African banks

[Mulan]

Hi everyone,

does anyone have experidence in opening bank accounts in Africa for companies registered in EU, Americas, Asia and other parts of the world.
That is, does anyone have good experience? A simple current account for a company, but with solid network of correspondent banks that will facilitate international trade?
Thanks!

 

[Sols]

Easy with connections, difficult without.

Most non-Africans end up going with Standard Bank or some major international bank with presence across Africa.

What are you looking for?

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This is the probably the answer to your question.

 

[Martin Everson]

Maybe also try SC.

https://www.sc.com/en/our-locations/#africa
But Africa is a continent so you need to be more specific about which country you actually want an business account in as capital controls may destroy any realistic hope of having something workable.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Riki]

Standard Bank and Standard Chartered are the best option. Both banks have solid network in many African countries and also offshore branches in Jersey and IOM.

 

[Piano]

Riki said:
Standard Bank and Standard Chartered are the best option. Both banks have solid network in many African countries and also offshore branches in Jersey and IOM.
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I suppose most jurisdictions have no CRS ?
which jurisdictions are the most easy to open account in ?

 

[Forester]

Piano said:
I suppose most jurisdictions have no CRS ?
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True.

Piano said:
which jurisdictions are the most easy to open account in ?
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Do you really want to bank there? And as a foreigner without (probably) any local support? (I personally would not. The environment there is far from stable ”“ I do not talk about SC...)

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[SimpleGuy]

Mulan said:
Hi everyone,

does anyone have experidence in opening bank accounts in Africa for companies registered in EU, Americas, Asia and other parts of the world.
That is, does anyone have good experience? A simple current account for a company, but with solid network of correspondent banks that will facilitate international trade?
Thanks!
Click to expand...

Yes I have a company in Madagascar, I employ around 50 people here.

If you are white, the KYC is successful. It's a big proof of seriousness here, and that even if you are smuggling firearms with your company registered in the Bahamas.

More seriously, it's always better to go there, just bring the Memorandum of Association, or the Certificate of Incorporation, or any paper with a stamp that looks official, and they will open the account for you. Sometimes the banker can be reluctant, but don't worry, he just wants his gift, just throws away €100.

I also want to say that incredibly, the best banking service I have had is in Africa. The banker can be reached at any time, even on WhatsApp. When you enter the bank you are always received by the director. It changes from Europe or worse from the USA, where we are treated like s**t.

Big up to them.

 

[Forester]

SimpleGuy said:
Yes I have a company in Madagascar, I employ around 50 people here.

If you are white, the KYC is successful. It's a big proof of seriousness here, and that even if you are smuggling firearms with your company registered in the Bahamas.

More seriously, it's always better to go there, just bring the Memorandum of Association, or the Certificate of Incorporation, or any paper with a stamp that looks official, and they will open the account for you. Sometimes the banker can be reluctant, but don't worry, he just wants his gift, just throws away €100.

I also want to say that incredibly, the best banking service I have had is in Africa. The banker can be reached at any time, even on WhatsApp. When you enter the bank you are always received by the director. It changes from Europe or worse from the USA, where we are treated like s**t.

Big up to them.
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Really interesting; thanks for sharing.
May I ask you, @SimpleGuy, whether you have similar experience also from another African countries? I have heard (no personal experience!) that Madagascar (not even talking about e.g. Mauritius) is not the true Africa...
BTW, do you bank with a local bank, or with a branch of a multinational bank there (if you can share)?

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[SimpleGuy]

Forester said:
Really interesting; thanks for sharing.
May I ask you, @SimpleGuy, whether you have similar experience also from another African countries? I have heard (no personal experience!) that Madagascar (not even talking about e.g. Mauritius) is not the true Africa...
BTW, do you bank with a local bank, or with a branch of a multinational bank there (if you can share)?
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Madagascar is one of the poorest countries in the world, that's why. Mauritius is not comparable because it's developed so I don't think it works the same way. Same for South Africa, Namibia, Botswana, I think it is more difficult there to open a bank account because the countries are now more developed than before.

However, in typical African countries (Cameroon, Ghana, Congo...) I'm sure it works like in Madagascar.

In which country did you want to open?

 

[Forester]

Thanks for your input once more.

SimpleGuy said:
Madagascar is one of the poorest countries in the world, that's why. Mauritius is not comparable because it's developed so I don't think it works the same way. Same for South Africa, Namibia, Botswana, I think it is more difficult there to open a bank account because the countries are now more developed than before.

However, in typical African countries (Cameroon, Ghana, Congo...) I'm sure it works like in Madagascar.
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Oh well. I (hopefully) understand your perspective. In another wording, as there is (because country is undeveloped) not a big demand for banking services, banks esteem their customers, correct?
And I presume, you feel that your funds are safe with the bank in Madagascar (?)...

