Standard Chartered considers expansion into Morocco to boost African presence

Standard Chartered Plc is contemplating a strategic expansion into Morocco as part of its growth initiative across key African markets. This move aligns with the London-based bank's broader objective to enhance its wealth management and transaction banking services throughout the continent.

Chris Egberink, the chief executive officer and head of banking and coverage for South Africa, indicated that Morocco is among the countries under consideration. In an interview, he stated, “Like we’ve gone and expanded in Egypt with a fully-fledged bank on the ground, we are looking at one or two other countries. There’s a number of countries we are considering, and Morocco is one.”

This potential entry into Morocco continues Standard Chartered’s recent strategic repositioning in Africa, which has included divesting from smaller operations in various countries. The bank has exited markets such as Zimbabwe, Angola, Cameroon, Gambia, Sierra Leone, and Tanzania, and it is also exploring the sale of its retail banking units in Botswana, Uganda, and Zambia.

Standard Chartered's interest coincides with the plans of Nigeria’s largest bank by assets, Access Bank, which announced in December 2024 its intention to establish operations in Morocco. Access Bank recently raised $228 million to support this expansion, viewing Morocco as a crucial link between Sub-Saharan Africa and Europe.

The timing of Standard Chartered’s potential entry will be influenced by several factors, including regulatory engagement, licensing processes, due diligence, and client interest, as explained by Egberink. The bank has already made strides in North Africa, opening a branch in Egypt in January 2024, which it sees as a vital gateway to Africa and the Middle East.

This expansion strategy comes at a time when many global banking competitors have reduced their footprint in Africa. Notable institutions such as Société Générale SA, BNP Paribas SA, and HSBC Holdings Plc have scaled back operations on the continent in recent years. Despite these regional uncertainties, Standard Chartered maintains a "risk-on" approach in Africa, capitalizing on the exit of global competitors.

The bank reports robust deal activity across various sectors, including metals and mining, retail clothing, manufacturing, construction, and water treatment. This strategic direction reflects Standard Chartered’s commitment to wealth management and cross-border transactional services, following a streamlining initiative that commenced in April 2022.