The way forward
4
Our African opportunity
6
Work in progress
8
Our promise to you
26
How we do business
31
Education & Skills
10
12
14
The challenge of hope
Learning to be the best
ReadytoWork
Enterprise Development
16
18
Creating their own opportunities
Working to take on the world
Financial Inclusion
20
22
24
Count us in
A customer for life
Rise of the FinTechs
Excellence
28
30
The Citizenship Awards
Caroline’s climb
Shared Growth: Working to improve people’s lives and strengthen
communities, while creating value for shareholders
INTRODUCTION
FOREWORD:
WENDY LUCAS-BULL
OVER THE LAST DECADE, THE TRIPLE
bottom line principle – accounting for social,
environmental and financial delivery – has
evolved to become an integral part of board
and management responsibility. At Barclays
Africa Group we have thought carefully
about how to live this responsibility, and we
are delighted to share with you our Shared
Growth strategy.
the needs of the communities in which we
work, while delivering commercial returns to
our shareholders.
Doing our part to empower individuals,
build communities, and grow wealth and
economies is now central to how we do
business. This is why we are committed
to Shared Growth – uplifting society while
creating value for our shareholders.
In the years ahead, we will continue working
with governments, business partners and
civil society in all the countries in which we
operate to increase economic opportunities
for individuals and businesses, and to build
and share prosperity in our communities.
This can be seen in our annual integrated
report (http://barclaysafrica2015ar.co.za),
which sets out how we have responded to
Wendy is Chairman of Barclays Africa
OUR
VALUES
Our shareholders and business may change
over time, but our ambition to be Africa’s
leading financial services group – and our
determination to build Shared Growth
– will remain unchanged.
Respect: We respect and value those we work with and the contribution they make.
Integrity: We act fairly, ethically and openly in all we do.
Service: We put our customers and clients at the centre of what we do.
Excellence: We use our energy, skills and resources to deliver the best sustainable results.
Stewardship: We are passionate about leaving things better than we found them.
3
4
INTRODUCTION
THE WAY FORWARD:
MARIA RAMOS
WE ARE EXCITED BY THE OPPORTUNITIES
the African continent presents to our business,
and the long-term potential for growth for both
ourselves and the communities we serve. We
believe that the two are interdependent and
this is reflected in our strategy, which has so
far delivered great results for our shareholders
and stakeholders.
We are focused on:
– Improving access to quality education
– Helping small and medium-sized
businesses succeed and grow
– Ensuring more people have access to
financial services.
These are areas of great need. They are also
areas we know well, where even modest
successes can empower people to improve
their lives. This publication describes our
approach so that we can be measured against
our commitments, celebrate our achievements
and share our experiences.
Because we see our destiny as interwoven with
that of the continent, we have given careful
consideration to how our growth can prompt
the development of the communities we serve.
This speaks to our values as a business and in
particular to our sense of stewardship – leaving
things better than we found them.
We will invest R1.4 billion in youth education
programmes across Africa over the next three
years. In 2015, we launched our flagship
ReadytoWork programme, which delivers
skills-building curricula online. ReadytoWork is
running in eight countries and will be rolled out
to others this year.
Our job is not just to strengthen our business,
but to help create wealth for our customers and
shareholders, and make our continent a better
place to live. This is what we call Shared Growth.
Last year, we provided business advice and
support to 25 966 small and medium-sized
enterprises. We are increasing this support in
2016. We also spent R14.6 billion with more
than 5 000 suppliers, including 560 blackowned suppliers in South Africa.
As a bank, we do this by empowering
individuals to participate meaningfully in
the economy. Whether we are helping large
businesses find sources of capital, enabling
families to buy their own home or simply
extending access to financial services to more
people, we are helping the communities on
whose success we all depend to grow, creating
business opportunities for Barclays Africa and
others in the process.
growth remains strong. Achieving this growth
will require careful nurturing and support. There
is no silver bullet to overcome income and
wealth inequalities across Africa. We recognise
that no single set of institutions – government,
the private sector or civil society – can fix these
problems. It takes all of us working together,
and we are determined to do our part.
The challenging economic conditions that
we face this year are likely to continue into
2017. Yet, despite these short-term economic
pressures, the case for Africa’s long-term
So, where are we focusing our attention? Some
of our Shared Growth initiatives are already in
place. Others will be rolled out in the months
and years ahead.
Across the continent, unemployment –
especially among youth – and a lack of access
to quality, affordable education continue to
trap many in poverty. By working to ensure
that Africa’s people can share in its growing
opportunities, we will improve living standards
and prospects for economic development.
This will be our legacy.
Maria is Group Chief Executive of Barclays Africa
INTRODUCTION
SHARED GROWTH
Using our assets and expertise to develop commercial solutions
to the challenges facing society
–
–
–
–
Increasing access to employment opportunities and sustainable livelihoods
Supporting small and medium enterprises to help grow the economy
Providing greater access to appropriate financial services
Engaging our colleagues as we do business in a responsible manner
WHAT WE ARE DOING
EDUCATION AND SKILLS
• Providing access to skills
development and training
• Providing access to education through
affordable finance and funding
ENTERPRISE DEVELOPMENT
FINANCIAL SERVICES
• Providing financial and business support • Offering improved services to
to small and medium enterprises
those outside the banking system
• Helping corporate clients link up with
• Working to better understand the
small businesses
needs of customers
ReadytoWork
Offers online skills training to improve prospects
of employment or starting a business
Enterprise development centres
Supports small and micro enterprises with
mentorship, incubation and other services
Access
Technology is being used to offer convenient,
low-cost services to consumers
Scholarship and bursary fund
Offers scholarship bursaries and mentoring
support to young people
Supply chain development
Offers entrepreneurs the opportunity, support
and funding needed to become a supplier to
Barclays Africa and its corporate and business
bank clients
Products
Products and services are tailored to be affordable
and meet the particular needs of low-income
customers
Adopt a TVET
Offers support and training to principals and
administrative staff
Creates workplace exposure opportunities for
students
Inclusive procurement
Assists existing Barclays Africa suppliers to
create jobs and contribute to economic growth
Study loans
Innovative products are being used to make
education more affordable
University strategic support
Supports academic research
Directly supports students in need of assistance
Consumer education
Raising awareness of the importance of insurance
Financial literacy training on savings and debt
management
5
6
AFRICA
OUR AFRICAN OPPORTUNITY
A
frica will remain among the fastest
growing regions in the world between
2016 and 2020, says the International
Monetary Fund.
