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How international banking from Mauritius is transforming the economic landscape in Sub-Saharan Africa

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Mauritius

As global banks search for international projects spread across the world, it creates a window for banks based on African soil, such as those in Mauritius, to leverage upon opportunities emerging on the continent

PORT LOUIS, Mauritius, October 3, 2023/APO Group/ — 

Thavin Audit, Acting Head of International Banking, Bank One (https://International.BankOne.mu), talks about the key role that Mauritius-based banks are playing in Africa by structuring transactions through their international banking divisions to shape investor interest and channel funds towards impactful projects being run by Financial Institutions (FIs), Central Banks, Sovereigns, and top corporates alike.

An IMF working paper from April 2023 (https://apo-opa.info/3ZURjLb) estimates that Sub-Saharan Africa could find itself caught in the crossfire as geo-economic fragmentation sees fault lines between nations deepening. It postulates that, in a world fully split into two isolated trading blocs, Sub-Saharan Africa would be hit especially hard because it would lose access to a large share of current trade partners. The report soberingly notes that about half of the region’s value of international trade would be affected in a scenario where the world is split between trading blocs centred around the US & EU, and another around China.

The report, however, holds out a ray of hope when it notes that deepening domestic financial markets can broaden the sources of financing and lower the volatility associated with excessive reliance on foreign inflows. By upgrading domestic financial market infrastructure — including through digitalisation, transparency, and regulation, and expanding financial product diversity — Sub-Saharan African countries can expand financial inclusion, build a broader domestic investor base, and increase attractiveness to a larger set of external investors, it underlines.

It is here that we believe Mauritius has a pivotal role to play in supporting Sub-Saharan African economies to realise their true growth potential by using its expertise as an International Financial Centre (IFC) to extend sophisticated financial instruments to fund the continent’s economic development.

Why are banks from Mauritius going into Sub-Saharan Africa?

A case in point is the Sub-Saharan African strategy being pursued by Bank One for the last three years, coincidentally dating from just before the outbreak of COVID. I&M Group PLC, a Kenya-listed financial services group holding 50% of Bank One, having a strong presence in key East African markets such as Tanzania, Kenya, Rwanda, and Uganda combined with significant demographic changes underway in Sub-Saharan Africa, creates a compelling story to address rapidly expanding customer needs in the region. As such, one had to adopt the strategy of leveraging shareholder footprints in the region to provide solutions to both Mauritian and Sub-Saharan African businesses looking to grow.

For instance, while the slogan of Bank One is to bring “African solutions to African challenges”, looking at Sub-Saharan Africa, we know it isn’t an easy journey, as each country has its own characteristics, and these emerging economies are not rated as well as those from more advanced regions by credit agencies. However, if one looks at the space of Financial Institutions (FIs), Central Banks, Sovereigns, or top corporates where our shareholders sit – and scrutinise the individual entities within, it is clear that the probability of default for such large institutions tend to be very low due to the stringent regulations around the banking sector.

Hence, looking at the top-tier financial institutions in Africa, I believe that they are comparable to the highest-rated banks in the global arena. For instance, even if the Nigerian economy itself has unfortunately been downgraded to Caa1 from B3 by Moody’s as recently as February (https://apo-opa.info/3PEvFpI), its banks are still comparable to the best banks in the world.

As global banks search for international projects spread across the world, it creates a window for banks based on African soil, such as those in Mauritius, to leverage upon opportunities emerging on the continent. Indeed, Africa’s trade finance gap, estimated to be between US$80bn to US$120bn (https://apo-opa.info/3PIXnSb), has widened further over the past decade, exacerbated by the disruption to global supply chains caused by the COVID pandemic. In this space, it is only those that are too big to fail – large Financial Institutions, Sovereigns and large corporates – that have been able to make a difference to high-impact but long-gestation projects on the ground.

Lessons from this journey to support FIs into Sub-Saharan Africa

Post COVID, supply chains have been further disrupted, and demand is only now picking up. So, big banks based in key African economies need funding for their clients, and most Letters of Credit for trade finance range in tenor between 90 days to one year. That funding space gives banks in Mauritius an opportunity to leverage on those transactions efficiently. For instance, if banks in Nigeria or Tanzania have continuous trade finance requirements, Mauritius-based banks can fulfil those by putting together a small syndication.

