The AfrAsia Titanium MasterCard

2012-01-03T17:34:00.003+04:00

Discover AfrAsia's unique Titanium MasterCard which offers a prestigious level of membership and an exclusive set of superior benefits, designed to match your elegant style of living.

AfrAsia Titanium MasterCard

For more information, please visit our website on: http://cards.afrasiabank.com/titanium_card.html

Grégory Havret - Winner of AfrAsia Golf Masters 2011

2011-12-17T23:00:00.001+04:00

To view photos and read more about the event, please visit our

Website, LinkedIn Group, AfrAsia Bank Facebook page, AfrAsia Golf Masters Facebook page.

AfrAsia Bank offers a priceless experience to its clients

2011-12-14T09:19:00.005+04:00

AfrAsia Bank hosted the AfrAsia MasterCard PRO-AM on Monday 12th December at Ernie Els designed golf course - Four Seasons Golf Club Mauritius at Anahita. The Bank has invited its clients to play with the pros offering them a priceless experience to cherish for a lifetime. This competition was a prelude to the AfrAsia Golf Masters 2011 starting 13th December 2011.

The winner of AfrAsia MasterCard PRO-AM goes to the team led by Jason BARNES (Pro) and comprised of 3 amateurs being Brigitte ROBERT PARKER, Grant KURLAND, and Roopal GOSWAMY.

The AfrAsia MasterCard PRO-AM revolves around the concept of “4 balls-2 best balls”, bringing together a team of 4 players - 1 pro and 3 amateurs – and the 2 best net scores for each hole is recorded.

AfrAsia MasterCard PRO-AM regrouped 12 pros namely:

Ricki NEIL-JONES (Eng)
Julien FORET (Fra)
Nicolas JOAKIMIDES (Fra)
Jason BARNES (Eng)
Julien QUESNE (Fra)
Benoît TELLERIA (Fra)
Edouard DUBOIS (Fra)
Romain SCHNEIDER (Fra)
Ignacio SANCHEZ-PALENCIA (Esp)
Richard KILPATRICK (NIR)
Rémi DUPUIS (Fra)
Emilien CHAMAULTE (Fra)

Click here to view the scoreboard for AfrAsia MasterCard PRO-AM including results and handicap adjustments for each amateur team member.

To stay tuned to news and updates, please visit our Website, LinkedIn Group, AfrAsia Bank Facebook page and AfrAsia Golf Masters Facebook page.

Hennie Otto & Gregory Havret make an emphatic impression 2 weeks prior to the AfrAsia Golf Masters 2011

2011-12-06T17:08:00.005+04:00

The South African golfer Hennie Otto carves his name in the South African Open Championship by holding off the Austrian Bern Wiesberger, who will also be present at the AfrAsia Golf Masters as from the 11th December. Otto presented himself as a leader at the fourth round of this European circuit, and while resisting to the fight-back of his competitors, Otto captured his second victory on the tour, his first since the Italian Open 2008. “I was close to winning several times since, but I never managed to succeed”, he declared.

Two other guests of the prestigious AfrAsia Golf Masters Mauritius at Anahita were also leaders of the 4-day S.A competition – The Austrian runner-up Bern Wiesberger and the French Jean-Baptiste Gonnet, gearing towards victory until the last round but eventually ranked 32nd.

Another talented golfer, the French Gregory Havret, will also be joining the competition following a good result at the last UBS Hong Kong Open trophy. Playing alongside World number two Rory McIlroy, he settled for second place with a 65, while the former, closed the competition with a spectacular five-under-par 65 which included a dramatic closing birdie from the bunker for a two-stroke victory.

Havret, who also finished second behind McIlroy at the U.S. Open, said an opening bogey proved costly although he fought back with four birdies and one eagle. “The only mistake is probably the first hole where I three-putted. Nothing of absolute beauty because I didn’t win. I had a chance going into the last one behind him but I obviously made a bad drive, and that was for me very hard to make par, but Rory did and managed to make an efficient shot. He seems to like this hole quite a lot, and, yeah, his shot (birdie) was absolutely amazing,” said Havret.

All these amazing performances look very promising before this second edition of the professional Mauritian tournament which will bring together the twenty best golf players of the Allianz Golf Tour and ten specially invited guest players of the European Tour. The competition will take place at the Ernie Els designed golf course with breathtaking oceanfront holes – the Four Seasons Golf Course Mauritius at Anahita. Besides Otto, Wiesberger and Gonnet, the competition also welcomes Grégory Havret, Christian Cévaër, Victor Dubuisson as well as the Belgian Nicolas Colsaerts, the winner of the 2010 edition who is holding on to an impressive season and who will be keen to secure his title. In line with being a big-hitter, this young player looks a firm favourite for this year’s challenging competition.

Organised by Canal+ Events, the game is played on stroke play. On 15th and 16th December, an original pairing (one professional and one amateur) is established in an Alliance format. Moreover the competition is preceded by two PRO-AMs (AfrAsia PRO-AM and Anahita World Class Sanctuary PRO-AM), where professionals and amateurs will be mixed in an opening round scheduled on the 13th & 14th. The Pro tournament will be held on Saturday 17th December 2011 and will be opened to the public. As compared to last year, the total prize money has been increased to €75,000, thus rendering it one of the most sought-after competitions in this geographical area.

The competition will be broadcast four times on the Sport+ channel worldwide, in order to allow Mauritius to show the quality of its golf courses as well as its legendary hospitality.

To stay tuned to news and updates, please visit our website: www.afrasiagolfmasters.com

Nexus of Business facilitation, fiscal rebalancing, social inclusion for good of growth

2011-11-10T16:43:00.009+04:00

AfrAsia Bank is pleased to post the following from guest blogger Afsar Ebrahim. Afsar Ebrahim is Partner at BDO International (Mauritius) and here outlines an analysis of the Budget 2012.

The professional background of the Honorable Xavier Luc Duval, the first chartered accountant to act as Finance Minister, comes across clearly in his budget. He, in fact, favors prudence and pragmatism over economic theories. The budget takes into account the murky waters of the global economy and the recurrence of shocks of globalization which a small island economy like ours is exposed to. The recent economic turmoil has put forward various imperfections of our economy which may have stifled growth. He is forecasting a marginal reduction in growth to 4.0% from 4.2%.

The Minister of Finance has addressed the previous simplistic policies that might have curtailed growth through fiscal measures :

Abolition of solidarity levy tax on dividends and interests
Abolition of capital gains tax
CSR Tax now computed on chargeable income, thereby avoiding the cascading effect of dividend income being taxed twice or more
Abolition of business rates by Municipalities
Fiscal incentives to Freeport companies extended indefinitely

He has also realised that the various public sector institutions need reform and some will even require the help of strategic partners, the aim being to enhance competitiveness of these institutions.

The engines of growth are set to be SMEs and the traditional private sector. The Minister of Finance has in fact elaborated a ‘Marshall Plan’ for the SMEs which takes into account access to credit, cost of credit, access to space, better access to markets and ease for financial institutions to account for bad debts.

To balance the growth for good he has given an impetus to the social sector.

First, he has bridged the medical care of public and private partnerships by allowing NSF to be used for private health care which resolves the burden on public health.

Second, he has set the foundation for a strong development of low-cost housing with the setting up of the Housing Development Trust, partially financed by Government and the CSR funds.

Third, he has embarked on the inclusion of workers of the informal sector within the NPF with Government contributing for the worker’s share.

