Standard Bank bets big on Africa’s new millionaire hotspot
Standard Bank is expanding its product offerings in Mauritius, which is set to see a large increase in its millionaire population.
South Africa’s biggest bank in terms of assets under management said that it will expand its Mauritius offshore offering to servicing family-owned businesses and local corporates across sub-Saharan Africa who want to use the Indian Ocean island as a gateway for trade and investment.
The bank is building on its long-standing presence on the island. Since 2001, its Corporate and Investment Banking (CIB) arm has focused on global multinationals and large listed companies.
Through the introduction of a dedicated Business and Commercial Banking (BCB) offering, family-owned businesses will also be able to access all the benefits that Mauritius offers.
“Our clients will be able to enjoy the full benefits of operating from an International Finance Centre that facilitates international activity and operates under a strong regulatory framework,” said Tunde Macaulay, Head of Africa Regions and Offshore, for Standard Bank Business and Commercial Banking.
“Mauritius also offers the advantage of political and economic stability, a factor that has helped establish it as a business and cross-border investment hub of choice for Africa.”
“The island’s location, a few flying hours from major centres on the African continent, and visa-free access for many countries have added to its status.”
“For large family businesses and local corporations that we bank throughout our 20 markets across Africa, operating through the Mauritian IFC means the opening of investment and trading opportunities that capitalise on its business-friendly environment, solid infrastructure, a skilled workforce, competitive tax rates and a well-regulated banking sector.”
The group said that opening Mauritius to BCB clients is a natural extension of the facilities and services that Standard Bank already offers through its Jersey and Isle of Man operations, which already serve many African clients.
Mauritius also has the strategic positioning between India and China, two of the largest trading centres for African businesses.
“Mauritius’s stable macroeconomic environment stands in contrast to Africa’s present macroeconomic challenges,” added Macaulay.
“Significant currency devaluations, inflationary pressures and liquidity challenges have been experienced in several sub-Saharan countries, negatively affecting the operations of our clients in a range of sectors.”
“For African businesses, Mauritius is, therefore, a place for protecting wealth and working capital against the present challenges being faced in some African markets.”
Mauritius also has the following benefits:
- Companies procuring materials and goods from international markets tend to get more favourable terms if procurement companies are based in stable, recognised IFC jurisdictions.
- Mauritius enables the setting up of procurement structures and companies, allowing African businesses that import large quantities of materials from around the world to do so cost-effectively.
- Mauritius offers companies the ability to centralise treasury functions and consolidate shareholding structures for businesses operating in multiple jurisdictions across Africa, allowing funds to be pooled and disbursed from a single location.
New wealth hotspot
The 2024 Africa Wealth Report by Henley & Partners and New World Wealth said that Africa’s millionaire population will surge 65% over the next decade, with Mauritius’s millionaire population set to grow by 95%.
Lance Lawson, Business Development Consultant at Sovereign Group, said that Mauritius is emerging as a wealth hub due partly to its strategic policies that favour foreign investment.
The island nation also has numerous residency by-investment opportunities, such as the ability to buy residency with a minumum capital investment of $375,000, which provides the right to live, work, and retire on the island.
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