Capital Markets

Barclays seeks change manager for Kenya, Africa

Barclays Bank is seeking the head of change for Kenya and Africa as part of a strategy to operate as one institution on the continent.

The bank is also out to recruit the head of fraud investigations who will be expected to reduce losses by adopting policies of Barclays Africa Limited (BAL), the unit planned to hold the shares of the multinational parent firm in Barclays Kenya.

The notice to make the appointments comes only days after Barclays Plc announced that it had sought authority to transfer its shareholding in the Kenyan operations to Barclays Africa Limited as it moves to consolidate its holding on the continent under one wing.

“The (change) role holder will effectively be responsible for timely delivery and appropriate quality of the portfolio which will represent local as well as pan-African strategic change initiatives,” said an advertisement appearing in the local dailies.

Consolidation is seen to be laying ground for the merging of operations of the multinational bank in Ghana, Kenya, Botswana, Zambia, Uganda and Tanzania with those of its South African subsidiary Absa Bank which is expected to be completed next year.

“Barclays Bank Plc and Barclays Africa Limited (BAL) hereby give notice that they intend to apply to the capital markets authority for approval to conduct a private transaction under which Barclays Plc will transfer shares in Barclays Bank of Kenya to BAL as part of an intra-group transfer,” said the bank in a statement early last week.

In response to queries from Business Daily, Barclays Kenya managing director Adan Mohamed said the bank had already stated it was in discussions with its subsidiary, Absa Group Limited, about combining the majority of its Barclays Africa operations, including its interests in Barclays Kenya, with Absa is in line with Barclays “One Africa” strategy.

“Barclays last year combined its African businesses with Absa from an operational and managerial point of view. ... The process is still at an early stage and the final structure of any potential combination is subject to ongoing discussions,” Mr Mohamed said in a statement.

Analysts pointed out that the transfer of shares to Barclays Africa will ease the accounting and operating structure of the group after the consolidation.

“They needed to create a vehicle which they own 100 per cent; transfer assets to it so when Absa is releasing its results it reports its performance and then the consolidated one,” said Francis Mwangi an analyst with Standard Investment Bank. Barclays Plc has a 55.5 per cent shareholding in ABSA and fully owns Barclays Africa Limited.

Barclays Plc, which has a 68.5 per cent holding in the Kenyan arm, has already stated that it will retain its listing on the Nairobi Securities Exchange while noting that only holdings in the listed subsidiary will be included in the proposed combination.

Details of the transaction are yet to be made public with the bank stating that it would first forward the details for approval by the regulator before presenting them to other shareholders but Barclays Plc is expected to remain the majority shareholder of the combined African operations.

Barclays has been pushing for the merging of its operations in the continent under its “one Africa” in order to improve efficiency.

“We will be seeking to ensure that a strong governance and control environment is maintained while the business undergoes a period of internal reorganisation as it integrates the operations of Absa and Barclays in Africa,” said the parent company in its annual report.

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