Standard Chartered PLC is counting on Africa’s ultra-rich to expand its business after doubling assets under management in its wealth business on the continent over the past three years.
Board Chairman Jose Viñals said in an interview in the Kenyan capital, Nairobi, that assets under management in sub-Saharan Africa rose to $4 billion from $1.7 billion, and there are more than 135,000 million dollar millionaires on the continent, and this number is likely to jump by 65% over the past year. Over the next decade, according to Henley & Partners and New World Wealth, according to Bloomberg.
He said the London-based bank had reduced its business in Africa by eliminating seven markets, but maintained its presence in 10 countries facing challenges including currency depreciation, high inflation, insecurity and debt.
“The travel trend is huge and we expect very significant increases because wealth is one of Standard Chartered’s strongest drivers,” Viñals emphasized.
Wealth products such as leveraged lending to individuals have taken off in places like Kenya and Nigeria, he said, and the lender also offers dollar-denominated government, green and corporate bonds in markets including Ghana.
While Standard Chartered is winding down its activities on the continent alongside Société Générale SA, BNP Paribas SA and HSBC Holdings PLC, JPMorgan Chase & Co. is expanding its footprint by establishing representative offices in Kenya and Ivory Coast.