In addition, Mauritian banks can leverage on speed of execution, project management skills and low turnaround time to deliver value to the Development Finance Institutions (DFIs) that are seeking to fund projects in Africa. Within the DFI funding the space, a key lesson for banks is that sustainable financing is the way forward. Operating from a Small Island Developing State that is heavily reliant on nature, one must be alert and on guard against extending finance to any project that is harmful to the environment. Addressing the climate crisis and reaching net zero emissions by 2050 is not going to be cheap – but to manage the increasing impacts of climate change on people’s lives, all countries including the sub-Saharan region will need funding and Banks have a crucial part to play.

As local banks in Mauritius, we might not have the biggest balance sheets, but we do have the knowledge and capacity to provide funding

It is also critical to attend the right events and conferences that create the opportunity to the network with right partners for the region. It is important for banks in Mauritius to invest time and effort into attending Global Trade Reviews and leadership platforms such as the Africa CEO Forum that provide the necessary space to build relationships, engage with various institutions including the regulators, and look for opportunities where Mauritius-based banks can create impact financing and position themselves as responsible and trusted funders. On this note, it is heartening to report that the AFSIC conference last year has proven very successful for the Mauritian delegation.

At Bank One, our key takeaway from AFSIC was creating a window to structure transactions by dealing with best-in-class insurance counterparties to diffuse risk on Africa-centric transactions – in a process termed ‘risk deficient’ through insurance support. A best practice for all banks eyeing Africa would then be to collaborate with Moody’s-rated insurance companies on the platform for diffusion of risk, give relief on capital allocation, and make the structured transaction less risky for global partners.

What is the impact being achieved on the ground?

Back in 2020 when COVID first broke out and Bank One was on its first-year trajectory of the long-term journey of its Sub-Saharan Africa strategy, we witnessed pressing issues around shortage of forex (FX) for central banks amid deep disruptions in supply chains. As such, we pioneered a currency swap for central banks. The solution is scalable, profitable, and replicable for other central banks in Sub-Saharan Africa facing FX seasonality challenges. Bank One invited other Mauritian banks to participate in the syndication to expand the space and resources within. Such currency swaps hold the potential to extend powerful assistance to the central banks of the concerned countries to come out of their forex shortages and build their currency reserves. Finally, the funds raised from the currency swaps made significant impact by helping the countries in question to finance food and medicines for their burgeoning populations.

Indeed, going beyond our immediate neighbours in East Africa, our experience has shown us that Mauritius-based banks are also well placed to support banks in West Africa, which are particularly struggling with setting the right frameworks in place and are not necessarily IFRS-compliant based on their adherence to French GAAP instead. Thus, with most banks in West Africa being Francophone, the fact that Mauritius is bilingual and has a legal framework that imbeds both English and French laws, gives us the opportunity and competence to reach out to markets in West Africa where we can help central banks structure their potential transactions.  

In the Non-Banking Financial Institutions (NBFI) space, there are leading microfinance outfits in Africa that are being supported by Mauritius-based banks, such as Bank One, as funders. Here again, the Mauritius IFC is making a clear contribution towards inclusive financing to improve conditions for low-income groups in Africa, be it for buying a small vehicle; investing in home-based agriculture for self-consumption; or improving standards of living for children. A case in point was the funding raised by Bank One for the Letshego Group, one of the leading microfinance institutions in Africa, for a syndication of US$60 million. The first tranche, valued at US$30 million, was successfully completed last year exclusively with a consortium of Mauritian banks. The funding raised allowed the Letshego Group to support 11,000 households in terms of income, as well as assist in business generation and education plans.

Finally, with a view to supporting Sub-Saharan African trade flows, to boost intra-African trade and bridge the region’s trade finance gap, a key milestone achieved by Bank One was the successful facilitation of a US$35 million trade finance facility for a leading oil & gas player, Dalbit International Ltd. By empowering Dalbit’s working capital, this transaction supports the trading of refined petroleum products across East Africa and creates impact at the level of both businesses and households. 

Exploring the right synergies: Collaborating to deepen impact

Ultimately, as the international banking arms of Mauritian banks foray deeper into Africa, it is important for us to acknowledge that the right partners on this journey would be not only local banks in Mauritius but also investment banks in other countries. Given that the appetite for Africa by banks in Mauritius is limited, let alone those based internationally, we must be willing and able to share stories of lessons learnt and create pathways into Africa for other banks. As local banks in Mauritius, we might not have the biggest balance sheets, but we do have the knowledge and capacity to provide funding. We must build capacity in the space, as, together, we can achieve broader and deeper impact.