But 2016 will be a difficult year for the
continent’s economies, and these conditions are
likely to persist into the next year. Barclays Africa
believes that despite the seriousness of the
current economic environment, there are many
reasons to be confident that over the long term
the continent will continue to grow strongly.
Africa has a young population with a
growing labour force – half of its 1.1 billion
people are under the age of 25 and have
increasing levels of education, a highly
valuable asset in an ageing world. And the
continent’s cities are still growing. Much
of the economic benefit of this lies ahead,
as urban expansion contributes to rapid
growth in consumption by households
and businesses, according to a report
prepared for this year’s World Economic
Forum on Africa.
To become the financial services group of
choice on the continent, Barclays Africa is:
– Investing in growth opportunities
and connecting Africa to international
capital markets
–Making the lives of our customers
easier and helping them prosper
–Simplifying our business and
sustainably reducing costs to
improve efficiency
–Empowering our workforce with
technology, information and innovation.
AFRICA
This is what our leaders from across the continent have to say:
“Shared Growth is a great
vehicle to enhance prosperity
and growth in the communities
in which we operate. It visibly
demonstrates that Barclays has
heart and soul, especially when
it comes to improving the lives
of the Seychellois youth.”
Johan van Schalkwyk
Managing Director,
Barclays Bank Seychelles
“As a bank, we recognise that in
order to secure our own future,
we have to invest in future
generations. Our biggest goal
right now is to become a relevant
and relatable institution that helps
them achieve their ambitions in
the right way.”
Jeremy Awori
Managing Director,
Barclays Bank Kenya
“Shared Growth is a game
changer in preparing our youth
for life beyond the formal
education sector. It opens a
world of opportunities that are
transformative and truly help
society to prosper.”
Saviour Chibiya
Managing Director,
Barclays Bank Zambia
“Our natural resources are our
greatest assets. We have a
collective responsibility to ensure
that our products and services
are cognisant of this, and that we
provide innovative solutions to
sustain and conserve our natural
resources for future generations.”
Reinette van der Merwe
Managing Director,
Barclays Bank Botswana
“Our Shared Growth strategy
allows us to be an organisation
that makes a difference in the
lives of people in our community.
The real success of our
citizenship initiatives lies in the
engagement of our colleagues
and the legacy that we leave for
future generations.”
Ravin Dajee
Managing Director,
Barclays Bank Mauritius
“For me, it’s all about rapid and
sustained poverty reduction
through inclusive growth that
allows people to contribute
and benefit from economic
development. We are providing
an enabling platform for
opportunity, development and
success through literacy and
entrepreneurship.”
Edward Marks
Managing Director, NBC Tanzania
“We strive to ensure that
each small or medium
enterprise that chooses to
partner with us is equipped
with the right tools to
accelerate their development,
sustainability and
financial independence.”
Abdi Mohamed
Managing Director,
Barclays Bank Tanzania
“The success of our business is
more than just the profits we
make. It is the sum of the impact
of our operations on society
and how we are empowering
businesses, communities and
people to grow and prosper.”
Patience Akyianu
“Shared Growth
means taking advantage
of our position as one
of the leading African
banks to make a real
contribution to the
success of our continent
and its people.”
Mizinga Melu
Regional Management Chief Executive,
Barclays Africa
Managing Director,
Barclays Bank Ghana
“By investing in productivity
and empowerment, Shared
Growth is the ultimate approach
to citizenship.”
Rui Barros
Managing Director,
Barclays Bank Mozambique
“By supporting young people
to build skills and providing
them with guidance on the
opportunities they need to
make the transition into work
or self-employment, we are
contributing to meeting critical
societal challenges, while
creating win-win solutions for
our consumers and business.”
Rakesh Jha
Managing Director,
Barclays Bank Uganda
Barclays Africa has operations in
ten countries and representative
offices in Namibia and Nigeria.
They include:
12.3 million
customers
1 251 branches
10 378 ATMs
41 772
employees
7
8
CITIZENSHIP
WORK IN PROGRESS
Barclays Africa
Head of Citizenship,
Sazini Mojapelo, talks
about making a difference
across the continent
Shared Growth is not corporate social
responsibility or philanthropy – it focuses
on making profits in a way that benefits the
business and society.
Why prioritise access to
financial services, education
and enterprise development
when poverty relief and food
security, for example, are also
pressing needs?
Africa has largely failed to translate its
economic growth into opportunities for its
young workforce to earn decent livelihoods.
This means that much of the continent’s
growth potential is wasted, which feeds
the risk of social unrest and crime. Our
aim is to make a difference in society while
generating a commercial return. We want to
apply our substantial resources to address
socioeconomic challenges through innovative
services, products and partnerships.
Why should companies get
involved in social issues?
Business and social progress depend
on each other.
Companies need a stable society and a
growing economy to succeed, and successful
companies support and contribute to the
prosperity of communities.
The social issues we face today – such as
high unemployment, the quality of education
and the lack of appropriate workplace skills
– can only be tackled through public-private
partnerships between government, private
companies and civil society organisations.
Shared Growth enables companies to make
a broad impact on society, which supports
their commercial interests by creating a skilled
workforce and developing new markets.
What distinguishes
Shared Growth from
traditional corporate social
responsibility programmes?
The shift from traditional corporate social
responsibility programmes is being driven
by the realisation that, despite substantial
investments, communities continue to
be plagued by challenges that impede
inclusive growth.
We aim to build on our existing activities
across the continent, with a focus on areas
where we can make best use of our core
competencies, assets and skills.
Who are our partners
across Africa?
Shared Growth requires collaboration and
strong partnerships between companies,
CITIZENSHIP
government and civil society organisations.
Achieving Shared Growth is a national
challenge that needs real leadership and
sustained commitment.
We have started engaging and partnering
with business, government and the non-profit
sector to leverage our expertise in delivering
Shared Growth.
