KEY POINTS
- Standard Bank opens Mauritius offshore banking to African SMEs.
- Bank expands its Business and Commercial Banking (BCB) services.
- BCB contributes 21 percent of Standard Bank’s earnings.
Africa’s largest bank by assets, Standard Bank, has announced it will now offer offshore banking services to small and mid-sized businesses operating across the continent. The move comes as part of the bank’s effort to provide more opportunities to companies dealing with economic challenges, including currency devaluations and limited access to capital.
Expanding opportunities for SMEs
Standard Bank, which has had a strong presence in Mauritius since 2001 through its Corporate and Investment Banking (CIB) division, is now extending its services to smaller businesses. According to Reuters, the new initiative is aimed at opening up Mauritius’ business-friendly environment to a wider range of African companies.
Tunde Macaulay, head of Africa Regions and Offshore for Standard Bank’s Business and Commercial Banking (BCB), explained that Mauritius offers several advantages for companies seeking offshore banking.
“Operating through the Mauritian International Finance Centre means the opening of investment and trading opportunities that capitalize on its business-friendly environment, solid infrastructure, a skilled workforce, competitive tax rates, and a well-regulated banking sector,” Macaulay said at the launch event.
The BCB division is the fastest-growing segment of Standard Bank’s portfolio, contributing 21 percent to the group’s earnings, according to CEO Sim Tshabalala. By expanding into Mauritius, the bank aims to offer businesses across Africa greater access to offshore banking solutions.
Strategic focus on Africa
Standard Bank’s expansion into Mauritius aligns with its broader strategy of focusing on growth opportunities across Africa. With assets exceeding $170 billion and operations in over 20 countries, the bank has set its sights on becoming the leading business bank in Sub-Saharan Africa.
The bank is also banking on the African Continental Free Trade Agreement (AfCFTA) to enhance intra-African trade and open new markets for its clients.
At the launch event, Tshabalala emphasized Standard Bank’s commitment to African businesses. “We want to be the dominant business bank in Sub-Saharan Africa,” Tshabalala said, highlighting the bank’s long-term strategy to support small to mid-sized businesses and help them access new opportunities through Mauritius’ well-established financial sector.
Standard Bank’s decision to expand into Mauritius is strategic, given the island’s reputation as one of the easiest places to do business in Sub-Saharan Africa.
The Mauritian International Finance Centre offers a stable regulatory environment and competitive tax rates, making it an attractive option for businesses seeking to diversify their operations and manage economic risks in their home markets.