SimpleGuy said:
In which country did you want to open?
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Well, frankly, it was just an idea; some time ago I was thinking about some business in Kenya ”“ but it did not come to implementation as we evaluated the business case as too risky... But I was warned against African banks (that time), especially local ones (like “as a foreigner without strong local connections, you are not much safe”).

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[SimpleGuy]

Forester said:
Thanks for your input once more.

Oh well. I (hopefully) understand your perspective. In another wording, as there is (because country is undeveloped) not a big demand for banking services, banks esteem their customers, correct?
And I presume, you feel that your funds are safe with the bank in Madagascar (?)...

Well, frankly, it was just an idea; some time ago I was thinking about some business in Kenya ”“ but it did not come to implementation as we evaluated the business case as too risky... But I was warned against African banks (that time), especially local ones (like “as a foreigner without strong local connections, you are not much safe”).
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Yes, that's it, the bankers don't have a lot of customers, so they have esteem for us.

Personally I am talking about the account of our local subsidiary, I keep my money outside Madagascar to avoid it being requalified by Madagascar Tax Service, even if this is the laziest tax service in the world (we have never paid €1 in 5 years despite the large sums passing through the account and the official tax rate of 20%, but I remain cautious). But if you don't have a subsidiary in the country and the account belongs to a company that is not established in the country, there are no problems.

I think it does not depend so much on the country, but rather on the bank. I would rather choose a subsidiary of a large international bank, for example Société Générale which is very present in French-speaking Africa, to be safe. I would avoid "Bank of Africa", or other unknown banks.

 

[Forester]

SimpleGuy said:
Personally I am talking about the account of our local subsidiary, I keep my money outside Madagascar to avoid it being requalified by Madagascar Tax Service, even if this is the laziest tax service in the world (we have never paid €1 in 5 years despite the large sums passing through the account and the official tax rate of 20%, but I remain cautious).
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Clear...

SimpleGuy said:
But if you don't have a subsidiary in the country and the account belongs to a company that is not established in the country, there are no problems.
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So if I understand well, it means, together with the following

SimpleGuy said:
More seriously, it's always better to go there, just bring the Memorandum of Association, or the Certificate of Incorporation, or any paper with a stamp that looks official, and they will open the account for you. Sometimes the banker can be reluctant, but don't worry, he just wants his gift, just throws away €100.
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that a country like Madagascar is in fact very good for an offshore banking, correct? (Of course in the case that you are able to be personally present there occassionally.)
Good to know...

SimpleGuy said:
I think it does not depend so much on the country, but rather on the bank. I would rather choose a subsidiary of a large international bank, for example Société Générale which is very present in French-speaking Africa, to be safe. I would avoid "Bank of Africa", or other unknown banks.
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Fully understandable...

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[Cloudbanck]

I have lived many years in French speaking Africa. Had a personal account at Société Générale, but it was actually much closer to other local banks in terms of service than to Société Générale in France. What is available online by Société Générale and the other local banks is very limited, so you have to go into a branch office from time to time, and there you often have hour long queues and slow service. And even basic stuff like getting a visa card can take months.

I actually closed down the account, realised you have a lot less hassle with no local bank account - one can live perfectly fine with just personal and business bank accounts in Europe/US while living in Africa, plus mobile money accounts of course.

Recently though I opened an account with startup Djamo which is like an EMI - really good experience actually, nice app, easy to get in contact with support, and no branch offices so one never needs to go to a branch office. They deliver the visa card home to you 24 hours after opening an account - total breath of fresh air compared to the other banks.

 

[Forester]

Cloudbanck said:
I have lived many years in French speaking Africa. Had a personal account at Société Générale, but it was actually much closer to other local banks in terms of service than to Société Générale in France. What is available online by Société Générale and the other local banks is very limited, so you have to go into a branch office from time to time, and there you often have hour long queues and slow service. And even basic stuff like getting a visa card can take months.
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Really interesting, when compared to @SimpleGuy 's experience. Would you mind sharing in what country/ies you have lived?

Cloudbanck said:
Recently though I opened an account with startup Djamo which is like an EMI - really good experience actually, nice app, easy to get in contact with support, and no branch offices so one never needs to go to a branch office. They deliver the visa card home to you 24 hours after opening an account - total breath of fresh air compared to the other banks.
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Nice to hear...

