Standard Bank expands further into Africa

Standard Bank has further strengthened its position in Africa with the acquisition of a controlling interest in a leading bank in Malawi, the opening of a representative office in the Ivory Coast and the establishment of an offshore banking unit in Mauritius.

Stanbic Africa, Standard Bank's Africa banking operation, is now represented in 17 African countries outside South Africa.

"These acquisitions further strengthen our presence in Africa and reinforce our position as the regional bank of choice," says Sim Tshabalala, Stanbic Africa's Managing Director.

Stanbic Africa's acquisition of 60 per cent of the Commercial Bank of Malawi (CBM), Malawi's second largest commercial bank, represents the largest foreign direct investment in Malawi for the past few years. The sale is part of Malawi's privatisation programme.

Fifteen percent of the CBM's shares are listed on the Malawi Stock exchange, 20 per cent are owned by the National Insurance Company of Malawi and 5 per cent are government owned.

"The purchase of CBM fits with our objective of being able to service our customers in as many African countries as possible and is a furtherance of Stanbic Africa's policy of leading corporate South Africa into the rest of Africa," says Tshabalala.

The CBM has 13 branches and five agencies and employs more than 900 staff. Its head office and five branches are situated in Blantyre while the other branches are spread throughout the country, with the main concentration in southern Malawi where most of the country's economic activity is centred.

Tshabalala says the bank's primary focus will be on commercial business, but it will also concentrate on trade and project finance as well as resource banking opportunities. Stanbic Africa is also considering introducing its parent's highly successful mass-market products into Malawi through CBM.

South Africa is Malawi's largest trading partner (US$315 million) and South African corporates, such as SAB and Barlows, are already represented in the country.

Standard Corporate and Merchant Bank (SCMB) Corporate Finance Division advised on the deal. They were also responsible for the recent privatisation of the National Bank of Malawi.

Tshabalala says the representative office in Abidjan has been established to assist South Africans who want to conduct business in Francophone West Africa. "Francophone Africa is an increasingly important destination for SA corporates moving into Africa, and the region presents significant trade and project finance opportunities for Stanbic Africa and the Standard Bank Group."

The offshore banking operation in Port Louis, known as Standard Bank (Mauritius) Offshore Banking Unit Limited, has been established to facilitate South African and inter-African trade. It will be capitalised at US$20 million and employ five people initially.

Mauritius has established Africa's only offshore banking centre. This fact, together with the country's investment grade rating of Baa2 (Moody's Investors Service), has resulted in several major international banks establishing offshore banking units there.