u003cpu003eu003cstrongu003eThe Regional Treasury Centre in Mauritius set up by Standard Chartered Bank completed one year of operations in November 2014. The banku0026rsquo;s Regional Head of Transaction Banking for Africa takes us through its journey so far and forthcoming projects.u003c/strongu003eu003c/pu003eu003cpu003eu003cspan style=color:#ff8c00;\u003eu003cstrongu003eBUSINESSMAG.u003c/strongu003eu003c/spanu003eu003cstrongu003e What can you say about the first year of operations of Standard Charteredu0026rsquo;s Regional Treasury Centre in Mauritius?u003c/strongu003eu003c/pu003eu003cpu003eAs a bank, we are really excited since weu0026rsquo;ve launched the regional treasury centre (RTC) in November 2013. The focus and growth have been phenomenal in terms of what the customers want and are expecting from us. The connectivity between Africa and Asia, with Mauritius in the centre, has been a key driver for our business.u003c/pu003eu003cpu003eI met with corporates in Houston who are focused around natural resources in Africa a few months ago and also met one of the largest logistics company in the world in Germany recently. The interesting part is that every single corporate, as they are driving towards greater efficiency and better control in liquidity mana-gement, is targeting Mauritius. It is the one constant element that comes up every time with each corporate, and this is a big compliment for the Mauritian leadership and vision.u003c/pu003eu003cpu003eIf you think about it, the solid base and strong dynamics of the Mauritian economy is really key for us as it enables us to continue on this journey.u003c/pu003eu003cpu003eWhat is unique about our offering? We, at Standard Chartered, have a strong presence in both Asia and Africa. In Africa alone, we are in 15 markets u0026ndash; very soon to be 16 markets u0026ndash; and are exceptionally heavily regulated while others are moderate to easily regulated. From a liquidity management perspective, with the unique systems, technology and integration of the bank, and with Mauritius as a cornerstone of our offering to corporates, we are really able to bring about efficiency in the use of liquidity.u003c/pu003eu003cpu003eBeing the largest bank in Africa, with our footprint in Asia, along with Mauritius at the centre, we are well positioned to create this ecosystem bringing trade partners together, which is a great success for us.u003c/pu003eu003cpu003eWhen questioned about the future and where the bank is going, I answer that there will be a continued strategic area of focus for us, where the creation of the dialogue around Mauritius resides in its positioning as a key offering in our network. Going forward, we wish to build on these perspectives.u003c/pu003eu003cpu003eThe beauty about Mauritius is that technically it is a $13 billion economy with $12 billion of excess liquidity sitting in this market. It has got far more advantages to access the Africa growth potential with its historical and economical relationships with its neighbours on the continent u0026ndash; Mauritius being part of COMESA, SADC, IOR-ARC. It gives whoever operates from here a unique access to 641 million people and 1.2 Trn in GDP in Africa.u003c/pu003eu003cpu003eu003cspan style=color:#ff8c00;\u003eu003cstrongu003eBUSINESSMAG.u003c/strongu003eu003c/spanu003eu003cstrongu003eu003cspan style=color:#ff8c00;\u003e u003c/spanu003eHas the RTC been able to meet its objectives?u003c/strongu003eu003c/pu003eu003cpu003eIt is a constant journey and demands deeper evolution. When the RTC agenda started, there was a lot of focus on bringing payment efficiency and creating a procurement hub in Mauritius. Now what we are seeing is the deepening of the financial services market to meet the demands of corporates in terms of capital raising. The offshore management companies in Mauritius are adding exceptional value to the Mauritian market and to the global corporates by explaining how to do business here.u003c/pu003eu003cpu003eu003cspan style=color:#ff8c00;\u003eu003cstrongu003eBUSINESSMAGu003c/strongu003e. u003c/spanu003eu003cstrongu003eHow many large corporates have you attracted?u003c/strongu003eu003c/pu003eu003cpu003eWe have an exceptionally large customer base in Mauritius. We are focused on global