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[SimpleGuy]

Cloudbanck said:
I have lived many years in French speaking Africa. Had a personal account at Société Générale, but it was actually much closer to other local banks in terms of service than to Société Générale in France. What is available online by Société Générale and the other local banks is very limited, so you have to go into a branch office from time to time, and there you often have hour long queues and slow service. And even basic stuff like getting a visa card can take months.

I actually closed down the account, realised you have a lot less hassle with no local bank account - one can live perfectly fine with just personal and business bank accounts in Europe/US while living in Africa, plus mobile money accounts of course.

Recently though I opened an account with startup Djamo which is like an EMI - really good experience actually, nice app, easy to get in contact with support, and no branch offices so one never needs to go to a branch office. They deliver the visa card home to you 24 hours after opening an account - total breath of fresh air compared to the other banks.
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I would also like to know what the country was. In Madagascar, Société Générale is very modern, there is online banking and a very efficient mobile application.

About the long queues, here Société Générale only opens for local people if they earn 4 times the minimum salary which means that the bank is almost always empty... We don't have the same experience apparently.

Forester said:
Clear...

So if I understand well, it means, together with the following

that a country like Madagascar is in fact very good for an offshore banking, correct? (Of course in the case that you are able to be personally present there occassionally.)
Good to know...


Fully understandable...
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I think Africa can be a good option, but not Madagascar. Currently the president has demanded the closure of euro accounts to strengthen the local currency, so you can only have a local currency account.

For safety, I would rather recommend Rwanda, South Africa, Mauritius. But the DD can be a little more complicated or you'll need an introducer.

It all depends on what you are looking for and why you need it.

Last edited: Jul 15, 2023

 

[Cloudbanck]

SimpleGuy said:
I would also like to know what the country was. In Madagascar, Société Générale is very modern, there is online banking and a very efficient mobile application.

About the long queues, here Société Générale only opens for local people if they earn 4 times the minimum salary which means that the bank is almost always empty... We don't have the same experience apparently.
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Senegal and Ivory Coast. No limit on income for opening an account. The population is growing fast and the economy is booming and all banks (in the largest cities) are packed with people.

Now it's somewhat better but originally using Société Générale's online bank you could view your balance and transfer between your own accounts at Société Générale, and that was all you could do online. And even when asking online for an internal transfer between one's own accounts, it meant an employee at a branch office had to print out and file the request, and then it would take like 3 days.

 

[Forester]

SimpleGuy said:
Currently the president has demanded the closure of euro accounts to strengthen the local currency, so you can only have a local currency account.
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Yes; the political instability is said to be the general problem in Africa. Nevertheless I am not experienced there and it definitely might vary from one country to another country; it is a large continent and apparently not uniform.

SimpleGuy said:
For safety, I would rather recommend Rwanda, South Africa, Mauritius. But the DD can be a little more complicated or you'll need an introducer.
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I understand. And I know that Mauritius (at least) was widely used for an offshore banking and e.g. South African Standard Bank is OK, too.

SimpleGuy said:
It all depends on what you are looking for and why you need it.
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Of course.
Thanks for your insight.

Cloudbanck said:
Senegal and Ivory Coast. No limit on income for opening an account. The population is growing fast and the economy is booming and all banks (in the largest cities) are packed with people.
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Clear. Thank you for the explanation.

Cloudbanck said:
Now it's somewhat better but originally using Société Générale's online bank you could view your balance and transfer between your own accounts at Société Générale, and that was all you could do online. And even when asking online for an internal transfer between one's own accounts, it meant an employee at a branch office had to print out and file the request, and then it would take like 3 days.
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Wow...

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I am just a simple countryman. Anything I say is only a personal opinion, not a certified advice 🙂

If you think it makes sense, you can like it; if opposite, please, tell me, why I am wrong...

 

[Piano]

SimpleGuy said:
I would also like to know what the country was. In Madagascar, Société Générale is very modern, there is online banking and a very efficient mobile application.

About the long queues, here Société Générale only opens for local people if they earn 4 times the minimum salary which means that the bank is almost always empty... We don't have the same experience apparently.


I think Africa can be a good option, but not Madagascar. Currently the president has demanded the closure of euro accounts to strengthen the local currency, so you can only have a local currency account.

For safety, I would rather recommend Rwanda, South Africa, Mauritius. But the DD can be a little more complicated or you'll need an introducer.

It all depends on what you are looking for and why you need it.
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online banking with digipass ?

any other banks you can recommend ?

 

[SimpleGuy]

Piano said:
online banking with digipass ?

any other banks you can recommend ?
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Yes online banking with digipass.

I can recommend MCB (Mauritius Commercial Bank) which is in many African countries (Madagascar, South Africa, Kenya...). I recommend also Absa (subsidiary of Barclays) which is a big South African bank present in many countries.