Fourth, he has broadened beneficiaries of sports activities by encouraging the private sector to employ high -potential athletes and also assist them in benefitting from the Trust Fund.

Fifth, he has ensured that the unemployed acquire on-the-job experience with the assistance of HRDC and Government sharing in the stipend.

However, to balance his books and to ensure that his budget deficit is maintained at 3.8% of GDP and to reduce its Debt to GDP ratio to a more cautious level of 54%, he has been innovative with his fiscal measures:

Tax of 10 cents on sms
Offshore Management Companies be charged solidarity levy in addition to banks and telecoms
Tax amnesty for a specific window – June 2012

Overall, the Minister of Finance has set policies with a view to steer the economy towards a robust resilience and fiscally prudent manner by drawing lessons from economies that are currently in dire situations. He has redressed anomalies and has put the ball squarely in the hands of investors to take advantage.

This is not a budget to be judged as a ‘one-off’ but is part of a process, of a vision for the betterment of the economy provided no further external shocks force a change in direction. In summary, it is about sustainable growth, private sector initiatives, an SME Marshall Plan, affordability of services, institutional reforms and catering for the most needy.

The development of Renminbi in Africa

2011-10-28T14:36:00.006+04:00

AfrAsia Bank is pleased to post the following from guest blogger Randolf Chen. Randolf is from a reputed Financial Marketing Department and here outlines the development of Renminbi in Africa.

The Chinese Yuan (short name CNY, also known as CNY) is getting more and more important place in the world to compete with US dollar, and is becoming one of the main trade settlement currencies between China and Africa.

With reference to the report issued by Standard Bank in September, the CNY internationalisation process is growing steadily, and at least the 40% (about 100 billion USD) of total trade volume between China and South Africa will use CNY as settlement currency toward 2025. This amount is almost near the total trade volume between China and Africa in 2010.

The CNY internationalisation will help China to improve its own efficiency and elasticity of trade and investment flows, and also create a more flexible and free financial environment. However, it takes time for the process to be finalised. CNY trading in the global foreign exchange market currently is only accounting for 3% in total trade volume. There will be a long process to internationalise CNY completely, but unlike USD which took 50 years for to be internationalised, the CNY speed should be faster than expectation. By comparison to other continents, Africa will be the fastest growing region in terms of CNY trade. One good example would be Nigeria who has recently announced to convert 10% of national currency reserves into CNY. We believe more African countries will soon to join. In addition, one of benefits of CNY internationalisation for both Chinese enterprises as well as Africa itself is to decrease the financing and transaction costs for importers and exporters substantially. It is understandable that African enterprises have been dealing USD as trade settlement for a long period of time. Therefore, it is necessary to explain the benefits of using CNY to make settlement instead. On one hand, there is a better discount to use CNY making settlement of the import price for African business. On the other hand, Chinese enterprises can now avoid the foreign exchange risks and enjoy the benefit of export tax rebate faster in local China.

From the technical analysis perspective, the CNY has strengthened against USD since 2010 by 7%, appreciated from 6.83 to currently trading at 6.375. Accounting for the China’s economic growth in comparison to global economic status, the 1 year prediction for USD against CNY is said to be looking at 6.20 level.

Get the best of our Skysail Forex Deposits campaign

2011-10-24T13:54:00.002+04:00

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What’s more?

Renminbi Yuan (CNY) Current Accounts now available with interest at 0.38% p.a payable monthly.

We are teeing up for the AfrAsia Golf Masters 2011

2011-10-06T13:17:00.008+04:00

The AfrAsia Golf Masters brings over a week the 20 best golf players of the Allianz Golf Tour (French Pro Circuit) and the 10 European Tour players (European Pro Circuit).

The competition runs from the 13th to 17th December. The “PRO AM” is scheduled for the 13th and 14th and the original pairing established in an Alliance format will be held on the 15th and 16th. The Pro tournament planned on 17th December will be opened to the public.

With a championship Ernie Els designed golf course, breathtaking oceanfront holes and glorious sunshine, where better to enjoy a round of golf with a PRO than at Four Seasons Golf Club Mauritius at Anahita…

The tournament, which appears on the calendar of the Federation Française de Golf, is worth €75,000. We are expecting golfers from Mauritius & abroad for this prestigious competition including world renowned PROs who have already confirmed their presence. Some of them are:

Julien Clement (Switzerland)
Gregory Havret (France)
Nicolas Colsaerts (Belgium)
Hennie Otto (South Africa)
Jean-Baptiste Gonnet (France)

AfrAsia Golf Masters is the highlight of the Allianz Golf Tour: it is not only a reward for an entire year of competition but also a golden opportunity for promising players to rub shoulders and exchange ideas with experienced professionals from the European Tour.

For more information and to stay tuned to news and updates, visit our Website, LinkedIn group and Facebook page.

The Euro crisis: an overview of the current situation

2011-09-28T14:34:00.000+04:00

The Euro crisis has now reached a dramatic turn and the survival of the currency is at stake. The debate is whether to remove Greece out of the Euro zone or to unwind the single currency. In the second case, the ramifications for the world economy will be huge and unless the euro-zone governments unite and devise a set of financial measures aiming to curb the crisis and improve the management of the Euro currency, the latter faces risk of disappearing.

It is crucial that stronger countries such as France and Germany help to shore up weaker links such as Portugal, Italy, Greece, and Spain, the four countries being commonly known as PIGS, and ensure that their debts are restructured. The macroeconomic policy of the Euro zone needs to be addressed to promote growth and prevent another crisis going forward. Cooperation between the European nations and the European Central Bank (ECB) is called upon to prevent further waves of panic on the financial markets brought about by the levels of debts of some of the governments combined with the low growth levels being displayed by the European countries and the frailty of the European banks’ finances.

While being solvent, Spain and Italy are short of liquidity. As such, a default of the Greek government on its debt does not make sense with the country still running a primary deficit. Savage cuts will still be needed following the default. The idea that Greece is let loose from the Euro is gaining traction amongst Eurocrats, but the move forward remains blocked by the fact that there is no current way to prevent collateral damages. What is needed right now will be measures to prevent the PIGS to be attacked once Greece goes into default, re-capitalisation of European banks, and we would argue to a point where it should cover theoretical losses from another PIGS, and controls to prevent domestic run on banks. We see it very difficult for the Greeks to pursue the unilateral step of default before a primary surplus is achieved, thus preventing a “sudden stop”. Policies aiming at the privatization of some of the government institutions along with a reduction in bureaucracy and an extension in the age of retirement would be a step to creating the necessary environment for growth. A higher commitment from the ECB, where it states that it will put forward any required resources to assist the countries facing difficulty, is also warranted in order to restore confidence in the markets.

In line with the above, allowing Greece to remain within the Euro zone, after serious restructuring, is the preferred option. The Germans may not be in favour of standing behind the weaker countries, however the alternative would be to allow the Euro zone to die. If Germany opts out of the Euro and is followed by a few other relatively healthy countries, the results would be tragic leading to high currency volatility and panic on the financial markets and eventually to a collapse of the single currency.

Need to rethink policies to keep lead...

2011-08-23T21:19:00.004+04:00

Am sticking my neck out here and trying to make the case that banking as a whole did not cause the global financial crisis. In most of the non Western world, Banks are in great shape and trying to actually lend real money to real people and businesses; not just sitting at computer screens making leverage trades on global markets. Seems to be accepted given some good comments I received on the article (click here to view) - and still get invited to dinner parties once in a while too!

Regional Treasury Operations...

