SG
Few banks can start the new year on such a positive note as Standard Chartered. The emerging market specialist, which in contrast to many rivals has continued to hire throughout the downturn, has recently been upgraded by Standard & Poor’s, becoming the only international bank to have been upgraded by all three rating agencies since the financial crisis started. StanChart now plans to use its strong balance sheet and established presence to expand further into sub-Saharan Africa in 2012.
“Within Africa we will hire in Nigeria, Kenya, South Africa, Botswana and Ghana,” says Lee Slater, group head of talent acquisition and international mobility. “Our ability to sustain momentum during and following the financial crisis was not as a result of a change in direction, rather the result of a consistent strategy to lead the way in Asia, Africa and the Middle East. Our success in recent years is as a result of a clear strategy and tight cost discipline.”
The bank, which has over 7,000 staff in sixteen African countries, plans for example to double its Nigerian network to 75 branches by the end of the year. “Nigeria and Ghana in particular will be critical growth engines for the future, areas we absolutely can’t afford to neglect,” says Diana Layfield, Africa Ceo. StanChart is also planning to apply for a full banking licence in Angola and is “broadly optimistic about the prospects in Zimbabwe” despite the difficult political situation there. It recently appointed Ralph Watungwa, who successfully led the bank’s growth in Zambia, as head of Zimbabwe operations.
Expansion in Africa will be mainly ‘from the ground up’, but StanChart might also choose the acquisition route to growth. “We always look at opportunities available in our footprint,” says Layfield. “We absolutely would not rule out acquisitions in Africa. The challenge for us is the price has to be right and the timing has to be right and the opportunity has to be right.” A Ghanaian bank is likely to be the first target.
According to Layfield, though, the bank has little interest in entering the South African retail space and no plans for a big-ticket acquisition in the country. “Within South Africa we would look to expand our corporate business,” she says. “We have no aspirations to build a retail presence at the moment, the sector is already well served.” The bank’s long-standing South Africa Ceo, Ebenezer Essoka, has just been promoted Area General Manager for Southern Africa.
It’s also worth making the most of the demand in global b-schools for African or South African candidates. So much so that top 5 global schools like INSEAD are offering full scholarships for applicants from SA. They’re touring in Jo’berg: http://mba.insead.edu/form/attend_event.cfm?event_id=AHKA-7Y769X and Lagos for their MBA and EMBA programmes.