Barclays Joins UBS in Pursuit of African Millionaires – Bloomberg 08-02-13

Salient to Investors:

Barclays is joining Citigroup and UBS in targeting millionaire clients in Africa.

Cap Gemini and Royal Bank of Canada said the number of Africans with at least $1 million of investable assets climbed 9.9 percent to 140,000 in 2012, the fastest rate of increase outside North America. Cap Gemini said 42 percent of the millionaires in Africa and the Middle East are prioritizing wealth accumulation, a higher proportion than in North America, Europe or Asia.

Mark Mobius at Templeton Emerging Markets said it is a great time for private banking, wealth management and asset management in Africa.

UBS, the world’s biggest wealth manager, said in May it will expand its operations in Africa as economic growth rates boost demand. The industries contributing most to wealth creation on the continent include the resources, telecommunications and consumer industries, according to the Zurich-based bank.

The IMF said economic growth in sub-Saharan Africa will accelerate to 5.9 percent in 2014 from 5.1 percent in 2013, while Nigeria will grow 7.2 percent in 2013.

Thabo Khojane at Investec Asset Mgmt said pools of savings are being created across the continent in counties like Nigeria, Kenya and Ghana.

Patrice Rassou at Sanlam Investment Mgmt said local and international wealth managers seek to bolster earnings being squeezed by tougher regulatory requirements. Rassou said South African banks and global banks have been bad in general in the wealth management market – Barclays Africa has the product set to be a game changer.

Read the full article at  http://www.bloomberg.com/news/2013-08-01/barclays-joins-ubs-in-pursuit-of-millionaire-clients-in-africa.html

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