Standard Chartered building its presence in Africa

Standard Chartered plans to do in Africa what it has done in Asia: grow its footprint, build a stronger presence and in the process recruit key people.

The London-listed bank, which derives over 90% of its profits from the emerging markets of Asia, the Middle East and Africa, says it has emerged relatively unscathed from the financial crisis, has had a strong start to 2010 and is now ready for further expansion.

In Asia, Standard Chartered is recruiting thousands of bankers over the next three years, strengthening its private banking, equities and advisory businesses.

In the latest of a series of high-profile hires Nathan McMurtray, a convertible bond specialist at Standard Bank, who was set to join Citibank, has been poached to become new global head of origination for equity-linked securities at Standard Chartered. He will be in charge of CB origination for Africa as well as all of Asia.

Standard Chartered already has a presence in 14 African countries and "is a highly respected, well established household name, combining deep-rooted local knowledge and experience with international expertise and capabilities," says Hemen Shah, area manager for West and Central Africa.

"Whether through facilitating trade flows between Africa and Aisa, financing major infrastructure projects or agri-financing deals, Africa is very much core to our business activities and strategy and we have confidence in our strategy for long-term sustainable growth."

Vis Shankar, who has just been moved to Dubai from Singapore, becomes Standard Chartered's chief executive officer for the Middle East, Africa, Europe and the Americas on May 1st. His task will be to grow the percentage of profits the bank generates from the Middle East and Africa, which last year was 16%, and mastermind its recruiting strategy.

"Both these continents are increasingly integrated in the globalized world, - he says. - It is going to be a big play for us."

Special Angolan push

Standard Chartered plans a special push into Angola, where it has just opened a representative office.

The bank recently advised China Petroleum & Chemical Corp on its $2.5bn acquisition of a stake in an oil field in Angola.

Oil is key, Shankar says, because "it is going to transform Africa's economic landscape. Africa is a proxy for India and China growth because in order to grow, they need the resources from there."

Oil and commodity trade flows will increase as well as mergers and acquisitions activity in oil-rich areas and Standard Chartered wants to take advantage of this expected spike in activity.