Standard Bank Group Ltd is interested in buying shares it doesn\u2019t already own in its Angolan unit after an investor in the business was detained and his shares seized by authorities.<\/p>\n
\u201cOver the last two years we have increased our stake in our subsidiaries in Kenya and in Nigeria,\u201d Sola David-Borha, the chief executive officer of Johannesburg-based Standard Bank\u2019s African division, said in a video call. \u201cIf the opportunity arises in Angola as well, we will do so.\u201d<\/p>\n
A rule barring foreign companies from full ownership of businesses in Angola was in place when Africa\u2019s largest lender opened its unit in the southern nation in 2010, but has since been scrapped for some industries.<\/p>\n
Authorities seized the assets of Carlos Sao Vicente, Standard Bank\u2019s 49% partner in the Luanda-based division, in September amid on accusations of fraud. The action is linked to moves by President Joao Lourenco to crack down on alleged graft under his predecessor\u2019s rule.<\/p>\n
Sao Vicente, who has been suspended as a director on the board of Standard Bank\u2019s Angolan unit, remains in custody after prosecutors two weeks ago extended his detention period for an additional two months pending further investigations. His stake in Standard Bank was taken over by Angola\u2019s state-asset management institute, known as IGAPE.<\/p>\n
Angola is among the top six contributors to Standard Bank\u2019s earnings from operations on the continent outside of South Africa. A presence in 20 sub-Saharan African countries has shielded the lender from some of the pain faced in its home market, where a moribund economy and restrictions to contain the Covid-19 pandemic bankrupted businesses and pushed up unemployment.<\/p>\n
Standard Bank will continue to look for more business in sub-Saharan Africa, where the International Monetary Fund is forecasting economic growth of 3.2% this year, David-Borha said. This includes a bigger push into Ethiopia, where the government is opening up some sectors to private investors, and taking advantage of opportunities in Mozambique\u2019s gas sector.<\/p>\n
The lender has helped African sovereigns and corporates raise $2 billion in capital from the UK over the past two years and is confident it can bring even more governments and companies to market, she said.<\/p>\n
While the coronavirus has delayed plans to further open intra-African trade, a continent-wide agreement will boost momentum, David-Borha said. The African Continental Free Trade Area agreement, which now has 54 members, will also benefit as trade finance moves to digital platforms, she said.<\/p>\n