2011-07-07T08:55:00.002+04:00

A growing number of organisations are turning their attention to Africa seeking to capitalise on this Continent’s favourable economic outlook. Inevitably this brings into focus the question of regional treasury operations. Should these corporates have them and if so where should they establish them? In theory a regional treasury operation makes sense as it allows a corporate to manage foreign exchange, cash and interest rates from one centralised point. It’s not only practical and efficient but avoids duplication, centralises risk and achieves economies of scale. The second question relates to location. In Africa a few countries have positioned themselves to attract regional treasury business. I think if one were to go through a list criteria for a successful location (from no foreign exchange controls and withholding tax, to large negotiated networks of DTAs and IPPA’s, from membership of regional bodies to infrastructure, skilled local staff and consistent, business-friendly regulations) Mauritius emerges as the location of choice. But regional treasuries are not without their challenges. In theory one of the cost savings of a regional treasury operation is the ability to move funds from a cash-surplus operation in one jurisdiction to a cash-deficit operation in another. In practice strict foreign exchange regulations in some African countries make implementation difficult or ineffective. Secondly, what if a local authority in a particular country chooses to ignore the provisions of a DTA and levies withholding tax at the full rate? There’s no doubt you can seek redress but how long will it take and at what cost? I’d be interested to hear what actual challenges you’ve faced and how you’ve overcome them?

Capturing the SADC opportunity

2011-06-06T10:45:00.005+04:00

“Wow, the Africa as a mainstream investment story just gets stronger and stronger. I was speaking in Johannesburg to a visiting Chinese delegation with a strong showing of South African companies too. About 200 people in the audience and I was mobbed with 2 dozen people in a queue for Q&A at the end of my presentation. Nice coverage of it too in China see http://www.focac.org/eng/zxxx/t824066.htm. The combination of seminars, conferences and strong mainstream press coverage are much more often that what we were seeing only 4 years ago when we launched AfrAsia Bank. The parallels to the SE Asia boon of the 80s and 90s, which I happened to work in firsthand, just keep getting more noticeable.”

Worldwide recognition for AfrAsia Private Bank AND Mauritius...

2011-02-28T20:17:00.007+04:00

The 2011 Euromoney Private Banking Survey has ranked AfrAsia Bank as the Best Private Bank in Mauritius. The Bank services the unique needs of high net worth customers through a winning partnership with AXYS Capital Management locally and in the region.

Since its launch, AfrAsia has been targeting the affluent side of the local and regional market whether entrepreneurs, executives or their families. Several tailor made private banking and wealth management solutions have been devised in to serve a clientele with complex financing and investment needs.

The fact that a Mauritian headquartered bank such as AfrAsia has won such a prestigious award also reflects a global trend that clients want expertise and decision taking that is closer to them. Isn’t this type of recognition a proof that our International Financial Centre should look beyond India to promote itself? We at AfrAsia believe we should keep finding ways to strengthen the Mauritius private banking industry, promoting it as a centre of excellence, to attract a new range of wealthy clients to Mauritius.

Key questions: What is the present position of the Mauritian private banking industry in the regional and global arena? What key products and services will guarantee its sustainable development? How can it target and attract new clients? Should a national strategy be devised for the positioning of Mauritius private banking?

Global figures show a strong trend for the market to increase in the years to come in different parts of the world, including in our region. Mauritius should take advantage of this growth, but we are also aware that our private banking industry must generate a strong annual growth and reach a critical mass of assets under management, in order to be a key player at the regional level.

We would like you to share your points of view on opportunities that could develop Mauritius private banks’ competitiveness or on challenges to be faced.

EXCEPTIONAL response to our SkySail Forex Deposit Offer

2011-02-09T17:39:00.009+04:00

Our SkySail promotion having ended on 31st January 2011, we wish to thank all our customers for having massively contributed to the success of the campaign. Our aim has always been to provide the best value for your money. Thank you for the continued trust placed in us.

The results are indeed beyond expectations and we are delighted to announce that, for a further short period, all applications received for your USD/EUR/GBP deposits through our website will continue to benefit from the offer. So, apply online now to get this offer.

As a reminder or for those unaware of the promotion details, please see our offer below:

3.3%* p.a. on USD/EUR/GBP deposits
Minimum amount: USD30,000, EUR 20,000 & GBP 20,000
Tenor: 6 – 12 months
Free AfrAsia Titanium MasterCard in MUR or USD

Terms and conditions apply. Offer is only available when applying online here.

Mauritius – Gateway to Africa/Asia (Extract from Asia Today International Magazine)

2011-01-19T18:21:00.003+04:00

MAURITIUS is drawing on long-established links with India and Africa to position itself as a natural conduit for exponential growth in the emerging Africa and Asia trade corridor …

PORT LOUIS, Mauritius – While just two percent of total Chinese trade in 2004 was with Africa, there has been a huge surge. From a tiny base, Sino-African trade during the 1990s grew by 700 per cent, and, since the first China-Africa Forum in Beijing in 2000, more than 40 trade and investment agreements have been signed.

In raw numbers, Sino-African trade doubled to more than US$20 billion over the four years to the end of 2004, increasing to US$73 billion in 2007. It I now projected to reach US$100 billion in 2010.

China’s demand for energy and resources is driving this growth – and India is now starting to follow, says James Benoit, CEO of Mauritius-based AfrAsia Bank Ltd.

Both countries are using Mauritius as their investment holding company for banking and treasury management jurisdiction, and as a base for key professional staff doing business across Africa, he says.

Benoit points out that Mauritius is long-established as a leading banking intermediary for foreign investment into India, due to close cultural ties with sub-continent and favorable double taxation agreements.

‘Over the past decade, Mauritius has administered more than USD$50 billion in FDI flow to India, and holds about 40 per cent market share of total global FDI inflow to India,’ he says.

Mauritius has developed very strong economic and cultural ties with both Africa and Asia over the years, Benoit told ATI, and is now becoming increasingly well-known and utilized as a trade and financial gateway to these continents. Mauritius was, in fact a founding partner of a number of regional preferential trade areas and political organizations, including COMESA (the Common Market for Eastern and Southern Africa), SADC (the Southern African Development Commission), the Indian Ocean Commission and the African Union.

‘Now, Mauritius is positioning itself for exponential growth in the emerging Africa and Asia trade corridor. It is already a direct beneficiary of these flows and the whole region is on the verge of substantial transformation,’ says Benoit. As just one example, Huawei Technologies, China’s leading supplier of networking and telecommunications, has established a financial centre in Mauritius to provide services to its subsidiaries in the sub-Saharan African region. Huawei has more than 100 branch offices worldwide – and 39 of these are in sub-Saharan Africa.

AfrAsia Bank, Benoit says, is pursuing an ‘audacious’ strategy to tap into the growing trade, investment and capital flows between Africa and Asia that are now increasingly evident. ‘It’s a fascinating time to be a banker in this region,’ says Benoit, a former HSBC Middle East – including three years with HSBC in Mauritius.

‘AfrAsia Bank was among the first to recognize the growth potential of the African Lions in marching the rise of the Asian Tiger economies,’ he says. ‘Much of the Bank’s strategy and growth is coming from our mission to be the primary reference Private and Corporate Bank in the region to facilitate Africa – Asia trade and investment flows.

‘We are setting up capital investment structures in South Africa, India, Singapore and Australia to facilitate money flows into Africa.’

