Our business in Africa

Standard Bank - 40 000 people. 18 African countries. 1 leading emerging markets bank.

With roots that were first embedded in the African continent 145 years ago, Standard Bank is today celebrating Africa Day together with all of the people of Africa.

Having opened its doors for the first time in Port Elizabeth in 1863, the influence of Standard Bank across the continent has spread steadily due to its vision and commitment to growing our business in Africa and to our understanding of the economic and social development needs of emerging markets. Sustained growth from South Africa into Africa began a mere 29 years after Standard Bank commenced operations.

Standard Bank is the biggest bank on the continent with a market capitalisation of R135 billion. It is now represented in 18 African countries, and 20 countries outside Africa.

By applying the banking competencies and systems we have developed and continue to refine in the South African market, and leveraging our emerging market expertise and presence in Africa and other regions, we have been able to realise significant organic growth and acquisition opportunities.

Our vision and values provide a framework for the way we do business across our Africa and International operations, and challenge us to balance commercial opportunity with social and environmental responsibility.

A feature of our approach to growing Standard Bank's Africa presence is investing in local capacity and being African. Strong local teams ensure we remain relevant to the customers and communities we serve in different markets. This understanding of local conditions, cultures and markets allows us to provide products and services tailored to in-country customer; clients who operate across borders and international clients.

Most recently, the strategic partnership with the Industrial and Commercial Bank of China (ICBC) represents an important milestone in the 145 year history of Standard Bank. It strengthens our capacity for investment and will add further impetus to our plans to grow our existing businesses, particularly in Africa. A landmark transaction for Africa, South Africa and the group, formation of the partnership with ICBC resulted in a R36,7 billion equity investment in Standard Bank Group, at the same time the largest foreign direct investment into South Africa. Of this amount, Standard Bank Group received R16 billion in new core equity capital and existing shareholders received R20,7 billion.

In South Africa, Standard Bank's commitment to the Financial Sector Charter (FSC) has resulted in the Tutuwa participants, our BEE shareholders, holding 7,5% of total number of shares. Black management in the bank has increased from 33% in 2004, when the FSC was launched, to 49% of total management in South Africa in 2007. Standard Bank's total charter qualifying procurement spend for 2007 was R5,6 billion with R3,3 billion spent with BEE suppliers and R186 million with black small and medium enterprises.

The ICBC transaction unlocked considerable value for our BEE shareholders, including
4 000 of our black managers, 250 SMEs and the community trust. These shareholders realised a combined R1,5 billion for the sale of 11,1% of their shares in Standard Bank to ICBC.

We remain committed to making a real difference to financial services in Africa and other emerging markets. We aim to ensure our long-term sustainability by harmonising the needs of our customers, our people and our shareholders and by being relevant to the societies in which we operate.