Stanbic Bank to Localize Juba Branch by 2025

(Juba) – Stanbic Bank is preparing to restructure its presence in South Sudan by converting its existing branch in Juba into a fully registered local subsidiary by the end of 2025, following a directive issued by the Bank of South Sudan in January.

This move is part of wider efforts by the central bank to strengthen local oversight and increase capital thresholds for international financial institutions operating in the country.

Joshua Oigara, the CEO of Stanbic Holdings Plc, which oversees operations in both Kenya and South Sudan, is leading the transition. Oigara joined Stanbic in 2022 after leaving Kenya Commercial Bank (KCB) with the goal of helping the South African backed Standard Bank Group expand deeper into East Africa.

The directive by South Sudan’s regulator will reshape the bank’s management structure, legal standing, and capital obligations in Juba.

Stanbic has requested more time to comply with the new rules, which require coordination not only with South Sudan’s regulators but also with the Central Bank of Kenya and the South African Reserve Bank.

Oigara said that establishing a local subsidiary would be a complex process due to the bank’s multi-country operations. He confirmed that the Bank of South Sudan had responded positively to the request for an extension.

Stanbic has until 2027 to meet the capital requirement, currently set at $30 million (approximately 48 billion South Sudanese Pounds at current exchange rates) for foreign banks.

South Sudan’s banking sector remains young and highly concentrated. Stanbic is currently the second largest player, holding about 22% of the market, behind Ecobank’s 40%.

Other Kenyan banks including KCB, Equity Bank, and Co-operative Bank account for a combined 38% market share. Most of these banks play big roles in supporting oil related transactions and limited private sector lending.

Stanbic’s Juba branch posted a 63% growth in profits in 2024, despite operational challenges. The bank has seen strong returns in Kenya, where Oigara helped launch new products, grow assets by KSh 50 billion (about $387 million), and raise net profits by over 50% to KSh 13.7 billion ($106 million) during his two-year tenure.

However, Oigara acknowledges the tough business climate in South Sudan. He describes the country as “the most complex market” where Stanbic operates.

The uncertainty, limited infrastructure, and ongoing political tensions have kept investor appetite low. He noted that while some clients are still operating in South Sudan, many are seeking growth opportunities elsewhere in the region.

Even with these challenges, Stanbic sees potential in South Sudan, especially if oil exports remain steady. The country’s oil dependent economy, which holds over 75% of Sudan’s former reserves, is expected to recover slowly. The years following independence in 2011 saw renewed conflict between 2013 and 2018, which hurt growth and investor confidence.

The long-term outlook for Stanbic in South Sudan will depend on how the subsidiary is integrated into the broader Standard Bank network.

It remains unclear whether the Juba unit will remain under the Nairobi based Stanbic Holdings or be managed directly from Johannesburg, like other foreign units in the Standard Bank Group.

Standard Bank is targeting a greater footprint in East Africa, where it currently holds less than 5% market share. The bank aims to increase its presence in retail and small-business banking to 10% in the next three years, shifting from its traditionally corporate focus. Uganda and Kenya remain key contributors to its overall earnings.

According to Patrick Mweheire, Standard Bank’s regional CEO for East Africa, the region is set for strong growth. East Africa is expected to post a 5.7% GDP growth rate by 2026, up from 4.7% in 2024, driven by public infrastructure investments and rising demand in agriculture and manufacturing.

For Stanbic, South Sudan’s stability and future in the oil market will remain essential to its decision to stay and grow in Juba.

While the transition to a subsidiary brings new regulatory hurdles, it also presents an opportunity to deepen its role in one of Africa’s most challenging but resource-rich countries.