From Barclays to ‘ABSA Zambia Plc’, legal metamorphosis completes next month

Divorce autopsies are usually very painful with parties involved changing strategies to survive in a jungle of opportunity. Barclays PLC divorce from the ABSA Africa operation as part of a divestiture strategy from emerging markets which were mistakenly dubbed as volatile and uncertain was one of the best things that ever happened to the local ABSA unit because it’s performance has never been so bullish. This remains a testimony that opportunity does reside in Africa which business leaders like Mizinga Melu have defied the odds within the ABSA Africa Group as its Zambian subsidiary remains one of the stellar performers on the continent.

Four days to Valentine’s day, Barclays Zambia will already be flashing red not because of love in the air but because the legal metamorphosis would have completed. This will  commemorate the historical landmark divorce that will allow ABSA Africa subsidiaries to trade as such. Barclays Zambia will legally operate under a brand new nomenclature ‘ABSA Zambia Plc’. This will reflect even on the local bourse the  Lusaka Securities Exchange (LuSE). With a new color adoption depicting limitless possibilities ABSA Zambia has already started to amass momentum in Africa’s red metal producer Zambia branding most of its branches save its head office to red and white. Even the soccer league is now called ‘ABSA premier league.’

Commenting well ahead of the 10 February effective date for the move, ABSA Zambia Managing Director Mizinga Melu commented with the Kwacha Arbitrageur: 

“ABSA is about bringing possibilities to life, it is about being passionate and brave to deliver to our clients amidst all they may be facing. ABSA will continue to participate in the economic growth agenda of the nation and will grow the mining, agriculture, energy, tourism and energy sectors.”

The rebrand comes timely when ABSA group has secured half a yard of dollar funding to boost lending in 7 African countries namely Zambia, Kenya, Mauritius, Uganda, Seychelles, Mozambique and Ghana. ABSA Group confirmed last week that the bank had entered into an agreement with Multilateral Investment Guarantee Agency (MIGA) that will issue guarantees of $497million for 15 years. 

This will help cushion Absa from risks associated with the mandatory capital reserves it is required to hold with various central banks.

It will free Absa’s subsidiaries in the region to provide more financing to corporates, small- and medium-sized enterprises and projects that will benefit the climate, Absa said.

The Kwacha Arbitrageur