What is the rollout plan
for Shared Growth?
Shared Growth is at the core of what we do
as a business. While we focus on broadening
access to financial services, enterprise
development and education, we are also
working to embed the ethos of Shared Growth
in all our activities.
This year, we will train 250 000 young people
through skills development programmes like
ReadytoWork. This will be supported by several
other initiatives that enable access to quality
education for young people across Africa.
We aim to raise more than R1.3 billion to
finance and support small and medium
enterprises. We will also offer business
development support to 30 000 businesses.
Our procurement portal connects corporate
and government buyers to small businesses
to help them find markets and business
opportunities.
Our retail and business banking units aim to
have more than 500 000 customers using new
digital platforms designed for those who have
not had access to formal financial services.
9
10
EDUCATION & SKILLS
PROFESSOR ADAM HABIB:
THE CHALLENGE OF GIVING PURPOSE
AND HOPE FOR THE FUTURE
T
here are about 4 million young South
Africans who have not completed
secondary school or who have
matriculated without the appropriate skills to
enter universities. They find it difficult to find
jobs, and those who do join the labour market
struggle to progress in their occupation given
their lack of skills. These young individuals
need purpose and hope for the future.
“The labour market
prospects [of South
African youth] differ
markedly.” – SOUTH AFRICAN
STATISTICIAN-GENERAL, PALI LEHOHLA
One of the ways in which this challenge can
be tackled is by expanding and upgrading
technical vocational education and training
(TVET) colleges. This is already a national
priority, but the quality of education currently
on offer at these colleges is lacking. As long as
this is the case, these colleges will not attract
enough students, nor develop the skills needed
to boost the economy. The country needs a
quality-driven TVET sector that speaks to our
society’s immediate needs.
University entrants
About 200 000 students enter universities
every year. Many of these students cannot
afford to fund their studies. Although the
National Students’ Financial Aid Scheme’s
funds have quadrupled in recent years, it is
still not sufficient to cater for the vast number
of students who need financial support. We
need to find ways to ensure that poor, talented
students get the funding they need.
The missing middle
Then there are those known as the
“missing middle”. It is these students
who have been at the forefront of the
#FeesMustFall movement. They are too wealthy
to qualify for financial aid funding,
but too poor to pay their own way.
Potential solutions
The Scandinavian and Western European models
present the easiest solutions – tax the rich to
subsidise the underprivileged. However, this
system is unlikely to work in South Africa given
the lack of political will, the declining economy, the
deterrent of further taxes for potential investors,
and many South Africans’ lack of trust in how the
state spends their money.
EDUCATION & SKILLS
Universities, the banking and financial
services sector and the National Students’
Financial Aid Scheme are making significant
progress towards developing a cooperative
model based on low-interest loans. The
downside of this model is that students
will accumulate and graduate with debt.
Essentially, it is a toss-up between having
students who cannot graduate or students
who graduate with debt. This proposal may
enhance inequality, but there is no other
immediate solution. In the drawn-out struggle
for social justice, trade-offs will be required
and hard choices will have to be made.
Investing in higher education
All South Africans should help safeguard the
future of the higher education system.
Urgent intervention is required before
unthoughtful activism destroys our universities,
which produce the capacity for innovation,
knowledge creation and the skills needed to
strengthen our economy and our country.
Professor Habib is Vice-Chancellor
and Principal of the University of the
Witwatersrand, South Africa
EDUCATION
IN AFRICA
Sub-Saharan African
countries increased
their real expenditure on
education by 6% each
year between 2000 and
2010. Despite gaps in
quality, this commitment
has improved education
levels. Based on current
trends, by 2030, 59%
of Africans between the
ages of 20 and 24 will
have at least a secondary
school education, up
from 46% today.
Despite this progress,
nearly half of all youth
on the continent
(aged 15–24) are
unemployed and not in
education or training
programmes.
And if they cannot
improve their
livelihoods, then
they may get caught
in a vicious cycle of
social unrest, political
instability and crime.
But, if adequately
equipped, Africa’s young
and growing workforce
can lead the continent’s
social and economic
development.
ADVOCATE PUSCH COMMEY:
INVESTING IN
INNOVATION
I
n the digital age where facts are at our fingertips, finding
the right knowledge and applying it to a problem is key
to the development of communities. To address its
developmental challenges, Africa needs to invest in creativity
and innovation through the immense power of technology.
The continent has a young population who are already
natives of the digital world, yet centuries-old systems are
being used to educate and train them.
Education in Africa is still organised around classrooms,
teachers and textbooks, when global educational initiatives
are moving towards quality online education. Course
material can be delivered instantly, video lectures can
be downloaded, exams can be written online and chats
can be held electronically. Massive open learning courses
(MOOCs) offer free education to anyone willing to learn,
while top universities offer online versions of their degrees
at a fraction of the cost.
Some of the billions in African education budgets should
be invested in scattered technological hubs where
learners can access education. These resources should
also be used to empower learners with devices and
broadband access. Governments can also partner with
entrepreneurs running local internet cafes to help deliver
course content and boost local economies.
Technology is making financial services more easily
available in Africa. Banks should partner with governments
and communities to help do the same for education.
Ghanaian-born Pusch Commey is an associate editor of
the New African Magazine, an author and an advocate of
the High Court of South Africa
11
12
EDUCATION & SKILLS
LEARNING TO BE THE BEST
Across the continent,
the challenge for all
is to strengthen the
public education
system, so countries
can produce the
qualifications and
skills needed to be
globally competitive
E
ducation and training is a critical investment
for a bank. The expected returns include
greater social stability and more commercial
opportunities in key markets, and building
a relationship with potential customers and
future colleagues. Barclays Africa has put aside
R1.4 billion for education and skills training across
the continent over the next three years.
The announcement of the investment, to
facilitate skills development and access to quality
education, was made on 1 March 2016 at the
presentation of the group’s annual results.
Africa has the youngest people in the world
with an estimated 50% of its population aged
between 15 and 24. But nearly half of all
youth on the continent are not in education,
employment or training. And limited budgets
have seriously constrained the ability of
governments to provide adequate and
stable funding to their education and
training institutions.
