Standard Chartered bets on Botswana
Standard Chartered has chosen Botswana as an important pillar of its African expansion strategy. The emerging markets specialist has just poached Moatlhodi Lekaukau, currently head of M&A at Deloitte & Touche Corporate Finance in South Africa, to be its new Chief Executive Officer for Botswana, starting in February 2012. "I am excited about the opportunities to develop our business in Botswana," he says.
Lekaukau will be the first Motswana (or ethnic Botswanan) to head StanChart's operations in the country. "Moatlhodi's extensive experience will help us further deepen relationships with our customers and clients," said Diana Layfield, regional Ceo for Africa. "With over 114 years' experience in Botswana, we are already well positioned but Moatlhodi is an outstanding choice to take our business to new heights."
StanChart is the oldest bank in Botswana, as it first opened in 1897,and now has a network of 17 branches as well as a dedicated Priority Banking centre for premium clients. It also offers a range of corporate finance advisory, hedging and transactional services and uses the bank's global network to provide financial expertise in cross-border structured transactions, fixed income, currency market and research.
The banking sector in Botswana has long been dominated by four institutions - StanChart, Barclays, Stanbic and First National Bank of Botswana - which together account for some 90% of total assets, deposits and loans. However, the market is now becoming more competitive and attracting new contenders from other African countries and from further afield, such as Bank of India. Mobile banking is an area of particularly fast growth.
The country has a small population but great wealth, mainly from its diamond mines, and it has enjoyed many years of political stability. Strong and well-managed economic growth in the last two decades has lifted many people out of poverty. According to the latest African Development Bank report, nearly half (47%) of its citizens are considered to be 'middle class', meaning they can save some of their income.
Botswana is just another positive example of what is happening in the continent, says Veronique Parkin, head of financial services for Sub-Saharan Africa at Heidrick & Struggles in Johannesburg: "Africa is a focus of many emerging market-focused banking groups as they recognize the potential to generate substantial returns on the continent."
