1. BCP has set its footprint in Mauritius to expand its operations on the continent. Can you share more on your accomplishments and the reasons behind your strategy in Mauritius?
Over recent years, BCP Group has achieved notable success in expanding its operations on the continent and in the Middle East region. Renowned as a leading pan –African banking group, recognized for its expertise in structured financing and trade finance, BCP Group has received prestigious accolades such as the “Best Moroccan Bank in Trade Finance” from Global Trade Finance and earned recognition from Global Finance. Recently, our Group was awarded with “Best Moroccan Bank in Cash Management” by the World Economic Magazine.
Indeed in 2018, BCP set foot in Mauritius with a vision to position BCP Bank (Mauritius) as a platform for clients, investors and traders to access Africa mainly. Our business model today is focused mainly on Global Business, Cross Border financing and trade finance.
BCP Bank (Mauritius) benefits from the extensive expertise and substantial bank network of the BCP Group, and is therefore well equipped to serve its clients and drive its international operations. The impressive financial performance over the past three years reaffirms the immense potential of our international endeavors.
Firstly, we aim to leverage the synergies of the BCP Group to support Mauritian businesses, enabling them to benefit from our presence across multiple African countries, particularly in the Francophone region. Secondly, we strive to bridge Africa and Mauritius by sharing our market knowledge with local investors and offering tangible solutions for financing their investments and international trade operations.
2. Having set up in Mauritius in 2019, just few months before the covid-19 pandemic, tell us about your journey and how BCP Bank stands out in the market?
We worked on our strategic vision with our teams locally and with our Group, early 2019 while the Bank was going through an integration project with the group which took over a year to complete.
Unfortunately the pandemic came our way, however our focus was to proceed with the deployment of our vision and strategy.
BCP Bank (Mauritius) embarked on a strategic repositioning in 2019, focusing on international expansion while maintaining a strong presence in the local market. This included rationalising our branch network from 11 branches to 6 and then recently in October 2022, a further consolidation took place with the enhancing our operations at the Port-Louis Business Centre. Mauritius is a market that is well served as far as retail banking is concerned. This is the reason we decided to go “niche”and define our retail premium segment and Signature Banking. We are continuously developing our digital tools to enhance our client experience.
Our aim is to provide tailor made solutions to our clients across all segments from household lending to trade finance solutions for our SMEs and corporates locally and internationally.
BCP Bank (Mauritius) has positioned itself as a trusted investment gateway between Asia and Africa. We specialize in structured and cross-border financing, as well as trade finance, to support corporate clients. Our private wealth management division branded as “Signature by BCP Bank”, also benefits from synergies with other subsidiaries within the BCP Group, creating promising avenues for growth.
3. Mauritius is positioning itself as the IFC for Africa. Do you think Mauritius has the prerequisites for global companies to domicile their business in the jurisdiction?
With its geographical proximity and historical ties to Africa, Mauritius is an integral part of the continent. As a member of the African Union, as well as regional economic groups such as the SADC and COMESA, Mauritius meets the essential requirements for global companies to establish their businesses in the jurisdiction, all the more so when Mauritius has signed various investment promotion and protection treaties, along with non-double taxation agreements with several African countries.
Furthermore, with the establishment of the African Continental Free Trade Area (AfCFTA), Mauritius can leverage its comparative advantages to expand its presence in Africa through direct investments and trade, benefiting from diverse opportunities in sectors such as infrastructure, agro-food industry, healthcare, education, financial services, technology, and renewable energy. Overall, Mauritius' progressive institutional and regulatory framework, conducive business climate, and strategic sectors make it an attractive choice for global companies seeking a foothold in Africa.
4. Various companies are currently using Mauritius as the platform for African bound operations. What are your views, and is Mauritius a fit for African operations?
Mauritius has emerged as a favourable platform for African operations thanks to its strategic location, political stability and well-developed financial services sector. Mauritius is also part of important economic blocks regionally: COMESA, SADC, etc. We have a number of trade agreements and IPPAs signed. Most importantly, we have a conducive business climate that can facilitate investors, traders and fund managers setting up in Mauritius.
I believe Mauritius offers several advantages, including a robust regulatory framework, attractive tax incentives, and a skilled workforce. Additionally, its strong connections with African nations and membership in regional trade agreements enhance its appeal as a gateway for trade finance, corporate, and institutional banking services. However, it is crucial to assess individual company requirements and consider other factors such as market dynamics and competition before determining the suitability of Mauritius for African operations.
As a subsidiary of a pan-African group, our bank recognizes that the banking sector in Mauritius has established the necessary foundations for Mauritian companies to realize their African ambitions through advisory services, financing solutions, and risk mitigation. Our primary mission is to provide a distinct advantage to Mauritian operators by leveraging our knowledge of the African market and its key players. Through the synergy of our local teams and the group, we offer innovative solutions that not only facilitate market positioning in Africa but also protect against cross-border trade and credit risks. Furthermore, we actively promote Mauritius as an International Financial Center, continuously highlighting its advantages for doing business and facilitating exchanges within our intra-group network.
