Standard Bank - CIB Pitch Book - PPT 2007

Report
Private and confidential
Doing Business in Africa
Seminário África Negócios
Prepared by Standard Bank Brazil
August 2014
Contents
1
Section
Page
1.
Standard Bank Group
2
2.
Africa Development Overview
7
3.
How SB Support your Business
9
Annex: Doing Business in an African Country
12
2
1. Standard Bank Group
Standard Bank Group
3
Overview

Universal bank

Established in 1862

Africa’s top bank (by Tier 1 capital, assets and profits) in the annual
ranking of 1,000 banks globally – ranked 109 and only African bank in
top 130 (2013) – The Banker

Headquartered in Johannesburg, South Africa

ICBC, the largest bank in China, is a 20.1% shareholder in Standard
Bank
– ICBC is currently ranked No.1 in The Banker’s annual ranking
of the top 1,000 banks globally (2013)

More than 1,250 branches across the continent, supported by over
8,650 ATMs

> 48 000 employees

Representation in major financial centres, including London, New
York, Beijing and Sao Paolo
Standard Bank footprint in Africa
4
Local on-the-ground expertise supported by a strong retail presence
Standard
Bank
branches*
ATMs
South Africa
726
7,502
✔
✔
Angola
24
28
✔
✔
Botswana
11
25
✔
✔
DRC
5
-
✔
Ghana
26
49
✔
✔
✔
✔
Kenya
22
40
✔
✔
✔
✔
Lesotho
17
69
✔
✔
Malawi
25
57
✔
✔
✔
✔
Mauritius
1
1
✔
Private
clients
✔
✔
Mozambique
42
67
✔
✔
✔
✔
Namibia
47
155
✔
✔
✔
✔
Nigeria
179
311
✔
✔
✔
✔
South Sudan
1
1
✔
✔
Swaziland
10
49
✔
✔
✔
✔
Tanzania
11
27
✔
✔
✔
✔
Country
Nigeria
Ivory
Coast Ghana
South
Sudan
Ethiopia
**
Uganda
Kenya
DRC
Tanzania
Angola
Malawi
Zambia
Zimbabwe
Namibia
Standard Bank
Mozambique
Botswana
Stanbic Bank
Stanbic IBTC Bank
Mauritius
Swaziland
South
Africa
Corporate Retail
Investor Investment
Banking Banking Services Banking
✔
✔
✔
✔
✔
✔
✔
✔
Uganda
91
176
✔
✔
✔
✔
CFC Stanbic Bank
Zambia
22
66
✔
✔
✔
✔
Representative Office
Zimbabwe
18
27
✔
✔
✔
✔
1,278
8,650
✔
✔
✔
✔
Lesotho
TOTAL
* Includes service centres and access banking centres
** To be opened until the end of 2014
Financial highlights
5
Largest African banking group by assets
Financial overview of the Standard Bank Group – full year results for period ending December 2013
FY13
Change %
FY12
Headline earnings (ZARm)
17,194
15
14,918
Headline earnings per share (HEPS) (cents)
1,064.9
14
934.9
533
17
455
8,127
14
7,136
FY13 = Jan – Dec 2013
FY12 = Jan – Dec 2012
Dividend per share (cents)
Net asset value per share (cents)
Return on equity (%)
14.1
14.0
Credit loss ratio (%)
1.04
1.08
Cost-to-income ratio (%)
58.5
58.9
13.2%
11.2
Tier I capital adequacy ratio (%)
Total assets ( ZAR billion)
1,694
9
1,548
Structured to put your needs first
Corporate &
Investment Banking
Standard Bank’s
Corporate and
Investment Banking
division offers you a
robust solution
through specialist
teams who provide
you with funding,
manage your day-today financial risks
and facilitate your
transactions across
Africa via market
leading electronic
platforms.
6
Access to a universal bank
Our Client
Relationship Manager
Corporate and Investment Banking Coverage
Single point of entry across products, geographies, industries and sectors
Transactional Products
& Services
Investment
Banking

