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Central and Southern Africa
T
his region accounted for 11% of total
responses received for this year’s
ABFM survey. These covered Botswana,
Mauritius, Swaziland, Zambia, Namibia,
Zimbabwe and Malawi. Not surprising-
ly, Mauritius received the most active
ratings – 40% of the regional total – as
it serves not only as a market in its own
right, but also as an offshore access point
for investment funds into India. As a
regional hub, it is also the only market to
rival the elephant not in this particular
room: South Africa (which was covered
in the ABEM survey in our last edition).
This year’s ABFM survey results
suggest that the region is regarded as
slightly underperforming in most cate-
gories though with the notable exception
of cash management and FX, where
its score is 20% higher than the global
average. This may well be the result of
a Mauritian average in this category of
6.33, comfortably in the Very Good range
(6.00-6.99). By contrast, relationship
management across the region is seen as
a weak point.
Two regional providers, Standard
Chartered Bank and Standard Bank/
Stanbic dominate responses across the
region. Both achieve average regional
category scores mostly in Satisfactory
range (4.00-4.99). Standard Bank’s best
results are in the areas of account man-
agement, pricing and risk management,
while Standard Chartered most outstrips
the regional average in cash management
and FX and client service.
Mauritius
In the ABSA Financial Markets Index
2019, compiled in partnership with the
Official Monetary and Financial Insti-
tutions Forum (OMFIF), an independent
think tank for central banking, economic
policy and public investment, Mauritius
ranks second after South Africa, up two
places from 2018 and is described as hav-
ing a “sizeable pool of investible pension
assets with a strong legal framework.” In
one sector, “Legality and enforceability
of standard financial markets master
agreements,” it actually ranks top.
COUNTRY SCORES Central and Southern Africa Botswana Mauritius Swaziland Zambia
Account Management 4.27 5.08 4.21 4.86 3.82
Asset Safety 4.84 4.92 5.43 4.63 4.85
Asset Servicing 4.55 5.00 4.75 4.71 5.00
Cash Management and FX 6.44 7.00 6.33 4.00 7.00
Client Service 4.91 5.71 4.96 4.67 5.24
Innovation 4.20 5.88 3.92 4.17 3.29
Liquidity Management 4.83 n/a 4.83 n/a n/a
Pricing 4.74 6.18 4.22 5.20 5.00
Regulation and Compliance 4.86 5.00 5.48 4.67 5.21
Relationship Management 3.91 4.77 4.08 3.08 3.40
Risk Management 4.13 4.63 4.87 4.64 4.88
Technology 4.61 7.00 4.64 3.80 4.55
Standard Chartered (Mauritius and
Zambia)
In this year’s ABFM survey, Stand-
ard Chartered Bank accounts for just
over half of the ratings received for
the Mauritian market. It exceeds the
market averages in most categories and
actually scores a perfect 7.00 for cash
management and FX – highly unusual
in any emerging and frontier markets,
given that access to FX is often subject
to bureaucratic control. Although the
bank also performs well in Zambia, com-
parison with a market average yields
little as Standard Chartered accounts
for 80% of responses received for that
market. In terms of its category scores
in Zambia, the bank can be pleased with
assessments of its services in the areas
of regulation and compliance, client ser-
vice and asset safety. By contrast, it has
work to do to strengthen its profile in
relationahip management and account
management.
PROVIDER SCORES
(REGIONAL) Central and Southern Africa Standard Chartered
Bank Versus regional
average
Account Management 4.27 4.24 -0.03
Asset Safety 4.84 5.32 0.49
Asset Servicing 4.55 5.04 0.49
Cash Management and FX 6.44 7.00 0.56
Client Service 4.91 5.91 1.01
Innovation 4.20 4.31 0.11
Liquidity Management 4.83 5.00 0.17
Pricing 4.74 4.78 0.05
Regulation and Compliance 4.86 5.58 0.71
Relationship Management 3.91 4.27 0.35
Risk Management 4.13 4.70 0.57
Technology 4.61 5.32 0.71
Spring 2020
globalcustodian.com
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