Leveraging the BRICS and the AFTZ NOW is imperative for Africa

1. RETAIL BANKING AFRICA 2011Interpreting the BRICs Economic Opportunity as future Corporate, SME and Retail Banking Opportunities in Africa GUY PEARCE CEO: JD Group New Business Development Image: www.ic-events.net

2. Briefly introducing myself

4. Firms must exploit trade opportunities Mail & Guardian 6 Apr 2011

5. BRICS: What will South Africa gain? Business Day 13 Apr 2011

6. SA companies eager to exploit BRICS The New Age 26 Apr 2011

7. BRICS said to seek end to west’s Monopoly on leadership of World Bank, IMF Bloomberg 13 Apr 2011

8. Ramos urges SA to exploit BRICS status Business Live 27 May 2011

9. African free trade area boost for BRICS SouthAfrica.info 15 Jun 2011

10. SA rushed into joining BRICS Business Report 20 Jul 2011Everyone is talking about the BRICS. Much is now up to us as Team African Banking to lead the way , defining, popularising and then leveraging the opportunities with our customers

11. This talk shows huge medium term opportunities for African Banking in the BRICS market context To best understand the banking potential in the BRICS, it’s imperative to understand the economic potential first! So let us begin!

12. Let’s begin by introducing the BRICS Group What is it? Why the fuss about whether South Africa should be in it?

13. BRIC are huge in a future global economic context, and currently South Africa for Africa. Note Nigeria! Source: World Bank

14. Africa is at the heart of the world’s investment interest and activity. South Africa is well positioned BRICS CIVETS GATEWAYS to AFRICA 2011 FDI Hotspots IBSA As Africa’s most developed country, South Africa is a key gateway to Africa, a bridge between industrial and developing countries, and is ideally placed wrt both the BRICS and the CIVETS

15. However, it is a mixed blessing that the world sees Africa’s potential mostly in terms of its minerals Export led growth may not be best for us: We don’t develop our manufacturing sector and thus further education and employment (& thus consumption) opportunities for our people

16. To develop future demand for retail banking, we need to do more to enable business development The resource economy The manufacturing economy The service economy These images highlight the economic activity gap in Africa. How are we as bankers working with goverment and economists to grow our scope in world manufacturing and services? Source: Consolidated via Wikipedia

18. North-South infrastructure corridor

19. Phase 1: 3 yrs to deal tariffs, customs, transit and non-tariff barriersNext would be to include West African countries for free trade negotiations The 26-country AFTZ encompasses COMESA, the EAC and the SADC, a ‘Cape to Cairo’ BLOC that can enable more of Africa to benefit from BRICS, powerfully negotiating as a single entity

20. A quick regroup of the potential Significantly increasing local and BRIC enterprises More transactional banking (moving cash) More asset solutions (capital equipment finance) Significant economic development potential More manufacturing activity (capital equipment finance) More L & SME development (all pillars of banking) The increased economic activity means significantly more people are employed = more people earning an income = more consumption = more retail banking opportunities! Us as African bankers should actively drive the opportunity at an Africa level as part of our sustainable future. So, what will we be doing about it?

21. So what happens if we bankers don’t pool our total presence and expertise across the AFTZ+?

22. Conclusion BRICS clearly holds huge economic and retail banking potential for Africa BRICS already holds 40% of the world’s consumers, clearly with huge retail banking growth potential, today, and tomorrow We have two choices as bankers: Let the opportunity be shaped around us by economists and governments, and lose much of what us in a dynamic industry on a dynamic continent should be steering Be proactive, and drive the development of the potential with economists and governments as Team African Banking, realising the opportunity of developing our continent together by leveraging BRICS The World Bank has released a book of African success stories to help promote regional learning and development. It surveys 26 countries and gives insight into what worked and why. We now need a leader to lead us, as an industry, through some of the most exciting change in our lifetimes, with the goal of realising the FULL extent of the opportunities available to us