Payments

Advisory

Collections

Debt capital markets

Reconciliation solutions

Project finance

Liquidity management

Securitisation

Guarantees

Structured solutions

Letters of credit


Investor services
(custody)
Structured trade &
commodity finance
Global
Markets
Real Estate & Principal
investment
management
■ Foreign exchange
■ Property finance
■ Commodities
■ Investments in real
estate
■ Credit
■ Interest rates (including
Money Markets)
■ Equities
■ Bespoke property
solutions in South Africa
and selected African
markets
■ Principal investment
management
Corporate & Investment Banking (CIB)
Personal & Business Banking
Corporate & Investment Banking (CIB)
Standard Bank Group
Liberty
7
2. Africa Development Overview
Africa Development: Current Status & Outlook
Africa Today
8
Africa Tomorrow
US$ 2.3
trillion
Africa’s collective GDP in 2013
US$ 3.5
trillion
Africa’s collective GDP in 2019
US$ 1.0
trillion
Africa’s combined consumer spending in
2008
US$ 2.1
trillion
Africa’s combined consumer spending in
2020
Sub-Saharan Africa Today
Sub-Saharan Africa Tomorrow
USD 680
billion
Consumer Expenditure in 2008
USD 1.0
trillion
Consumer Expenditure in 2020
856 million
consumers
Consumer Market Size in 2010
1.3 billion
consumers
Consumer Market Size by 2030
30%
Poverty in SSA in 2008
20%
Poverty in SSA in 2020
40%
The portion of Africans living in cities by
2010 in SSA
60%
The portion of Africans living in cities by
2050 in SSA
Strong GDP Growth Over Last 10 Years
Sub-Saharan Africa Consumer Expenditure
(Gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP)
(USD Billion)
12.44%
9.79%
7.65%
6.31%
5.84%
5.70%
3.88%
China
India
Sub-Saharan
Africa
Russia
Brazil
South Africa
United
States
1990 - 2000
2001 - 2010
2011 - 2020
CAGR: 3.2%
CAGR: 3.9%
CAGR: 4.3%
1,000
900
800
700
600
500
400
300
200
100
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Source: The Dynamic African Consumer Market Growth Opportunities in Sub-Saharan Africa, International Monetary Fund, “Lions on the move: The
progress and potential of African Economies (McKinsey Global Institute)
9
3. How SB Supports your Business
Treasury Products Delivery into Africa
10
Providing a service across Africa
Global Markets Africa
builds basket
solutions using all
asset / risk classes, as
well as structured
products to meet your
needs


Global Markets (treasury products) provides financial risk management across the continent:
̶
Full range of onshore services in 18 countries (light blue on map)
̶
Settlement in an additional 22 countries (dark blue on map)
̶
Ability to provide foreign exchange pricing in 40 of the 54 countries
Supported by:
̶
Foreign
Exchange
Foreign Exchange
Commodities
Commodities
Our on-the-ground experts operate 30 dealing rooms across the globe, of which 18 are based in Africa,
providing specialist knowledge of their local markets
Spots, forwards, options and non-deliverable forwards
Precious and base metals, energy, carbon, coal and cobalt
(physical trades and derivatives)
Credit
Credit
To facilitate the increasing appetite for African risk, Standard
Bank underwrites sovereign and corporate Eurobonds as well
as corporate bonds and credit-linked notes.
Interest Rates
Interest
Rates
Repos, bonds, forward rate agreements and interest rate and
cross-currency swaps are available.
Our money markets desk gives you access to commercial
paper and treasury bills.
Equities
Equities
Africa cash equities are offered through brokerage houses in
Nigeria, South Africa and Kenya, while London provides you
access to multiple African equity markets with structured
client solutions.
Key
Full range of services
Settlement
IB and TPS Delivery Into Africa
TPS services across Africa
Account
Opening
Support to
Exporter
to Africa






