays Banks in Africa.