Left in poverty and without hope for the future,
frustrated young Africans could become a
danger to the social and political stability on
EDUCATION & SKILLS
the economy, not only can they become valued
customers and clients of Barclays Africa, they
could provide the skills and talent the Group
will need as it achieves its ambitions across
the continent.
private schools for the lower income bracket is an
indication of increasing dissatisfaction of parents
and learners with public schools. But any thought
of private schools significantly meeting the
demand for public education is short-sighted.
But first, young people have to be given the
opportunity to get the education and skills that
companies need – or that they can use to start
their own business. Over the next three years,
the Barclays Africa investment will be used for:
Rather, new ways are needed to help schools
make more effective use of their human
and material resources. The trust is working
to improve coordination among private
organisations that fund innovations in education.
– ReadytoWork: which will offer skills training
to 250 000 young people in 2016
– Scholarships: which will support an
estimated 250 disadvantaged students
in 2016
– TVET colleges: to support their
administration and offer students
workplace exposure
– University support: for academic
research and innovation
– Consumer education: to increase
financial literacy and awareness about
the need for insurance.
which all countries depend for their economic
development. But given the right education,
training and opportunities, they could become
a financially secure generation with jobs and
entrepreneurial flair. As stronger participants in
In South Africa, the challenge is to build
excellence in the public education system,
so that the country can produce people
with the qualifications and skills it needs
to be internationally competitive, says the
Chief Executive of the National Education
Collaboration Trust, Godwin Khosa. The state
cannot do this on its own, and the growth of
Young people have to be given the opportunity to get
the education and skills that companies need – or
that they can use to start their own business.
HELPING HEADS
The Shared Growth Advisory Council
will assist with the rollout of our
R1.4 billion education investment
over the next three years.
The Advisory Council will be made
up of experts and thought leaders
who share our commitment to
sustainability in Africa. It is an
independent body that will provide
insights and guidance to the Group
on our efforts to build sustainability.
The council will also evaluate the
effectiveness of our efforts to bolster
access to quality education and help
us to deal with stakeholder concerns.
The council will be drawn from
civil society, academia, business,
government and environmental
non-governmental organisations,
among others, but its members
will not necessarily represent
particular organisations.
13
14
EDUCATION & SKILLS
READY TO WORK
ReadytoWork helps prepare young people for the world of work, giving them
better prospects of finding a job or starting a business
I
t provides free education and skills
training – with accredited institutions,
online as well as through workshops
– to young people to help improve their
chances of securing work or becoming
self-employed.
Barclays Africa launched ReadytoWork,
its flagship education and skills training
programme, last year and it is now
running in eight countries.
For those who want to find a job,
the programme seeks to ensure
they have the skills for which
employers are looking.
For those who want to be
entrepreneurs, ReadytoWork
offers training that will help them
succeed in starting a business.
Once young people have
completed the curriculum, they
receive a certificate of participation.
In the months to come, they will
also be able to apply for workplace
exposure at Barclays Africa or
one of our partners. Aspiring
entrepreneurs can also be put in
touch with one of our enterprise
development centres.
The curriculum is aimed at young
people in high school, college and
university. It is also relevant for
those who are already in the
workplace, so they can sharpen
their skills and advance their careers.
By June 2016, around 16 000
young people had registered for the
curriculum online, with numbers
increasing daily.
To reach the greatest number of
people on the continent through the
ReadytoWork initiative, Barclays Africa
works with a range of organisations
across academia, government, civil
society and the private sector.
ReadytoWork teams, armed with
tablets, have also been visiting
schools, technical colleges,
universities and community forums
to register young people on the site.
Their feedback is used to constantly
improve the programme to make
sure it meets their needs.
For more information, go to:
(South Africa)
www.absa.co.za/readytowork
(Rest of Africa)
www.readytowork.barclays
EDUCATION & SKILLS
MORE THAN 1 900 BARCLAYS
AFRICA EMPLOYEES HAVE
SIGNED UP AS READYTOWORK
VOLUNTEERS. THEY TAKE
COURSE MATERIAL DIRECTLY
TO COMMUNITIES THROUGH
FACE-TO-FACE LEARNING
SESSIONS, MENTOR STUDENTS
OR PROVIDE JOB-SHADOWING
OPPORTUNITIES.
THE SCHOLARSHIP
PROGRAMME
T
he cost of an average degree is
increasingly becoming unaffordable for
most South Africans, especially those in
low-income households.
A recent survey by Statistics South Africa
found that “rising costs present a barrier to
those seeking an education”, with 33% of
individuals up to the age of 24 citing a lack of
funds as the reason they were not attending an
educational institution.
Barclays Africa has established the
Scholarship Programme to provide financial
and non-financial support to talented young
people in need.
“School leavers are emerging from school
never having double-clicked a mouse, typed
a CV or conversed in English with a tertiary
education admissions officer, or filled in an
online application form. ReadytoWork delivers
comprehensible soft skills in one online and
engaging programme.”
– RYAN ADAMS, GOOD WORK FOUNDATION MANAGING DIRECTOR
The foundation runs digital learning campuses in rural African communities.
In 2016, the scholarship will be available to
young people who wish to study for a threeyear undergraduate degree at an accredited
South African university, and who demonstrate
academic commitment, leadership potential,
community engagement and a passion for
the country. Degrees in the humanities,
commerce, science, technology and
engineering will be considered.
The scholarship will fund education expenses,
including full tuition, accommodation at a
university residence and prescribed textbooks.
It also offers a programme to help support
and encourage the young person during
their studies.
The scholarship has been launched in
South Africa and there are plans to implement
it in other countries.
15
16
ENTERPRISE DEVELOPMENT
CREATING
THEIR OWN
OPPORTUNITIES
Across the continent, young people are finding it
tough to get a meaningful job and hold onto it.
And this will only get harder. Small businesses
can help Africa to deal with the challenge of
youth unemployment
ENTERPRISE DEVELOPMENT
E
leven million young people are expected
to enter the African labour market every
year for the next decade, according to
the MasterCard Foundation. Vibrant small
businesses can create meaningful work
opportunities for these young people who
will need to secure a livelihood.
In May this year, the eighth centre was
opened in Port Elizabeth and, in time, they
will be rolled out to the rest of the continent.
