Standard Bank expands Mauritius offshore banking to cater for regional family-owned businesses

Standard Bank Musgrave branch in Durban. Mauritius was an offshore banking hub and investment hub for regional and international companies seeking opportunities further afield in Africa. Picture: Motshwari Mofokeng/Independent Newspapers

Standard Bank Musgrave branch in Durban. Mauritius was an offshore banking hub and investment hub for regional and international companies seeking opportunities further afield in Africa. Picture: Motshwari Mofokeng/Independent Newspapers

Published Sep 20, 2024

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Standard Bank is expanding its offshore banking operation in Mauritius to cater for family-owned businesses and corporates from across the sub-Saharan region, a move designed to tap into possibilities of boosting trade and investment.

The bank’s offshore banking operations in Mauritius have traditionally catered for large listed companies and multinationals, which it serviced through its Corporate and Investment Banking division.

But with rapid changes in the financial services sector ushering in new demands from a growing arm of investors through family-owned businesses – and amid regional corporates seeking investment opportunities abroad – Standard Bank is seeking to tap into these opportunities through the introduction of a dedicated Business and Commercial Banking (BCB) offering, said Tunde Macaulay, the bank’s head of Africa regions and offshore.

“Our clients will be able to enjoy the full benefits of operating from an international finance centre that facilitates international activity and operates under a strong regulatory framework,” added Macaulay.

“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.”

Mauritius was an offshore banking hub and investment hub for regional and international companies seeking opportunities further afield in Africa.

“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,” Macaulay said.

Standard Bank also offers offshore banking and related services under its Jersey and Isle of Man operations that also serve African clients.

Mauritius was, however, seen as advantageous for African family-businesses and corporates seeking offshore banking services given its strategic positioning between India and China, two of the largest trading centres for many African businesses and economies.

“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,” explained Macaulay.

Standard Bank has a presence across 20 African countries and recently revealed that it had applied for a representative office in Egypt. It said the North African region, “home to four of the top 10 countries by size of banking assets”, stood out as “a compelling opportunity” for its prospects.

“Egypt, the largest economy in North Africa and the second largest in Africa by banking assets, represents the most attractive, meaningful opportunity,” said Standard Bank.

Standard Bank’s rest of Africa operations raised earnings by 49% in the year to December, helping the lender drive overall group headline earnings for the year by 27% to R43 billion.

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