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Standard Chartered invests $2.1bn in Nigeria

By BusinessNews Staff on February 23, 2014

Standard Chartered Bank has invested $2.1bn in the country, according to a report released by the financial institution.

The report measures the social and economic impact of its operations in Africa.

The research was authored by Professor Ethan Kapstein, who is currently a visiting fellow at the Centre for Global Development in Washington DC; and Dr. René Kim, founding partner of environment, social and governance consultancy firm, Steward Redqueen.

According to the study, the bank supports some 1.9 million jobs in sub-Saharan Africa, equivalent to 0.6 per cent of the region’s total workforce.

The study further states, “The Standard Chartered contributes $10.7bn to sub-Saharan Africa’s economy, equivalent to 1.2 per cent of the region’s Gross Domestic Product; supports sub-Saharan trade worth $7.2bn, equivalent to 1.2 per cent of the region’s total international trade; supports $1.8bn of tax payments to governments in sub-Saharan Africa, equivalent to 1.1 per cent of total receipts of governments in the region.”

The study also showed that the social and economic impact of its operations in Ghana, Kenya, Nigeria and Zambia.

The report reads, “Ghana contributes $1.4bn of value to Ghana’s economy, equivalent to 3.4 per cent of the GDP; 283,000 jobs are related to the bank’s activity, representing 2.7 per cent of Ghana’s labour force.

“Kenya contributes $2bn of value to Kenya’s economy, equivalent to 5.5 per cent of the GDP; 323,000 jobs are related to the bank’s activity, representing 2.9 per cent of Kenya’s labour force.

“Nigeria contributes $2.1bn of value to Nigeria’s economy, equivalent to 0.8 per cent of the GDP; 396,000 jobs are related to the bank’s activities, representing 0.4 per cent of Nigeria’s labour force.

“Zambia contributes $953m of value to Zambia’s economy, equivalent to 4.6 per cent of the GDP; 147,000 jobs are related to the bank’s activities, representing 2.7 per cent of Zambia’s labour force.”

The report, however, recommended an increasing engagement with Small and Medium Scale Enterprises by providing greater access to supply chain financing.

The statement quoted the Group Chief Executive Officer, Standard Chartered, Mr. Peter Sands, as saying, “As this report shows, banks can play a vital role in supporting sustainable economic development in the communities where they operate.

“I am proud that Standard Chartered has contributed to Africa’s development over many years and we will continue to focus on supporting businesses’ growth — which creates jobs — improving the people’s lives and encouraging trade and the creation of wealth. The opportunities across the continent are extraordinarily exciting and we are committed to playing our part in realising Africa’s potential.”

[Punch]

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