Dominic Bruynseels: Africa is pointing the way forward

Barclays Africa is one of the two largest banking groups in Africa and it is all primed to expand. Running Barclays Africa is a massive management challenge. Anver Versi asked Dominic Bruynseels, Chief Executive Officer, Barclays Africa & Middle East how he and his team are facing up to the task and how decisions are made.

Anver Versi: Barclays' purchase of 56.4% of South Africa's leading retail bank, Absa is the largest foreign direct investment in South Africa. What is the strategy behind this move?

Dominic Bruynseels: One of Barclays Group's strategic priorities is to increase its non-UK earnings, expand its retail and commercial banking operations in attractive overseas markets, and increase exposure in fast growing, well-run markets.

The transaction with Absa made good strategic sense and it allows Absa and Barclays to build the leading financial services business in South Africa and ultimately the pre-eminent bank on the African continent. This is one of the largest foreign direct investments in South Africa.

The transaction creates a powerful combination, bringing together Absa's leading South African retail expertise and strong domestic brand with Barclays' global brand strength and reach, world-class product capabilities (particularly in wholesale banking, credit cards and business banking), African operations, and financial strength.

Barclays provides banking services to personal and corporate customers across 15 countries in Africa. Having a sustainable business in Africa, meant having a significant presence in South Africa, which is particularly important from a corporate banking point of view, as most of the investment into Africa either originates in South Africa or comes through South Africa.

The deal with Absa has improved the bank's portfolio as it supports growth and customer service on a pan-African basis and for the first time, Barclays' African business has a robust base from which to invest.

Anver Versi: What are the key management challenges of such a large business integration?

Dominic Bruynseels: The main challenge of business integration is to build capacity. Without building capacity economic stability by itself is not sufficient for sustained stable growth.

Therefore, necessary areas to address to achieve successful business integration are:

* Economic stability and growth potential of the country

* The sophistication of the regulatory and legal framework

* Sound and stable macroeconomic policies and governance

* Developing skilled labour resources

* Infrastructure and accessibility to the banking environment

* National and corporate governance

* Dealing with customers and their expectations

* Alignment of business strategies of Barclays and Absa

* Assessing the risks of operating in emerging markets correctly

* Managing cultural complexity

Anver Versi: In terms of management in this case, can you rely on tried and tested business strategies or do you have to sail into uncharted waters?

Dominic Bruynseels: We have been part of the African financial services landscape for over 100 years. The acquisition of Absa will see us drawing on our partnership with Africa that has seen us bringing to the African market a heritage of innovation, world-class expertise, products and services that have helped our customers to achieve their ambitions and assist the development of the financial services sector on the continent. We will continue to work closely with all parties to grow local market expertise further.

Anver Versi: In your experience, are there any characteristic trends in the business environments around the globe? What are the most striking differences you have noted between the business ethos in Africa and Europe?

Dominic Bruynseels: Essentially, effective and appropriate management of organisations across the globe is a large contributor to human well-being and prosperity.

Some of the biggest challenges faced by management across Africa are:

* Their ability to develop awareness of broader operating constraints - political, economic, legislative, social and cultural - within the African operating environment; and how to turn these issues into opportunities

* How to incorporate the interests of multiple stakeholders into business strategic objectives

* The development and understanding of the importance of a work-life balance because this is often perceived differently from culture to culture

* To consciously manage the dynamics of multiculturalism in order to develop strengths and synergies from these, including the management of equal opportunities of individuals from different ethnic and gender groups to influence the direction of the organisation

* The provision of appropriate training programmes

Although these issues are clearly evident in managing business activities in Africa, there are similarities when compared to Europe.

Businesses in Europe also have to tackle multi-cultural diversity as a management issue with the need to create synergy out of diversity. Furthermore, cross-boarder cooperation between businesses in Europe is well established, and there is more and more of this happening in Africa on a daily basis.