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‘Nigeria is big business for us’

By on April 11, 2011

Standard Bank, South Africa’s largest bank by assets and earnings, has said ongoing elections in Nigeria will not affect its willingness to do business with the country. The bank’s director and head, Agricultural Banking, will be moving to Nigeria to oversee its operations in the sector from next month.

“Nigeria is currently our biggest investment at the Standard Bank Group, outside of South Africa. We keep a close eye on elections as with any African country, but the reality in Africa is business goes on, with or without elections. I am actually relocating office in Nigeria in May due of course to the size of the opportunity from an agricultural point of view,” Jacques Taylor told NEXT at the weekend.

Speaking at a media forum on agricultural banking organised by the bank in Johannesburg, South Africa, he said the bank expects agriculture to contribute up to 40% of its asset growth in Africa in 2011.

Priority countries

South Africa’s Standard Bank Group acquired a majority stake in Nigeria’s IBTC Chartered through a tender offer in August 2007 to become Stanbic IBTC Bank Limited.

Nigeria is one of six priority countries that Standard Bank sees as having the biggest opportunities in the agricultural sector in the short term. The others are Ghana, Kenya, Namibia, Uganda, and Zambia.

“When we identify a country and try to access the market, the three key things are natural resources, quality of infrastructure, and a stable macroeconomic and political environment, because that will result in a stable exchange rate,” Mr. Taylor added.

The group gave Nigeria a political risk rating of 2.2 on a scale of 5, second only to Kenya, which has a risk rating of 2.1

“We are serious about that business, with a lot of support coming from the Central Bank of Nigeria,” Mr. Taylor said.

Last year, Stanbic IBTC Chartered grew at the rate of two branches per week in Nigeria.

“We have about 60 branches; we could be aiming for close to 300. Nigeria is a big business for us,” Mr. Taylor concluded.

source : 234next