For now, in many markets outside South
Africa, local Barclays Business Clubs provide
an opportunity for business owners to learn
and network.
Almost half the labour force in Africa
is employed by small businesses. They
are especially important in low-income
communities, where they provide informal
work to those who do not have the
qualifications or experience to secure
formal employment in larger companies.
With education must come opportunity.
Barclays Africa Head of Enterprise and
Supplier Development, KeaObaka Mahuma,
says: “Many large businesses are looking
to support local businesses, but corporate
buyers face the challenge of finding suitable,
smaller suppliers. Our procurement portal – a
virtual marketplace – looks to address this by
linking buyers and suppliers.” To date there
are 42 000 small and medium enterprises
and almost 6 000 corporate buyers registered
on the portal, with some R2 billion worth of
tenders advertised monthly.
Besides creating jobs, small businesses
can help increase a country’s resilience by
diversifying the local economy and boosting
productivity through innovation and by
increasing competition.
But these businesses often fail. Unnecessary
red-tape, as well as a lack of access to
markets, networking opportunities, business
development skills and appropriate financial
services and products, can hinder the most
determined entrepreneur.
Barclays Africa is offering them help.
Craig Bond, Chief Executive for Retail and
Business Banking, explains: “Our pan-African
enterprise development programmes provide
aspirant entrepreneurs with training and a
safe environment to develop the knowledge,
skills and insight they require to make
entrepreneurship a viable career option.”
In South Africa, Barclays Africa’s enterprise
development centres provide entrepreneurs
and early stage businesses with advisory
services and space to work. They are open to all
entrepreneurs, not only Barclays Africa clients.
He continues: “In 2016, Barclays Africa aims
to unlock R1.25 billion in finance for small
and medium businesses in partnership with
its corporate clients, as part of its Enterprise
Supplier Development Programme. We seek
to provide finance and business support to
enterprises that supply, or partner with, us and
our corporate clients. The purpose is to increase
the number and stability of small and medium
suppliers, while deepening the relationship with
our corporate clients and building a pipeline of
customers for business banking.”
In South Africa, Barclays Africa has
committed R250 million a year to fund small,
medium and micro enterprises that typically
would not meet the normal lending criteria
required by banks.
Last year around R5.1 billion was lent to
small and medium enterprises.
CLAIMING A SHARE
Barclays Africa Wealth, Insurance,
Management and Investment
(WIMI) is using its share of the
insurance market to create business
opportunities for small and
medium enterprises.
WIMI is providing small companies
with opportunities to work on Absa
clients’ insurance claims. These
claims include replacing geysers and
repairing water-damaged roofs.
This initiative will give small business
access to R75 million worth of claims
work in 2016, providing a regular
source of contracts. Small and
medium businesses that are interested
in being part of this enterprise
development initiative can register
at [email protected].
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18
ENTERPRISE DEVELOPMENT
WORKING TO TAKE
ON THE WORLD
By supporting local companies with advice and financing, Barclays Africa
is getting them ready to take on their international competition
ENTERPRISE DEVELOPMENT
M
ore than two-thirds of Africa’s
unemployed youth live in
rural areas, where there are
opportunities for small businesses in
agriculture and mining, says Sagay
Moodliar, the TechnoServe Country
Director in South Africa.
TechnoServe is a non-profit company
that has partnered with Barclay’s Africa
to create opportunities in agricultural
industries. One of its projects, the African
Youth Agripreneurship Programme (AYAP),
is working with Anyako Farms Limited, in
Ghana, to help it take advantage of high
demand for its products.
AYAP is assisting Anyako Farms to meet
global standards in cereal and livestock
production and is providing them with the
technical and business advisory services they
need to stay competitive in the market.
Anyako Farms currently employs 19 full-time
staff and over 100 casual labourers from the
local community, as well as supporting five
farm-based organisations, with 315 farmers.
AYAP and TechnoServe are also supporting
young farmers in Kenya, Mozambique
and South Africa by giving them access to
business and technology services.
– Anyako produces corn, rice and livestock
in the Volta region of Ghana. It is one
of the leading commercial farms in the
region and is attracting investors because
of the strong market for rice and maize.
Big companies can often create valuable
opportunities for small businesses. Bolton,
a footwear manufacturer, approached Absa
Corporate and Investment Banking to help
them partner with other businesses that had
similar goals, says Alan Fleetwood, Bolton’s
Managing Director.
Alongside this farm, Anyako runs a poultry
operation, where it is planning to boost
production to meet the high demand for
chicken in the country. Anyako plans to
use corn and rice from its own farm as raw
materials for the feed for the poultry.
– Bolton and its partners have fostered
partnerships with 17 local small
businesses, creating jobs for more than
2 600 people. “Our business enables them
to operate in their communities while
we receive their components through a
“Micro, small and medium enterprises have an intimate
knowledge of their community and a deep relationship
with their clients. This allows them to provide business
intelligence to larger companies and expand the reach
of goods and services.”
– MEREDITH LEE, MASTERCARD FOUNDATION
supply pipeline that beats alternative offshore sources,” says Fleetwood.
“When I started working with Bolton,
the company only had a few factories.
We created a bespoke solution for the
company, customised completely for
their circumstances and goals,” says Brian
Zwiegelaar of Absa Corporate and Investment
Banking. Bolton is now the largest footwear
manufacturer in South Africa.
– But determined entrepreneurs often need
more than just financial advice. Growing
up in one of the country’s most povertystricken communities, Orange Farm,
Vonani Mathebula (24) was surrounded
by unemployment, poverty, teenage
pregnancies and many of the other ills
that plague young people. Refusing to
be a statistic, Vonani occupied her mind
and time with development initiatives
in her community, including a stint as a
presenter at the local radio station.
In 2012, she started Successful Women
Magazine to empower women by providing
them with articles on entrepreneurship and
other useful skills. Vonani participated in a
mentorship programme at the Absa Enterprise
Development Centre in Johannesburg in 2014.
She received advisory services and training
that helped her grow her business.
Today her company, Brains Empowerment
Media and Communications, continues to
enjoy business development services and
market access opportunities through the
centres. Last year, she introduced ‘Visionary
Youth’, a newspaper for young small and
medium enterprises. Brains Empowerment now
has four full-time and 1 500 part-time workers.
