Barclays cuts stake in Africa operations

UK banking giant is expected to cut a stake in its African operations. Barclays said that it will sell shares worth about $1.94 billion in Barclays Africa group.

The bank says this will help focus on its two core markets of Britain and United States.

The deal “represents a key milestone in the execution of our strategy and the restructuring of Barclays,” Barclays CEO Jes Staley said in a statement on Wednesday.

Reuters says South Africa’s finance minister has approved the deal, ABSA Bank, which forms the bulk of Barclays Africa Group said earlier on Wednesday.

Barclays is also selling Barclays Bank Egypt and Barclays Bank of Zimbabwe, which sit outside Barclays Africa Group.

Barclays Africa shares have fallen by 2 percent in rand terms since the group’s parent company announced its intention to sell in March 2016.

While its main South African retail bank operates under the ABSA brand, the company uses the Barclays in about 10 other countries including, Kenya , Ghana Tanzania, Zambia and Botswana.

Once the two split, the African company is likely to be forced to stop using the Barclays Africa brand.