Standard Bank: Corporate and Investment Banking in Côte d’Ivoire

Interview with Hervé Boyer, Country Manager of Standard Bank Côte d’Ivoire

Can you give us your evaluation of the banking sector in Côte d’Ivoire? You have recently opened your representative office here and you have a grounded knowledge in African economies.

The decision to invest in West Francophone Africa was not made overnight. We developed a clear strategy. It is a corporate and investment banking strategy with a clear focus on our existing clients. We are also focusing on infrastructure, mining, oil and gas, energy and agri projects. We do not have for the time being a retail or SME focus.

What were your expectations of the banking sector when you first arrived in Côte d’Ivoire? What is your evaluation now of the sector?

Our focus was and is clear: corporate and investment banking. Few banks have this expertise locally. Their expertise comes from other centres such as Europe, US or Asia. Very few banks have a local CIB expertise. That is what will differentiate us.

Can you tell us a about the work you do and the role you have in Côte d’Ivoire?

I would like to explain Standard Bank’s strategy. It has been announced that Standard Bank is in the middle of selling its international global markets operations to its Chinese partner ICBC. Our focus has changed from emerging markets to Africa. Our slogan is “They call it Africa, we call it Home”…

I was difficult at the time to say that Standard Bank is the leading bank in Africa without a presence in francophone Africa. In the month of June 2013, the Board of Standard Bank gave us their authorisation to set up a representative office in West francophone Africa. We chose Côte d’Ivoire as the hub for the region. We are covering the eight countries that form WAEMU from Abidjan.

Could you give us some examples of the kind of projects you work on? How do you support your clients?

Mining projects in Burkina Faso, Mali and Côte d’Ivoire, energy projects in the WAEMU, infrastructure projects in Togo and oil and gas in Côte d’Ivoire, etc…

I participated in the conference “Invest in Côte d’Ivoire” and one of my greatest wishes is to see more transformation industries. Less than 5% of the production is transformed locally. The transformation to more value added products will be very positive for the region and especially Côte d’Ivoire.

However you can´t take action directly in this regard, can you?

There are a certain number of projects that Standard Bank is working on in the agri sector. The workforce exists locally, it needs to be trained and be given the right tools. As a bank, our role is to help our clients/partners to transform their industry to more value added products that can be distributed around the world.

Are your clients mostly local or foreign?

We are first targeting our existing clients. Our clients are mostly foreign for the time being.

We are a small office for now and we have a very focused approach. We aim to support our clients with a number of projects for which we have the expertise and that we can deliver. I think a big mistake is to make promises that you ca’ keep.

Can you share with us your long-term strategy?

We began with a representation office. This office was opened in January this year. We legally have two years to transform this representation office into a branch of Standard Bank. Between now and December of 2015 we will determine the way forward.

We will need to consider if we are going to grow organically or via an acquisition and what services will be offered.

We are currently elaborating a strategy for the region which will be presented to our Board next year. We believe in Côte d’Ivoire and in the region. Standard Bank’s timing to come to the region was great.

How do you perceive the development of Côte d’Ivoire? What is your evaluation of the economy here?

This is one of the leading countries in Africa in terms of growth. The growth rate in 2013 was 9% and this should stay like that for some time. This obviously attracted us but also excites us…

Positive track record, strong economic performance, improved publicfinance, moderate deficit and stabilisation in the political environment are all good news.

Could you tell us a bit more about the development of Standard Bank Group in Africa? What is the group’s philosophy?

Standard Bank is refocusing its strategy. Going forward, Standard Bank is going to focus on Africa. Africa is our home; it is our calling card. We also have a very strong partner called ICBC. This partnership came into action in 2006, when ICBC acquired 20% of our capital. We have a very strong team. The interaction between Africa and China is very robust.

Standard Bank cannot claim to be the largest bank in Africa if Standard Bank does not have a presence in francophone Africa. That is why in June, we decided to go ahead with this implementation which was approved by the SARB and the local authorities.

As of right now, we are just a representative office. The plan is to transform this office into a fully-fledged branch in the next two years.

You specialise in corporate investment banking; what do you bring to this market and to your clients?

We bring our local African expertise. We know Africa very well. Africa is our calling card. We have a strong experience in corporate and investment banking and have operations in 20 countries. We know this region even if we did not have a physical presence. We have financed projects in countries such as Côte d’Ivoire, Burkina Faso, Benin, Mali, Sierra Leon… We moved from a suitcase banking approach to a real presence with people who understand the dynamics of the market.

Is there anything that you would like to add?

I am very positive about the future of the region.We have been very well received. It was easy, thanks to the CEPICI, to open an office. Much easier in comparison to other countries where we have set up an operation. There is great workforce available and well trained. The demand is there, it is up to us to make it a success…

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