Benoit says that while Asia is a dynamic source of investment, funding and manufacturing, Africa is widely acknowledged as a continent of under-developed potential. Africa has 60 per cent of the world’s uncultivated land- and its GBP is expected to increase by 62.5% by 2020.

AT the “cross-roads” of these two continents, Mauritius is the ideal conduit, says Benoit. It has a comprehensive network of Double Taxation Agreements (DTAs), geographical positioning, a bilingual skilled workforce, and strong cultural ties. In fact, of 35tax treaties so far concluded by Mauritius , 13 are with African countries- including South Africa, Nambia, Senegal, Swaziland, Uganda, Zimbabwe ,Botswana and Tunisia.

As an example of benefits available under these treaties, the Mauritius-India DTA provides a Mauritius resident with complete protection from India capital gains taxation on sale of shares in an Indian company.

Coupled with this extensive network of DTA’s Mauritius has 34 Investment Promotion and Protection Agreements (IPPAs), of which 16 are with African countries. IPPAs are crucial between countries because they are international bilateral agreements with governments, designed to protect and encourage investment overseas, says Benoit Benefits include free repatriation of investment capital and returns, guarantees against expropriation, compensation for losses in case of war, armed conflict or riot and arrangements for the settlement of disputes between investors and the contracting States.

Put together, Benoit believes AfrAsia offers a strong regional economy looking for dynamic capital market and banking solutions to facilitate phenomenal growth.

'A single hotel project in the Maldives or Seychelles can easily reach US 50 million,' he says Infrastructure build out in African countries for mining and oil and gas exploration can total billions. And integrated resort schemes with seaside golf courses and luxury villas being built in Mauritius can bring prices of up to US 20 million for a single house. The diversity of quality projects is only expected to grow deepen.

Benoit describes AfrAsia Bank, which is headquartered in the Mauritius International Financial Serviced Centre, as a boutique bank offering a comprehensive range of financial solutions. We focus on the delivery of integrated banking services to both the local and international markets he says, AfrAsia Bank is a reference point for Corporate and Investment Banking, Private Banking and International Banking Solutions linking Mauritius and the Africa-Asia trade corridor - because Mauritius is closer to these markets.

Moving towards making the Internet Banking, the most preferred channel for our customers...

2010-11-24T19:39:00.004+04:00

In general, the banking sector is changing very dynamically - a complete change in dynamics related to technology, communication and empowerment of people towards e-services has been felt in the last decades.

AfrAsia has adopted the internet channel in an integrated manner for delivery of its services to customers. The basic of such an integrated system is a complete automation of the back end processes and streamlining of paper based activity to an electronic workflow. This improves on the delivery time of services immediate to within 24 hours for any process that was taking a week or more previously.

In addition to the existing services - checking balance, viewing statement of account and some historical data, ordering cheque books online, transfer of funds, online printing of statements, instant messages sending, the following new services and facilities are now available:-

A French version of the Internet Banking platform

Request for Bank Drafts (FCY) or Office Cheques (MUR)

Salary files can be uploaded directly on Internet Banking platform

Multiple payments in single transfer (Client can pay different parties within AfrAsia A/Cs through one transaction only)

Clients have the option to transact with specific beneficiaries through a list maintain by themselves.

Credit card and Loan balances also available

Advices and SWIFT copy for each transaction are also available on Internet Banking

MRA Tax payment - Individual clients will be able to pay their tax via the Internet Banking platform

To note that AfrAsia Bank is the only Bank to provide SWIFT Copies on IB.

AfrAsia Private Bank is teeing up for ‘Mauritius Golf Masters’

2010-11-15T17:06:00.003+04:00

The Mauritius Golf Masters, co-sponsored by AfrAsia Bank, brings over a week the 20 best golf players of the Allianz Golf Tour (French Pro Circuit) and the 10 European Tour players (European Pro Circuit).

The competition runs from 2nd to 4th December 2010 while the “PRO-AM” is scheduled for 30th November and 1st December 2010. The tournament will take place at Anahita’s Four Seasons Resort (Mauritius) golf course. The 18-hole golf course, designed by Ernie Els, offers an extraordinary view of the sea. The tournament, which appears on the calendar of the Federation Francaise de Golf, is worth €50,000.

The Bank has organised a series of special individual stableford tournaments for its clients and will be rewarding the winners with the opportunity to play with the PROs in this unique and prestigious competition.

Mauritius Golf Masters is the highlight of the Allianz Golf Tour: it is not only a reward for an entire year of competition but also a golden opportunity for promising players to rub shoulders and exchange ideas with experienced professionals from the European Tour. For more information, please visit the dedicated website: www.mauritiusgolfmasters.com/en/

Priceless experiences in France!

2010-10-06T17:27:00.006+04:00

Stableford winner Gary Walton together with James Benoit, CEO AfrAsia Bank and Thierry Vallet, Head of Private Banking and Strategic Development were among the players at the PRO-AM held on 22 Sept 2010 at Golf de Joyenval, France.

"Playing with these professionals was an unbelievable and a great thrill - just to see the shots they are able to play was an experience I will always remember. The cherry on top was that the other professional - John Parry went on to win the professional tournament which ended on Sunday. What a great experience – thank you AfrAsia!" Quoted Gary Walton

What's next?

The Bank is the proud sponsor of the Mauritius Golf Masters to be held from 30th November - 4th December 2010 at Four Season’s Golf Club Anahita 3 interim Stableford competitions will be organized by AfrAsia Bank for its clients to enable participation at this unique and prestigious event.

Individual Stableford competitions have been scheduled as follows:

Friday 8th October 2010 as from 12hr30

Saturday 6th November 2010 as from 12hr30

Saturday 20th November 2010 as from 12hr50

So if you want to win a place to play with the PROs, just get on board to join the AfrAsia Titanium club.

Mr Walton earns his ticket to the Vivendi Cup

2010-09-14T17:33:00.004+04:00

We were glad to announce Mr Gary Walton as the winner of the hard fought individual stableford competition held at Anahita on Friday 27th August 2010. He will indeed be flying to Paris and play in the Vivendi Cup at the prestigious Golf de Joyenval.

Mr Walton won the competition with 37 points, same as Mr Henk Barnhoon, but the former having scored more points on the last 9 holes (Gary Walton 22 points & Henk Barnhoon 21 points).

The competition also saw Mr Kamesh Mahadeb as 1st Net winner with 39 points, followed by Mr Henk Barnhoon 37 points and third Mr Grant Kurland with 35 points. On another hand, Mr Clement Rey Jr. won the 'Nearest to the Pin' prize.

Congratulations to all!

A unique opportunity to play in the Vivendi Cup (France), a European PGA Tournament

2010-08-25T17:34:00.003+04:00

Moving to further link up with our clients’ golfing passion, we are delighted to bring a once-in-a-lifetime opportunity to one of our Titanium clients to play in a European PGA Tournament, the prestigious Vivendi Cup. We are organizing a Special Individual Stableford Competition on Friday 27th August 2010 for all our Titanium golf amateurs at the Four Season’s Golf Club, Anahita, to determine the winner of this unique reward.

The Vivendi Cup will be a 72-hole stroke play tournament part of “The Race to Dubai” on The European Tour from September 23-26. The first 36 holes are played as a Team Pro-Am event involving one professional and one amateur over the Retz and Marly Courses at Golf de Joyenval, one of the most exclusive clubs in the Paris region, just a 20 minute drive from the famous Arc de Triomphe in France.

Playing paired to a European Tour Pro who becomes both your coach and show partner, what memories that could make!! This is fully in line with the concept of priceless moments according to which we reward our cardholders.

