Corporate and Investment Banking

Cash Management across Africa

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Cash Management

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As Africa emerges onto the global economic stage,

and trade activity into, across and out of the continent

increases, Standard Bank stands as a trusted financial

services partner to many organisations working across the

continent. Our clients are involved across the spectrum of

sectors relevant to Africa, from mining and metals, oil and

gas, telecommunications and media, financial institutions,

and power and infrastructure to agriculture, healthcare and

pharmaceuticals, and retail.

It is indeed exciting times for Africa. This is not just in terms

of escalating trade and foreign direct investment, increasing

political stability and harmonisation of regulations, but in

the growth we are seeing in our clients’ businesses.

We are fully committed to supporting development across

Africa by providing leading financial services. We have

full banking operations in 20 African countries, providing

comprehensive solutions across transactional banking,

investment and lending services to a wide range of clients,

including multinationals, governments, corporations, small

businesses and individuals. We also have a presence in two

additional countries on the continent, extending coverage

for local and international business.

Our teams are based in key financial markets in developed

and emerging economies, including London, New York,

Hong Kong and Beijing, putting us close to international

decision-makers. Our clients benefit from our knowledge of

and expertise in emerging markets, coupled with our global

outlook. We continue to invest in growing our banking

footprint and improving our technology and systems.

With Africa open for business, organisations benefit

from working with a bank that understands and manages

the opportunities and challenges across the continent,

considering Africa’s diversity across cultures, regulations

and market realities. Standard Bank’s long history of success

in Africa stands testament to our ability to meet the needs

of our local and multinational clients, by applying the local

knowledge of our on-the-ground teams to meet our clients’

unique needs within the ambit of local realities. We help

you realise value in African opportunities.

Standard Bank is an African bank with global reach. As the

bank in, for and across Africa, we connect Africa to the

world and the world to Africa.

Standard Bank has been ranked as

the Best Bank in Africa by Global

Finance magazine in 2014.

We were also ranked as the best

bank for payments, collections and

liquidity management in Africa

and best overall bank for cash

management in Africa, alongside

a number of country awards.

Neil Surgey

Standard Bank – your cash management partner in, for and across Africa

Neil Surgey, Head: Transactional Products and Services

Cash Management

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The case for investing in Africa

Growth in many markets across Africa continues to present

opportunities to investors and businesses, with growth outpacing

advanced economies and many emerging market peers. Also,

African markets have historically shown a lower correlation with

emerging and developed markets, with lower volatility and

higher returns.

Foreign direct investment (FDI) inflows into Africa are also on

the rise, particularly from China and India.

The International Monetary Fund predicts that annual growth

in Africa will be around 6% in 2014 and in 2015, while four of

The Economist Intelligence Unit’s top-ten forecasted growth

countries over the next few years are also African.

The European Union’s trade with Africa was more than

USD300 billion in 2012, making it one of the continent’s largest

trading partners. However, the BRICS countries – Brazil, Russia,

India, China and South Africa – are leading the way, with China’s

business alone worth around USD200 billion that year.

While demand for raw materials from emerging economies,

especially China, is supporting growth, increasing trade

within Africa itself is also having a positive impact. Exports by

African countries to their peers have surged by 32% since the

2008 economic downturn, thanks in part to the growth of a

burgeoning middle class.

While Africa has vast reserves of natural

resources, it is diversifying into other sectors,

including services, technology, manufacturing

and retail. Demographic projections are also

encouraging – with a working population

of 1.1 billion by 2040, urbanisation that

will see half of all Africans living in cities

by 2020, and consumer spending reaching

around USD1.4 trillion in 2020. These trends

point to a massive potential market.

Experts in helping you manage your working capital

Every business needs sufficient funds available through its

operating cycle and to cover day-to-day operational activities.

Timing of receivables and payables is critical for the financial

wellbeing of a company.

