Standard Chartered Bank Zambia has increased its paid-up capital to 520 million kwacha or about $27.41 million, bringing the lender in line with regulatory minimums, more than a decade after the rules were first introduced.
Unlike typical capital raises that attract fresh cash from investors, the local unit issued bonus shares, converting accumulated reserves into share capital.
Shareholders received one new share for every four shares they held as of January 9, 2026. A total of 416,745,250 new ordinary shares, each with a nominal value of 0.25 kwacha, were allotted.
Trading on the Lusaka Securities Exchange was temporarily suspended on February 23 to accommodate technical adjustments, with the new shares scheduled to begin trading on February 26.
14-year compliance window
The move responds to Bank of Zambia (BoZ) directives issued in September 2025 under the Banking and Financial Services Capital Adequacy Rules.
These rules introduced stricter minimum capital requirements aligned with Basel II and III standards, including a Common Equity Tier 1 (CET1) ratio. The CET1 ratio, which measures core capital against risk-weighted assets, aims to ensure banks maintain sufficient high-quality capital to absorb losses, while the paid-up capital threshold sets a floor for the bank’s actual equity base.
For foreign-owned banks, including Standard Chartered Zambia, the paid-up capital was set at 520 million kwacha ($27.1 million), while local banks must maintain a minimum of 104 million kwacha ($5.4 million).
“The principal objective of the Bonus Share Issue is to raise the minimum paid-up share capital of the bank from ZMW416,745,250 to ZMW520,000,000, thereby ensuring compliance with the minimum capital requirements set forth by the Bank of Zambia under Basel II/III guidelines,” the bank said in a statement issued earlier in the week.
However, BoZ records show the minimum paid-up capital rule was first introduced in January 2012, giving the British bank a 14-year window to reach compliance.
The lengthy grace period raises questions about policy enforcement by the central bank, though Standard Chartered could have been among lenders granted extensions in 2013 due to exceptional circumstances.
Moves comes amid broader Africa retreat
The capital move comes as Standard Chartered Group recalibrates its broader strategy to focus on high-return markets and segments.
The London-headquartered bank has been scaling back or exiting operations in countries including Zimbabwe, Angola, Cameroon, Gambia, Sierra Leone, Botswana, and Tanzania, concentrating resources on Asia, the Middle East, and wealth management.
In Zambia, the bank is also exploring the sale of its retail and wealth management businesses, part of a shift towards streamlining operations and complying with regulatory capital standards without seeking external funding.
By converting reserves into capital rather than raising fresh equity, Standard Chartered Zambia strengthened its balance sheet, ensured compliance with long-standing regulations, and avoided dilution for existing shareholders.
NB: Local currency figures have been converted to US dollars using 18.8 Kwacha per $1 as of February 20, 2026.
