<h2 class="wp-block-heading" id="h-growth-outlook-for-africa">Growth outlook for Africa</h2>



If you [look at] macroeconomics, it’s no longer one or two countries driving the continent’s growth. That versatility has started to come through, which they didn’t have earlier. The continent is currently growing at about 3.5% and that will go up&#8230; The governments in Africa realize the economies have to transform into digital economies, and there’s a tectonic shift taking place [in sectors] from manufacturing to services. The continent [will continue to] leapfrog into new tech, not just in payments; it will do well in tourism too, and the SME sector.



[Besides talk on] inclusion, I think access is also most important. So, if I get included, what access do I have to funding, better services, convenience and affordable products? Mobile money is big in Africa, but if you really look at the core – and I don’t think the continent is fully covered in terms of internet and mobile penetration – the per capita cost of providing these services in Africa is higher than the rest of the world. I think there are too many closed loop ecosystems that exist in Africa. You need to have open borders and open economies. And the scale will never happen in a single country. The scale can happen, and that’s why the versatility of having 10 countries have that growth rate is far more exciting than having one country that gives you double the growth rate. I feel the reason mobile phones became cheaper is when telcos (telecom companies) became interoperable between themselves, and that’s a huge learning. But I don’t see that being played out [across] the continent. I think creating broader ecosystems is the way to go.



The tourism sector will do well, and that’s not just for African tourists within the continent, it’s also for international tourists to come through. The one thing the pandemic taught us is people now value experiences more than [just] the physicality of experiences. Africa can give you that. But to do that, if you are sitting in Iceland and want to go to Kenya, how do you plan something that is customized for you? Digitization will help if you’re part of an included economy.


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Agriculture is also going to be very big. Mastercard’s Farm Pass app is a solution that was born in Africa and exported to the rest of the world, including to India. Also significant is the work we do in education and using crowdfunding to actually get children educated.



Mastercard has been operating in Africa for almost 50 years, and now has 13 offices across the continent.



<h2 class="wp-block-heading" id="h-the-consumer-of-the-future">The consumer of the future</h2>



The consumer of the future is every single person. You almost have to go back to classic marketing 101, that the best marketing campaign is customized or tailored to an individual. When you look at your phone, you feel you’re almost there with your customization, but I don’t think you’re fully there. I feel the whole world will turn on its head, and the consumer will become king or queen. Open, enabling ecosystems that allow people to participate fairly is when innovation comes and you can empower everybody. The other dramatic thing for you to think through is that so many companies and industries are putting billions of dollars into digitization, but look at what they’re creating. They say ‘if you come into my digital environment, I’ll give you the best possible digital experience’. But you know what? I’m not just a consumer of a single firm. I am a consumer of the grocery store down the corner. I’m a consumer of an airline. I’m a consumer of a hotel. I’m a consumer of tea, coffee. I am a consumer of the bank. Are you going to make me go into 62 different environments? I feel that’s where it will change. You will now start to have a consumer who will have a digital interface, and then basically say, ‘I need coffee and you interface with me with your APIs, and it’s not me interfacing with you’. I know this sounds far-fetched, but I see a world like that. That’s disruption, that’s power, that’s inclusion.



Every industry will want to come to you and want your business. I think the consumer of tomorrow will not classically be segmented as affluent, super-affluent, middle income etc. It’s down to every single segment, and it’s customized up to it. I think consumers will have more power than ever before. That’s true empowerment. And the whole ecosystem helps them deliver that. By the way, we are only talking about this from the consumer side. I see that on the government side as well. In the end, I’m a citizen, and governments have to give me better services. And I can see how that can come through. I consume utilities, I can see how utility companies come to me, and so on. So, the world of tomorrow is really about the consumers and how they will be at the center of how things are made for them, customized perfectly to what they want.



