Standard Bank, which has championed the risk profile of African countries on the world stage, has pulled off a major coup in oil-rich Angola by obtaining approval to open a correspondent account with JPMorgan in the country.
The agreement, which will see Angola reintegrated into the global financial system with correspondent accounts in US dollars and the euro, also marks the re-entry of JPMorgan into the Angolan market.
Luvuyo Masinda, CEO for Standard Bank corporate & investment banking (CIB), said the process to obtain approval began two years ago.
“The renewed correspondent relationship with JPMorgan unlocks our ability to better serve mutual clients in vital sectors that drive Angola’s growth. By improving access to global currencies and enabling more efficient cross-border settlements, we are enhancing the competitiveness of companies operating in and with Angola while supporting the country’s long-term economic development,” Masinda said.
“This achievement reinforces Standard Bank Group’s purpose of driving Africa’s growth by connecting African markets to international financial ecosystems.”
Masinda took over the role of CIB chief last year, taking control of the group’s crown jewel, which accounts for nearly half of the lender’s earnings.
One of the standout performers in the CIB is its global markets division.
Standard Bank’s plan to increase its stake in its Angola business has been held up by outstanding approvals from the oil-rich country’s authorities, with Africa’s largest bank by assets still working through the initial public offering (IPO) of its Angolan entity and getting its shareholding to 75%.
The Angolan government last year announced plans to sell as much as a 34% stake in Standard Bank de Angola SA through an IPO.
This is after the government seized a 49% stake that was controlled by a former insurance tycoon who is serving a nine-year prison term.
Standard Bank owns about 51% of the Angolan business.
The reform agenda that Angola has embarked on includes selling off state-owned assets. It has completed 89 such transactions since 2019, with 74 more assets up for sale, including Unitel, Angola’s largest mobile operator.
Luís Teles, CEO of Standard Bank Angola, said the agreement with JPMorgan marked a historic milestone for the country of Angola and Standard Bank Angola.
“This approval entailed several years of intense work, collaboration, and strategic alignment with the Standard Bank Group and JPMorgan. This approval is historic and will allow Angola to do business with more partners and enable the kind of impact on the ground that Standard Bank seeks to exemplify through our group purpose.”
Crosby Mkhwanazi, head of transaction banking at Standard Bank CIB, said: “Restoring direct correspondent USD and EUR clearing capabilities enables us to better support the needs of our multinational, corporate, and institutional clients engaged in trade and investment flows between Angola and global markets.”
This story has been updated to fix grammatical errors in 8th paragraph
