Standard Bank has said it’s business in Malawi is tumbling to oblivion as a result of the economic recession that has hit the country. The Bank made the statement when it announced today that it will no longer sponsor the Standard Bank Knockout Cup.
The Bank states that the pace that the country’s economy is taking has made it “increasingly challenging” for the bank to generate revenue.
“In light of the changes in the macroeconomic environment and all the attendant business challenges, the bank has had to refocus its strategy. What has become apparent in recent years is that, it has become increasingly challenging to grow the revenue of the bank at a pace which allows the bank which matches the increase in costs” reads part of the statement.
The decision by Standard Bank serves as evidence that the deepening inflation in the country is driving “a slump in investor confidence”. Just last month, the value of the Malawi Kwacha dropped to its record lowest point sending a shockwave of price increases on goods and commodities.
“We have been forced by these circumstances to become more introspective about how we think about continuing to build a sustainable business going into the future. As a consequence, we have had to take a closer look at our revenue structure and potential, as well as our cost structure, and we have unfortunately found ourselves needing to make some uncomfortable decisions” the bank further explains its decision.