Barclays Bank should exit Africa with dignity

Barclays Bank

By Kelvin Esasia

The report that Barclays Bank is exiting Africa including Zambia is shocking.

Obvious Barclays Bank Zambia should be shivering with what will happen to the bank at the end of this year.

There are a lot of  mixed feelings  among the Barclays customers especially those who are familiar with what happen to them in early 2000s when Barclays announced that it would no longer cater for retail Banking instead wanted to focus on corporate banking and went on rampage pruning  and retiring a number of employees.

The bank also went on rampage selling off its property in Zambia. The bank also went on rampage closing customer accounts.

It is true that history repeat itself, Zambians are fully aware of what happened with Meridien BIAO Bank.

There are many Zambians that have died out of depression because of what happen to Meridien BIAO. After rumors went around about the mismanagement of the Bank. The bank officials refuted the claims and suggested that the bank was in a strong position. Instead, the once high powered bank was to face up to the end of the dream.

One by one, central bank authorities in Zambia, Kenya, Swaziland, Tanzania, Gabon, and Burundi announced the closure or took over the management of their local Meridien BIAO as a liquidity crisis engulfed the group.

Finally the bank collapsed and the depositors were left stranded. The reports about Barclays Bank exiting Africa started last year.

The reports had flooded the online media. Andrew Zaraki Nguvu( http://www.manic.co.zm/barclays-leaving-africa) advised Barclays customer as follows: “ Does this mean if you own an account with one of Africa’s largest banks Barclays, then perhaps it is time to slowly withdraw your funds and transfer your savings to another registered commercial bank in Zambia? Or if you are an entrepreneur and your company bank account is with Barclays, then you should make effort to look up another local bank with accommodating rates to avoid being inconvenienced? It is relevant to know answers to these questions because Barclays has finally decided to exit the African continent and is about to commence winding up procedures and protocols.

This decision to close down operations in Africa comes after a comprehensive review of business in Africa led by Jes Staley; to this effect the board of Barclays Banks officially decided last week that closing down business operation on the African continent is in the best interest of the bank”.

Barclays has refuted this report but has accepted that the bank was scaling down it shares because of the new changes in the bank regulations in UK.

CEO, Jes Staley announced that the Bank had 100% of the liabilities and 62% of the earnings. He added that the new regulatory environment meant that the bank would carry 100% of the liabilities of owing to Barclays Africa. Hence, selling down the stake in Barclays Africa over the next two or three years is part of a broader restructuring being undertaken at Barclays, with the ultimate aim of focusing on UK retail and corporate and investment banking.

In 2015 Barclays has announced a 2015 statutory loss of £394m ($550m) compared with £174m in 2014.

There are many questions that are being raised.  It’s difficult to believe the decision made by Barclays. What makes the Barclays decision so surprising is the bank’s long history and strong position on the continent.

It has had a presence there stretching back 100 years or so and bolstered its position hugely in 2005 by acquiring a majority stake in South Africa’s Absa.

Could it be that Barclays Bank would like to sell the shares to Atlas Mara? Brian Caplen reports that the irony is that Barclays’ former CEO, Bob Diamond, who left the bank in July 2012, has spent the past couple of years establishing an investment vehicle Atlas Mara, with the aim of building a pan-African banking business.

So, there is speculation about whether Atlas Mara could buy a stake in Barclays Africa although Atlas Mara is interested in Barclay’s investment in Africa. So, if Barclays want to leave Africa let the bank leave with dignity and leave African people with peace and not in misery.  It should not allow itself to be in the web of lies. It should be as honest and pure as drinking water.