Standard Bank planning to increase stake in Angolan subsidiary

Standard Bank Group says it plans to buy shares in its Angolan unit after an investor in the business was jailed, which made authorities seize his shares.

When Standard Bank opened its unit in Angola in 2010, the country prohibited foreign companies from fully owning their businesses, however, this has since been abolished in some industries.

Angola is among the top six contributors to Standard Bank’s earnings from its operations in Africa.

Bloomberg reports that Angolan authorities seized the assets belonging to Carlos Sao Vicente, Standard Bank’s 49 percent partner in the Luanda-based division, in September 2020 on allegations of fraud.

Sao Vicente, who has been suspended as a director on the board of Standard Bank’s Angolan unit, remains in custody after prosecutors extended his detention period for an additional two months pending further investigations.

His stake in the bank was taken over by Angola’s Institute of Assets Management and State Participation (IGAPE).

“Over the last two years we have increased our stake in our subsidiaries in Kenya and in Nigeria,” Sola David-Borha, chief executive officer of Standard Bank’s African division, told participants of a video call.

“If the opportunity arises in Angola as well, we will do so.”

She also said the bank will continue to look for more business in sub-Saharan Africa, where the International Monetary Fund (IMF) is forecasting economic growth of 3.2 percent in 2021.

She said Standard Bank has helped African sovereigns and corporates raise $2 billion in capital from the UK over the past two years and the bank is confident that it can bring even more governments and companies to the continent.

David-Borha added that while COVID-19 pandemic has delayed plans to further open the African Continental Free Trade Area (AfCFTA), the agreement will boost momentum and will also benefit as trade finance moves to digital platforms.