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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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Verdant Capital Hybrid Fund completes an additional investment of USD 4.5 million in LOLC Africa

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LOLC

The investment will support LOLC’s global expansion strategy in Africa, by financing MSMEs, thereby fostering financial inclusion, employment creation, income generation, and economic growth

Verdant Capital (www.Verdant-Cap.com) is pleased to announce that its Verdant Capital Hybrid Fund (the “Fund”) has completed an additional investment of USD 4.5 million in LOLC Africa Singapore Limited (“LOLC Africa”). This investment brings the total investment in LOLC Africa to USD 13.5 million. This follows the initial investment of USD 9 million in LOLC Africa, completed in June 2023. Both investments are structured as holding company loans, and they are being directed towards LOLC Africa’s operating lending subsidiaries in Zambia, Rwanda, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana, and the Democratic Republic of Congo.

Founded in 1980 in Sri Lanka, LOLC entered the African continent in 2018. Verdant Capital Hybrid Fund is the first external investor in LOLC Africa’s operations, reflecting the Fund’s catalytic investment approach. These investments are driving the expansion of LOLC Africa’s micro, small and medium enterprises (MSMEs) financing footprint across the continent. Additionally, the Fund’s Technical Assistance Facility (TAF), has offered financial support for LOLC Africa’s Social Ratings and Client Protection Pre-Certifications for its subsidiaries in Zambia and Egypt, with further Technical Assistance initiatives in the pipeline.

LOLC is recognised as one of the top-performing global microfinance groups, and the Fund’s investment aligns with its strategy of picking the top performers in each theme or category. LOLC’s business model focuses on the “bottom of the pyramid”, increasing access to MSME financing and customer deposits, thereby advancing it financial inclusion objectives.

The Fund’s investment will provide LOLC Africa with more funding to support and expand the lending activities of its existing subsidiaries in Africa, primarily targeting MSMEs. Furthermore, the investment will strengthen the capital bases of the existing and potentially new subsidiaries in Africa. LOLC’s expansion of the MSME lending model is not only about pursuing its commercial ambition but is also a commitment to sustainable and socially responsible growth. By extending tangible benefits to those communities at the bottom-of-the-pyramid, LOLC Africa promotes financial inclusion, job creation, income generation, and overall economic growth.

This investment represents a diversified exposure to multiple African markets as LOLC continues to scale its operations. The Fund’s investment is also yielding a return aligned with the Fund’s return target, reinforcing the value of supporting high-impact financial inclusion initiatives in emerging markets.

Suits & Advisors (“S&A”) acted as an advisor to LOLC on this transaction.

Distributed by APO Group on behalf of Verdant Capital

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Ghana’s Downstream Regulator Joins Accra Investor Briefing to Advance Value Chain

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The Accra Investor

The Accra Investor Briefing will share insights into Ghana’s petroleum industry ahead of the African Energy Week: Invest in African Energies conference this September

ACCRA, Ghana, April 7, 2025/APO Group/ –With a goal to increase the share of liquefied petroleum gas (LPG) to 50% of the market by 2030, Ghana’s downstream regulator the National Petroleum Authority (NPA) is promoting private-led investment across the petroleum value chain. Strengthened policies and technology-driven strategies are already bolstering downstream productivity, but the NPA is seeking greater investment to strengthen fuel security and distribution across West Africa.

During the Invest in African Energies: Accra Investor Briefing on April 14, 2025, taking place at the Kempinski Hotel, the NPA’s CEO Godwin Kudzo Tameklo will outline strategies being implemented by the authority to strengthen the downstream value chain in Ghana. Tameklo is expected to highlight ongoing efforts to attract investment in downstream projects, while sharing an update on the country’s developments such as the Integrated Petroleum Hub, LPG expansion and broader infrastructure advancements.

As the downstream regulator, the NPA manages the importation and refining of crude in Ghana as well as the sale, marketing and distribution of refined petroleum products across the country. The NPA works to position the downstream sector as both a major contributor to domestic product growth and catalyst for long-term economic growth in Ghana. By leveraging technology and growth-centered policy, the NPA has led the growth of Ghana’s downstream industry.

With increased investment, Ghana stands to play a major part in enhancing fuel security across the broader West African region

In April 2024, the country witnessed a 15.4% growth in petroleum consumption, reaching 1,641 kilotons compared to 2023, as well as a 9% rise in gasoline consumption, reaching 588.5 kilotons. In 2024, LPG consumption also witnessed a surge, rising 7.25% throughout the year to reach 340 million liters. An increase in the adoption of LPG was largely attributed to the promotion of the Cylinder Recirculation Model by the NPA – a distribution system implemented in 2023 that allows residents and commercial consumers to utilize LPG through cylinder exchange. LPG adoption rose from 28.9% in 2010 to 60% in 2023, with LPG usage increasing from 18.2% in 2010 to 44.1% in 2023. Strategic LPG projects include the Puma Energy-owned LPG bottling plant in Tema – a $6 million facility with the capacity to deliver 1,200 cylinders per hour. A second plant is being developed by the Ghana Cylinder Manufacturing Company, with a capacity of 150 million cubic feet per day.

