Bow-tie clad Ebenezer Essoka has nuance, detailed
knowledge of the continent whose banking system he has
helped to transform for almost three decades. Apart from
being the Chief Executive of Standard Chartered Bank
South Africa, ‘I’ve been at the centre of commercial
activities in Africa for a very long time, [having]
started businesses, closed businesses, restructured
businesses that were in a terminal state of decline, and
repositioned many companies for sustainable growth,’
says the confident, proudly immodest Essoka, who, before
joining Standard Chartered South Africa, held executive
positions in eight of the bank’s African operations
through time. He wants to be remembered as one of the
“African financial engineers” who will construct a
metaphorical super highway to link and consolidate the
economic strength and potential of Africa’s 54 countries
and one billion people.
Essoka has brought this pan-Africanist stance to
Standard Chartered South Africa and is emphatic that
South African companies can use the bank’s extensive
networks, connections and knowledge to successfully
expand into Africa. But first, the rest of Africa needs
to see the worth of a South African presence. ‘It is
part of my job to promote South Africa as a reliable and
trustworthy partner to the rest of Africa,’ he says. ‘In
working with diverse business leaders and governments
across the region, I have noticed there is a distinct
gap in the continent’s understanding of the role South
African business plays, and the potential role it can
play in supporting and contributing to the continent’s
collective prosperity.’
Essoka, or “Ebby”, as he is known to his colleagues,
adds that South Africa is certainly taking steps to
improve its competitive position and maintains that it
is important to acknowledge this country’s progress.
Citing two industry surveys – The World Bank’s Doing
Business Report and the World Economic Forum’s Global
Competitiveness Report, he notes that there is
significant improvement in the ease of trading across
borders through the South African-led campaign to
improve African customs processes.
‘South Africa has reduced the time, cost and
administration required for international trade. It
remains the most competitive market in sub-Saharan
Africa. Markedly, South Africa is fortunate to have a
sound financial services sector, which meets global
standards, with a robust and transparent regulatory
framework.’ On doing business in Africa and the benefits
for South African business, Essoka explains that Africa
shows greater resilience to global influences, notably
the concerns around the economic outlook of more mature
economies. ‘It’s still very much Africa’s time.
Much of the growth on the continent remains domestic in
nature, and with the progress the continent is making in
improving the regulatory environment, infrastructure and
fiscal stability, intra-African commercial activities
are bound to increase. This will further fuel trade and
investment opportunities with the rest of the globe.’
Cameroonian Essoka doesn’t believe that South African
business has enough awareness that some of the world’s
fastest growing economies are found in Africa. Sierra
Leone, for instance, grew 30% in 2012 resulting from
increased iron-ore production. He says that in 2011
Ghana grew over 14% with the discovery of oil. East
Africa has also managed to grow rapidly, despite the
global economic crisis, and is now set to be the world’s
new energy hotspot, he maintains. ‘Standard Chartered is
supporting the development of these key regions in
Africa. For example, we were the official advisors on
the sale of Cove Energy, an AIM-listed company with gas
assets in Tanzania. Many industry watchers have referred
to this as the largest upstream oil and gas deal in
Africa this year.
South African companies looking to expand (which Essoka
sees as an imperative for economic growth) should heed
the fact that there is potential in Africa that is not
easily replicable elsewhere. These include: the wealth
of natural resources, dormant economic potential, the
entrepreneurial zeal of the small-medium-sized
enterprises, and gaps in infrastructure development,
from real estate, to roads, bridges, airports and
seaports. He is however aware of the problems of public
sector red tape and political instability in Africa,
which may slow down the pace at which potential and
development can be unlocked. Essoka also notes that the
banking industry will ‘naturally do more’ with key
sectors like metals, mining and agriculture.
ASIA AND THE MIDDLE EAST
‘Of course if South African companies must expand, Asia
and the Middle East are also crucial locations for
growth,’ says Essoka. He urges that South African
companies use this country’s membership of the BRICS
community as a valuable platform to identify
opportunities in Asia. ‘A critical success factor in
expanding or investing in other regions is to find the
financial partner who can assist them in carving a
successful path of expansion, introduce them to a
valuable on-the ground network and help steer them
through the various regulatory hurdles. Standard
Chartered is that ideal partner,’ he asserts. Asia and
the Middle East also host the world’s fastest growing
economies, and ‘South African companies should make
every effort to participate in the trade corridors
between these regions. It is not an option, but an
imperative, as these corridors will spur valuable growth
going forward, states Essoka. Invicta Holdings and
Mediclinic are examples of South African companies that
have positively positioned themselves in these regions.
Standard Chartered was the industrial firm Invicta’s
exclusive financial advisor in the recent acquisition of
Kian Ann Engineering in Singapore – this acquisition
looks set to boost Invicta’s revenues by an impressive
20%. Standard Chartered also supported Mediclinic’s
completion of their acquisition of the UAE’s Emirates
Health. ‘It is examples like these that support the
transformation of South Africa’s economy – improving the
country’s competitive edge and positioning South Africa
as a global player,’ notes Essoka.
According to Essoka, we are spoilt for statistics when
highlighting the benefits of operating in the Asian and
Middle Eastern trade corridors. ‘Take Africa and China,
for example: trade between these two regions has grown
15-fold in the past decade to reach $166 billion in
2011, and is expected to increase a further three-fold
over the next 10 years. China’s trade with Africa has
not slowed as much as its trade volumes with other
regions – year-on-year China still continues to increase
its trading with Africa.’
Essoka believes that a shift in “economic gravity” from
West to East is of great importance to South Africa, and
the country must be well-positioned to take advantage of
this emerging global dynamic.
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