To conclude, it is not a journey that is paved with overnight success, and it is only over time that we can slowly but surely build our way upwards. Every bank has their own governance and credit appetite, but Africa is a success story that is waiting to happen, and Mauritius can definitely be a key player in accelerating Africa’s transition to higher growth and economic development by spreading the word.

Distributed by APO Group on behalf of Bank One Limited.

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Resilience: A Winning Strategy for Legacy-Building (By Ibukun Awosika)

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entrepreneurs

Theirs is a vital lesson: success is about the courage to show up, the willingness to learn and the determination to keep building despite setbacks

LAGOS, Nigeria, April 4, 2025/APO Group/ —By Ibukun Awosika (apo-opa.co/4jiBjuS), ABH Grand Finale Judge (www.AfricaBusinessHeroes.org)

The boldest entrepreneurs understand that resourcefulness, resilience and collaboration are essential – not only for overcoming challenges but also for sustaining success. These are not just assets in the toolbox of the average businessperson but the foundation upon which enduring enterprises are built. It’s time for Africa’s enterprises to rise beyond individual success, outlast their founders and carve a lasting presence on the global stage.

This message was at the heart of the opening keynote address I had the honor of delivering at the 6th Africa’s Business Heroes (https://apo-opa.co/3RnxMzz) (ABH) Summit and Grand Finale (https://apo-opa.co/3QZXfPl). As I stood on that grand stage before a sea of ambitious entrepreneurial minds, I realized that this was more than a platform to celebrate achievement; it was a testament to tenacity and the indomitable spirit of African entrepreneurship. As a judge privileged to witness the finalists’ journeys firsthand, I saw individuals embodying the very essence of what it means to be a business hero: the drive to do, to be, and to become the founders of resilient legacies.

The theme of African Intelligence (https://apo-opa.co/3RFuRSB) was one that resonated deeply with the stories of our finalists. Intelligence in the African context is not just about knowledge or innovation; it is about the wisdom to navigate challenges, the foresight to seize opportunities and the resilience to keep moving forward despite the odds. Nowhere was this more evident than in the journeys of our grand prize winner, Henri Ousmane Gueye (https://apo-opa.co/3RwSrB4) from Senegal, and second runner-up, Alexander Odhiambo (https://apo-opa.co/3YiCeDg) from Kenya.

 

As we turn our sights to 2025, it’s time for African entrepreneurs to step forward

 

Henri, after two previous applications, finally secured the top spot on his third attempt. Alexander, undeterred by his first application, came back even stronger, ultimately reaching the Top 10 and claiming a spot on the podium. Theirs is a vital lesson: success is about the courage to show up, the willingness to learn and the determination to keep building despite setbacks. This is what sets apart those who create lasting impact.

But resilience is not just about individual success. It is about the collective strength of a community like ABH which has flourished into a powerful ecosystem equipping entrepreneurs with tools to scale their business. It has been immensely rewarding to witness this process transform businesses, but more importantly, transform leaders.

As we turn our sights to 2025, it’s time for African entrepreneurs to step forward. To those who have applied before but fell short; your journey is far from over. Let Henri and Alexander’s stories remind you that perseverance is a winning strategy. To those contemplating their first application – it’s your time!.

Like anything that holds great promise, the pursuit of entrepreneurship is validated through action. If you have the drive to do, to be, and to become, then take your place and build a legacy that will shape Africa’s future.

2025 ABH Applications Are Now Open

African entrepreneurs interested in entering the 2025 edition of the competition for a chance to win a share of US$1.5 million can apply at https://apo-opa.co/3RnxMzzregister.

Distributed by APO Group on behalf of Africa’s Business Heroes (ABH)

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YOFC Unveils Game-Changing Hollow-Core Fibre Advances at OFC 2025

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SAN FRANSICO, USA – Media OutReach Newswire – 3 April 2025 – At the OFC Conference, from March 30 to April 3, 2025, at San Francisco’s Moscone Center, Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC) (stock tickers: 601869. SH, 06869.HK) highlighted several new developments in hollow-core fibre technology. During a workshop entitled “How will future submarine systems look like”, Dr. LUO Jie, YOFC’s Chief Technology Officer, presented groundbreaking advances in the field of hollow-core fibre technology.

