The services, which will include South African-government bonds will be offered to corporate and institutional investors.
Thursday 16, May 2019 BY KUDAKWASHE MUZORIWA
Goldman Sachs Group plans to expand its services in South Africa through a partnership with Investec on equity trading as well as offering fixed-income and foreign-exchange products.
The US investment bank is seeking a South African banking licence as part of plans to offer fixed income products in the country, beefing up its African operations as global rivals scale back.
In a statement, the bank, which is in the midst of a sweeping overhaul and drive to win more clients to counter falling revenue, said that its partnership with Investec will enable both firms to extend their equity trading capabilities in the country and deepen links with African as well as international institutional clients seeking to invest in the region.
The cooperation arrangement will be launched in the coming weeks and will look to expand to additional African markets.
Colin Coleman, the Chief Executive Officer of Sub-Saharan Africa for Goldman Sachs and head of the Johannesburg office, said, “The long term economic potential of South Africa is unquestionable.”
The lender has been offering advisory, wealth management and asset management services to corporations, investment firms as well as government institutions and individuals in South Africa for many years.
Other investment banks such as Credit Suisse and Barclays have trimmed or exited their African operations altogether. Credit Suisse closed its South African business last year during the country’s first recession since 2009.