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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 150
SOUTH AFRICA REPRESENTATIVE OFFICES
Located in the two largest cities in Africa’s biggest economy,
Johannesburg and Cape Town, the primary functions of the South
Africa Offices are to promote Mauritius as an international financial
and business destination and AfrAsia Bank Limited as the banking
brand of choice.
Corporate South Africa’s investments into Africa
On the corporate and institutional front, South Africa remains one
of the dominant investors on the Continent. According to the latest
World Investment Report, South Africa recorded a 4.3% rise in FDI
to USD 6.9bn during 2014, making it a leading outward investor,
particularly into the rest of the African Continent. South Africa’s
investments into more than 40 African countries range beyond
traditional mining, telecommunications, banking and travel. Other
successful South African businesses with African operations are
involved in insurance, construction, chemical, pay-TV, food and
beverage as well as the pharmaceutical sectors. Every year growing
numbers of African consumers shop at South African retailers such
as Shoprite or Massmart stores. Many of these companies engaged
in trading in Africa have invested via Mauritius – or use Mauritius as
an international treasury centre.
Private Banking in Africa
According to New World Wealth’s Africa 2015 Wealth Report, the
number of HNWIs in Africa increased by 145% between 2000-2014,
comparing very favorably with the worldwide HNWI growth rate of
73% during the same period. Moreover, these numbers are expected
to rise by a further 45% by 2024. Clearly there is a correlation
between economic growth and the creation of a successful and
wealthy entrepreneurial class. With the African Continent set to
become one of the world’s fastest growing regions over the next 10
years, there will be a concomitant rise in the demand for banking
and investment products and services which augurs well for those
providing private banking to the African clientele.
The Focus
The Representative Offices have been capitalising on 3 main trends:
continued interest in expanding into new markets where there
is growing consumer demand. Countries in SADC and COMESA
are of particular interest. Being a member of both blocs and
offering a network of double-taxation agreements, IPPAs and
other advantages, Mauritius is an ideal platform to facilitate
accessing these markets
managers of listed and unlisted funds continue to be attracted to
Mauritius as a base for their operations, and
like corporates, there are individuals who similarly seek
international diversification of their wealth and access to private
banking products.
The Representative Offices’ local presence combines well with the
Bank’s competitive products and services enabling AfrAsia Bank
Limited to successfully compete for international banking in the
markets in which it operates.
Since inception, the strategy has been to retain the services of
seasoned bankers who are well grounded in the local market and
also have the ability to inform prospects about international banking
through Mauritius. This ranges from being able to discuss with
global business companies as well as speaking to individuals about
the private banking platform in Mauritius.
Key success and future outlook
Tangible and intangible benefits accrue to positioning ourselves in
one of Africa’s largest economies.
Being situated in the Continent’s banking and stock market hub
provides access to high quality local and international corporates
as well as fund managers
I
ncreasing acceptance of AfrAsia Bank Limited as a regional Bank
of substance is evidenced by the profile of African companies
and intermediaries choosing to do business with the Bank
Each year, the South African Representative Offices continue to
contribute to the Bank’s expansion into African and other markets.
MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED)
The team in South Africa. From left to right; Ravi Teji, Vanessa Sabbatini
(consultant), Colin Grieve, Anne Ferriera, Lise Tayler and Dennis Shoko