Banking in Africa can be a profitable business for those stout-hearted enough to withstand occasional volatility. In recent years, the South African banks have begun expanding elsewhere in the continent and other well-established international banks - Barclays, Standard Chartered, Citibank - have been building out their networks there.
Standard Chartered, which operates in 14 African countries, has enjoyed record results in 2002, notably in Botswana, Cameroon, Ghana, Kenya and Zambia. Africa now accounts for 8% of the bank's total profits and Standard Chartered has introduced some impressive technical innovations to business banking on the continent. It established an internet banking site for wholesale banking customers in east Africa that allows full access to its cash management and trade finance products. This is due to be rolled out across the rest of Africa in 2003.
Its global markets operations enjoy high markets shares in forex and money markets, notably in Botswana, The Gambia, Ghana, Kenya, Sierra Leone and Tanzania. It is growing fast in Nigeria, a market it re-entered in 1999. It is a regular participant in and arranger of local currency syndicated loans and bonds from sub-Saharan Africa. And it is soon set to fill a key gap in its network - South Africa - where its application for a banking licence is now pending.
