Navigating the African Markets
An interest rates & foreign exchange guide for corporations operating in Africa
Societe Generale is one of the most established international banks in Africa. Further to its unique positioning, Societe Generale's long history of sharing with Africa is rooted in the financing of the real economy and its loyalty to the continent is encouraging the Bank to take a responsible look at the continent’s development. This commitment was reaffirmed in Societe Generale's "Transform to Grow" strategic plan that makes its African activities one of the pillars of the Group's growth.
For an increasing number of international companies, Africa has become a critical part of the growth engine in emerging markets. Developing and protecting this growth in the context of market uncertainties has become an increasingly complex task for treasury teams and CFOs. Making the appropriate strategic decisions in such an environment requires an in-depth understanding of various factors affecting ones’ business in Africa: the macro-economic fundamentals and challenges behind the growth in each country, the regulatory regime affecting investment and hedging decisions, and the dynamics between the onshore and offshore derivatives markets.
Today, we are pleased to announce the publication of the first edition of the Navigating the African Markets booklet. This guide for corporations operating in Africa has been prepared by the Interest Rates and Foreign Exchange Derivatives group in Societe Generale’s Global Markets Division, with the assistance of the bank’s subsidiaries in Africa and economists.
This booklet is a 100+ page document intended as a practical guide presenting in "a two pagers format" 28 African countries where the bank is either present locally or able to support its customers through its offshore trading capabilities in 4 main regions :
- North Africa
- Western African Economic and Monetary Union
- Economic and Monetary Community of Central Africa
- Other Sub-Saharan Countries
For each country (or economic union), this guidebook presents:
- A regional economic outlook, which introduces current domestic context and summarizes key macroeconomic indicators.
- The foreign exchange market structure, notably the existing exchange rate regime and the local monetary policy framework.
- A general understanding of the local regulatory landscape with a focus on: the rules and limitations that affect cross-border payments; regulatory requirements attached to hedging transactions; capital and dividend regulations that may have an impact on foreign exchange risk management; and when authorized, the conditions for cross-border debt financing.
- Societe Generale’s product capabilities and views of normal conditions on both the onshore and the offshore markets.