Nigeria: the new battleground for SA banks
South Africa's "big four" banks, relatively unscathed by the financial crisis and eager to enter new markets, are keen to expand in other African countries.
None at the moment is more attractive than Nigeria, where analysts expect rapid growth in retail banking as well as opportunities in corporate banking. The sector is in the midst of unprecedented change, following governor Lamido Sanusi's shake-up last year. Nigeria is the new battleground for SA and international banks: they are determined to strengthen their presence in the country and play a prominent role in the transformation of its banking landscape.
Both Standard Bank and FirstRand, SA's biggest banking groups, have registered with the Central Bank of Nigeria to qualify as bidders for nine Nigerian banks which are now up for sale after failing last year's stress audit on capital adequacy, liquidity and corporate governance.
"We would be interested in all key segments of banking, namely corporate, investment and retail banking," says Sam Moss, head of investor relations at FirstRand. Standard Bank expects growth opportunities in Nigeria, says Clive Tasker, Ceo of Standard Bank's Africa division, and will do all it takes to "facilitate faster development of our Nigerian business or add market share and scale." Fierce competition is guaranteed.
In order to achieve their goals, SA banks need good people. The battle for supremacy in Nigeria is therefore translating into a high-level recruitment drive. "South African banks are looking at a significant expansion of their teams in Nigeria," says Sarah Fitzgerald, Africa specialist at JBS Associates in London. - There is massive demand for quality talent but a shortage of candidates, so it is essential for us to have an international network and good contacts. SA banks know they need to commit resources and invest time in finding the right person, who will be attracted by the quality of the work and the career opportunities rather than just the salary. "
The top prize, Fitzgerald says, is a Nigerian or Kenyan or Ghanaian citizen with some years of experience working for a top-tier bank in London or New York. "Nigeria is a tough location and having local contacts is particularly important, but British candidates with African experience are also taken into consideration."
The situation has changed dramatically since early 2009: "A year ago there were more candidates following redundancies in the City or on Wall Street, but SA banks were not in expansion mode then," says Fitzgerald. "Now that they are, the candidate pool has shrunk, so there is a real talent shortage."
