Ecobank Nedbank Alliance seek to unlock opportunities in Africa
Africa is one of the fastest growing regions in the world. This is thanks to an improving macro-economic environment, ongoing regulatory reform and strong demographics, including an emerging middle class with growing disposable income. Yet it is a region that tends to be misunderstood or overlooked by international businesses and investors alike.
Speaking on the eve of the Ecobank Nedbank Alliance's annual African Investment Conference, Albert Essien, deputy group chief executive and group head of corporate and investment banking of Ecobank, explained that, while unlocking Africa's many opportunities is not without its share of unique challenges, these can be overcome through a combination of in-depth local knowledge and relevant business and financial acumen.
An enabler of trade and investment
"Corporations, governments and financial institutions, both in Africa and beyond, are increasingly looking to the Ecobank Nedbank Alliance to provide such insights and capabilities," Essien said. "We leverage our unparalleled on-the-ground footprint and expertise to provide our customers with a seamless, one-stop experience. As a result, the Alliance is increasingly being seen as an effective enabler and facilitator of pan-African trade and investment."
His positive sentiments regarding Africa's potential are echoed by Terence Sibiya, executive head of coverage and origination at Nedbank Capital. "Globally, few other regions offer the potential for business growth and investment returns that can be found throughout Africa, but many organisations and investors - even those with existing ties to the continent - often find it daunting to do business here."
Infrastructural development a hindrance
He explained that this reticence is most often the result of a combination of factors. "A lack of infrastructural development is still the most obvious hindrance, but in many ways the combination of cultural differences, language barriers and the financial contagion of bad news can be just as crippling as physical constraints to the growth and development of business across the continent."
According to Smit Crouse, managing executive at Nedbank Rest of Africa, Investments Alliances and Strategy, the Alliance's unique business model, which combines convenient access to transactional banking with localised strategic advisory services, is proving highly effective in helping businesses to overcome these challenges and achieve success in Africa.
"Our one bank experience offers our clients the comfort and convenience of a single point of access for their banking needs virtually wherever they are in Africa, while our LocalKnowledgeAfrica advisory service gives them the local market insights needed to establish and grow their business in a sustainable manner," Crouse said.
Perceived language barrier
He also highlighted the Alliance's potential to promote the far broader spread of development and investment throughout Africa, particularly in countries with perceived language barriers. "Many of Africa's Francophone regions have tended to be overlooked as business or investment opportunities because of the perceived language barrier, but by working with the Alliance, our clients gain access not only to flexible banking but also to experienced business experts who both speak the language and have a fundamental understanding of the way in which local industries and businesses work."
He also sees clients' existing banking relationships with the Alliance as a key enabler of business expansion outside of their home markets. "Whereas new start-ups or expansions in Africa could face difficulties accessing the initial finance needed to establish a presence, the process can be far easier for existing clients of Nedbank or Ecobank who are looking to expand in other African countries," he said. "Having ready access to reliable transactional banking facilities can also significantly ease the process of setting up a business."
