News Finances

Zambia’s Tougher Banking Standards Prompt Capital Increase at Standard Chartered

Zambia’s Tougher Banking Standards Prompt Capital Increase at Standard Chartered
Friday, 20 February 2026 10:19
  • Standard Chartered Zambia raised its capital to 520 million kwachas (about $27.5 million) through a bonus share issue, without raising new funds.
  • The move complies with new central bank rules requiring foreign banks to hold at least 520 million kwachas in capital.
  • The increase comes as the group scales back retail operations in Zambia and refocuses on priority markets in Asia and the Middle East.

Standard Chartered Bank Zambia has increased its share capital to 520 million kwachas, about $27.5 million, from 416.7 million kwachas, bringing the subsidiary in line with stricter capital rules set by the country’s central bank.

A Capital Increase Without Fresh Cash

The bank did not raise new funds from investors. Instead, it issued bonus shares, converting accumulated reserves into share capital.

Rather than distributing part of its profits as cash dividends, the lender capitalized its reserves and allotted new 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. The approved ratio was one new share for every four shares held. Shareholders recorded in the register as of Friday, January 9 automatically received one bonus share for every four shares in their portfolios.

Trading in the stock was temporarily suspended on Monday, February 23 to allow for technical adjustments. The newly issued shares are scheduled to begin trading on the Lusaka Securities Exchange (LuSE) on Thursday, February 26.

The move enables the bank to comply with revised regulatory requirements. The central bank has raised the minimum capital threshold for locally owned banks to 104 million kwachas, from 12 million previously, and for foreign banks to 520 million kwachas. The reform is intended to strengthen the banking sector and ensure lenders are better positioned to support Zambia’s development priorities.

By reinforcing its capital base, Standard Chartered Zambia also improves its capacity to fund future growth.

A Broader Strategic Retrenchment

The capital adjustment comes as the parent group, listed in London and Hong Kong, continues to refocus on priority markets and segments.

In recent years, Standard Chartered has scaled back operations in several African markets. In Zambia, it has initiated the sale of its retail and wealth management businesses. Globally, the bank has shifted attention toward markets it considers more profitable, particularly in Asia and the Middle East.

Sandrine Gaingne

On the same topic
First RMBS listing on BRVM backed by NSIA Banque Côte d’Ivoire CFA10 billion securitization aims to expand housing finance Move seeks to deepen...
Holmarcom to acquire BNP Paribas 67% stake in BMCI Deal pending approvals, expected to close Q4 2026 Move strengthens Holmarcom...
Strategy follows mining corridors and regional trade flows Expansion backed by record profits and pan-African growth plans Kenya's Equity...
WAEMU imposes new loan rate caps from June 1 BCEAO sets 14% for banks, 24% for others Reform aims to protect borrowers, align lending...
Most Read
01

Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...

Two Other African-focused Private Equity Firms to Snap Up assets shed by Global Majors
02

Enko Capital acquires Servair’s fast-food unit in Côte d’Ivoire, including the Burger King franchi...

Enko Capital Buys Burger King Côte d’Ivoire in Servair Restructuring
03

Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...

Tanzania Secures $2.33 Billion in Syndicated Financing for Standard Gauge Railway
04

Central bank to release $1 billion in cash to curb black market demand Move aims to ease inf...

Libya Opens Dollar Sales to Ease Pressure on Dinar and Prices
05

From eastern Chad, where measles and meningitis are spreading through overcrowded refugee camps, to ...

Weekly Health Update | Vaccination Gains Advance in Africa; Antimalarial Resistance Threatens Progress
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.