Corporate bankers are particularly popular in Africa
Standard Bank is the 'big beast' of African banking. Its strong presence and reach across the Continent and its access to the deep pockets of the Industrial and Commercial Bank of China (which has a 20% stake) give it the ability to invest in growth. So if Standard Bank says there is a phenomenal resurgence in corporate and investment banking activity in Africa, it is worth listening.
"Everyone has kind of found out our secret that Africa is in vogue and people have also established that South Africa is a boon for financial markets and a springboard into the continent," says Kennedy Bungane, Standard Bank's chief executive for corporate and investment banking.
Foreign competitors are coming thick and fast, says Bungane. The days of "suitcase banking," are over, he adds, claiming that, "this time we see them maintaining a presence, including even Indian and regional banks. We are well aware of strong and resurgent competitors coming up fast behind us, ready to challenge our corporate banking franchise."
Standard is planning to fight back and is investing its discretionary capital to fund organic growth and new acquisitions. The bank is growing its teams and building on its corporate banking business platform to strengthen its investment banking franchise. "South Africa remains our springboard for growth," says Bungane. "In other countries we will continue to focus on building a more resilient business by connecting to the natural resource opportunities."
Africa's natural resources wealth is still the big driver of growth.
"Corporate banking remains big business in Africa as it has been historically and will do so going forward," says Walter Ankrah, head of African financial services at executive search firm New Millennium Group. "It is little wonder why every major international bank is targeting the resource-rich hotspots of sub-Saharan Africa. Angola, for instance, exports a million barrels of oil a day into China. Standard Bank is expanding its presence there and competing with rivals like Russia's VTB, which has been on the ground since 2006. This presents hiring opportunities for Lusophone-speaking corporate bankers with natural resource expertise who remain well bid."
Africa is seen as having huge growth potential and word is spreading. "I think you will see most banks paying more attention to sub-Saharan Africa as we move forward," says Shane Phillips, practice leader of financial and professional services at executive recruiting firm Stanton Chase. "With 70% of the African market still unbanked this represents one of the biggest growth agendas for any bank in the region. Banks will be aligning themselves to take advantage of these opportunities and this will result in job growth."