Colin Montgomerie, the most crowned European golfer and captain of the European Ryder Cup team, as well as Thomas Bjorn and Paul McGinley, both recently named vice‐captains of the same team, confirmed their presence for this event. Some of the best French golfers will also be present, among whom Gregory Havret, who achieved a remarkable performance during the last US Open.

Both the Retz and Marly courses were designed by the American architect, Robert Trent Jones Jnr and provide the perfect challenge for an event that will showcase the talents of Europe’s finest professionals while allowing their amateur partners to be competitive too.

The Vivendi Cup is being organized by CANAL+ Events, who is also hosting the Mauritius Golf Masters from 2-4 December 2010 at Four Seasons Golf Club, Mauritius and where AfrAsia Bank is one of the major sponsors. Check our forthcoming news on Mauritius Golf Masters!

The Euro Challenge

2010-05-07T09:40:00.003+04:00

After a busy day watching the Mauritian elections results unfold, I still managed to stay up late last night. Another event was happening, which could probably be of as much, if not more, significance for Mauritius. The Dow Jones averages and the Euro were heading into complete collapse as the Greek financial crisis became a mainstream newstory. For some time now I have been saying to exporters here and anybody that is long euro that there is very little the Mauritian goverment or the central bank can do to help us. I said it in a prominent local business magazine to boot. Now that the euro is in complete collapse is the solution for Mauritius to let the rupee slide? That is likely to hit purchasing power in the short term but will help keep all our export oriented industries, including tourism, alive. The problem though is that we cannot foresee yet to where the euro is really heading to! The longer the authorities in Europe take the address the core issues, the more uncertainty will persist on the markets and the higher the risks of contagion to other countries of the union. This is really one of the biggest issues for the new Minister of Finance to be sworn in shortly and also for the BOM Governor.

Many econometric models conclude that the euro's "real" value is close to its birth rate in the high teens, say, $1.17-1.20. This seems to be a fair objective for it this year. However, the euro has spent many years now above fair value, so it should not be surprising if the euro's decline does not stop at fair value, but drops below it. That means a move to parity next year should not be ruled out.

Whom to eulogize…whom to benchmark…

2010-05-07T09:33:00.000+04:00

Couple of months ago, one of my friends in financial services sector forwarded me an article published in the Sunday Times, London with a catchy heading: I’m doing ‘God’s work. Meet Mr. Goldman Sachs. I finished that powerful reading in one go and the moment I finished reading that a sense of awe struck me temporarily. Normally, I don’t get overawed in any situation but this was not an ordinary explanation of achievements. When all the biggies of Wall Street found biting dust, here is Wall Street’s Sun God with profits of $3.2 billion in the last quarter alone.

Last week when I was reading Securities and Exchange Commission (SEC) charges against Goldman, I was surprised of the hype and hoopla associated with it. According to SEC, Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage backed securities. Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO. Now this is not something unique that the SEC has found against Goldman. My memory hints that Goldman has benefited from the upside of all recent booms, be it dot.com, commodities or housing. The whizzo teams of Goldman manage risk well and get out of bull markets at just the right time; they play their part in inflating the bubbles in the first place and pocket a fortune in doing so. Being very big in size has the advantage of more and more market information. Investment banks normally prevent misuse of information through strict Chinese wall between traders and advisors as any misuse is nothing but unethical. How strong was this Chinese wall in Goldman case is for the regulators to decide, but my search for an institution, which we can eulogize and a role model CEO is still continuing. Lloyd Blankfein just missed that chance.

Banking, Stalin and the Church!

2010-02-16T17:47:00.002+04:00

When being advised against taking on the Catholic Church, Joseph Stalin is said to have responded, “How many Divisions does the Pope have?” His point being that by traditional military standards, the Church posed no threat to the Soviet empire’s numerous military divisions. But that was to have missed quite a lot obviously and the Church still stands while the Soviet Union is no more.

Well, the AfrAsia Bank story has been on the road quite often this past few months. A common remark I get is that Mauritius is overbanked domestically or that global banks surely have too strong a branch network globally for us to compete in the Asia-Africa investment corridor. This, still, after then events of the past two years!

But the good thing of course is that the market is interested to hear from us and asking us to engage with it. I have presented our bank and Mauritius itself as a private banking jurisdiction in Singapore recently at the Private Banking International Wealth Management conference. Also I was on a panel discussion in Mumbai and Goa, India at the Future of Financial Markets conference put on by Financial Technologies and the Financial Times. Heading out to Cape Town and Johannesburg later this week to launch our new Representative offices there.

Once I can explain to the audience just what are the exciting things happening in Mauritius as regional financial centre and with AfrAsia Bank being a regionally owned and managed bank performing a unique role within that centre, then I usually get to the “aha” moment.

That is, branches = size = Stalin’s Divisions may not be the best way to think of banking any more. It may never have been.

The long march of history continues in financial services too.

Budget Open Discussion - Better Days Ahead?

2009-12-03T10:24:00.004+04:00

‘Recovery’, word of votive comfort, one that is deliberately and gladly being passed around like a sacred chalice and one that is somewhat ‘trendy’ across global markets. That word happened to be the mould chosen by the Finance Minister to lay down the plans for its shaping throughout the upcoming year – 2010. A National Budget speech, delivered in an unprecedented simple format, easily understood by the layman, set great optimism for the path ahead.

Interesting it is to observe that Mauritius seemed to have found shelter in its nest while most of the rest of the world around it fell from the onset of the financial recession. Now, a predicted growth rate of 2.8% for this year comes as a relief indeed, so are the forecasted 4.3% for 2010 and 5% by 2011. However, is 2.8% or 4.3% growth good enough for Mauritius?

The reason given as to why we sustained just a scratch was: ‘supportive fiscal and monetary policy mix which has benefited the country to ride out the crisis.’ Opinions are here varied, but figures are somewhat cogent; we choose then not to outline causes and effects and do not attempt to establish correlations. Rather, how would the fiscal and monetary policies change given a different economic landscape ahead?

Taxes for now remain the same; Income, Corporate and VAT at 15%. Interesting to note is that the Budget deficit shows an increase from Rs8.2bn in 2008/2009 to 13.7bn in 2010. The Government Debt as a percentage of GDP decreases from 59.6% at the end of 2009 to 58.7% at the end of 2010. From a theory point of view, it would be insightful to locate Mauritius on a Laffer Curve*; is Mauritius on the good side of the curve? Would an increase or decrease in tax increase revenue?

As for the Additional Stimulus Package, it is to be maintained up until next year. Proponents and opponents here are many as well. However, given now another year of ASP, the relevant consideration is how will it be managed? Will it be by sector, individually assessed or any other method?

Under the limelight were also the increase in tax exemption threshold and an increase of 3.5% for income earners (of less than Rs 12,000). A look at the inflation rate reveals an interesting fact; inflation was down considerably this year, 2.6% from 9.7% in 2008. Prediction for next year does not cross 5%. So in real terms, has purchasing power increase?

Otherwise, concern about climate change has been at the forefront as well. Considering a greener Mauritius is of course a welcomed initiative and prioritizing it as part of the theme of the budget is in itself a major step. However the projects to sustain the vision have not been explicitly outlined. It would then be interesting to note its development over the upcoming years.

On a good note perhaps, may we be granted better days ahead… The door to opinions and objections is here certainly opened to all.