Due to the level of open account trading that takes place on

the continent, effective cash management is vital to business

success. Given this, businesses must also ensure that cash

resources are utilised effectively and efficiently, to maximise the

bottom line.

Working capital constitutes a large portion of a company’s assets

and is crucial for meeting short-term obligations. Factors such

as reducing the number of days for account receivables and

inventories, efficient collections in underserviced areas and

reducing the cost of collections are priorities in optimising cash

conversion. Also, with current constraints on cash and credit and

with higher borrowing costs, maintaining higher levels of working

capital to support growth and the associated rise in cost of

production is a key consideration for company treasuries.

Standard Bank works with clients to help them manage their

financial supply chain, by facilitating the collection of funds from

beneficiaries, managing and optimising funds, and facilitating

payment to creditors in multiple currencies and countries in

Africa. We help you maintain visibility of your activities and funds

as they move through each stage of the cash conversion cycle.

Cash conversion cycle

Goods/services produced

Goods/ services sold

(accounts receivables)

Payment to suppliers, employees

(account payable)

Cash in

Standard Bank Transactional Products and Services – making business in Africa work for you

Through Standard Bank, you have access to world-class,

standardised and centralised cash management solutions

throughout the sub-Saharan African region. We have a

proven ability to provide world-class cash and liquidity

management services.

Our solutions adhere to best practice project planning,

accuracy and precision to enhance value for you. This is

underpinned by innovation and appropriate use of technology

that provides a seamless interface with your business.

Relationships are key to banking and business in Africa.

We endeavour to become a trusted partner to clients and

stakeholders. And key to building and maintaining your trust is in

understanding the fundamentals of your business and providing

dependable and efficient cash management solutions.

At Standard Bank, we focus on performance and delivery,

leveraging our physical presence in multiple locations in each

country and our in-depth understanding of exchange control

regulations, automated clearing and degrees of straight-

through processing for each area. We work closely with you to

navigate the complexities of managing your working capital

across Africa.

Our solutions help you align your operations to local

requirements, streamline business processes, reduce

operational costs and financial systems risks, and improve

supply chain management. As a truly African bank, we have

the legitimacy and relationships on the continent to open

opportunities for your business.

Hasan Khan, Head of Sales: Transactional Products and Services, and Head: Transactional Products and Services – Africa

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Cash conversion cycle

Cash Management

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Providing working cash management solutions across Africa

Standard Bank’s cash management solutions provide you with

the tools to administer your business accounts reliably, cost

effectively and with confidence. We offer a number of local and

regional solutions to ensure you have end-to-end control and

visibility of your cash.

We provide a consolidated view of your cash position across a

range of currencies, including US dollars, pound sterling, euro,

the South African rand and other local currencies. You can also

fund or defund country accounts as required to accommodate

cross-border cash needs, subject to domestic regulations. We

leverage our extensive African footprint and understanding of

the banking landscape to guide you on cross-border account

selection and the rules and conditions that apply when operating

foreign bank accounts.

Our sophisticated range of cash management services puts you

in control of your funds at all times. This includes numerous

payment and collection options, and a wide range of secure

reports to help monitor and manage day-to-day cash flow in

real time. Our liquidity management services help you to make

optimal use of your cash, ensuring expenses are covered,

overdrafts are kept to a minimum, and any surplus cash is earning

the best interest possible.

Also, despite developments in technology spurring on migration

to electronic payment and collection systems, many countries in

Africa are still predominately cash-based. Grassroots payment and

collection services (such as on cash and cheques) remain popular.

Standard Bank offers products and services that work within these

constraints, including comprehensive reports that are available

when you need to track and identify payments and receipts.

We have a presence in 20 countries on the African continent,

including South Africa, Kenya, Nigeria, Angola and Mozambique.

We also have presence in key emerging and developed markets

and major global financial centres.

Countries where Standard Bank is present in.

Connecting Africa to the world and the world to Africa

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Accounts are available in multiple currencies,

also servicing the requirements of clients who

are not domiciled in respective countries,

according to individual country regulations.

