WHAT IS THE IMPORTANCE OF HOLDING SUCH A CONFERENCE IN MAURITIUS?
The mining sector has become one of the pillars of the African economy. The abundance
of natural resources has contributed to the high growth rates that we are witnessing
today on the conƟnent. At the same Ɵme, the financial sector has had a very important
role to play in its growth, which as you are aware, is highly capital incenƟve. Given that
MauriƟus is rapidly establishing itself as an internaƟonal financial centre for this part
of the world, it was important that we host this year’s Mines and Money conference
to showcase our banking and financial structuring capabiliƟes. It should be noted that
a number of mining companies from around the world use the MauriƟan IFC for their
investments on the conƟnent.
MAURITIUS TOOK A STEP FORWARD ON INVESTMENT IN THE MINING SECTOR IN AFRICA
WITH THE ARRIVAL OF SHUMBA COAL IN MAURITIUS WHICH HAS SET A FUNDRAISING
OPERATION ON THE STOCK EXCHANGE OF MAURITIUS AS PART OF A PROJECT OPERATING
IN COAL MINES IN BOTSWANA. HOW CAN THE PROMOTION OF THE MINING INDUSTRY IN
AFRICA BE BENEFICIAL TO THE NATIONAL ECONOMY?
This is a very commendable iniƟaƟve and which hopefully opens the door to more lisƟngs
by mining companies in MauriƟus. This can only be beneficial for our economy because
these companies set up operaƟons here and create employment opportuniƟes. At the
same Ɵme, it aƩracts internaƟonal investors to invest on the Stock Exchange of MauriƟus.
This has a ripple effect into the banking industry as well as there is requirement to raise
funding for expansion into Africa as well. Therefore, it can only be a win-win scenario for
the economic operators in MauriƟus.
INTERVIEW
Kamben Padayachy Deputy CEO, Head of Global Banking, Treasury and Markets, present at Mines
and Money Access Africa MauriƟus Conference 2014
Kamben Padayachy, Deputy CEO of
AfrAsia Bank Limited
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IS MAURITIUS CONDEMNED TO BEING USED AS AN
INTERNATIONAL FINANCIAL PLATFORM ONLY FOR LARGE
INVESTMENT PROJECTS IN THE MINING SECTOR IN AFRICA OR
SHOULD IT TAKE AN ACTIVE PART IN EXPLOITING THE POTENTIAL
OF THAT SECTOR IN AFRICA?
It is true that a lot of internaƟonal mining companies use
MauriƟus for their investments in Africa and have even set
up offices here to manage their African operaƟons. The bank
sector can definitely play an important role and this is why it
was important that the mining community meet in MauriƟus
to understand that the financial sector in MauriƟus can help
them for their day to day banking as well as for raising funding
in foreign currency for their African projects. I think we are
now building a good track record of being able to fund large
projects in Africa. The aim is to showcase our capabiliƟes as a
rising internaƟonal financial centre for Africa.
WHEN ONE MENTIONS MINING, THIS RAISES THE CONCERN OF
RESPECTFORTHEENVIRONMENT, ANDTHELABELOFPOLLUTION
THAT IS USUALLY ATTACHED TO THE MINING INDUSTRY. DOES
THIS CAUSE AN EFFECT IN DECISION MAKING OF POTENTIAL
INVESTORS WHETHER IN MAURITIUS OR ABROAD?
It should be noted that a lot of large mining companies
operaƟng inAfrica are governedby internaƟonal environmental
regulaƟons and are therefore in the obligaƟon to abide by
these regulaƟons in all the jurisdicƟons that they operate in,
including Africa, otherwise they face penalƟes. This definitely
provides comfort to internaƟonal investors and financiers.
HOW FAR IS AFRASIA BANK WILLING TO GO AS PART OF ITS
SUPPORT FOR INVESTMENT PROJECTS IN THEMINING SECTOR
IN AFRICA? (I MEAN HAS THE BANK SET UP A PORTFOLIOONLY
FOR MINING SECTORS IN AFRICA, DO YOU PLAN TO SET UP A
SPECIAL FUND TO PROMOTE INVESTMENT IN THIS SECTOR OF
THE ECONOMIC ACTIVITY?
AfrAsia Bank has a defined strategy for the African conƟnent,
of which the mining sector is an important feature. We have
a number of clients already in this sector and we want to
accompany themintheirexpansionstrategyontheconƟnent,
while expanding our client base. We feel that increasingly, it
is important that we provide them with full-fledged banking
services, a sort of one-stop banking provider to cater for
their day-to-day banking needs as well as their long term
investment strategy. This is a model that has been used by
investment banks in Singapore during the rapid growth of
the mining industry in Asia and helped the country establish
itself as a financial hub for Asia. We are already seeing
benefits from our approach.
Therefore, it can only be a win-win
scenario for the economic operators in
MauriƟus.
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