5. Do you feel that Mauritius needs to redefine its value propositions for the continent? If so, what would you wish for the Mauritius IFC to work on?
Mauritius has already accomplished much in redefining its value propositions for the continent. However, there is room for some fine-tuning of the country’s strategy, which remains a work in progress. In order to do so, the Mauritius IFC could focus on the following areas:
- Strengthening the business ecosystem: As part of the International Financial Centre (IFC), Mauritius has already built up a robust business ecosystem. It is crucial to continue building and consolidating this ecosystem to support the country's value propositions for the continent.
- Regulatory framework: The regulatory framework needs to be flexible and responsive to the changing nature of the world economy. The Mauritius IFC needs to continually update its regulatory framework to keep up with the evolving needs of companies operating in Africa.
- Facilitating trade and exchanges: The introduction of the African Continental Free Trade Area (AfCFTA) presents new opportunities for Mauritius. The Mauritius IFC should focus on overcoming trade barriers and challenges to facilitate seamless exchanges between Mauritius and other African countries
- Regional and continental influence: Mauritius has the potential to enhance its economic influence at both regional and continental levels. Rather than a complete shift from its traditional markets, Mauritius should strategically prioritize and redirect its efforts towards Africa.
6. Could you tell us about the new strategy of BCP bank to pursue future growth?
BCP Bank's new strategy, which was implemented since 2019, focuses on pursuing growth by positioning itself as a trusted investment gateway between Asia and Africa. The bank aims to develop its corporate segment through structured and cross-border financing, as well as trade finance. Additionally, the “gestion privée” division rebranded Signature by BCP Bank is expected to benefit from synergies with the group's subsidiaries, offering promising development prospects.
In the medium term, BCP Bank plans to expand its line of activities to include a "Capital Markets" offering, catering to the needs of its target customer segments, hence the need to recruit highly skilled banking professionals as its human capital is crucial for executing the strategic plan.
The bank's expertise and extensive network of correspondent banks within the group will continue to provide strong support for serving clients and driving international business growth. The promising financial results of the past three years further validate the bank's international activities.
7. Moving forward, what are some of the key priorities that you aim to tackle as CEO of the bank?
A few of my priorities would be:
Facilitating trade: The bank aims to play a crucial role in supporting trade activities in Africa by providing efficient trade finance solutions. We understand that trade is vital for sustaining Africa's economy, and we will leverage our extensive presence across the continent to help both buyers and suppliers navigate the current crisis and ride through it successfully. My aim is to be able to cover the entire trade cycle through supply chain solutions and structured trade facilities. We can help structure solutions for our Mauritian exporters and this is one of my key objectives for our bank.
Promoting growth opportunities: Africa is rich in resources and has significant potential for growth. We will focus on supporting the export of agricultural products, such as pulses, cocoa, coffee beans, and cotton, as well as leveraging Africa's vast mineral reserves, including gold, chromium, and platinum. By facilitating international trade, we aim to contribute to Africa's long-term economic development.
Deepening integration: The COVID-19 pandemic has adversely affected Africa's production and trade. We recognize the need for deeper integration to boost these sectors and will work towards fostering stronger connections and partnerships within the continent.
Embracing sustainability and ESG practices: BCP Bank (Mauritius) is committed to promoting sustainability and adhering to environmental, social, and governance (ESG) guidelines. We prioritize sustainable sourcing, supply chain visibility, and transparency. We support businesses that promote women entrepreneurship in Africa through their trade activities, and we aim to be an active contributor to Africa's growth and success story.
8. BCP is in many ways, the leading entity solidifying the economic and diplomatic relations between Mauritius and Morocco. Does this role suits the BCP? And what more would you want to see to further strengthen the ties between Mauritius and Morocco?
It is undeniable that our Group, being the leading financial institution in Morocco, is well-positioned to play a key role in strengthening diplomatic and commercial ties between Mauritius and Morocco. We have the potential to connect and support our partners in a variety of opportunities, not only in Africa but also in other regions of the world, thanks to our significant presence in Africa and throughout the world, as well as our in-depth understanding of the region and strong relationships with our subsidiaries.
By leveraging BCP's extensive network and expertise, along with the collective efforts of key stakeholders from both Mauritius and Morocco, we can establish strong and mutually beneficial relationship that deepen economic and diplomatic ties between both countries.
This could involve promoting trade and investment flows, easing cross-border transactions, and assisting strategic alliances and joint ventures.
A DTAA between Mauritius and Morocco was signed and awaiting ratification. Once this treaty is ratified by both countries, this should facilitate the flux of investment opportunities and other areas where a mutually beneficial growing relationship will pave its way.
With Casablanca Finance City, ranked favorably in the GFCI index, there are many opportunities where the Mauritius IFC can complement the value chain to attract Moroccan investors and vice versa.
