Standard Chartered Bank Zambia has raised its share capital to 520 million kwachas (about US$27.5 million), aligning the subsidiary with stricter capital requirements introduced by Zambia’s central bank.
The increase, from 416.7 million kwachas, was achieved through a bonus share issue rather than a fresh capital injection from investors. The move brings the bank into compliance with new regulatory rules requiring foreign-owned banks to hold a minimum capital of 520 million kwachas.
Under the revised framework introduced by the Bank of Zambia, locally owned banks must now maintain at least 104 million kwachas in capital, up from 12 million previously, while foreign banks face a substantially higher threshold. Authorities say the reforms are aimed at strengthening financial stability and ensuring lenders are better positioned to support Zambia’s economic development.
Capital increase without new funds
Standard Chartered Zambia converted accumulated reserves into share capital instead of raising new cash. Through the bonus issue, the bank capitalised part of its retained earnings and allocated additional shares to existing shareholders on a proportional basis.
The transaction resulted in the issuance of 416,745,250 new ordinary shares with a nominal value of 0.25 kwacha each. Shareholders on record as of January 9 received one new share for every four shares held.
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Trading in the stock was temporarily suspended on February 23 to facilitate technical adjustments linked to the share issue. The newly issued shares are scheduled to begin trading on February 26 on the Lusaka Securities Exchange (LuSE).
By reinforcing its capital base, the lender enhances its capacity to absorb potential shocks and support future lending growth. Analysts say stronger capital buffers are particularly important as Zambia continues its economic recovery following debt restructuring and currency volatility in recent years.
Broader strategic shift
The capital adjustment comes as parent group Standard Chartered, listed in London and Hong Kong, continues to streamline its global operations. In recent years, the bank has scaled back activities in several African markets as part of a broader strategy to concentrate resources on higher-growth regions, particularly in Asia and the Middle East.
In Zambia, the group has initiated the sale of its retail and wealth management businesses, reflecting a pivot toward corporate and institutional banking segments.
The latest move underscores how regulatory reforms and global strategic priorities are reshaping Zambia’s banking landscape. While the capital increase does not involve new external funding, it ensures the subsidiary remains compliant with tightened standards designed to bolster confidence in the country’s financial system.