YOFC’s presentation focused on its latest strides in reducing attenuation to a record-low of 0.05dB/km and extending the manufacturing length of single fibres to over 20 kilometers—achievements that not only set new global benchmarks but also starkly outperform traditional solid-core fibres. These technological advancements were demonstrated through a 21.7 km long hollow-core fibre with a proprietary supporting tube structure (ST-HCF). This drew considerable attention at the exhibition for its potential implications in optical communications.

Hollow-core fibre technology represents a paradigm shift in optical communications, enabling light to be transmitted through an air core. The design facilitates a 47% increase in transmission speed and a 31% reduction in latency compared to conventional fibres, showcasing the significant potential for applications requiring rapid and efficient data transmission such as in data centers, AI models, and financial trading. Additionally, the technology’s exceptionally low attenuation and nonlinearity could potentially address the capacity bottlenecks faced by submarine communication networks and long-distance terrestrial communication lines.

In his presentation, Dr. LUO Jie explored both the practical and theoretical enhancements that hollow-core fibres could bring to submarine cable systems, emphasizing their ability to increase data throughput and reduce transmission times in future deployments.

YOFC has been at the forefront of hollow-core fibre technology development, leveraging its comprehensive research capabilities and autonomous raw material research system to overcome significant industrial challenges. As the digital economy grows, YOFC’s continued innovation in hollow-core fibre technology is set to play a crucial role in supporting the evolution of global digital infrastructure, ensuring it is robust, efficient, and equipped to meet future demands.

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Campaigns with a 50:50 split between performance and brand building drive the strongest impact in Asia

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WARC

● Landmark study proving that brand building works in delivering growth in dynamic Asian markets

● Campaigns that have a 50% brand investment proven to boost performance now – not just in the future

● Brands that invest time into cultural connection are twice as effective

WARC releases new research in The Pace Principle

4 April 2025 – WARC, the global authority of marketing effectiveness, has today released The Pace Principle, a landmark Asian evidence-led and mythbusting guide for marketers providing evidence of what works in Asia.

Until now, most evidence underpinning core advertising effectiveness principles has come from Western markets. This ground-breaking research is built on consistent data from across Southeast Asia, Greater China, and India, to address common misconceptions that hinder businesses from maximising returns – specifically the perceived barrier that “Asia moves too fast for long-term brand building to work” due to the speed of changing market dynamics and innovation.

A key insight from the research is that “speed” is a defining feature of Asian marketing, thereby the study uses the language of “pace” to make marketing science principles more applicable to the region. The race for growth operates at “twin paces”. The “Sprint” pace uses performance tactics to secure short-term wins at speed; and the “Long-distance” pace, sees investment in brand-building to sustain long-term growth.

To cut through in a competitive marketplace and amplify positive customer associations, brands need to operate at both levels of pace equally.

Rica Facundo, Managing Editor, WARC APAC, says: “In a highly pressurised, fast-changing and competitive atmosphere, a “sprint” mindset that focuses on short-term wins is understandable, but growth is hard after maxing “easy” wins. To win, brands need to be able to operate at both levels of pace by layering in brand-led advertising to supercharge performance and unlock more value. This enables brands to not only run faster, but further.”

“Helping prove what works in Asia, The Pace Principle is packed with robust evidence and actionable insights, which we hope will be used as a model for the future of advertising in Asia and help marketers build stronger brands in our thriving region.”

Addressing legacy assumptions and challenges

To boost sustainable performance and unlock enduring value, marketers should address the following legacy assumptions and challenges:

· Speed vs effectiveness: brands are conflating the need for operational agility with a short-term approach to marketing, assuming that long-term brand investment will be undermined by market changes.

· Short-termism: In dynamic markets where change feels constant, trying to sell in the prospect of long-term results is a challenge in organisations prioritising short-term wins due to the focus on quarterly and annual performance.

· Brand payback: marketers need to get away from the perception that the payback of investing in brand-building takes years to show.

Andreas Krasser, CEO, DDB Group Hong Kong, said: “Brand building has an image problem in Asia. It’s seen as slow, outdated, and out of sync with the region’s relentless pace. Many still associate it with big-budget TV spots, high spend with low tangible returns, and a distraction from performance goals. Even when the brief says “brand,” the KPIs scream performance.”

