The Johannesburg-based Standard Bank has expressed interest in raising its stake in its Angola unit after an investor in the business was detained and his shares seized by authorities.
The Angolan authorities seized the assets of Carlos Sao Vicente, Standard Bank’s 49% partner in the Luanda unit of the bank on accusations of fraud.
According to the news report by MoneyWeb, this disclosure was made by Olusola David-Borha, the chief executive officer of Africa for Standard Bank Group Ltd in a video call recently.
According to David-Borha,
- “Over the last two years we have increased our stake in our subsidiaries in Kenya and in Nigeria, If the opportunity arises in Angola as well, we will do so.
- “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. 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’s gas sector.”
What you should know
- A rule barring foreign companies from full ownership of businesses in Angola was in force when Standard Bank opened its unit in Angola in 2020, but has since been scrapped for some industries.
- Authorities seized the assets of Carlos Sao Vicente, Standard Bank’s 49% partner in the Luanda-based division.
- On suspension of Sao Vicente as a director on the board of Standard Bank, his stake in Standard Bank was taken over by Angola’s state-asset management institute, known as IGAPE.
- Angola is among the top six contributors to Standard Bank’s earnings from operations on the continent outside of South Africa