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?

 

[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.

 

[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]

I suppose most jurisdictions have no CRS ?
which jurisdictions are the most easy⁠ to open account in ?

 

[Forester]

True.
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...)

 

[SimpleGuy]

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 better︀ to go there, just bring the Memorandum of Association, or the Certificate of Incorporation, or︁ any paper with a stamp that looks official, and they will open the account for︂ 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 service︄ I have had is in Africa. The banker can be reached at any time, even︅ on WhatsApp. When you enter the bank you are always received by the director. It︆ changes from Europe or worse from the USA, where we are treated like s**t.

Big up to them.

 

[Forester]

Really interesting; thanks for︄ sharing.
May I ask you, @SimpleGuy, whether you have similar experience also from another︅ 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, or︇ with a branch of a multinational bank there (if you can share)?

 

[SimpleGuy]

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 more︀ difficult there to open a bank account because the countries are now more developed than︁ before.

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

In which country did you want to open?

 

[Forester]

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 safe︁ with the bank in Madagascar (?)...
Well, frankly, it was just an idea; some time ago I︃ was thinking about some business in Kenya – but it did not come to implementation︄ as we evaluated the business case as too risky... But I was warned against African︅ banks (that time), especially local ones (like “as a foreigner without strong local connections, you︆ are not much safe”).

 

[SimpleGuy]

Yes, that's it, the︁ bankers don't have a lot of customers, so they have esteem for us.

Personally I︂ am talking about the account of our local subsidiary, I keep my money outside Madagascar︃ to avoid it being requalified by Madagascar Tax Service, even if this is the laziest︄ tax service in the world (we have never paid €1 in 5 years despite the︅ large sums passing through the account and the official tax rate of 20%, but I︆ remain cautious). But if you don't have a subsidiary in the country and the account︇ 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 the︉ bank. I would rather choose a subsidiary of a large international bank, for example Société︊ Générale which is very present in French-speaking Africa, to be safe. I would avoid "Bank︋ of Africa", or other unknown banks.

 

[Forester]

Clear...
So if︀ I understand well, it means, together with the following
that a country like Madagascar is in︅ fact very good for an offshore banking, correct? (Of course in the case that you︆ are able to be personally present there occassionally.)
Good to know...

Fully understandable...

 

[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 account︀ - one can live perfectly fine with just personal and business bank accounts in Europe/US︁ while living in Africa, plus mobile money accounts of course.

Recently though I opened an︂ account with startup Djamo which is like an EMI - really good experience actually, nice︃ app, easy to get in contact with support, and no branch offices so one never︄ needs to go to a branch office. They deliver the visa card home to you︅ 24 hours after opening an account - total breath of fresh air compared to the︆ other banks.

 

[Forester]

Really interesting, when compared to @SimpleGuy 's experience. Would you mind sharing in⁢ what country/ies you have lived?
Nice to hear...

 

[SimpleGuy]

I would also like to know what the︆ country was. In Madagascar, Société Générale is very modern, there is online banking and a︇ very efficient mobile application.

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

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

For safety, I would rather recommend Rwanda, South️ 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.‍

 

[Cloudbanck]

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 between︀ your own accounts at Société Générale, and that was all you could do online. And︁ even when asking online for an internal transfer between one's own accounts, it meant an︂ employee at a branch office had to print out and file the request, and then︃ it would take like 3 days.

 

[Forester]

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.
I understand. And I know that Mauritius (at⁢ least) was widely used for an offshore banking and e.g. South African Standard Bank is︀ OK, too.
Of course.
Thanks for your insight.
Clear. Thank you for the explanation.
Wow...

 

[Piano]

online banking with digipass ?

any other banks you︂ can recommend ?

 

[SimpleGuy]

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.