<h2 class="wp-block-heading" id="h-uptake-of-new-technologies-and-innovations-by-various-african-governments">Uptake of new technologies and innovations by various African governments</h2>



The good news is that pretty much every government official, minister or policymaker understands the importance of digitization and financial inclusion. They get it. The question then is, how well-versed are they about the world of today versus the world of tomorrow? If you’re making policies for today, then you’re going to miss out on the future. I’m not saying that’s an issue, but that’s an area that requires a little more embellishment, in terms of knowledge structure, and thinking through the implications for the wider ecosystem in the economy. I do agree that governments have to create digital infrastructure but my question is if that’s the only way, or can you do this in a partnership? If not in partnership, you start to create single points of failures as well, especially with all of the cyber security [issues] etc. But by and large, governments are amiable to having the dialogue.



<h2 class="wp-block-heading" id="h-collaboration-with-fintechs">Collaboration with fintechs</h2>



Earlier this year, we signed a multi-market agreement with MTN Group Fintech that will set in motion a new era of collaboration to connect millions of people and small businesses across Africa with digital tools such as virtual cards, to transact through secure mobile payments, expanding access to the benefits of the cashless digital economy.



What we have is partnerships on the one side with fintechs. Mastercard Start Path supports and invests in several African fintech companies (such as Paycode, Ukheshe and Karri) to scale and grow. [All of this] allows us to play in different parts of the value chain. This also is testimony to the way we work. We are about partnerships and enabling ecosystems, because we sometimes don’t want to do everything ourselves; we see somebody else do it, and are like, ‘oh, this person does this stuff very well’, so, it becomes a mini ecosystem [through] that partnership model. That’s our DNA.



I think the intent is no longer an issue. The question is, how do you do it at scale and at an economics that makes sense. I think that’s the part where most people are struggling. And that’s why it requires a new approach to how you do it. And it has to be sustainable.



<h2 class="wp-block-heading" id="h-as-a-forecaster-view-of-the-future">As a forecaster, view of the future</h2>



I am very privileged to get access to information and the people I talk to… But if you were exposed to all of that, you would probably make similar predictions, walking the talk every day. It’s just as simple as that. As you get more experienced, you also start to think differently about the world of the future and what role you want to play. Nobody will ever remember you for the seniormost rank you had in a corporate, people remember you for how you enable other people, ecosystems, and lay foundations for the growth for others.



I actually do feel that in our lifetime, our mortality rate will improve by at least 15 years. I see the smartest people will proactively reinvent themselves [for that]. The way you spend your time and how you create value will be different. This will be a very big trend.



<h2 class="wp-block-heading" id="h-big-growth-markets-in-africa">Big growth markets in Africa</h2>



The space of payments and finance is obviously big. The tourism industry is going to be very big in the future, because, after the pandemic, a lot of people realize life’s not just about the material things, it’s about being human, it’s about the experiences we have. Africa is unspoiled, it has nature, and that’s what people want to connect with. The third sector is going to be agriculture, with Africa’s large land banks. There is so much opportunity to actually have better efficiency of crop production and the supply chain to the rest of the world.



<h2 class="wp-block-heading" id="h-what-makes-a-standout-leader">What makes a standout leader</h2>



You have to be really results-oriented, analytical and in tune with your business environment. But what makes a really good business leader and good person is somebody who knows to balance their heart and mind. Somebody recently told me that the mind is a humble servant of the heart and not the other way around. And it was a really profound statement for me, but if I really look back and think of how great decisions get taken, it’s not the mind. It’s actually when you make your mind do what your heart really thinks is the right thing to do.



<h2 class="wp-block-heading" id="h-your-personal-leadership-style">Your personal leadership style</h2>



I am results-oriented, so my style is [reaching] a desired outcome which is for the greater good, and it doesn’t always mean economic profit. Then you start thinking about your team, business environment, adaptability, flexibility… And I would add one other thing – resilience. A lot of times, it’s hard out there, and I think being resilient is something that has actually stood by me in good times and bad times.