A first for Mauritius - British Airways Miles tie up with AfrAsia Bank

2009-11-24T09:15:00.001+04:00

Good things come from small packages, er, I mean boutique banks of course! Last week we announced our unique Titanium MasterCard tie up with BA whereby our cardholders’ spending is able to be converted to BA Miles.

Indeed it’s the first such tie up in this market and thanks to all of you who have provided your kind words taking note of this innovation. I am indeed proud of our AfrAsia team that continues to bring innovations and “firsts” to this market, time and again despite that we are less than three years old.

More importantly is the feedback we get from existing and future cardholders whom of course will be the ultimate arbiters for whether this innovation indeed adds value to their banking and airline relationships. So let me know as we go along with this program which I would add is exclusive between AfrAsia and BA.

Looking forward to seeing you fly different, very soon!

CSR and its proper uses

2009-08-17T11:55:00.002+04:00

Well, just because I am on holidays back in Alberta, Canada, is no excuse not to do a blog instalment, I think. Actually, being here tweaked the idea for this particular entry. One of the things that I always loved about my home province is its sense of community spirit. It's just everywhere in the newspapers, morning radio shows and lots of people volunteering and participating in all manner of things that they care about. In other words, its Corporate Social Responsibility writ large. So many activities that I see people pitching in to help with may or may not be part of THEIR company or organization's formal activities but they do all these things anyway. So much the better when it is supported by your company! At AfrAsia Bank we have just embarked on our CSR programs and to be honest it was tough. We wanted something that is aligned to our values and does not feel like CSR for the sake of CSR. Or just waving a big cheque book around!

I am really happy with our first major effort which involves providing access to training and life skills for students who drop out of school or do not do well enough on CPE exams to go onto higher education right away. To me, that is CSR and sustainability all in one go. For if our kids are not equipped with means and ways to cope, survive and thrive, none of us can count on having a good place to live in or do business in. Anyway, click to this link and you can see what we have started.

http://www.defimedia.info/articles/2297/1/School-leavers-get-farming-option/Page1.html

James

Dr Doom Has Some Good News

2009-07-24T09:11:00.003+04:00

I normally don’t like to link heavily to other articles on this blog, since this is meant to reflect views from me and my team. I must make an exception though for Roubini [aka Dr Doom].
http://www.theatlantic.com/doc/200907/roubini

He has called the markets and the economy correctly for quite awhile now and I believe he summarizes my views on the economy quite well. I also did have the privilege of hearing him speak first hand at the CFA Annual Conference in Orlando this past April.

To sum it up, the USA savings deficit and hyper consumption fueled by Chinese exports and recycled savings proved unsustainable. Green shoots of growth may be recurring again but will not be sufficient to restore the levels of economic growth we were used to. In short, what new model of economic growth will emerge?

See the article in full for his thoughts and some of my own thoughts are in my earlier blogs.

A Professional Financial Services Sector – Right Here, Right Now

2009-07-17T18:30:00.003+04:00

I have been on hiatus from this blog for a few months. Apologies. No excuses offered but I do have some good explanations! See, I have been rediscovering just how passionate and professional Mauritius can be. Lots of talk about tax havens and offshore banking abound globally these days; but from my view Mauritius is a broad-based regional financial and services sector with a huge commitment to value-added services and skills development.

I am very fortunate, besides my full time role of leading AfrAsia Bank, to be a member of and/or serve in leadership roles of numerous professional and networking groups in Mauritius. There really is a tremendous activity on that front here and when approached to contribute to these I feel it’s a real privilege to lead and learn in these forums. Take a look below at some of the groups I am active with as a director/committee member which give you an idea of the commitment that Mauritians have to personal development. I only join those in which I can put a great amount of effort into; and it’s one of the best investments I make since I learn many times in return from my involvement with some fantastic people in these groups.

Society of Financial Analysts of Mauritius/local society of CFA Institute. This is arguably the gold standard association and designation for the investment profession. With nearly 100,000 members globally, CFA Institute speaks first and foremost for the investor and protecting them with a robust code of ethics in their dealings with CFA charter holders. See www.membersocieties.org/mauritius

American Chamber of Commerce in Mauritius. Wow, Mauritius is about as far away as we can be from America! Yet trade, investment and personal links run deep and global these days and AmCham’s mission is to be a key facilitator of those. If your business or professional activities have links there, this is a fabulous network that has the high level attention of both countries’ governments too. See http://www.americanchamber-mauritius.org/

Mauritius Institute of Directors. A new association that is devoted to corporate governance particularly at director level within boardrooms whose job is to set the tone for organization. Well, with the last decade of malfeasance and poor ethics, there clearly remains a lot to do to improve director oversight. Encouragingly, MIOD has an incredible list of top local and global corporate in its membership already and I cannot think of a better way to learn how to perform at a board level role even before you actually get there. http://www.miod.mu/Default.asp

Mauritius Bankers Association. I have worked in a number of countries that have similar bodies but not many of which can match the level of representation, advocacy and contribution by all its members as this one.

Toastmasters (TM). This is the public speaking and leadership group which is truly active globally. I have been a member of TM in a few countries and it really does a great job to transform nervous speakers into competent communicators. There are several chapters of it active in Mauritius for nearly ten years now.

Maybe it's just my hubris. But I just cannot help think that all of these groups and the numerous others that exist here are part of the social and personal compact that make Mauritius an island of prosperity and harmony, in a region where that is not to be taken for granted. Even more, I think all these foundations are still to be fully appreciated by the international community/investor or even those of us that live here. When that happens, watch out – our best days are still to come.

I will be glad to hear about the associations you belong to or you will like to set up and how we can together make the international community / investors appreciate this professional financial sector, which is called Mauritius.

Do Currencies Really Float, Do They Swim or Do They Just Sink at Different Rates?

2009-07-06T09:10:00.000+04:00

I ask this question in this way since when we ask whether the rupee should be allowed to float, there seems an implied fear, and in some cases, hope, that it will immediately sink! That is the consensus opinion it seems to me, or at least it seems that is the major fear. That is a fear I think that is unfounded. I think the Mauritian rupee could turn out to be a strong swimmer, should it be decided to let it float!

We are living in a new banking, financial and trading world now or at least one in which the established consensus on how such business is conducted around the world is ending. The Global Financial Crisis, to me, means the end of an era in which low cost, export led growth often using exchange rate depreciation was the chosen economic model used around the world by countries to sell their goods/service to America, largely, and to a lesser extent Europe. That world no longer exists and hence our views of currencies must adapt.

Both Germany and China have used their explicit or implicit fixed exchange rate regimes to follow export-led growth, with their surpluses being recycled to fuel consumption and housing booms in the ‘deficit’ countries notably the US. With the unrelenting slowing down of the world economy, and the credit crunch leading to global deleveraging, this is no longer sustainable. In fact that model may have been one of the chief causes of the Global Financial Crisis. China is now desperately trying to boost domestic demand through an infrastructure-led fiscal stimulus. What will other countries like Mauritius do? Do we need to fundamentally review what currencies we benchmark the rupee against taking into account this post leveraged, post American/European consumer world that I believe we now live in? Remember just a few years ago and it was not really possible to envision much else.

So, when we say that floating the rupee could be dangerous we must not also ignore that we may be accumulating a lot of other dangers which surely and inevitably will impact us by using a fixed or aggressively managed floating regime.

I also think that the Mauritian economy is becoming more diversified and if we do succeed in our ambitions to be a true regional financial and business services we may be linking our currency management to EUROs or Dollars which may be wholly inappropriate to the diverse range of business flows that we are in fact serving and the range of economic actors involved in them.

