africa Banking Cape Verde Djibouti Economy FDI Finance Financial Inclusion

BICV working to position Cape Verde as an international financial center

Approximate reading time: 3 minutes

Speaking to the Cape Verdean Economic Newspaper, Sohail Sultan, iibg’s executive president and also assuming the presidency of the BICV, explained that the acquisition of the Cape Verdean bank is part of the group’s strategy to develop banks and companies in markets in Africa, Middle East and Asia.

The new owner of the International Bank of Cape Verde (BICV) is working with the government to position the archipelago as an international financial center for West Africa.

BICV, former Banco Espírito Santo (BES) of Cape Verde, was controlled by the International Investment Bank Group (iibg), a financial company based in the Kingdom of Bahrain, which acquired 90% of the capital of the Cape Verdean financial institution.

Speaking to the Cape Verdean Economic Newspaper, Sohail Sultan, iibg’s executive president and also assuming the presidency of the BICV, explained that the acquisition of the Cape Verdean bank is part of the group’s strategy to develop banks and companies in markets in Africa, Middle East and Asia.

At present, besides the Kingdom of Bahrain and Cape Verde, the iibg has banks in Djibouti.

Sohail Sultan says that the BICV is focused on the Cape Verdean market, but focuses on the country’s strengths in terms of capacity to function as a hub to attract new investment and reach the market of West Africa with a larger population.

“We are working together with local and international partners, in particular with the Government of Cape Verde, to enable the country to position itself as a future international financial center, particularly for the West African region,” said Sultan.

The businessman was in Praia City for several meetings with the Cape Verdean authorities, namely as the Deputy Prime Minister and Minister of Finance, Olavo Correia.

According to Sohail Sultan, Sohail Sultan explains that the choice of the archipelago was made after assessing the risks and potential that the country has, namely “political stability, a functioning democratic system and an economy with potential for growth,” pointed out.

Bank wants to grow and will increase capital

César Ferreira, BICV administrator, explains that the most important thing in this refoundation phase is for the financial institution to focus on its objectives.

Following the resolution measure applied to Banco Espirito Santo (BES), BES Cape Verde was part of the New Bank, which sold 90% of the capital of the Cape Verdean financial institution to iibg, maintaining ownership of the remaining capital.

In this process, the BICV recorded losses in 2016 and 2017, which are expected to remain in 2018, according to the officials responsible. César Ferreira says he believes the next two years will be recovery.

The BICV aims to increase the number of workers, which is currently 15 and to have more than the two current branches. It also plans to increase the bank’s capital by 14 million euros.

“It is our desire that the next two years bring growth of the bank, in its size and main indicators – asset, credit and customer deposits – as well as a natural increase in its number of employees, thus contributing to job creation and training of young national banking staff, “he explains.

Sohail Sultan stressed that the process of refounding the financial institution goes “to renew and expand the current branch network, repositioning the bank in the banking sector in Cape Verde and integrating it into the philosophy of iibg, in order to develop its offer and positioning with individuals and companies, national and international “.

Hulda Moreira, O Jornal Económico

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