<h2 class="wp-block-heading" id="h-building-an-entrepreneurial-mindset">Building an entrepreneurial mindset</h2>



It’s a bit of hard work and a little bit of luck, and experience matters. As you get more information, your mind starts to process the complexity of all of that. You look at the business environment, you start to look for trends and changes around that. And then you start to create an informal framework in your head that starts to analyze these things. It’s a little hard in the beginning, but over the years, that comes very naturally, because you’ve started to get the subtleties and insights in even simple sentences. And that shows you what the world needs, whether it’s a consumer or a customer or the business environment. And I think that is what gets you to an entrepreneurial mindset. The second thing is openness to change, openness to new things, and the ability to clench your teeth and hunker down when the going is really tough, and having the mental will to power through that time, because that’s what great entrepreneurs do.



<h2 class="wp-block-heading" id="h-the-technology-to-come-that-you-re-most-excited-about">The technology to come that you’re most excited about</h2>



I don’t know whether I’m excited about another gadget or another technology. What I’m excited about is how ecosystems are being built and that what we need as an enabling layer is finally coming together. I was joking with somebody the other day about the Internet of Things from five years ago. Nobody talks about that now. They talk about generative AI. What I’m excited about is I actually feel we now have the technology enablement that will allow all of these things to become bigger. In other words, there will be even more innovation, and probably a new gadget will come, or a new technology will come, but what I’m excited about today is the fact that we actually have the infrastructure that will allow for all of these things to take place. Because earlier, this was conceptual. Today, this can become a reality.



<h2 class="wp-block-heading" id="h-plans-for-the-next-five-years">Plans for the next five years…</h2>



I think [I will be] reinventing myself to create foundations and being involved with how the future looks. Retirement is a relative term. I have taken a personal pledge to help 100 million SMEs and 500 million people, but I don’t want to do this as a CSR exercise. I want to actually create a model that allows that. I also have a vision where even if you’re an entrepreneur and creating immense wealth, that wealth has to be shared in different countries, wherever you operate. I don’t have precise plans for each of them, but broadly, [I know] how that will work.



The answer is, [my plans] will be in AI for sure. I’ve started to kind of think about those things: it’s definitely about helping governments and industries who are creating digital infrastructure in a more inclusive way; about helping people create open ecosystems, in other words, creating foundations that allow for betterment. And lastly, giving back, and being available to people for pro bono work. I don’t think there’s a paucity of capital. I think the issue is, how do you take that quality capital and deploy it in the best possible way? I’m grateful and privileged for what Mastercard has given me, but I am taking that knowledge and helping SMEs, and [creating] more equitable systems and better convenience for citizens. I see all of that in the future.

MSC03810 copy-1a

On The Payments Ecosystem And Africa: ‘That’s Disruption, That’s Power, That’s Inclusion’

Sunil Kaushal, the new Co-Head for Corporate and Investment Banking at Standard Chartered, has been with the group since 1998 and in the banking business for the last 36 years. In a chat with us in February this year, when he was Regional CEO for Africa and the Middle East, he talked about the bank’s strategies in the emerging markets of Africa, where he has been traveling to for the last two decades. Seated on Ghanaian-inspired sofas in his Dubai office – boasting a full view of the iconic Museum of the Future and the walls adorned with art from Africa – he also spoke about his simple, straightforward leadership style and what drives him to wake up at 4AM every day. Excerpts from the interview:



Focus on Africa including launching digital banks across nine markets 



Africa has been one of our most important markets in terms of differentiation. We consider our presence there to be very strategic and important. We are in all of Asia; the only bank in every ASEAN market&#8230; But when you talk about Africa, each country is different in its own way. Africa is not without challenges but it has been very resilient as well. I do believe that setbacks and a host of political as well as governance issues have resulted in Africa not performing to its potential, but hopefully, in the coming years, that will change… There’s huge potential in terms of demographics, infrastructure and technology; many markets have leapfrogged.



