A banking and finance expert, Dr. Laud Mensah has allayed fears the pulling out of Barclays PLC from Africa could trickle down to other banks.
Barclays Africa Group agreed to terms for operational separation with UK-based Barclays PLC, which is reducing its shareholding in Barclays Africa.
The agreement is however expected to unlock opportunities for Barclays Africa as an independent pan African bank.
Barclays PLC submitted an application to the South African Reserve Bank for approval to reduce its shareholding in Barclays Africa Group to below 50%.
This has raised mixed reactions in the banking sector, with fears that this might trigger more pullouts in the African market.
But speaking with 3FM business, Dr. Laud Mensah assured that there is no cause for alarm.
“The market is growing, Africa is expanding; Barclays had a mission and they have fulfilled it, so that is it. I don’t see this trickling down or a trend developing any moment from now, from the other foreign banks”, he cleared.
He added that the African market is still profitable and viable for more banking investments
“When you talk about profitability Africa is profitable and a frontier market. There is a lot activity on going and I don’t think it’s about profitability. The African market still growing and any bank can survive here”.
By Grace Asare |3FM|3news.com