corporates and large local corporates and even financial institutions. The Mauritian market is well positioned to serve foreign investors, African and global banks. The second step would be to look at niche markets. Our estimates for corporates doing business with the RTC are between fifty and a hundred corporates and involve the establishment of really deep treasury centres.u003c/pu003eu003cpu003eu003cspan style=color:#ff8c00;\u003eu003cstrongu003eBUSINESSMAGu003c/strongu003e. u003c/spanu003eu003cstrongu003eHave you obtained the desired visibility by your presence in Mauritius? u003c/strongu003eu003c/pu003eu003cpu003eIt has been successful but we intend to do more. From an Afri-can perspective, the Standard Chartered team elevates the dialogue about Mauritius with customers when it comes to liquidity management. The success of our network depends on how we market the destination and how do we further strengthen its offering through our colleagues here in Mauritius. Itu0026rsquo;s a bit of a two-pronged approach. If you are a corporate in Africa or a multinational doing business in Africa, Mauritius is the key place for you.u003c/pu003eu003cpu003eu003cspan style=color:#ff8c00;\u003eu003cstrongu003eBUSINESSMAG.u003c/strongu003eu003c/spanu003eu003cstrongu003e How can Mauritius better position itself in this field?u003c/strongu003eu003c/pu003eu003cpu003eFurther diplomacy to expand the agreements Mauritius has within the continent can be undertaken. Mauritius could also benefit from a quicker implementation of the actual agreements signed. One other direction to look towards would be the Renminbi. Chinese solutions in Mauritius are going to be key.u003c/pu003eu003cpu003eThe evolution of the world and the changing mix around currency status will make Renminbi quite important for Africa. If Mauritius can leapfrog that opportunity to develop Renminbi solutions, then this will definitely be a strategic advantage for the country. We are going to work with stakeholders to position this growth faster.u003c/pu003eu003cpu003eu003cspan style=color:#ff8c00;\u003eu003cstrongu003eBUSINESSMAGu003c/strongu003e. u003c/spanu003eu003cstrongu003eSome Asian countries like Japan are shying away from RTCs. How do you explain this phenomenon? u003c/strongu003eu003c/pu003eu003cpu003eWhen we look at what makes a RTC or hub successful, it is predominantly the political willpower to transform an economy into the financial services sector environment, and Mauritius has the intent to drive towards that.u003c/pu003eu003cpu003eFor countries like Japan, itu0026rsquo;s a big shift to say I want to create a RTC where there could be a greater outflow of capital. It is a difficult journey to embark upon. Mauritius does not have that baggage. The country is ten years ahead of the curve.u003c/pu003eu003cpu003eu003cspan style=color:#ff8c00;\u003eu003cstrongu003eBUSINESSMAG. u003c/strongu003eu003c/spanu003eu003cstrongu003eYou have acquired significant banking experience in Africa. What advice can you giveu003c/strongu003eu003cstrongu003eto Mauritian banks wanting to be present on the continent but which are facing limitations? u003c/strongu003eu003c/pu003eu003cpu003eAfrica is one amazing continent but is made of fifty-four markets. Each one is pretty unique and different. However there are common monetary areas and a bank looking to expand should be looking at these opportunities. It is all about partnerships and dialogue. The opportunity is definitely there. It is not going to be easy. Africa is not easy but is certainly the continent of opportunities.u003c/pu003eu003cpu003eu003cspan style=color:#ff8c00;\u003eu003cstrongu003eBUSINESSMAG.u003c/strongu003eu003c/spanu003eu003cstrongu003eu003cspan style=color:#ff8c00;\u003e u003c/spanu003eThe EU recently conducted a stress test on several European banks. How about Standard Charteredu0026rsquo;s situation?u003c/strongu003eu003c/pu003eu003cpu003eWe are one of the best capitalised banks in the world and exceptionally well diversified. We were not part of this stress test as our footprint is not necessarily centred there. However a sound financial environment is the key to the sustainability of business.u003c/pu003e
Philip Panaino: “Mauritius is the key place for corporates doing business in Africa”