To further strengthen distribution, the NPA is leveraging innovative technology and policies that enhance efficiency and profitability across the downstream sector. These include the introduction of a new transparent automatic price adjustment formular, transitioning from an annual regulated pricing model; a zero-tolerance policy for toxic fuel and an increase in low sulphur fuels; as well as technology-based mechanisms such as the petroleum marking scheme, bilk road vehicle tracking project, electronic cargo tracking system and enterprise relational database management software. These mechanisms support efficient monitoring and ensure optimized quality and quantity of petroleum products in Ghana.

Beyond domestic petroleum distribution, Ghana is strengthening regional exports. In 2024, the NPA signed an agreement with Senegal and The Gambia to enhance petroleum product exports. Ghana already exports petroleum to regional neighboring, including Mali, Niger, Burkina Faso, Ivory Coast and Togo. According to the NPA, the volume of petroleum exports to regional countries from Ghana amounted to 385,154,100 liters. Over 5,000 service providers are registered in Ghana, delivering over four million metric tons of petroleum products annually.

“Ghana is a strong example of the role natural gas and associated LPG production plays in Africa. Through targeted policies, technology-driven mechanisms and a commitment to low-cost, reliable fuels, the NPA is leading the charge towards a more sustainable future in West Africa. With increased investment, Ghana stands to play a major part in enhancing fuel security across the broader West African region,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber.

Distributed by APO Group on behalf of African Energy Chamber

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APO Group Revolutionises Press Release Distribution by Integrating Telegram, Boosting Mobile Accessibility Across Africa

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APO Group

APO Group is committed to ensuring that Africa’s stories are shared even more widely and in a manner that is convenient to the continent’s growing mobile population of journalists and news consumer

JOHANNESBURG, South Africa, April 7, 2025/APO Group/ –APO Group (www.APO-opa.com), the award-winning pan-African communications consultancy and press release distribution service, is pleased to announce the integration of Telegram, the popular mobile instant messaging service, into its press release distribution channels. This exciting new development, which sees the company’s press releases available on the mobile app, further cements APO Group’s position as Africa’s premier digital PR and communications firm, with unmatched reach and engagement in the online space.

With an annual dissemination rate of over 10,000 press releases to more than 250 news websites and 450,000 journalists and bloggers across the continent and globally, APO Group is committed to ensuring that Africa’s stories are shared even more widely and in a manner that is convenient to the continent’s growing mobile population of journalists and news consumers.

Telegram gives these users direct access to the press releases published on APO Group’s www.Africa-Newsroom.com platform, enabling them to instantly share relevant real-time updates and exclusive content with their target audiences. Like the web platform, Telegram subscribers can choose their preferred language channel – English, Arabic, French, or Portuguese – providing bespoke, tailored access to APO Group’s press releases in mobile format.

With close to 53 million downloads (https://apo-opa.co/3FWfLWh) in Europe, the Middle East, and Africa in 2024, Telegram has rapidly gained traction amongst the region’s users, fundamentally transforming how news is consumed. Incorporating Telegram into its already comprehensive press release distribution channels supports APO Group’s vision of delivering state-of-the-art communications solutions for Africa and the world.

“At APO Group, we’re not only committed to sharing positive and compelling narratives about the African continent; we also want to make it as easy as possible for journalists to republish our content, enhancing exposure for our clients through a channel that is widely accessible and easy to use, with an unlimited audience size. Tailored functionality ensures that information is relevant, topical, and presented in a user-friendly manner,” explained APO Group CEO Bas Wijne.

Innovation and digitalisation are key focus areas for us at APO Group when it comes to enhancing our press release distribution services

“Innovation and digitalisation are key focus areas for us at APO Group when it comes to enhancing our press release distribution services. Telegram presents us with a unique opportunity to further enrich our advanced distribution service, offering journalists a wider range of options to access and share Africa’s stories. This aligns with how the market is evolving, how users are evolving, and how the mobile market is growing.”

In addition to its comprehensive online Africa Newsroom press release distribution platform and the newly launched Telegram mobile news-sharing channel, APO Group is working to provide additional innovative mobile solutions to its clients and the African media in the near future, broadening distribution options even further.

Subscribe to APO Group’s Africa Newsroom Telegram channels using the following links:

English: https://t.me/Africa_Newsroom

French: https://t.me/Africa_Newsroom_FR

Arabic: https://t.me/Africa_Newsroom_AR

Portuguese: https://t.me/Africa_Newsroom_PT

Distributed by APO Group on behalf of APO Group

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