If however we continue to believe that we should aggressively manage our floating rate then there are three aspects of exchange rate management that we and our policy makers must think about: i) the stock of FX reserves with which to manage the float; ii) the extent to which we use these reserves to stabilize the exchange rate; and iii) the extent to which we might also use interest rates to stabilize the exchange rates.

The stock of currency reserves for managing a float is like having a good, buoyant lifejacket.
A country that floats without regard for the level of the exchange rate will not need a lot of reserves to manage its exchange rate. The rate will move with the prevailing current. In contrast, countries which are not willing to let the exchange rate fluctuate need a large cushion of reserves to achieve this in extreme or persistent shock situations. But a big lifejacket may not make it easy to swim in one direction or the other when in fact that is better than floating around in crashing waves!

That then makes us ask how much should we attempt to manage exchange rates by intervening in the foreign exchange market? The exchange rate could be more volatile in a current period because of a large external shock leading us to intervene to keep the exchange rate within certain limits. But even this identification of a shock that demands our intervention could be difficult to undertake depending on how comfortable we are with the accompanying volatility of reserves. And how do we know when enough intervention is enough?

Of course, intervention in the foreign exchange market is not the only tool for managing the exchange rate. We can also affect it by tightening or loosening monetary policy, ie policy interest rates. This is more controversial. Tightening monetary policy will result in pressure for appreciation of the currency, and loosening monetary policy will result in pressures for depreciation. But interest rates are a blunt tool since they may be changing for other reasons such as inflation targeting, investor sentiment toward emerging markets, etc. Under a pure floating regime, we should be able to set interest rates independently in order to achieve whatever objectives we desire, and let the exchange rate absorb the shock except if we float with an inflation target to control economic demand.

So in summing up, a truly “free” floating FX regime requires the public along with policymakers to understand that, it is not, ultimately, Free. There is always a price to be paid, which is, perhaps, great volatility in the exchange rate, or at least less policy driven control of what the “proper exchange rate should be.”

We should also understand that aggressively Managing the float is not truly Cost free or a guarantee of business stability. Our level of FX reserves, and the hidden costs of controlling the level of volatility that we expose ourselves to and our level of inflation all can have major consequences which may be just as dangerous or distorting to our economy as Floating Freely.

But to me, I would not at all bet against Mauritius’ ability to cope, in fact swim strongly, in a more dynamic and floating environment. I think we may well have a good lifejacket to protect us if we decide to float. But we would need to ensure this is taken as a measured and deliberate choice at a time of our choosing.

Community Spirit – in business and banking too!

2009-03-30T16:07:00.003+04:00

AfrAsia recently sponsored an event focusing on the construction sector during these difficult economic times. You can read the full details by clicking here.

What I have always liked about Mauritius is a continued ability to adapt and to engage a very diverse group of stakeholders whenever major economic shifts have hit the country. A lot of good policies and initiatives have resulted. And the dialogue continues at events like this one. The need for this is particularly great now when extreme movements in currency exchange rates, commodity prices and trade and investment flows seem to conspire to make any investment proposition a dangerous one.

I would sound one word of caution though. Strong local industries, whether they are in construction or other sectors are great for employment, tax revenues, social harmony and many other desirable outcomes including, one hopes, good investments! Surely there has to be a minimum competitive ability though in quality and price and we must take care not to reduce the argument to foreign dominance is bad and local dominance is good. The Minister of Finance has a good saying that we can protect people not specific jobs. Once we get through this most extreme set of volatile circumstances consumers and tax payers should not be unduly burdened with supporting inefficient industries. I am confident though that the policies will ultimately put in place time limits, benchmarking and other measures to ensure we get world class products and prices.

Africa, Energy and Mauritius

2009-03-17T23:58:00.000+05:00

AfrAsia Bank views Mauritius as the ideal international business and financial services platform between Asia and Africa. For our part we are active in both continents already including India. We continue to see energy, specifically oil based energy, as a long term issue that both underpins and undermines economic growth. We need to find alternatives to it eventually but until we do it is at the heart of nearly all economic growth in the world.

“Africa is the great frontier for oil companies and is the largest continent open to oil companies. It has vast and untapped interior areas for exploration new deep-water tracts and ultra-deep-water basins. In some places, the history of oil is over a century old and there are some 500 companies working in the African oil industry today. In terms of growth rates, Africa is the No. 1 destination for oil investment in the world. Through 2030, OECD estimates peg African oil investment at well over $1.25 trillion -- ahead of Russia and the Middle East. About 50% of that money is just for power generation. The other half is for oil and gas exploration and production, with a smidgeon for coal. Nearly all of this money comes from outside Africa. “ Note 1

Whether that investment into Africa is European, American, Chinese, Indian or others, Mauritius is increasingly playing a value added role across trading, logistics and financial services. And although oil prices at just below USD50/barrel have unbelievably declined a lot from their peak, remember that only a few years, that USD50/barrel was just as unbelievable when viewed from a USD25 perspective. Oil and energy will continue to dominate economics for some time.

Note 1: From Chris Mayer who writes for The Daily Reckoning and is the editor of the US Fleet Street Letter

Daylight Savings Time in Mauritius – The experiment

2009-03-10T10:13:00.000+05:00

I believe most of us either hate or love the change. Lots of stories going around that it will not be repeated. I do hope that there could be a public review panel or similar type of forum on whether it will be repeated or amended. There are lots to recommend about DST, including the lovely extra hours at the end of the day which are well appreciated by tourists and many of us who work until early evening. The downside is that, especially in March, the early morning is very dark and it does make it more difficult to get the morning routine going. Maybe there is a compromise solution and one that suits the fact that Mauritius is a very tourism oriented and international business oriented market.

Perhaps the DST period could be during the month of November to February only?
On balance, I really like DST but indeed in October and March, it has rather dramatic effects.

Never Settle for Perceived Strength

2009-03-05T17:56:00.000+05:00

I gave a talk on Monday night on Ethics and The Investment Profession in the Global Crisis. This was while wearing my President of the Society of Financial Analysts of Mauritius hat. The SFAM is the local society here of CFA Institute. The key message was that the investing and indeed banking profession are under great strain these days as the public perception of our ethical standards has taken some severe damage. More transparency, disclosure and ability to demonstrate our track records of adhering to codes of conduct and best practice are going to be needed to change these perceptions. This blog is indeed a forum to open more dialogue that way. Would love to hear from you.

Rebranding [and repainting] Mauritius

2009-02-13T15:47:00.000+05:00

The hard working team at the Board of Investment invited some of us finance types to see the latest plans for Rebranding Mauritius.

A very intriguing presentation by Acanchi, a talented marketing agency, was made and gave me a real sense of excitement. The concept is imaginative and a bit counter-intuitive but, after hearing it explained fully, I think Mauritians will really rally behind it. And that’s the quite important part that some of the very talented audience members made clear; Do Mauritians and those of us living here for extended periods of time truly have some simple and unifying themes to communicate about this wonderfully beautiful, talented, diverse and still young Republic?

We at AfrAsia Bank are of course active in making our brand and our banking services aware to the Mauritian market and the regional market and much of that also relies upon the Mauritius brand as a springboard or a platform, a truly vital and integrated part of the region. So, I am hoping the new rebranding will capture the public imagination. Watch out for it.

