Africa poised for growth rebound

Standard Bank's Africa Regions CEO, Yinka Sanni, recently discussed the performance and growth prospects of the bank's rest of Africa business on CNBC Africa. Sanni highlighted that the region contributed 41% to the group's headline earnings in the first half of the year, despite challenges posed by currency depreciations when translated into South African rand. He mentioned that in constant currency terms, earnings would have been 17% higher. Sanni emphasized that the various currencies in their portfolio, including those from countries like Angola, Nigeria, Kenya, and Zambia, faced pressures due to disruptions in the supply chains caused by the war between Ukraine and Russia. However, some currencies have shown signs of recovery. He specifically pointed out Nigeria as one of the most impacted with a significant devaluation of the Naira, but he expressed optimism that it has bottomed out, expecting positive reflections in the results in the second half of the year. The CEO also explained Standard Bank's approach to managing currency risk, mentioning their dedicated global markets team to handle such challenges. As for growth opportunities, Sanni discussed the exciting developments in Nigeria and Ethiopia, praising the reforms undertaken by the governments of both countries. He highlighted the potential for growth in East Africa, noting the region's fast-paced economic expansion and the bank's presence in four countries—Kenya, South Sudan, Tanzania, and Uganda. Sanni also touched on the bank's portfolio in other African regions, such as Mozambique, Zambia, the DRC, and Angola, mentioning that despite challenges in some countries, the overall portfolio has shown positive results. The CEO further outlined the growth strategy of Standard Bank, focused on leading energy transition, becoming the leading private bank across Africa, and emphasizing the East African market. He disclosed plans to expand the bank's presence to North Africa by establishing a representative office in Egypt by the end of the year. Additionally, Sanni discussed the bank's offshore portfolio in the Isle of Man and Jersey, serving private and business clients from Africa and Europe. Overall, Standard Bank remains optimistic about the growth prospects in the African region, aiming to contribute positively to the bank's overall targets and revenue goals.