We remain very constructive on Africa, but are also conscious about the challenges there and have navigated them, because we’ve made those risk calls way ahead of the actual events happening. We repositioned our business eight to 10 years ago on the retail side towards digital, [when] there was no rush to get it done, but we made that call early on, and took some difficult decisions. And the last seven to eight years, for every award for digital banking across every category, Standard Chartered has stood out. Africa is a very dynamic market; it requires you to have a good feel for the pulse on the ground. Big changes are happening but the continent needs a lot more in the years to come, and that’s where the fantastic opportunity is.



On the growing Middle East-Africa ties



Not many people are aware that the Middle East has been investing in Africa in a pretty significant way; from investments in mines to ports to logistics. Basically, you step back and look at what’s happening is that Africa is a big market and this part of the world (the Middle East) has got the capital, and of course, it produces energy, petroleum and petroleum products. And there’s a market there waiting to be tapped, and they’re creating their linkages. We work with clients here and one of the topics in all our meetings with the government is around access into Africa, and there are not many banks that will provide that. So it is broad-based, it is capital being invested, it is products being sold, it is assets that are being acquired. So, there’s a whole area of activity taking place and it’s only going to increase, as they get a better understanding of the continent, and you get comfortable with doing business on the continent. We have to remember that the perceived risk of Africa is much higher than the actual risk and you can only appreciate that when you’re on the ground.



Promoting young entrepreneurs



I don’t think there’s any magic formula to it. We need to support the creation of business opportunities in the economy itself. If you really develop the African Continental Free Trade Area agreement, there will be more trade, more manufacturing, more entrepreneurs; if you invest in digitization, digital platforms themselves will create self-employment opportunities for entrepreneurs to come up with new, innovative ways of selling. So, I think it’s very important to create the enabling environment. Of course, the provision of finance is very important. And again, that gets allocated and becomes available if you have the right institutions, the right governance frameworks, the ability to lend in a transparent way or in an informed way, and get your money back when it’s due. So, finance is very important as well in terms of being one of the building blocks to really promote entrepreneurship. We try to do our bit through the Futuremakers Program, which was my focus, for education, employability and creating opportunities. We worked with various institutions to incubate firms, provide them small amounts of finance, hand-hold them in terms of how they manage businesses, governance, etc. We are doing our bit, but there’s lots to be done. And I think it’s a broader ecosystem that you create, which will then ensure that businesses take advantage of that.



Mentoring young people within the organization



We have started creating a very structured way of building the talent pipeline at various levels. We have a leadership program to mentor and interact with our talent in Africa and the Middle East. The idea is that they get opportunities to work on different projects. They have an opportunity to interact with senior regional management teams, and the progress is tracked based on performance and on the leadership skills in the sectors we serve. It’s a formal program, and we’re very proud about it, and now, it’s adopted globally. And then we have another program that’s more targeted with a smaller cohort, which is building a pipeline for very senior roles. And they are then addressed by the global management team, which I am also part of, and tracked very closely in terms of opportunities. Both cohorts would be in the running whenever big opportunities come on.



Perspectives on sustainability and climate change



The bank is deeply engaged. And I generally feel that in all forms of financing we do, sustainability is going to play a big part and link to climate change. But it’s broader than just climate change transition. It’s adaptation. And ESG investing. It is around how we manage in a way that our portfolios are well-protected. So, we’ve made various commitments around the financing. We have created a new business line out of it, and I think it’s going to be the most exciting, which is sustainable finance. It is an opportunity for us to really differentiate ourselves because we have started early. And we invest a lot in our people, in our products, and the accolades we receive are a testament that we are doing extremely well.



Personal leadership style 



It’s more about ensuring that when you have a strategy in place, execution becomes very important. And that comes through straightforward, simple communication and a sharp focus on delivery. That’s very important. Otherwise, I find you waste a lot of time in conversations without action. My own leadership style would be to really get the best out of people by engaging them and getting the buy-in on a common purpose. Otherwise, you sort of lose them. You can have very fancy aspirations, but if your team is not aligned or doesn’t buy in, it’s going to be extremely difficult. So, invest time to really get the alignment. Once you do, you need to focus on delivery. If you’re firm and fair, people generally see it and deliver their best. So, mine is a pretty straightforward, simple, no-nonsense style.