Compliance matters – i.e. Nigeria
Approvals of Credit Card limits – i.e. South Africa
Opening doors to the Brazilian company and speeding up relationship process – i.e. Zambia
Financing of the African importer
Discounting of exportation receivables
Utilization of the mechanism BNDES Exim Automático
IB services across Africa

Financial
Advisory in
Implementation
of Projects




Elaboration of the feasibility model of the project
Advisory for financial partnerships in Equity/ Debt
Meetings with government and correlated parties
List of the licenses and permissions required for project implementation
Development of project phases timetable
Financing to
Governmental
Entities


Agreements between Brazilian companies and government entities to develop public works
(bridges, roads, airports)
Utilization of specific export programs – BNDES PROEX, and ECA agencies
M&A/ ECM

Connecting clients to expert M&A & ECM teams throughout Africa
11
12
Annex.
Doing Business in an African Country
Current Account Transactions – Documentation required (i.e. Mozambique)
Inflowing Export Revenues
Outflowing Imports Payments

Current account transaction, in general, do not require
pre-authorization

Current account transaction, in general, do not require
pre-authorization

Commercial invoice in accordance
International Chamber of Commerce
the

Documento Único (DU) issued by the competent
customs entity.

Transportation documentation in accordance with the
International Chamber of Commerce

Commercial invoice

Transportation documentation, except in the case of
advance payment (pre-payment)

Subject to electronic registration with the Central Bank


with
Document named Documento Único (DU) issued by
the competent customs entity
Subject to electronic registration with the Central Bank
Considerations

Repatriation must occur within 90 days of the relevant
transaction subject to permission to retain up to 50% of
this amount in a domestic foreign-currencydenominated bank account in such entity's name

Domestic entities may also use the remaining export
proceeds to pay foreign currency debts contracted with
the local banking system (since foreign currency
denominated accounts are permitted in Mozambique)
13
Doing Business (i.e. Mozambique)
Opening of Resident Bank Account
14
Opening of Non-Resident Accounts

Standard Bank Forms
Corporate

Customer letter requesting opening of account;

Standard Bank Forms

Residential address confirmation for all signatories

Letter from client requesting to open an account

Articles of Association published in the Official Gazette
(Boletim da República) or a notarised copy

Letter from client confirming the residential address of
all the signatories on the account

Certificate of Incorporation validity

Articles of the Association or Company’s registration
of the country of origin

Business License


Copies of Passport, DIRE, ID for Mozambican
Nationals of all the signatories on the account
Copies of Passport of all the signatories on the
account

1 passport Photo for each signatory

Board Resolution or Power of Attorney granting power
to the signatories of the account

Board Resolution or Power of Attorney granting power
to the signatories of the account

NUIT - Tax number


Utility Bill evidencing company’s residential address
(TDM, TV Cabo, EDM)
Reference letter from client´s bank, sent via a SWIFT
message

One passport photo of each signatory on the account

Letter from Supervisory Ministry authorizing the client to
operate in Mozambique
Starting a Business (i.e. Mozambique)
15
Exchange Control Regulations
Establishing a Business in Mozambique


Call the Investment Promotion Centre – CPI This
entity holds the mandate to promote and facilitate
FDI, operating as a “one-stop-shop”
Useful to consider using a local consultant (E&Y,
KPMG, Sal Consultoria, BDO)
Trading

Non-resident accounts are allowed to receive and make
transfers abroad with no restrictions

For residents’ accounts, Central Bank approval is
required for transfers abroad, purchase of foreign
notes and coins, traveller’s cheques and credit cards
where the amount exceeds the value of US$5,000

Payment of services shall be made only upon
confirmation by the beneficiaries that such services
have been provided

Payments abroad related to commodity imports will not
be made without presentation of documents verifying
the physical delivery of such commodities into
Mozambique
Procedures for a Company registration

Reserve the proposed company name at the
Conservatory of Legal Entities’ Registration

Prepare company Articles of Association

Open a bank account to receive share capital.
Standard Bank can provisionally open such an
account in USD.

