Barclays Africa has reacted to revelations that Barclays Plc, the parent company, plans to sell down its 62.3 per cent stake in Africa over next two-three years.

The statement on Tuesday said, “Barclays PLC’s announcement today does not affect Barclays’s Africa’s shareholding in our African operations.”

“Our future as Barclays Africa is very bright and our ambition to be Africa’s leading bank remains unchanged.  We are a strong, well-capitalised and independently funded business. With our destiny firmly in our own hands, the way is now clear for us to shape an exciting future, using our strong balance sheet to invest for growth, “the statement adds.

News of a Barclays pull out from Africa first emerged in December 2015 and then again on Friday, sending shares in Barclays Africa Group tumbling.

The British bank – which has enjoyed a century-long dominance in Africa – said on Sunday its board was evaluating strategic options for its 62.3 percent stake in the African business, a holding worth about $8.3 billion.

Barclays Africa statement on PLC announcement

UK-based Barclays PLC today announced that it will reduce its shareholding in Barclays Africa over the course of two to three years to a non-controlling stake (50% and below).

Barclays PLC Chief Executive Officer Jes Staley said today that this decision has been driven entirely by the regulatory pressures Barclays PLC faces, including the level of capital they are required to hold in respect to their shareholding in Barclays Africa.

“It is not a reflection on our business, our strategic direction or the performance of the economy in South Africa,” Barclays Africa Group Chief Executive Maria Ramos said.

“Our future as Barclays Africa is very bright and our ambition to be Africa’s leading bank remains unchanged.  We are a strong, well-capitalised and independently funded business. With our destiny firmly in our own hands, the way is now clear for us to shape an exciting future, using our strong balance sheet to invest for growth.”

Barclays Africa is deeply committed to the success of the continent as can be evidenced by our announcement today that we will invest R1.4 billion in youth education and skills development across Africa over the next three years.

Barclays PLC owns 62.3% of Barclays Africa. Barclays Africa, in turn, owns varying levels of interest in Barclays Africa operations on the continent.

Barclays PLC’s announcement today does not affect Barclays’s Africa’s shareholding in our African operations.