You can view account positions through

balances and statements on demand through

our electronic banking platform. We also

provide a range of messaging options to

notify you of transactions and give you access

to comprehensive transaction histories to keep

your finger on the pulse of your business.

Cash Management

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Regional reach to streamline your business

As the bank for Africa, Standard Bank is a leading proponent in

efforts to regionalise financial services and are at the forefront

of leveraging emerging technology to do this. We are the only

bank with on-the-ground access to key regional hubs in Africa.

Standard Bank is part of two regional payment systems, the East

African Community (EAC) and Southern African Development

Community (SADC), through which we facilitate intra-day urgent

payments to participating countries.

We have long-established networks to drive efficiencies in the

pan-African cash management space. As a result, we support

centralised or decentralised processing models for multinational

clients as they access multiple countries across Africa.

Our extensive footprint in Africa across our physical and network

infrastructure gives you access to a local interface with insight into

local systems and businesses. With an understanding of factors

from infrastructure constraints and the maturity of local financial

systems, to local laws and reporting requirements, we provide the

local support and trusted guidance that you need.

Managing financial and regulatory risks so you can focus on your business

With over 150 years of experience in Africa, Standard Bank

understands the regulatory and legislative environments in which

we operate. We provide ongoing support to help you navigate

varying and complex regulations in different countries and regions.

Our support extends to effectively managing a host of risks –

from guiding you on the risks associated with compliance, tax

and fraud, to interest rate and foreign exchange risks. This is

enhanced by our local teams who provide specific local expertise.

As a well-recognised and respected brand across the continent,

we provide local credibility and connect you to local networks, vital

to help you navigate the complexities of each market. Standard

Bank is the financial services partner to provide a consistent and

considered approach to help your business succeed.

Building relationships that build businesses

Our business is structured around the needs of clients, with dedicated relationship managers providing a single point of contact to

Standard Bank’s full range of financial products and services. Each country also has a relationship manager to coordinate in-country

needs, as well as a dedicated transactional banker to manage day-to-day banking services.

Our partnership approach is based on the understanding that your business evolves over time. We have the flexibility to respond to

emergent technology requirements that help you lead and innovate in your sector. Our relationship team is supported by researchers,

product and global distribution specialists who provide the operational support, insight and personal service you need to make the most

of your business in Africa every day.

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Account Services

Account types to suit your business requirements

We have a range of account types to suit your company’s

requirements, across:

Transactional accounts

Our current account provides you

with immediate access to funds and

full electronic access for viewing and

transacting so that you can easily manage

your funds. Statements are available

daily, weekly or monthly.

Investment accounts

Secure investment accounts with

guaranteed principle.

Call account

You earn low-tier interest with

immediate access to your funds. We

provide monthly statements and full

electronic access for you to have a

constant view of your funds.

Notice deposits

You earn mid-tier interest and give notice

before your funds become available.

Monthly statements are provided.

Fixed deposits

A set tenor gives you the opportunity to

realise high-interest yield on your funds.

Monthly statements are provided.

Loan accounts

Overdrafts

This gives you access to additional

funds for working capital through a

monthly facility that rolls over from

month to month. Interest is charged on

the overdraft balance and detailed in

statements.

Term loans

If you need funds for a specific time, we

provide a set loan that you can draw at

a specific time and repay over a defined

period. Interest is charged on the loan

amount and detailed in statements.

Expert account management as a foundation for your business in Africa

Account management forms the base for all banking services. We

are a trusted advisor to local and multinational clients, helping

them view and track capital outflows, reduce trapped cash and

administer their businesses centrally.

Our experienced account specialists help you open and

administer accounts, and connect you to the full capabilities of

Standard Bank.

Resident and non-resident accounts are available in the major

African and international currencies in line with local regulations,

with the ability to add additional currencies if required.

