of the year, Chief Operating and Integration Officer Philip Freeborn announces, concluding a series of controversies as the bank pushes for heightened efficiency.

However, while one set of restructuring strategies is coming to a close, another phase of changes is only beginning, as Barclays proposes to merge its African operations into 55.5 percent Barclays-owned Absa.

Absa has been subjected to extensive negative media coverage this year as it has been seen launching repeated restructuring initiatives resulting in significant job losses across its South African operations, while not disclosing publically the extent of its restructuring strategies.   Accusations have been rife that majority stake holder Barclays has been pushing the South African finance institution into making the personnel cuts, Barclays having launched a new African growth strategy known as “One Africa” last year, whose key messages include enhancing cost-efficiency.

A first wave of cuts at Absa was effected at the end of March this year, with a second wave of terminations occurring in May; all the job losses causing uproar across the labour sector resulting in threats of legal action and a wide-spread campaign by trade union Solidarity.  While the exact number of people affected by the terminations is unknown, Deputy General Secretary of Solidarity Dirk Hermann claims: “According to our information, Absa was instructed by Barclays to cut personnel costs by 10 percent”.

Absa has remained resolute in its execution of its restructuring; the bank insisting earlier this year that it would “continue to enhance efficiencies and effectiveness by reducing duplication”.  It seems that this restructuring is now coming to a close, with Freeborn adding to his announcement that: “the benefits of [the restructuring] will be seen for some years to come”.

While many may feel relief in the security that this restructuring is to end by the close of 2012, Absa is meanwhile embarking upon a new wave of changes, as Barclays intends to fold all of its African operations into Absa.  This initiative would see Barclays’ operations in Botswana, Ghana, Kenya, Tanzania, Uganda, and Zambia taken over by Absa, although the operations in Botswana and Kenya would retain their listings with only Barclays held interests being part of the Barclays-Absa combined project.

Absa CEO Maria Ramos has also referred to further African expansion, with a particular view to moving into Nigeria and potentially Angola, saying: “We continue to look at ways to expand in Nigeria which I think is a very big and complex market…All options are open”.

Ramos insists that this new move will only bring benefits to both of the banks, their customers and the job market, citing the potential growth such a union could instigate – adding to the 60,000 employees already involved with the two organisations.  Speaking about the combination – which will only be finalised in 2013 – she says: “It will provide a platform for further growth…It is the next logical step in delivering our one Africa strategy and we believe it will produce opportunities for growth by leveraging the combined capabilities of the two businesses such as better capturing of trade, corporate and customer flows. It is an exciting opportunity.”