Standard
Bank Group operating as CfC Stanbic Bank in Kenya has expanded its already
extensive East African footprint with the official opening of a representative
office in Ethiopia. This means that Standard Bank, which is Africa’s largest
bank by assets, has a continent-wide footprint in 20 African countries.
The
representative office, which is based in Addis Ababa, was opened by Standard
Bank Chief Executive, Ben Kruger. It will act as an entry point for clients
seeking to invest in Ethiopia and will be administered by Standard Bank’s head
office in South Africa
The
growth potential for the East African region continues to attract significant
investment. With an established presence across four of the key markets in the
region, namely Kenya, South Sudan, Tanzania and Uganda, the opening of the
Ethiopian representative office is indicative of the group’s commitment to the
region.
“As a
bank rooted in Africa, our vision is to build a leading financial institution
that delivers superior products and services for all our customers. We are able
to leverage our strong position on the continent, our strategic partnership
with the Industrial and Commercial Bank of China (ICBC), and our sector
expertise in natural resources, to facilitate capital investment in support of
growth and to connect African markets to each other,” says Mr. Kruger.
Ethiopia’s
remarkable growth has been underpinned by high public investment and a growing
consumer base. The country boasts the second largest population on the
continent, behind Nigeria, at around 90 million. GDP growth has averaged about
10.0% over the past 5 years. Heavy public investment in agriculture, energy and
transport are likely to continue to support growth in the medium term as the
government ramps up its productive sectors.
The
energy sector is also set to boom with power projects at various stages of
development, and with Ethiopia emerging as a major power hub in the region,
energy exports will likely become a major foreign exchange earner in the near
future. Industry and manufacturing, a top priority for Ethiopia, are likely to
start making a more significant contribution in the country’s GDP going forward
which will largely be facilitated by the increase electricity supply.
“As
such, establishing a presence in Ethiopia is in recognition of the increasing
interest by investors and our clients, in the country’s economic growth.
Standard Bank will be well-positioned to take advantage of the cross-sectorial
investment opportunities both in Ethiopia and the region as a whole. Our experience in East African markets will
benefit all our clients by providing them with insights into how best to
capitalise on their investments in the region,” said Mr Kruger.
“We believe that we are uniquely positioned to
support the government’s plans in attracting more investments into the country
through our client base on the continent and facilitating the financing on
their behalf,” said Ms Taitu Wondwosen, Head of Coverage Ethiopia.