The minimum amount for investment is fixed at
US$50,000 in case of a foreign investment

Double taxation treaties apply to funds originating
from Portugal, Mauritius, Italy and the United Arab
Emirates
Advance payment of goods is permitted under certain
terms and conditions; and clients shall present final
documentation within 90 days from payment

Payment by means of Bank Drafts is not allowed

FX trading must be transacted with authorised
Mozambican banks, which act as agents of the Central
Bank for purposes of FX Law Regulations


Formalise the company registration at
Conservatory of Legal Entities’ Registration
the

Publish Articles of Association in Official Gazette

Obtain tax registration number (NUIT) and any
appropriate business operating licenses
Overview of FX Law Regulations (i.e. Mozambique)
The FX Law Regulations contain prescriptive rules

Mozambican FX Law Regulations contain prescriptive rules for nearly every conceivable current or capital account
transaction, generally do not require pre-authorization for normal current account transactions or foreign investment in
quoted securities listed on the local stock exchange.

All FX transactions are subject to (generally electronic) registration with the Central Bank.

Capital account transactions do require prior authorization, and include inter alia foreign direct investment capital
contributions, shareholder loans, and foreign loans or guarantees.

Similar to requirements of the Brazilian Central Bank, all resident entities in Mozambique are required to make an
annual foreign assets declaration to facilitate calculation of the nation's net foreign investment position.

Also similar to Brazil, all resident entities in Mozambique are required to remit to the country and convert to local
currency all proceeds from the export of goods, services and investment. The difference to Brazil is that such
repatriation must occur within 90 days of the relevant transaction, subject to permission to retain up to 50% of this
amount in a domestic foreign-currency-denominated bank account in such entity's name. And since foreign currency
denominated accounts are permitted in Mozambique, domestic entities may also use export proceeds to pay foreign
currency debts contracted with the local banking system

Remittance of interest, dividends and capital gains from foreign direct or foreign portfolio investment does not require
prior authorization from the Central Bank, but is subject to documentary control for registration purposes by the
intermediating Mozambican bank, including inter alia proof of prior registration of the relevant investment, production of
audited financial accounts and shareholder assembly authorization where applicable, and payment of applicable taxes.

For transactions requiring Central Bank prior authorization, provided that adequate and complete documentation is
submitted, the Central Bank is required to respond within fifteen (15) days to these licensing requests.
16
Capital Account Transactions (Direct Investment) – Documentation required
17
(i.e. Mozambique)
Capital Contribution

Authorization request Form must to be filled, identifying
the counterparts and providing all deal details to the
Central Bank of Mozambique

Minutes of shareholders' meeting authorizing the
capital contribution
If necessary, Central Bank of Mozambique can require
additional information


Central Bank of Mozambique has up to 15 days to
grant the authorization, which is formalized by its
Authorization Bulletin

Capital contribution cannot be used for a different
purpose from the one declared in the authorization
request

Capital contribution is subject to registration at the
Central Bank of Mozambique, within 90 days of its
authorization or the capital inflow date

To request registration, there is another Form which
must be completed, providing the information stated in
the bordereau issued by investor’s bank (document that
proves the capital contribution)

The lack of registration in the period mentioned above
can cause the loss of right to outflow dividends or any
capital invested
Intercompany Loan

Filling the specific Form of Central
Mozambique, identifying the counterparts
Bank
of

Financials

Evidence of ownership or evidence of intercompany
relationship

Minutes of shareholders' meeting authorizing the loan

Loan agreement
Considerations:

