Opinion: The New Centre of Market Resilience in Africa

By Sabir Ballim – Investors trading across Africa require custody services and internationally experienced custodians to protect their portfolios and process their transactions securely. These services are essential for developing capital markets. As more investors buy assets throughout Africa, they require custodians with a global presence who can leverage local service capabilities.

In this context, it’s no longer enough for a bank to merely safeguard its clients’ financial assets in the background.

From Absa’s point of view, our role in the custodian sector has extended far beyond merely safeguarding assets, especially in the space of a segregated portfolio. We now take care of everything from trade settlement to asset safekeeping, regulatory compliance to corporate actions management.

The nature of custody is also changing – and rapidly, too – as it takes a more central position in how businesses and financial markets function. Several factors have driven this change. Markets are moving quicker than ever before, as settlement cycles tighten from T+3 to T+1 or even T0. This means activities have to happen much more efficiently. At the same time, new digital assets and new investment types (like private equity) are emerging. Infrastructure is also growing, bringing even more complexity. And as technologies evolve, regulations must also change. This puts further pressure on operational teams.

Even a small disruption can have an outsized impact on business operations, and on financial markets in general. One can imagine, then, the effects of major global events like the current conflict in the Center East. In this environment, resilience is critical.

In this environment, clients demand real-time data, better reporting, and a seamless experience across markets. This is pushing custodians to move away from fragmented structures towards a connected, tech-driven platform.

Custody has shifted from a back-office role to a central part of the financial system. To keep pace, custodians need to keep evolving, becoming more connected, more tech-driven, and more able to operate across multiple jurisdictions.

As a pan-African bank, Absa maintains a strong commitment to localisation, implementing global standards while preserving unique regional characteristics. Regulatory environments across African jurisdictions vary significantly, each presenting distinct challenges and nuances. In South Africa, industry regulators frequently collaborate with market participants and seek input prior to establishing new regulations, whereas such engagement may not be consistent in other African markets. Absa is well positioned for market advocacy, leveraging in-country teams to engage proactively with regulators to better represent the interests of our clients.

Absa’s advanced digital capabilities mean we are a more agile, able to move quickly to meet our clients’ holistic needs. We bring in our Corporate and Investment Banking franchise. We do Global Markets execution. We handle FX. Ultimately, that service model – with custody front and centre – is a key differentiator.

We work closely with our clients, serving both as custodian of their assets and as their banking partner. As the operating environment changes and as new technologies come on board, we will continue to advocate for our clients – both with national regulators and in other industry forums.

Sabir Ballim is the Head of Transactional Banking FI Sales UK/EU and US at Absa Bank.

Rafael Marques de Morais (Angola)

Most Impactful Work: His reporting on conflict diamonds and corruption in the Angolan state, often published on his anti-corruption watchdog website, Maka Angola.

Short Bio: Marques de Morais is an internationally recognized Angolan investigative journalist and human rights activist. He has faced significant persecution for his tenacious reporting on corruption within Angola’s government and diamond industry.

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