A note on mobile money in Africa

More than 50% of global mobile money deployments are taking place in Africa, which makes it a sector where the continent is leading the rest of the world.

Standard Bank has seen the number of payments to mobile wallets in Kenya on behalf of its clients increase by 300% in 2013. In Nigeria, Standard Bank has started a mobile payments pilot project, putting it at the forefront of the country’s central bank policy of promoting a cashless society.

“Nigeria’s sheer scale and the early adoption of the systems in Kenya means that both countries are well placed to leverage this growth potential and the associated benefits. “Multinational corporations operating in Africa are increasingly looking at ways to eliminate the risk of carrying and transporting cash and the use of mobile wallets to facilitate cashless payments is a cost-effective and efficient way of doing this.”

Mobile payments are becoming a valid substitute for carrying cash in many parts of Africa. It is an easy and safe way to ensure that funds reach their intended recipients, making it an ideal solution for companies that have large workforces requiring weekly or monthly wage and salary payments. Standard Bank is helping to facilitate the adoption of mobile payment technology by establishing partnerships with telecommunications companies and businesses across the continent.

Payments and Collections

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Reliable and comprehensive collections capability

Standard Bank’s range of collections products help local and

multinational clients receive funds from their customers locally

or across borders, optimising working capital. Our understanding

of the collections landscape across Africa and our tested and

reliable collections infrastructure ensures that value is passed to

your accounts quickly and securely, with sufficient information for

you to identify the source of any funds.

Our services are augmented by Standard Bank’s universal banking

offering, specifically in personal and business banking where we

service the needs of local clients in 20 countries across Africa.

Collections can be effected electronically, through electronic

receipts or direct debits, or physically by means of cash, cheque

or card.

Processing your payments accurately and on time

Standard Bank’s range of payments products help local and

multinational clients transfer funds to their creditors and staff,

locally or across borders. Our understanding of the payment

landscape across Africa and our tested and reliable payment

infrastructure ensure that payment instructions are processed

accurately and on time.

Payments can be made electronically via a range of secure data

transfer channels, including telegraphic transfers, domestic

electronic funds transfers and real-time gross settlements, or

physically by means of cash or cheques. We also offer card

solutions in some markets.

Using our electronic payment solutions, you can:

• Initiate payments anywhere, anytime, across the globe

• Make single or bulk payments, for same day or future value

• Make local or foreign currency payments from a single point

of origin

• Transfer funds easily between Standard Bank accounts

across your global banking portfolio (country regulations

permitting)

• Generate comprehensive reports

• Advise beneficiaries when payments have been made.

As an additional service, Standard Bank is able to issue payment

guarantees to your creditors when required.

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Standard Bank is a market leader in electronic

payments and collections in our markets.

To improve efficiency and deliver excellent

products and service to our clients, we continue

to invest substantially in our technology

systems and infrastructure across Africa.

Liquidity Management

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Effective liquidity management in a business ensures that there

is sufficient visibility and control over cash flows, both centrally

and across borders. It is vital if a business is to achieve optimal

profitability from under-utilised funds.

Within the ambit of local regulations and allowing for

complexities in each market, Standard Bank offers a range

of products to our local and multinational clients to manage

balances. Where regulations allow, balances can be netted,

pooled or swept to provide you with an overall group position

for participating accounts. Near real-time balance and statement

information is provided to help you optimise liquidity structures,

by either investing or borrowing funds to meet your obligations.

We provide you with unique and structured solutions to assist you in

managing liquidity. However, as solutions become more complex and

multiple countries become involved, legal requirements can become

onerous. We work closely with you to provide the best solutions

within the framework of local and international regulations.

Our understanding of the financial landscape across Africa

and our tested and reliable infrastructure ensures that balances are

visible and managed to achieve the greatest level of profitability.

Our transactional bankers provide expert guidance on services,

including:

• Notional pooling and sweeping products

• A consolidated view of cash positions across Africa via our

electronic banking platform, including the ability to fund

or de-fund countries

• An exchange control advisory service to assist with

cross-border liquidity management services

• Advice on optimising liquidity through regional

processing hubs.

