E-Financial
Standard Chartered Contributes $10.7Bn to the Economy
Standard Chartered has officially launched a report titled “Banking on Africa – Standard Chartered’s Social and Economic Impact” in which it highlighted a number of ways the bank could deepen its impact in Sub-Saharan Africa, including further increase of its engagement with small and medium-sized enterprises (SMEs), by catalysing the region’s economic complexity, for example through increasing financial access for supply chain companies.
In 2013 Standard Chartered Bank commissioned an independent study by Professor Ethan Kapstein of Goergetown University, USA and Dr. Rene Kim of Steward Redqueen, The Netherlands to measure the role of Standard Chartered, and banking more broadly, in generating trade, growth and jobs in Sub-Saharan Africa (Nigeria included) and to find out what the bank can do better.
The findings in the report released by the bank recently, showed that across Sub Saharan Africa, Standard Chartered Bank directly and indirectly supports 1.9 million jobs, equivalent to around 0.6 per cent of the total workforce and contributes $10.7 billion to the economy, equivalent to 1.2 per cent of the region’s GDP.
It also showed that it supports trade worth $7.2 billion, equivalent to 1.2 per cent of total trade with the rest of the world; and supports $1.8 billion in tax payments to governments in Sub-Saharan Africa, equivalent to 1.1 per cent of total receipts of governments in the region.
The report further provides recommendations on how banks can, over time, make even greater contributions to economic growth in Africa.
Some of the recommendations include: further increasing engagement with SMEs by providing greater access to value chain finance; building on existing collaborations with the international community’s bilateral and multinational development agencies to improve local infrastructure.
Some of the ways this can be done according the report for example, is “building on the extensive work that the Bank is already doing to finance power in Africa; and continue working closely with governments and regulators to ensure a business environment that supports and encourages investment, innovation and entrepreneurship.”
The report reinforces the vital role banks can play in supporting sustainable economic development, insisting that opportunities across the continent are extraordinarily exciting and the bank is committed to playing its part in realising Africa’s potential.
It draws on quantitative and qualitative assessments by examining Standard Chartered Bank’s direct and indirect impact in 13 of its 15 Sub-Saharan Africa markets (excluding South Africa and Mauritius) to answer questions around what the wider impact of Standard Chartered’s business is on Africa’s economies.
How the bank contributes to employment, personal incomes, business profits, and tax generation across the continent as a whole and how Standard Chartered continues to help the economies in Africa remain on a positive trajectory in the future.
In addition, it assesses Standard Chartered’s impact on Africa’s trade, deploying its global network spanning 68 markets, and as the only international bank with a major presence across both Africa and Asia.
The report also focuses on four countries – Nigeria, Zambia, Kenya and Ghana (markets representing over half Standard Chartered’s African revenues).
Commenting on the report, Mrs. Bola Adesola, chief executive officer of Standard Chartered Bank Nigeria, said: “In all of our markets, Standard Chartered is committed to supporting our clients and customers, creating value for our shareholders and making a broader contribution to society. We are proud of our history in Nigeria and are determined to uphold our promise to be “Here for good” in the markets in which we operate. This report demonstrates the powerful role that Standard Chartered can and does play across Africa in social and economic development, financing growth, trade and jobs.”
Co-author of the report Dr. Kim added: “A key message of the report is that it is very important for the Nigerian economy to become more ‘complex’ – more interwoven. This complexity will put the Nigerian economy on a more sustainable growth path. Standard Chartered, with its large international footprint, can play an important role in conjunction with the private and public sectors to spur sector linkages in Nigeria’s economy.’’
Standard Chartered Bank has been operating in Africa for more than 150 years and is present in 16 African countries and active in 36 countries across the continent.
Currently it serves more than one million retail customers, approximately 100,000 small and medium sized enterprises, and has well over 6,000 corporate client relationships in Sub-Saharan Africa, providing them with a comprehensive range of wholesale and consumer banking services.
The bank contributes to Sub-Saharan Africa’s development in a number of ways. Standard Chartered plays a vital role in financing cross-border trade and investment, while bringing much-needed innovation in financial services.
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
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