Interest rates must not be equal or above the market
rates

Beneficiary should prove its capability to repay the loan
through the revenue generated by its business
Disclaimer
18
This presentation is provided for information purposes only on the express understanding that the information contained herein will be regarded as strictly confidential. It is not to be delivered
nor shall its contents be disclosed to anyone other than the entity to which it is being provided and its employees and shall not be reproduced or used, in whole or in part, for any purpose other
than for the consideration of the financing or transaction described herein, without the prior written consent of a member of the Standard Bank Group. The information contained in this
presentation does not purport to be complete and is subject to change. This is a commercial communication. This presentation may relate to derivative products and you should not deal in
such products unless you understand the nature and extent of your exposure to risk. The presentation does not include a personal recommendation and does not constitute an offer, or the
solicitation of an offer for the sale or purchase of any financial product, service, investment or security. The investments and strategies discussed here may not be suitable for all investors; if you
have any doubts you should consult your investment advisor. The investments discussed may fluctuate in price or value Whilst every care has been taken in preparing this presentation, no
member of the Standard Bank Group gives any representation, warranty or undertaking and accepts no responsibility or liability as to the accuracy, or completeness, of the information in this
presentation Past performance is not indicative of future results. For the avoidance of doubt, our duties and responsibilities shall not include tax advisory, legal, regulatory accounting or other
specialist or technical advice or services. You are to rely on your own independent appraisal of and investigations into all matters and things contemplated by this presentation. By accepting
this presentation, you agree to be bound by the foregoing limitations. Kindly note that this presentation does not represent an offer of funding since any facility to be granted in terms of this
presentation would be subject to the Standard Band Group obtaining the requisite internal and external approvals. Copyright 2010 Standard Bank Group. All rights reserved.
UK Residents
This presentation is not intended for the use of retail clients and must not be acted on or relied on by persons who are retail clients. Any investment or investment activity to which this
presentation relates is only available to persons other than retail clients and will be engaged in only with such persons. Standard Bank Plc (SB Plc) is authorised and regulated by the Financial
Services Authority (FSA), entered in the FSA’s register (register number 124823) and has approved this presentation for distribution in the UK only to persons other than retail clients. Persons
into whose possession this presentation comes are required by SB Plc to inform themselves about and to observe these restrictions. Telephone calls may be recorded for quality and regulatory
purposes. Standard Bank Plc, 20 Gresham Street, London, EC2V 7JE.
South African Residents
The Standard Bank of South Africa Limited (Reg.No.1962/000738/06) is regulated by the South African Reserve Bank and is an Authorised Financial Services Provider and Credit Provider.
United States Residents
In the US, Standard Bank Plc is acting through its agents, Standard Americas, Inc. and Standard New York Securities, Inc. Both are affiliates of Standard Bank Plc. Standard Americas, Inc is
registered as a commodity trading advisor and a commodity pool operator with the NFA. Standard New York Securities, Inc is a member of FINRA and SIPC. Neither are banks, regulated by
the United States Federal Reserve Board, nor insured by the FDIC.
Hong Kong Residents
Standard Bank Asia Limited is a fully licensed bank under the Banking Ordinance and is a registered institution under the Securities and Futures Ordinance in Hong Kong. Standard Securities
Asia Limited is a licensed corporation with the Securities and Futures Commission. Any investments and services contained or referred to in this presentation may not be suitable for you and it
is recommended that you consult an independent investment advisor if you are in doubt about such investments or investment services.
Dubai Residents
Standard Bank Plc, Dubai Branch, is regulated by the Dubai Financial Services Authority (‘DFSA) (register number F000028). Within the Dubai International Financial Centre, (‘DIFC’) the
financial products or services to which this marketing material relates will only be made available to Professional Clients, including a Market Counterparty, who meet the regulatory criteria of
being a Client.
Turkey Residents
Standard Unlu Menkul Degerler A.S. and Standard Unlu Portfoy Yonetimi A.S. are regulated by the Turkish Capital Markets Board “CMB”). According to CMB’s legislation, the information,
comments and recommendations contained in this presentation are not investment advisory services. Investment advisory services are provided under an investment advisory agreement
between a brokerage house, a portfolio management company, a bank that does not accept deposits or other capital markets professionals and the client. The comments and
recommendations contained in this presentation are based on the personal opinions of the authors. These opinions may not be appropriate for your financial situation and risk and return
preferences. For that reason, investment decisions relying solely on the information contained in this presentation may not meet your expectations.

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