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20
FINANCIAL INCLUSION
COUNT US IN
Unbanked households need to be encouraged to take their
savings out ‘from under the mattress’ and into a formal account
Musapenda Phiri
P
romoting financial inclusion is vital for our
continent’s economic future. A growing
number of governments recognise that
financial inclusion lies at the heart of inclusive,
sustainable economic growth.
According to the African Development Bank,
financial inclusion refers to all initiatives that
make formal financial services available,
accessible and affordable for all. It focuses on
those who have been excluded because of low
or unstable income, gender, where they live or
their level of financial literacy.
An inclusive financial sector has the
catalytic effect of helping a nation diversify
its economy and boost other sectors like
agriculture, tourism and manufacturing.
Access to finance allows individuals and small
businesses to manage their money more
effectively and grow their enterprises.
Leading multinational banks are already
playing a role in promoting financial inclusion
and are able to share lessons and best
practices across borders. Technology plays
an important part in expanding access
and reducing reliance on brick-and-mortar
branches. This goes hand in hand with
consumer education. Previously unbanked
households need to be encouraged to put
their savings in a formal bank account, rather
than “under the mattress”, so that they can
manage their money and finances efficiently.
Zambia is one of several countries in the
region working to improve access and
inclusion. Its work highlights successes and
challenges experienced over a relatively short
period of time. The country’s Financial Sector
Development Plan, which has just come to an
end, encouraged the creation of innovative
products and services, such as mobile and
agency banking, and developed a national
financial education strategy aimed at those
running small and micro enterprises, and
schoolchildren, among others.
But broad access to financial services
remains a challenge in Zambia, despite the
country’s steady economic growth, which
averaged above 5% per year in the last
decade. Financial inclusion has increased
significantly, from 37.3% in 2009 to
59.3% in 2015. To date, increased access
has largely been driven by mobile money
services. The government plans to increase
formal financial inclusion in rural and other
unbanked areas.
Phiri is an expert in financial inclusion. This is an
edited version of an article for Barclays Africa.
He writes in his personal capacity.
FINANCIAL INCLUSION
FINDING THE
NEXT BIG THING
Nonso Obikili
Sub-Saharan Africa has more unbanked people
than anywhere else in the world. According to the
global financial inclusion database:
– Only 34% of people older than 15 years in
sub-Saharan Africa have a bank account.
The global average in 2014 was 60%.
– Only about 20% of businesses have credit
with a bank, compared to the global average
of about 45% in 2009.
But technology is changing this. Mobile phone
ownership in Africa has grown exponentially
since the turn of the century. For example,
according to the Pew Research Center, 73% of
adults in Tanzania owned a mobile phone in 2014.
In Kenya, M-Pesa, a money transfer and
microfinancing service that uses mobile phones,
grew rapidly to about 8.5 million users in 2009,
with transfers worth about $3.7 billion – the
equivalent to almost 10% of Kenya’s gross
domestic product at the time.
Financial products have to evolve to take
advantage of new technologies. And financial
groups need to be open to innovation and
learning, to adopting new technologies, and to
investing in start-ups. The best ideas often come
from the most unlikely places.
Dr Nonso Obikili is an economist at Economic
Research Southern Africa. This is an edited version
of an article for Barclays Africa.
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22
FINANCIAL INCLUSION
FINANCIAL INCLUSION
A CUSTOMER FOR LIFE
In many ways, affordable financial products demonstrate how business expertise
and commercial interests can provide the services necessary to boost social and
economic development
A
ccording to the World Bank, only one
in four adults in Africa has access to a
formal bank account, despite 15 years of
sustained economic growth. The rest either do
not have accounts, do not have access to all the
financial services they need, or are engaged in
informal banking. This is a serious hindrance to
economic development on the continent.
Shared Growth aims to create appropriate
products and services that meet the needs
of this market. This will increase our pool of
customers, but bringing more people into
formal financial services will also support the
efforts of government and civil society to bolster
economic development.
Consumer education, especially about saving,
debt management, and financial services and
products, is an important part of building the
market for financial services. And, by starting
these financial literacy programmes in primary
schools, we are able to help establish the
habits necessary for a lifetime of good
financial management.
The Group is using digital platforms to provide
affordable, cost-effective financial services to
the unbanked on a large scale:
– Our Wealth, Investment Management and
Insurance unit is working with partners to
educate consumers on the importance of
insurance and investment products.
THE MARKET
Women, despite their contribution
to the economy in Africa, are more
likely to be excluded from financial
services than men. In Uganda and
Kenya, women own about half of all
small businesses, yet they struggle
to access finance. This financing
gap is estimated at $20 billion.
Formal savings among youth in
sub-Saharan Africa sits at a dismal
9%. And many of the young people
who are saving are not using
the formal sector. A MasterCard
Foundation study found that youth
between the ages of 12 and 19 in
sub-Saharan Africa hold up to
$2.2 billion in savings outside of
formal banks.
WIMI is also assessing the feasibility of
micro-insurance products that can be
bought using mobile phone technology,
making it easy for customers to access
these products.
– The Group Save Account offers customers
the chance to earn a higher interest rate by
putting their savings together – the more
people who contribute, the higher the rate.
And, unlike informal savings groups, like
stokvels in South Africa or motshelos in
Botswana, each member of the group can
put away as much as they like and make
withdrawals as often as they need.
– MegaU is an account that aims to increase
young people’s financial independence and
savvy. It is being promoted through youth
empowerment initiatives with schools and
other partners. The account doesn’t have
bank charges and offers benefits like movie
tickets and data bundles. “The youth are
our customers of tomorrow. So we need
to make every effort to attract them and
become involved in the realisation of their
financial goals when they are young,” says
Pierre Loubser, Barclays Africa Head of
Personal Banking Customer Segments.
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24
FINANCIAL INCLUSION
RISE OF THE FINTECHS
Ten financial technology start-ups have an opportunity to change their fortunes –
and the future of banking – when they finish their stint in the Barclays Accelerator
Programme at Rise in Cape Town
S
elected from 450 start-ups from
45 countries, the 10 ventures are
based at the Rise innovation hub
in Cape Town, where they are receiving
a wealth of knowledge and experience
from industry experts and Barclays’
executives.
