SWIFT
will open two new offices in 2015 – in Accra, Ghana and Nairobi, Kenya –
as a crucial part of its pan-Africa growth plans. From these offices,
SWIFT will manage an expanded presence across the West and East Africa
regions.
Christian
Sarafidis, Deputy Chief Executive, EMEA, SWIFT, says: “These plans will
be a significant milestone for our sub- Sahara business. They recognise
Africa’s vibrant economic growth and future potential, and reflect
SWIFT’s ongoing commitment to get closer to its customers in these
crucial markets.”
SWIFT’s
sub-Saharan Africa business, with its head office in Johannesburg, was
established more than 30 years ago. In that time, Africa’s economies
have changed beyond recognition and there is a growing need for SWIFT to
expand to meet new client expectations and business opportunities. Hugo
Smit, head of Sub-Sahara Africa, SWIFT, says: “The fact that Africa is
rising is evident in various key economic indicators such as GDP growth,
FDI and infrastructure investment growth. It is also corroborated by
the growth in SWIFT traffic volumes. Such growth requires sound
financial systems, securities systems and regulatory compliance. These
are all areas where SWIFT can make an important contribution.
“SWIFT’s
collaborative approach and ability to offer solutions that benefit the
entire community makes it a unique organisation. By opening offices in
West and East Africa, we will not only be able to further improve our
solution and services offering to customers but will be better placed to
support local communities and the development of regional initiatives.”
Six
of the ten fastest growing economies in the world are in Africa and
economic growth in the sub-Saharan region is expected to rise from 4.7%
in 2013 to 5.2% in 2014. Moreover, recent World Bank figures show that
capital flows to sub-Saharan Africa have continued to rise, reaching an
estimated 5.3% of regional GDP in 2013, significantly above the
developing-country average of 3.9%. Recent data from SWIFT supports this
trend and demonstrates that its business in Africa has outperformed the
total growth of the SWIFT business globally. In 2014 eleven countries
in Africa experienced traffic growth of above 20% and six countries saw
traffic grow by more than 30%; in the same period. As a reflection of
the strong economic growth across the continent, the rise in payment
traffic over the SWIFT network has been very strong. Volumes rose by
almost 22% in Africa versus 8% total growth worldwide.
“Payments
remain a major focus for SWIFT in sub-Saharan Africa and there is great
support from policy makers, central banks and commercial banks for
further development of financial market infrastructures. These help to
make the intra-regional payments space more competitive, open the way
for new products and services to be offered by participating financial
institutions and reduce the need for foreign financial intermediation,”
says Smit.
SWIFT
has been working closely with the Southern Africa Development Community
(SADC) on its development of the SIRESS payment system. The third phase
went live in September, meaning that almost 70 commercial banks in nine
countries are now participating in the system. Transaction volumes as
well as values over the system are exceeding expectations and continue
to rise. SWIFT is also working with other regions towards their plans
for regional payment systems, including the West African Monetary Zone
and the East African Payment System. Another crucial area for SWIFT is
the securities markets. Outside a handful of countries such as South
Africa, Nigeria and Kenya, most national securities markets are at a
relatively early stage of development. There is huge potential to unlock
greater local and intra-regional investment through the use of
standardised and harmonised financial market infrastructure.
“With
the right financial infrastructure in place and through industry
collaboration, Africa has a great opportunity to improve the liquidity
and efficiency of its capital markets, leading to cheaper equity funding
and greater risk sharing for the continent’s expanding corporates.
Robust and efficient securities markets will continue to support foreign
investment but also encourage higher levels of intra- African
investment. This is good for companies and investors,” says Ian
Bessarabia, Head of Business Development, Sub-Sahara Africa, SWIFT.
Sarafidis concludes: “The Sub-Saharan Africa region continues to outpace
SWIFT’s global business in terms of traffic volume growth. This fully
supports our plans to expand SWIFT’s presence on the continent. Most
importantly, we are excited about the potential to grow our business
here and further increase the African region’s contribution to the
global organisation.”
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