Key strategies for effective brand building in Asia outlined in The Pace Principle are:

Long-term brand building supercharges performance. The optimum split between brand and performance investment in Asia is 50:50

Advertising in Asia needs to operate at the two levels of pace – sprint (performance) and long-distance (brand-building) – to drive the biggest instant and long-term impact.

By allocating investment towards both brand-building and performance, brands can take advantage of a multiplier effect. It’s not “brand + performance”, but “brand x performance”

Brand investment is a growth multiplier in the Asian century that drives performance now and in the future. It provides a strategic platform that cuts through in a competitive marketplace, amplifying positive customer associations and scaling-up future demand.

The evidence from this study shows that campaigns with a 50:50 split between brand and performance investment deliver the strongest effect on both short- and long-term business metrics; and even delivers stronger instant impact than a split that over indexes on just performance.

Measure campaigns for the long game: the effects of shorter campaigns are four times stronger when measured for a month after the campaign finished

Campaign measurement should prioritize measuring for growth. Using short-term ROI as the primary measurement mindset overlooks the future effects of brand-building activities, such as strengthening brand memory and increasing demand for the brand.

For shorter campaigns (1-4 weeks of duration), the effects observed were, on average, four times stronger across all key business metrics, when measurement continued for a month or more after the campaign finished.

Win with cultural advantage: demonstrating a shared perspective and value with audiences is nearly twice as effective

Cultural connection is an under looked key driver of emotional engagement that drives positive business effects. Research shows that brands with high cultural resonance grow 25% more than their competitors, and 92% of respondents in McCann Worldgroup’s Truth about Global Brands study believe that Asia’s culture is its greatest source of wealth.

However, the pressure for speed and budget constraints can leave little time for brands to undertake the critical work of understanding the cultural context of its consumers.

The Pace Principle research shows that campaigns that demonstrate a shared perspective and values with audiences are nearly twice as effective compared to those that make minimal attempts at localisation.

Brands should dedicate time and resources to thoroughly understand the cultural nuances of their target audience to maximise effectiveness by going beyond outdated stereotypes and always investigating how audiences are redefining their identities in new and dynamic ways.

Shilpa Sinha, Chief Strategy Officer, McCann Worldgroup, APAC, says: “When culture is an unequivocal cornerstone of Asia’s consumer landscape, a ‘culture-first’ marketing approach cannot afford to remain a catchphrase. It needs to become a creed for any brand aiming to win in this thriving region.”

Accelerate with multichannel momentum. Effective campaigns in Asia use on average 6.5 channels to deliver large business effects

In a fragmented media ecosystem, highly effective campaigns leverage the momentum of using multiple channels to maximise the payback of all advertising.

Evidence from the study shows that effective campaigns use on average 6.5 channels to deliver large business effects, by utilising a smart combination of media to build multiple smaller exposures and positive brand associations across various touchpoints. Key to driving cross-media effects is understanding the most optimal media combinations to leverage the multiplier effect.

Questioning long-held channel assumptions and the “mobile first” depiction of Asian consumers will help marketers make more strategic decisions with the media mix.

And despite the popularity of using influencers in Asia, the study indicates that the most effective campaigns do not lead with influencers (8%) or celebrities (5%). However, when pairing influencers with other channels such as free-to-air Commercial TV, the content reaches far beyond the fan base and the digital environment, thereby becomes 1.5x more effective in driving results.

A sample of The Pace Principle is available here. WARC members can read the full report which includes practical insights, exemplary case studies and charts to help CMOs and marketers of every level apply these ideas to their own work. Accompanying podcasts will be available from 10th and 17th of April.

Methodology of the research

The research for the report is based on in-depth analysis of 150 advertising case studies in the WARC database sourced from across Southeast Asia, Greater China, and India, as well as an accompanying questionnaire submitted by participating agencies: BBDO India, BBH Singapore, BLK J Havas, DDB Group Hong Kong, DDB Mudra Group, Forsman & Bodenfors Singapore, Initiative, MBCS, McCann Worldgroup APAC, GroupM, Ogilvy, TBWA\Asia, TBWA\India, The Womb, UM, VML.

The Pace Principle is a companion report to the recent US report The Multiplier Effect, and builds on some of its key arguments and frameworks which have been tested to also apply to Asia.

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