Optimising liquidity management in your business

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Online Banking Services

Comprehensive transactional options for your business

Transactional requirements depend on the unique needs of

clients in different sectors and regions, influenced by various

regulatory regimes and local infrastructure.

Standard Bank provides a comprehensive range of access points

to meet various transactional banking requirements. We have a

growing footprint of over 1 280 branches and 7 860 ATMs and

ANAs, and established partnerships with providers in cash in

transit. We also offer a market leading online banking platform.

new Business Online – for secure, convenient banking wherever you are

In a world where technology is constantly evolving, balancing

innovation and stability is crucial to the continuity of

your business.

Our advanced electronic platform offers secure, reliable online

banking services tailored to meet the needs of our corporate

and institutional clients. new Business Online provides a single

view of your relationship with Standard Bank across products,

currencies and countries in near real-time.

Advanced encryption technology ensures complete safety for

all transactions, while varying levels of security clearance can be

issued to monitor staff access.

From managing day-to-day transactions, payments and transfers

to viewing statements and self-service administration, new

Business Online is a convenient, cost-effective way to access

your business 24 hours a day, 7 days a week from anywhere in

the world.

Drawing on Standard Bank’s understanding of emerging markets,

our specialist product expertise and established local networks,

new Business Online opens up unique global market advantages

for corporate and business banking clients around the world.

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Leading capability in foreign exchange in Africa

With trade and investment flows increasing in Africa, clients

require a robust and reliable foreign exchange (FX) platform,

backed by an experienced team who understands the

environment in each country across the region. Expert guidance

on limiting exposure to currency exchange fluctuations,

understanding exchange control regulations and minimising

the risks associated with cross-border transactions is crucial to

building a business in Africa.

Our full suite of products include both standardised and

customised solutions to meet your needs, locally and cross

border. Advanced technology applications enable you to

electronically execute foreign exchange transactions and operate

best practice international cash management systems online.

We deliver a 24-hour foreign exchange service sensitive to

regulatory and risk factors in emerging markets globally.

Trade and payment solutions using renminbi

Ties between China and Africa continue to deepen,

substantially changing Africa’s political and economic

environment. This is seen in the increase in trade and

payment volumes between Africa and China.

Standard Bank has the capability to support your

requirements in trading and bridging the gap with China

using the renminbi (RMB). With RMB now acceptable as a

currency of global trade, Standard Bank provides payment

clearing and trade settlements through a centralised solution

designed to meet your requirements.

Our growing suite of RMB solutions is supporting financial

institutions, African and Chinese importers and exporters,

and global investors.

Foreign Exchange

Standard Bank has the most comprehensive

FX network in sub-Saharan Africa, and our

flow business is the leading market maker

in South Africa and Nigeria, the two largest

markets in this region. We process 30% of

Africa’s FX volumes, including South Africa.

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Why choose Standard Bank

Our business is structured around your needs. Our relationship

managers provide one point of contact for all your financial

needs. They develop an in-depth understanding of your business

and aspirations as they evolve, and link you to the full capabilities

of Standard Bank. They work closely with specialist product

and global distribution teams that develop and deliver always-

appropriate solutions that move you forward.

We have specialist expertise in industry sectors most relevant

to Africa and other emerging markets, with almost 150 years’

experience in natural resources. Our sector specialists are on

hand to provide deep insight into the commercial, regulatory and

operational realities in strategically important, high-growth markets.

Through our African presence and emerging markets focus, you

can access markets and opportunities not available through other

sources. We service your full financial and banking requirements,

from transactional banking, saving and borrowing to investment

management, life insurance, risk management and advisory.

Leveraging our universal banking capability, we also provide

comprehensive financial services to your stakeholders, including

staff, distributors, suppliers and shareholders.