My approach always has been, ‘don’t come up with problems’, because that’s the easiest way – to outsource your problems to your boss, and I have zero time for that. If you come with a problem, also come with a solution. If you don’t have the solution, don’t come with the problem. So, it forces people to think two steps ahead. It’s not that I don’t like to hear what the problems are, but then come up and say, ‘listen, if this is a problem, let’s try and do it this way, and I think it will work’. To me, that’s a more intelligent conversation. It’s my job then to clear the blockages and get them the resources to make that happen. I’m not expecting every junior person to have access to all the resources, but at least come up with ideas and become more stimulating. People appreciate that.



On the entrepreneurial mindset



That’s extremely important, but you also have to be nimble enough. You should recognize that if a certain thing is not working, even if you’re invested in it, you should have the ability to move on and be vulnerable enough to do that than say, ‘no, I’ll persist, and I’ll persist’. It does not mean you’re not tenacious. You have to be tenacious, but if you realize that you have made a mistake, you should have the humility to accept it and then move on and change course. [One of the] big things that kill people at top positions is ego. Particularly in this region, where things keep changing so dynamically, make a call. You get your best shot. If you realize you made a mistake, change course.



Secret to staying the course



Endurance! There is no shortcut to success. My advice to all youngsters is, first of all, ask yourself, ‘what are you trying to really achieve, and are you really good at it?’ And then, ‘are you investing enough on a daily basis to master it?’ Because if you’re saying ‘I’m going to be the number one in payments or cyber or digital’, then invest every day and try to be the best at it. Because this is something which builds on, it has the flywheel effect, once you’ve accumulated the knowledge base.



Growing up in Mumbai



My father was an engineer and from a family of doctors, so, when I took up finance, I was told that there’s nobody in the family who can help me as there was no one in finance. From my early teens, I decided I wanted to be a banker, I had no other desire. My father worked for a steel company, and we lived in this community close to the steel factory, and I used to visit his office, in town at Nariman Point, and I used to see all these fancy banks, you know, people in suits and ties. They dealt with money and I said, ‘okay, what do I need to do to deal with money?’ So, I learned finance. My very first job was at American Express in Mumbai and then I went to New York. But I was ambitious to learn about every facet of banking: treasury markets, corporate banking, retail banking&#8230;



Anecdotes on your first job



I used to dress up very well, always in dark blue. Those days, you had to travel in the Mumbai local train [to get to work], so I would fold my jacket and put it in my briefcase, and wore it at work. I did that for a year or so before getting my own first car, a Premier Padmini, which I loved.



Coming to the Middle East in 1998



That’s when the entire Sheikh Zayed Road stretch was developing. There was nothing but sand, and they said, ‘we’re going to have 700 buildings’. Dubai is a phenomenal story, [because of ] the leadership and there are so many lessons to learn from it. I am a big fan of Dubai.



Thoughts when you wake up everyday



That I want to make a difference. The one thing I can do sitting at the top is clear the blockages. And I say it with all sincerity. Many a time, people don’t tell you the full picture, so, you kind of probe them, or try to use your connections to figure out what’s blocking things. Because this is a great bank. It has a great history and massive potential. We are in the world’s most dynamic market. We are a super connector of capital, trade, etc. Not many banks can claim to have that, so how do you really clear the blockages? What frustrates me sometimes is if you’re not getting things done quickly.



Idea of relaxation



I play golf. I’m a very relaxed person. I sleep at 9.30PM and get up at four o’clock. I am able to switch off every day as you should. I love to go for holidays in Africa. I’ve traveled to South Africa many times but would love to do Serengeti, Masai Mara and Victoria Falls.

Tag: CEO Strategies

FORBES AFRICA SOCIAL MEDIA

On The Payments Ecosystem And Africa: ‘That’s Disruption, That’s Power, That’s Inclusion’

CEO Strategies: The No-Nonsense Global Banker On His Straightforward Leadership Style