Standard Bank is leading the race for African investment.
Days after Absa announced plans to move into Africa and introduce new banking services to regions that were previously devoid of banking, journalist Sure Kamhunga reports for Business Day that Standard Bank is reportedly
well positioned and has a head start in the rush to clinch deals.
The banking institution has revealed that it experienced an increase in corporate and investment banking on our shores as well as on the continent, prompting it to make a move further into Africa to capitalise on investment from the globe’s fastest-growing economy. Standard Bank’s CE for corporate and investment banking, Kennedy Bungane, explained that while South Africa and the continent of Africa are the “flavour of the month”, care and attention needs to be given to such investments by banking institutions who are moving into the African market.
Unlike in 1996, when they established offices and still maintained ‘suitcase banking’, this time we are seeing them maintaining a presence, including even Indian and regional banks.
Kamhunga adds in the article that South Africa’s banking sector is widely admired in the world and that the country gives investors a better platform to move into Africa. However, Standard Bank is taking precautions for its competition and will be installing defensive strategies to cope with the influx of competitor banks.
We are well aware of strong and resurgent competitors coming up fast behind us, ready to challenge our corporate banking franchise and our endeavors to defend and grow our vanilla lending products. People have also established that SA is a boon for financial markets and a springboard into the continent,” Bungane said.
To strengthen its position, Standard Bank is privy to the
formidable balance sheet of its part owner, the Industrial and Commercial Bank of China.
The ICBC is the world’s largest bank and would be assisting to fund banking projects in Africa and Brazil in the future.