One question, for the blog readers though. Rebranding and communications exercises are not disconnected to the physical and natural conditions of which we are part. There is a tremendous amount of development happening in Mauritius, much of it truly global class and quality. And yet some of the nicest buildings, houses or motorways still remain surrounded by unpainted concrete. And even some of the more modest developments still seem to have spent a lot of money on fancy windows, security systems and green grass …but still there is that unpainted concrete! This just seems rather incomplete and, at least to my non Mauritian eyes, undermines much of that natural beauty of Mauritius. Anybody know the story of the missing paint?

Best
James

Clients First - Always

2009-01-23T16:56:00.000+05:00

I mentioned in my last article that we were about to launch our Global Opportunities investment note. And indeed we did - but we placed it mainly through large institutional and professional investors in partnership with our sister company Axys Capital. Given prevailing volatile market conditions we really wanted to ensure that we were not perceived to be “overselling” and hence we did not proceed with a public campaign for this product so we could ensure that we had sufficient ability to ensure this product aligned well with a limited number of investors.

We do mean what we say when we call ourselves “bank different” and self-restraint/regulation is indeed part of professional banking and investing

Meantime interest rates keep dropping worldwide and I would expect we see more action on that front in Mauritius soon. But for those of you that are seeking attractive interest rates, don’t worry, we will be announcing some new promotions

Please do keep watching our website and the newspapers closely. But we will ensure you get all the details one way or the other anyway.

Mauritian Real Estate critics, barren rocks and Lord Palmerston

2008-12-12T16:18:00.000+05:00

Long ago, British Foreign Minister Lord Palmerston famously described Hong Kong as a “barren rock with hardly a house upon it” and, I believe, he also added that there was “no trade of any noticeable extent there.”

Well,well. We know how that story has played out since then. Hong Kong and places like Singapore and Dubai have shocked the world with their growth and vibrancy. They still do, despite the current turmoil.

Some prominent editorial writers and economists have recently referenced a series of commentaries wherein the sentiments of most were very sceptical on real estate as an investment in Mauritius. Some extreme comments were also made that there is no way to make any real, objective valuation of real estate prices here. It seems there is a rush to dismiss Mauritius as a barren beach, to paraphrase Lord Palmerston.

Well, well…..

To be fair, Mauritius is three times the physical size of Singapore and with one third of the population. So there is a relative surplus of some types of land one could say. And on the face of it, we do seem to be a long way from anywhere, whereas in Hong Kong you can drive to mainland China and Singapore now connects to Malaysia. Is that the end of the story?

Location, Location, Location

Mauritius is a beautiful island-state that is truly networked into the region and the world with a remarkable tourism industry, a series of tax treaties that have driven global investment flows, and being also firmly linked into trading blocs like COMESA and SADC. It has a diverse and dynamic population that has close affinity to Africa, India, Europe and Asia, and all their attendant languages, religions and customs. It is only a few hours flight from Cape Town, Johannesburg, India, Kenya, Madagascar and Reunion. And it keeps reinventing itself every decade or even half decade.

From our perspective, Mauritius is going to be a prime financial, economic, trade and cultural gateway between India and South Africa/ East Africa and it has already started. And just wait until the rest of SE Asia finds out how pleasant, professional and productive we are as a bridge into Africa. Ten years ago, ask yourself, was the current size of the tourism and financial services industry really expected? Of course this story will play out over time and it certainly does not mean that one can buy any piece of land anywhere on the island and make huge returns immediately. Far from it and we do believe the property market here needs better planning,and quality, and investors must pay more attention to cash yields to service debt rather than reply on quick price appreciation. Many smart developers and investors, however, are doing just that.

So to write off Mauritius real estate as an asset class would not make sense to us.

If you or your company are investing in real estate please do check out our web site http://www.afrasiabank.com/ and speak to our expert Corporate and Private Banking leaders, Ben Padayachy, Thierry Vallet and Rouben Chocalingum to see how we can help. You can contact them on 208 5500 or email at afrasia@afrasiabank.com.

…BREAKING NEWS

Our Private Banking team has just put the final touches together on a new global equities fund in case real estate is not right for you at this time. I will try and get our next blog update out very soon with some key details since this is a limited time special offer.

Too Much Money and Not Enough Places to Put It

2008-12-02T12:06:00.000+05:00

An excellent newspaper article and research paper, which I quote from below, summarize what I think may be the most straightforward explanation of the financial crisis. See http://blogs.wsj.com/economics/2008/09/12. More importantly, what should we be doing now to succeed and thrive as a result of this crisis.

In short, that the boom and bust in the housing and credit market, the surge in commodity prices and the mass of debt that the U.S. owes to the rest of the world, all have a common cause. Economists Ricardo Caballero at MIT, Emmanuel Farhi at Harvard and Pierre-Olivier Gourinchas at Berkeley argue that there simply aren’t enough sound financial assets to satisfy the wealth that has built up in the world. Rapidly growing developing countries, such as India and China, and oil producing nations like Russia have amassed great fortunes in recent years. At the same time, financial markets in many such countries often lack the transparency and property rights that investors need to feel comfortable. U.S. assets are far more attractive in comparison, and so in recent years foreign investors flooded the U.S. financial markets — particularly debt markets — with cash.

But as the authors say, the real problem remains and is unlikely to go away until the world economy’s ability to generate sound store of value - rather than pure diversification - financial assets catches up with its rapid income growth.

Such financial assets will no doubt have to do much more to help promote infrastructure, trade, project finance and real, operating businesses too. So if one was to look at a region where a bank would find fertile ground to do that today, we think a place that is at the cross roads of S.E. Asia, India and Africa might just be about the perfect place, particularly when the global financial services landscape is now at a new cross road.

Welcome again, to AfrAsia Bank - based in the Mauritius International Financial Services Centre. Check out our plans to grow and serve the region with our representative office in Cape Town. See http://www.afrasiabank.com/news_readmore.aspx?newsid=26

Next blog… Investment trends of interest to individuals, including some recent debates on Mauritian Real Estate.

THE AFRASIA bank different BLOG

2008-11-22T01:45:00.000+05:00

A Different, Regional Bank that makes all the sense in the world...especially now!

In a scale that could not have been imagined, the global financial crisis reinforces the core values and customer focus that are at the heart of AfrAsia Bank Limited … “bank different.”

Much of my career has been spent in so called emerging or growth markets. That experience has shown that delivering true financial innovation, that is directly customer relevant, requires on-the-ground insight from home grown financial institutions that are committed to long term success in that market. Success is not transplanted easily as disruptive innovation requires deep roots to persevere. AfrAsia Bank is deeply rooted in this region and we are indeed delighted that in our first year of business we have received World Finance magazine’s Most Innovative Bank in Mauritius Award.

A former boss of mine and now the CEO of ANZ Bank in Australia said it very nicely in 2007, well before the current crisis put the threats and opportunities for banks into clear contrast.

"Possibly the days of global banks are over, but I actually believe that the concept of regional, or super-regional, banks makes all the sense in the world."
Mike Smith. CEO ANZ Bank " ANZ Boss has a grand plan." The Sydney Morning Herald, Business Day 29 Sept 2007

Through this blog, we will share what we believe are guiding trends in banking and finance for the coming new era of regional banks. And we will share why and how AfrAsia Bank can be a proven, passionate partner for corporations, private clients, investors and institutions.

Your feedback is also invited, but in the spirit of good governance and reasonable regulations, check out the following Moderator Link for the rules of play!

And now to the question that we get asked nearly every day…why on earth would you start a bank now? And the answer which may surprise you is simple…and that will be the subject of our next blog! Watch this space…