‘Remarkable banking innovations coming out of the continent’

A growing “purchasing class” in Africa is opening up several growth and development opportunities for South Africa, says Dominic Bruynseels, chief executive: West Africa at Standard Bank. “Based on current demand, the natural resource and agricultural sectors are core development areas but it is also important to note that infrastructure is needed to serve and meet the demand, including airports, roads, rail and ports,” he said. Furthermore, financing in Africa is far more readily available than it was previously, with over 170 banks competing on the continent. “All the major global banks have recognised Africa’s growing importance to the world economy and are setting up dedicated African units.” Bruynseels adds that while South Africa was much more advanced in its financial markets and depth of management expertise, there were “remarkable innovations” coming out of the region, adapted to local conditions – such as cash transfer banking in Kenya, and fully automated passport control in Rwanda. In terms of geographies, Bruynseels referred to the ‘four pole’ approach with South Africa, Kenya, Nigeria/Ghana and Egypt acting as gateway countries for each pole of the continent. The various trade blocs on the continent align with these poles, and he notes that these are becoming stronger and more influential as economic forces. “This means that if you get into one country in each trading bloc, you essentially have easy access to the neighbouring countries because of bloc treaties. A physical presence in Kenya, for instance, gives access to Tanzania or Rwanda; an office in Lagos opens up West Africa; South Africa opens the door to all southern Africa,” said Bruynseels. CAPTION A growing ‘purchasing class’ in Africa is opening up several growth and development opportunities for South Africa.