Supporting development across Africa

Standard Bank facilitates and finances opportunities that drive

economic development and social transformation across Africa.

We partner with our clients and stakeholders to facilitate

increasing trade and investment flows across Africa, so

supporting economic growth and job creation.

We also play a positive role at national and regional level by

facilitating relationships between the public and private sectors,

and in providing services, capital and guidance to governments.

While a large part of trading activity occurs

via the Africa, Asia and Europe trade

corridors, we are starting to see growing

levels of intra-Africa trade. This new trend is

largely being driven by rapid urbanisation,

a younger and growing middle class and

the rise of the consumer class. Cheaper and

improved telecommunications networks

in these countries are also ensuring that

customers and financial institutions are

imbedded in the payments system. Standard

Bank will ensure that its expertise, systems

and people are there to support growth in

Africa by facilitating trade and supporting

individual businesses on the continent.

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2014

Global Finance World’s Best Treasury and Cash

Management Providers

• Best Overall Bank for Cash Management

in Africa

• Best Bank for Liquidity Management in Africa

• Best Provider of Money Market Funds in Africa

• Best Bank for Payments and Collections

in Africa

Global Finance

• Best Trade Finance Bank in Africa and

South Africa

Global Finance World’s Best Investment Banks

• Best in Frontier Markets (Global)

• Best Investment Bank in Africa

Global Finance World’s Best Emerging Markets Banks

• Best Bank in Africa

Global Finance World’s Best Sub-Custodian

Banks

• Best Sub-Custodian Bank in Africa

Risk Awards

• Global Emerging Markets Dealer of the Year

2013

The Banker Top 500 Bank Brand

emeafinance Treasury Service

emeafinance African Banking

Euromoney Awards of Excellence

Euromoney Annual Africa

Research Poll

Global Finance World’s Best

FX Providers

GTR Africa Leaders in Trade

Awards

Risk SA

Trade Finance Awards for

Excellence

Treasury Management

International 2013

A selection of key awards and accolades

For more information on Standard Bank, including our credit ratings, annual reports and shareholders,

visit http://reporting.standardbank.com

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Disclaimer This document has been prepared solely for information purposes by The Standard Bank of South Africa Limited, acting through its Corporate and Investment Banking Division (“SBSA”). Any indicative terms provided to you are provided for your information and do not constitute an offer, a solicitation of an offer, invitation to acquire any security or to enter into any agreement, or any advice or recommendation to conclude any transaction (whether on the indicative terms or otherwise). Any information, indicative price quotations, disclosure materials or analyses provided to you have been prepared on assumptions and parameters that reflect good faith determinations by us or that have been expressly specified by you and do not constitute advice by us and it should not be relied upon as such. The information, assumptions and parameters used are not the only ones that might reasonably have been selected and therefore no guarantee is given as to the accuracy, completeness, or reasonableness of any such information, quotations, disclosure or analyses. No representation or warranty is made that any indicative performance or return indicated will be achieved in the future. This document is not an official confirmation of terms, and any transaction that may be concluded pursuant to this document shall be in terms of and confirmed by the signing of appropriate documentation, on terms to be agreed between the parties. The information in the document is also subject to change without notice. SBSA, or an associated company, may have effected or may effect transactions for its own account in any investment outlined in the document or any investment related to such an investment. Prospective investors should obtain independent advice in respect of any product detailed in this document, as SBSA provides no investment, tax or legal advice and makes no representation or warranty about the suitability of a product for a particular client or circumstance. Transactions described in this material may give rise to substantial risk and are not suitable for all investors. SBSA will only provide investment advice if specifically agreed to by SBSA in appropriate documentation, signed by SBSA. This information is to be used at your own risks, and SBSA makes no representation with regards to the correctness of the information herein.

Authorised financial services and registered credit provider (NCRCP15)The Standard Bank of South Africa Limited (Registered Bank) Reg. No. 1962/000738/06 SBSA 187207-8/14

Notes