The Barclays Accelerator is an intensive
three-month programme that will
culminate in a “demo day” where the
start-ups will pitch their businesses
to prospective investors.
The programme is a partnership
between the Barclays Accelerator
Programme and Techstars, which helps
entrepreneurs bring technology to
market. This is Techstars’ first foray
into Africa.
Small and medium business can be a
great source of innovation. Barclays
Africa Head of Open Innovation, Paul
Nel, explains: “Actively supporting those
businesses that offer some potentially
disruptive innovation or technology can
enhance our core business and help
it retain a competitive advantage in
financial services.
“Our Seeker Fund enables us to invest
in these businesses, from across
Africa, and build a portfolio of digital
companies with global potential. We
work with entrepreneurs and innovators
that are challenging traditional
technology and ways of doing things.”
For more information about Rise in
Africa, please visit http://thinkrise.com.
“The Accelerator gives us the ability to supercharge our business
by fast-tracking our ability to work with the Barclays Africa and the
TechStars network. By the end of the programme we are looking to
close several major deals with global financial institutions and position
Beyonic for rapid growth in multiple markets.” – BEYONIC CEO, LUKE KYOHERE
FINANCIAL INCLUSION
“The Accelerator has transformed me into a more confident
entrepreneur. It has [helped me] understand my work and the worth
of my business. I hope to have attracted enough investors to expand
my business in Tanzania, and later grow in Kenya, Uganda, Rwanda,
Ghana and South Africa.” – JAMII CEO, LILIAN CHARLES MAKOI
Starting-up
– iNuka Pap, Kenya: Partners with credit
cooperatives to allow their members to
access instant micro-loans and other
services.
– BenBen, Ghana: A way for
governments to convert physical land
titles to digital copies on a secure
platform.
– Beyonic, US, Uganda, Rwanda
and Tanzania: Enables businesses
to quickly deploy two-way mobile
money payments, eliminating the
need to use cash.
– SimbaPay, UK, Kenya: Allows you
to send money to family and friends’
accounts or mobile wallets – or pay
merchants – from abroad.
– Asoriba, Ghana: Simplifies church
administration and improves
engagement with members using
mobile apps.
– Social Lender, Nigeria: A lending
–
–
–
–
platform that determines credit
worthiness based on your reputation
on social media platforms.
The platform is licensed to
financial institutions.
WizzPas, South Africa:
A parking solutions app
that facilitates entering
and exiting shopping
malls, office parks and
gated communities
using smartphones.
Tech4Farmers, Uganda:
Provides farmers with real-time access
to market information through an
electronic commodity exchange and
warehouse receipt system.
Re-Able, Lebanon: Provides tools and
apps that promote financial literacy
and inclusion of people with special
needs.
BimaAFYA, Tanzania: Micro-health
insurance using mobile phones.
HACKING FOR
FINANCIAL SERVICES
In May 2016, developers, designers,
players in the financial services industry,
technology entrepreneurs and social
innovators came together to tackle the
challenge of financial exclusion.
The Rise innovation hub hosted this
problem-solving hackathon, which
focused on developing innovative and
affordable saving, micro-credit and
micro-insurance solutions for lowincome communities.
The teams got to grips with what it
means to be financially excluded, before
brainstorming and testing ideas through
rapid prototyping. These ideas were then
presented to stakeholders.
Governments, donors, and international
financial institutions are increasingly
recognising that technology is key to
providing access to the financial services
that play a pivotal role in alleviating
poverty and developing businesses.
The hackathon was held at Rise in
Cape Town in partnership with
the Bertha Centre for Social Innovation,
IBM, Cenfri and Thomson Reuters.
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26
MANIFESTO
Sharing. It’s the most powerful
form of humanity. It is something
we are taught before we can even
walk. Because in sharing lies
positive growth for all. The chance
to prosper. To give and receive.
It holds the promise of a strengthened
society. It connects us and evolves
us. From learning to getting people
ready to work. From dreaming of
careers to studying for them.
From having fun to meeting
responsibilities. From being born
free to living free. It stimulates
the innovators and inspires future
leaders. Sharing is something we
practice every day. We listen,
we care, we design, we add value,
to your life and that of others.
We empower small businesses
to think big and big businesses to
remember the small. There is a
beginning to Shared Growth.
But there is no end. And each
time we share we know that some
day, in some way, it will be shared
again. When we share, we grow.
When we grow, we all prosper.
Share. Grow. Prosper.
MANIFESTO
Shared Growth. When two worlds come together to create value.
This device represents our philosophy of Shared Growth. The one block represents people and community needs.
The other represents the bank’s product and service offering. Where these two meet, there is Shared Growth.
Shared Growth is about making a difference. It is about creating value for Barclays Africa Group in a way that also
creates value for its customers and communities. When we share, we grow, and when we grow, we all Prosper.
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28
EXCELLENCE
THE CITIZENSHIP AWARDS
Doing business the right way
and sharing the benefits of
our success cannot be done
from behind a desk. Across
the continent, teams from
Barclays Africa have gone
into their communities to
show that we put our values
into action
T
he Barclays Bank of Kenya Human
Resources Team organised a book drive
for Glory Secondary School, located in
one of the largest slums in East Africa.
While mentoring at the school, the team
noticed that there was only one textbook for
each classroom. In response, they launched a
book drive and fundraising campaign for the
school’s 200 students. Now, there is a book
for every three students and teachers are
noticing an improvement in their studies.
The Proud to be Barclays Committee, in
Uganda, supports the Bless a Child Foundation,
a non-governmental organisation that provides
care and support services to children suffering
from cancer. The team has campaigned to
increase awareness about the foundation’s
work, helped raise funds and volunteered
more than 1 800 hours at the care home.
This has helped the organisation secure a new
centre for their operations, which also provides
accommodation for the children in their care.
The Wote Branch in Kenya raised funds to buy
and install two tanks to collect rain water at
Ngugi Primary School. The nearest seasonal river
is 20 km away from the school.
The local community has also benefited – they
can now buy affordable water from the school.
