MCB eyes collaboration with African banks to grow bigger
Through its â€śBank of banksâ€ť strategy, the MCB plans to position itself as a privileged partner of the African banks rather than be considered a competitor on African territories.
The Mauritius Commercial Bank (MCB), already the biggest bank by capitalization in the Indian Ocean region and East Africa, is looking forward to cash in on the rise of Africa and the growing potential of African banks with its â€śBank of banksâ€ť strategy.
The â€śBank of banksâ€ť strategy was the overarching theme as the Mauritius Commercial Bank (MCB) hosted 55 participants from 18 countries at its annual conference â€śAfrica Forward Togetherâ€ť at the Long Beach Hotel. The conference will last a week from 18 to 22 November, 2013.
While the Mauritius-based financial services major has already tapped into diverse African markets through subsidiaries, representative offices or outsourcing to other banks, it now plans position itself as a privileged partner of the African banks rather than to be considered a competitor on African territories.
With its breakthrough â€śBanks of banksâ€ť strategy, the MCB wants to know the needs of African banks and their respective markets, so they can propose products and services which will allow them to increase their value.
Further, to ensure its presence in one of the growing economic centers in Africa, the MCB recently submitted a request to the Kenyan banking authorities for the opening of a representative office in Nairobi. The MCB already has a representative office in Johannesburg; and operates subsidiaries in Madagascar, in Seychelles, in Mozambique and in the Maldives.
And, there is a plethora of opportunities waiting to be seized by the MCB group on the African continent as many trades from Africa, as well as at an intra-African level, take place through the island economy.
During the week-long conference, several MCB departments, covering its headquarters in Port-Louis, the state-of-the-art green building at St-Jean and the training center, will be open to the African delegates for a visit.
The participants will also get the opportunity to sit in on presentations of key staff at MCB and to study the possibilities of outsourcing some bank transactions to Mauritius.
The MCB is planning to strengthen the financing of regional business and projects throughout the continent, given the advanced potential of investments into the emerging continent.
In 2012-2013, the banking major saw profits attributed to operations abroad and non-banking operations rise to 45% of overall profits, and, during the first quarter of 2013-2014, they reached a record of 54%.
During the last three years, loans in foreign currencies aimed at customers based outside Mauritian borders have increased by 9%.
Mohamed Kalif, division manager of the African Development Bank (AfDB), stated that over the next three years, Africa will need USD 100 billion in financing to counter a pressing deficit of infrastructure investments.