After 139 years, Standard Chartered Bank began the process of selling its Botswana franchise last year. A sizeable number of bidders from across Africa have already expressed interest.
The bank first opened for business in Botswana 139 years ago, becoming the country’s first international commercial bank. Over the decades, it has undeniably contributed to economic growth and diversification—offering tailored financial solutions to the government, state-owned entities, cross-border investors, banks, global subsidiaries, and individuals. The sale is expected to take up to 15 months to allow for a thorough and careful assessment of bidders.
Standard Chartered Bank Botswana Limited recently released its audited abridged consolidated results for the year ended December 31st, 2025. They showed resilient growth and strategic execution despite a challenging global economy. The bank delivered strong financial performance, reinforcing its commitment to sustainable shareholder value and to Botswana’s development.
Yet this performance came amid a perfect storm of difficulties.
For starters, the new government has been in power for just over a year and is still learning to govern under stress. Mpho Masupe, the bank’s chief executive, says this should not be underestimated: it has a profound influence on how things run in the country.
Then there are the macroeconomic headwinds. Diamonds had long driven almost everything in Botswana. On top of that, the war in the Middle East has disrupted trade, sent fuel prices soaring, and spiked the cost of living.
“These are what we have to deal with—to try to forecast and prepare our balance sheet for,” Masupe notes.
And then there is the retail-book sale itself. “I don’t think it’s a factor we should take lightly,” he says. “It needs a lot of consideration. All those factors together bake a perfect storm.”
Stanchart’s philosophy has always been clear: protect the balance sheet. “We are not going to chase profit at the risk of the balance sheet,” Masupe explains. “Most importantly, we want to say that as you protect the balance sheet, you also preserve returns.”
The bank’s returns have done exactly that. With a return on equity (ROE) of 26 percent, Masupe says they are comfortable. That performance also tells bidders there is real value in this retail book—and in the franchise as a whole.
Stanchart has also cut costs. Its cost-to-income ratio now stands at 59 percent, down from 89 percent in 2021.
Strengthening the balance sheet
When the diamond industry hit serious trouble, Masupe and his team temporarily stopped extending credit to employees in that sector. Nor was it just diamonds: the crisis began to affect the whole country. The bank also reduced the total amount of retail loans to limit exposure and risk. This was not without precedent. When warning signs appeared around BCL, Stanchart was the first to halt lending to BCL’s employees. It has done the same with other firms.
Stanchart’s loan book is now one of the cleanest in the country, with non-performing loans (NPLs) at just 0.6 percent. The rest of the market averages around 3 percent.
With returns and the balance sheet protected, Masupe says growth was not as strong as he would have liked, but the reduction was not severe. On the retail side, the bank shrank its balance sheet by 5.1 percent—a level he is comfortable with.
Keeping the loan book clean matters because it is up for sale. “Bidders were attracted to us by our clean loan book,” he reveals, adding that it is also a large one.
Shifting to the affluent
Stanchart deliberately chose not to grow its retail segment as much as it might have. Instead, it set out to grow the wealth segment aggressively. And it succeeded: wealth business expanded from about 71 million pula to 544 million pula, adding 400 new clients over the same period.
Focusing on wealth does not diminish the value of the existing retail book. “There is a lot of value in this book,” Masupe says. “And that’s what we are selling to the bidders we are currently talking to.”
The bank now has around 3,200 wealth customers. Its wealth offering includes different types of products. “We give you an opportunity to have an account in Jersey, or Dubai, or any market you want,” Masupe explains. “We enable you to do international banking.” The bank offers mutual funds, as well as savings in international houses such as Blackrock and Investec. Customers have a choice of five international banks. “We can take your money out of this current currency and place it in a different one. We are also helping people buy government bonds, for those who want longevity and stability.”
Why sell the retail book?
In November 2022, Standard Chartered Group assessed its franchises worldwide, asking whether the capital deployed in each was doing what it wanted. It then began rationalising seven markets: Cameroon, Tanzania, Zimbabwe, Gambia, Sierra Leone, Sri Lanka and India. The goal was to deploy capital where returns would be maximised.
The group was founded 170 years ago as a trade bank. Shareholders believed that this remained its strength. Stanchart also decided to focus on affluent and wealth segments, acknowledging it was not great at mass retail banking. It then announced it would exit retail banking in Botswana, Uganda and Zambia, leaving that business to those with the appetite and capability for it.
Of the 54 markets where Stanchart currently operates, funding usually comes from retail and funds corporate. In Botswana, the opposite is true: funding comes from corporate and funds retail. That is unusual.
According to Masupe, the sale has nothing to do with the new government or the bank’s financial performance. It is a pure coincidence.
The sale is guided by clear principles. Stanchart is known for following proper process every time. “We are going to be fair, ensuring continuity and long-term sustainability,” Masupe says. “The last thing we want is to tarnish the brand after 139 years because we did not do things properly. We will follow all the necessary rules in each country.” He adds that they will do right by clients and customers.
The principles, in essence, are these: pick a bidder that offers the longest possible continuity for employees; pick one whose product offerings are closest to what Stanchart had, to protect employee welfare and customer service; and pick one with governance standards close to those Stanchart set for itself.
“They will never be exactly the same,” Masupe admits. “We are an international bank with a lot of muscle. We won’t expect them to offer correspondent banking to everyone.”
He says many bidders have shown interest, and he is pleased that they are credible.
Transitioning to the new owner
After the sale, customers will receive new account numbers under the new owner’s name. The acquiring bank will send those numbers, allow customers to test them, and ensure that balances and other information are correct.
This could unsettle some customers. Masupe offers reassurance: Stanchart has followed a rigorous process in choosing this particular bidder. “We are comfortable that they can offer customers similar products, if not better. Be comforted that we have done the right due diligence.”
In other markets, he says, most customers have tested the new bank and been very happy. This is the 11th or 12th divestment Stanchart has done, and he says they have never heard negative feedback.
To ensure the new owner has integrity, Stanchart tests governance processes thoroughly. “We test them so rigorously that it’s unlikely you might miss something. In the world, nothing is 100 percent certain. But we test so rigorously that we become confident.”
Stanchart had its own social-development policies in Botswana. Masupe will seek continuity. “Remember, our employees are going with the bank. We are not just selling systems; we are selling people. The culture is ingrained in who we are.”
“Here for Good”, as a concept, remains a Standard Chartered brand position. “I don’t see us losing that as we transition,” Masupe says. “But every company has its own philosophy, and its own CSR position.”