The money raised is being used to further
develop the school. Thanks to the team’s
efforts, 15 teachers and several community
members have opened accounts with Barclays.
Muhammad Bera, in South Africa, founded
a further education college, which offers
skills training in diamond polishing to deaf
and disabled students between the ages
of 17 and 25.
The Bera Diamond Academy has a fully
equipped diamond polishing workshop. In 2015,
35 students completed the course and became
qualified junior diamond polishers. A partnership
has also been created with the Julius Klein
Diamond Group to offer apprenticeships to the
academy’s top students.
Team Lafleur realised that over half the potential
clients referred to large corporate relationship
managers were being rejected because the
small businesses lacked the expertise needed to
correctly prepare their financial reports.
In response, the team, from Mauritius,
proposed the establishment of a Micro
Support Unit to help these businesses prepare
the statements needed to successfully apply
for loans. This will allow Barclays Africa to
access an untapped market, build strong
relationships with new clients and increase
access to funding for these businesses.
The Rhino Debit Card helps protect rhinos in
Botswana by raising awareness and providing
sustainable financial support to young people
who aspire to run their own conservationrelated businesses.
The project has seen more than 900
young people attend financial literacy and
conservation sessions. Twenty young people
have completed a professional course in
conservation and been placed at game parks.
Barclays has agreed to pay 0.2% of its income
from the card into a rhino conservation fund.
To date, 6 000 Rhino Debit Cards have been
distributed to customers.
The Indian Ocean Legal Team, based in
Mauritius, successfully partnered with several
organisations to train 50 women entrepreneurs
in practical business skills and 500 legal
students in technical skills. The team has also
provided free legal and governance advice to
non-governmental organisations that provide
social services.
The Diepsloot Mountain Bike Academy runs
a sports development programme for young
people in the township in South Africa, where
60% of the youth are unemployed.
EXCELLENCE
The academy’s beneficiaries have received
life coaching, skills training and educational
support for mathematics and English.
To date, the academy has helped more
than 240 young people.
The Corporate Affairs team partnered with
Zimbabwe Farmers Union to help address the
high unemployment rate among young people in
the country. Through their efforts, 17 000 school
drop-outs across the country were trained in
numeracy, farming and financial management
skills. Nearly 200 Young Farmers Clubs were
started throughout Zimbabwe, creating job
opportunities for more than 2 000 young people
who now grow produce for sale and earn an
income to support their families.
The Citizenship Awards celebrate those in
Barclays Africa who have made an exceptional
contribution to the community in which
they live and work, and who are outstanding
ambassadors for the Group and its values.
The individuals and projects considered are
those that most clearly demonstrate our
Shared Growth approach to business:
– Business value: Does the initiative lead to
tangible business value – new products,
greater efficiency, and a better reputation,
among other considerations – for
Barclays Africa?
– Value to society: Does the initiative address
a social, environmental or economic need
in a community?
– Competitive differentiation: Does the
initiative demonstrate innovation in using
our core assets and expertise?
The efforts of these nominees will be recognised
at the 2016 Barclays Africa Citizenship Awards.
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30
EXCELLENCE
CAROLINE’S
CLIMB
Barclays Africa has a tradition of supporting
the communities in which we live and work.
Our employee community programmes –
matched funding, volunteering and giving
– help our colleagues support the causes
about which they are passionate
C
aroline Ndung’u, the
Director of Marketing and
Corporate Relations at
Barclays Bank of Kenya, teamed up
with friends to climb Mount Kenya,
the country’s highest peak,
to raise school fees for
underprivileged children.
“Climb High, Educate a Child” is
an initiative of the Social Justice
department in Caroline’s church,
Nairobi Chapel. The team sought
to raise 15 million Kenyan shillings
to sponsor the education of 208
students in September 2015.
Caroline has been active since first
hitting the gym after the birth of
her first-born daughter almost
22 years ago. Since then, her love
for physically challenging activities,
such as hiking and running, has
continued to grow.
“Climbing Mount Kenya is one of
the things I have always wanted to
do. I decided to do it with a purpose.
There was no better way of doing
it than with an initiative that would
give underprivileged children access
to education,” Caroline says.
The Climb High team members were
required to raise at least 100 000
Kenyan shillings to participate in the
climb. Caroline managed to raise
605 000 Kenyan shillings.
For Caroline, the greatest lesson from
the climb is that we can always do
more if we push ourselves. “I cannot
describe how tough it was. The
distances you have to cover, the low
levels of oxygen, the cold, sleepless
nights and altitude sickness make
it a big struggle, but with the right
spirit, resolve and determination, you
will get to the top,” she says.
THE LAST WORD
HOW WE DO BUSINESS:
STEPHEN VAN COLLER
WITH 41 772 EMPLOYEES IN 12 COUNTRIES
across the continent and a balance sheet of
more than R1 trillion, Barclays Africa can do
a tremendous amount of good if we carefully
consider each action that we take.
In practice, our commitment to Shared Growth
means that every business decision not
only contributes to the bottom line, but also
improves the lives of the communities in
which we work.
To help us do this, there are five simple
questions we ask about all our decisions and
actions. The answers tell us if we are doing the
right thing – if we are putting our values into
practice, or simply talking about them.
Being this disciplined about how we do
business helps us stand out as a responsible
corporate citizen and ensures the success
of our commercial strategy. Our strong
governance structures ensure that we remain
a responsible investor that helps to build, not
exploit, and works to protect the environment.
But we are more than just a bank. We at
Barclays Africa are involved in community
projects and support local businesses across
the continent. We now have the technology
to work with others to share knowledge
and provide services at an ever-increasing
scale and speed. Technological innovation in
the service of our communities will define
our future.
Our checklist:
1
2
3
4
5
Are we being transparent and clear in our communications and
dealings with customers, clients and stakeholders?
How are we creating long-term value?
How are we making a profit (directly or indirectly)?
How are we creating shared value that benefits Barclays,
our customers and clients, and wider society?
Is this the right thing to do?
Every day we hold ourselves accountable to
best practice. The success of our business
strategy depends on us being an outstanding
corporate citizen.
Stephen is Chief Executive: Corporate and
Investment Bank and Chairman of Barclays
Africa Citizenship Leadership Committee
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