Standard Chartered releases its Socio-Economic Impact report of its operations in East Africa

Standard Chartered has released an independent study on the social and economic impact of its operations in East Africa (Kenya, Tanzania and Uganda), looking at the value added to the economy and how it supports trade and employment.

In recent years, the region’s countries have increasingly cooperated, both politically and economically. The East African Community (EAC), the region’s integration initiative, exemplifies this trend. Kenya, Tanzania and Uganda have played a pivotal role in creating the EAC, which now also counts Burundi, Rwanda and South Sudan among its members. Kenya, Tanzania and Uganda share many similarities in terms of their social and cultural backgrounds. Nevertheless, they are at different stages of socio-economic development. The context offered by these three countries and Standard Chartered’s deep ties with them, make East Africa an interesting region for studying the Bank’s socio-economic impact.

Standard Chartered commissioned an independent report by Steward Redqueen to measure the impact of the Bank’s operations in East Africa, in terms of economic value added and employment supported. The report also makes a qualitative assessment of other ways in which Standard Chartered contributes to local communities in Africa, including through infrastructure, business practices and community investments.

Speaking at the event, Honourable Matia Kasaija, the Minister of Finance, Planning and Economic Development congratulated the Bank and thanked it for choosing to invest in Uganda and East Africa.

“This report precisely articulates the social economic contribution of Standard Chartered Bank to Uganda. I commend the Bank for its resilience in this market since 1912. More importantly, is the fact that this history and heritage comes with tangible impact on how the Bank has significantly contributed to the economy of the country.

Through support to key sectors such as manufacturing, construction, utilities, wholesale and retail trade, Standard Chartered Bank has demonstrated its alignment to the overall strategy of Vision 2040 for Uganda. We are all pulling together to achieve Uganda’s Vision which is “A Transformed Ugandan Society from a Peasant to a Modern and Prosperous Country within 30 years.”

While making his remarks, Dr. Robin Kibuka, Standard Chartered Bank’s Board Chairman reiterated the Bank’s commitment to continue investing and contributing to the growth of the economy and communities it operates.

“Standard Chartered has impacted Uganda in key areas such as employment, tax contribution, value add, infrastructure to mention but a few. These priorities are also reflected in the country’s national development plans. The purpose of banking is to help businesses to set up, to trade, to invest and expand; to help people get paid, buy their own homes and grow their wealth for the future; to help economies prosper, build infrastructure and lift their citizens out of poverty. This is what banks do, that’s what we at Standard Chartered Bank do. We are truly Here for good.”

Albert R. Saltson, Standard Chartered’s Chief Executive Officer said “This report clearly articulates our contribution to the region, including the significant portion of private sector credit Standard Chartered’s lending represents and the impact this allows our clients to have within the region, as well as further afield. We continue to seek ways to deepen our relationships in East Africa and Uganda in particular – such as through our “Banking the Ecosystem” capabilities – banking the buyers and suppliers of our international corporate clients. This, together with the significant financing we provide to small and medium enterprises (SMEs) through our Business Banking and Commercial Banking segments, allows entrepreneurs to flourish and supports economic growth and job creation.”

Dr. Louis Kasekende, the Deputy Governor of Bank of Uganda was the key note speaker at the launch.

Authored by Dr. René Kim, founding partner of environment, social and governance consultancy firm Steward Redqueen, the findings show that the Bank directly and indirectly:

• supports $2.8 billion of value-added impacts across East Africa. This is equal to 2.1% of the region’s GDP. East African households are the largest recipient of Standard Chartered’s supported value-added ($1.4 billion), followed by the private sector ($1.1 billion) and the government ($0.3 billion).

• supports over 1 million jobs in East Africa. This amounts to 1.7% of East Africa’s total labour force.

As well as looking at Standard Chartered’s overall impact in East Africa, the study also takes a closer look at the social and economic impact of its operations in Kenya, Tanzania and Uganda.

The findings show that the Bank directly and indirectly:

• supports $1.5 billion in value-added impact in Kenya (1.9% GDP) and it supports 330,000 jobs (1.6% of the labour force).
• supports $579 million in value-added impact in Tanzania (1.1% of GDP) and it supports 222,000 jobs (1% of the labour force).
• supports $896 million in value-added impact in Uganda (3.5% of GDP) and it supports 491,000 jobs (3.5% of the labour force).

In addition, the findings show that Standard Chartered’s impact in Africa stretches beyond supporting jobs, trade and growth. The Bank is contributing to core infrastructure development and knowledge building in the financial sector.

The report provides recommendations on how Standard Chartered can, over time, make an even greater contribution to economic growth in East Africa. The suggestions encourage the Bank to continue its work toward supporting development and include:

• increasing regional commerce: Using its size, expertise, and presence across East Africa, the Bank can contribute to growing regional commerce, enhance the region’s growth, and further cement its own position in these markets.

• improving manufacturing: A large part of the Bank’s value-added and employment impacts arise in the manufacturing sector. If Standard Chartered can assist local companies generate higher value-added and source more from companies within the region, it can contribute to economic growth.

• realising inclusive growth: Opportunities to help raise the incomes of the region’s poorest inhabitants are necessary to generate inclusive growth. In turn, inclusive growth will expand Standard Chartered’s future client base.

Today’s study is Standard Chartered’s fifth impact study to date, following country-specific reports on Ghana, Indonesia and Bangladesh and a sub-Saharan Africa report in previous years. This study measures the Bank’s impact based on data from October 2016.