We are slowly becoming used to news that says good things about Africa. Even the adverts are changing such as the Coca cola adverts. Right now , one company , SWIFT , has even said they are making more money out of Africa then in any other part of the world. This is something companies rarely admit to .
Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. Basically without a SWIFT code , you can’t transfer money out of the country . An according tot them , money is being transferred in and out of Africa at a higher rate then any where else in the world . And every time money is transferred , SWIFT makes money.
SWIFT, the financial messaging provider for more than 10,000 banks, securities institutions and corporate customers in 212 countries and territories, today (21st May 2013 ) announced that its business in Africa has outperformed the total growth of the business globally by more than 16%, highlighting the vitality of the region. Growth was particularly marked in the securities markets, where Africa volumes outpaced total SWIFT securities traffic by more than 42%.
Hugo Smit, Head of Africa South, SWIFT, said: “Africa remains one of our core markets. It has outperformed most of our other regions and contributes significantly to the growth of our business globally. We are excited about the opportunities that Africa presents to the SWIFT community and look forward to working with them to unlock this potential. As a result, we are bringing more resources, services and extended solution offerings to the local financial community.”
Growth in the region is spread across SWIFT’s traditional financial message-based business (including payments, securities, treasury and trade) and in the rapidly expanding non-network-based businesses such as consulting and services, business intelligence, and connectivity solutions. SWIFT is also involved in many of Africa’s regionalisation projects, including the Southern African Development Community, the West African Monetary Zone and the East African Community.
The growth in SWIFT’s message businesses in Africa was led by the securities markets, which saw double digit growth of almost 13.5% in the 12 months to March 2013. This was followed by international payments traffic, which grew by more than 11% in the same period. Total growth for Africa’s message traffic was 11.5%.
Smit said: “Africa is one of the most dynamic and fast growing regions in the world today and in many aspects is leading the world in regional development projects that will help to boost intra-Africa trade and drive economic growth even further.”
Looking at SWIFT traffic at a country level, many sub-Saharan countries have experienced a startling pace of growth over the last 12 months. For the securities volumes, some figures partly reflect that Africa’s capital markets are relatively young, so volume growth is coming from a low base. However, volumes clearly demonstrate that these markets are developing rapidly and give a glimpse of the opportunities ahead.
In Nigeria, for example, payments traffic grew by almost 32% and securities traffic by more than 50%, while in Ghana, payment traffic rose by almost 20% and securities by more than 56%. In East Africa, message traffic has also risen over the same period, with Uganda’s payments up by more than 34% and securities by 55%. In Tanzania, securities traffic has risen by a staggering115%.
In South Africa, the growth rate is slower, but still outstrips SWIFT’s global growth; payments traffic rose by almost 13% and securities by more than 13%.