Standard Bank has announced the broadening of its Mauritius offshore offering to the servicing of family-owned businesses and local corporates across sub-Saharan Africa who may wish to use the Indian Ocean Island as a gateway for trade and investment.
The bank is building on its long-standing presence on the island, which has historically focused on global multinationals and large listed companies through its Corporate and Investment Banking (CIB) arm since 2001.
Family-owned businesses will now have access to all the benefits that Mauritius, as the leading International Finance Centre (IFC) in Africa, has available through the introduction of a dedicated Business and Commercial Banking (BCB) offering, says Tunde Macaulay, Head of Africa Regions and Offshore, for Standard Bank Business and Commercial Banking.
“Our clients will be able to enjoy the full benefits of operating from an IFC that facilitates international activity and operates under a strong regulatory framework. Mauritius also offers the advantage of political and economic stability, a factor that has helped establish it as a business and cross-border investment hub of choice for Africa. The island’s location, a few flying hours from major centres on the African continent, and visa-free access for many countries have added to its status.”
“For large family businesses and local corporations that we bank throughout our 20 markets across Africa, operating through the Mauritian IFC means the opening of investment and trading opportunities that capitalise on its business-friendly environment, solid infrastructure, a skilled workforce, competitive tax rates and a well-regulated banking sector.
The opening of Mauritius for BCB clients is a natural extension of the facilities and services that Standard Bank already offers through its Jersey and Isle of Man operations, which serve many African clients.
Servicing clients in Mauritius also meets the bank’s objectives of promoting and contributing to the growth of African markets, says Macaulay, adding that, for African clients, Mauritius offers the added attraction of its strategic positioning between India and China, two of the largest trading centres for African businesses.
“Mauritius’s stable macroeconomic environment stands in contrast to Africa’s present macroeconomic challenges. Significant currency devaluations, inflationary pressures and liquidity challenges have been experienced in several sub-Saharan countries, negatively affecting the operations of our clients in a range of sectors.”
“For African businesses, Mauritius is therefore a place for protecting wealth and working capital against the present challenges being faced in some African markets,” says Macaulay, adding that:
- Companies procuring materials and goods from international markets tend to get more favourable terms if procurement companies are based in stable, recognised IFC jurisdictions.
- Mauritius enables the setting up of procurement structures and companies, allowing African businesses that import large quantities of materials from around the world to do so cost-effectively.
- Mauritius offers companies the ability to centralise treasury functions and consolidate shareholding structures for businesses operating in multiple jurisdictions across Africa, allowing funds to be pooled and disbursed from a single location.
“We believe that our strong presence in 20 African countries and our deep understanding of the continent are added attractions for family-owned businesses and local corporates on the continent. By expanding our offerings in Mauritius, we are allowing our geographical footprint to be fully leveraged for the benefit of our clients,” concludes Macaulay.
