Vista Bank gets set to establish its Subsidiary in France in the second half of 2025. This will be Vista Bank’s first banking operation outside of Africa and its first greenfield bank since acquiring acquired BNP Paribas and Societe Generale’s subsidiaries in several African countries. Simon Tiemtore, Chairman of Vista Group Holding, says establishing the Bank in France is a milestone in the Group’s global expansion strategy which will also greatly benefit African businesses. He joins CNBC Africa for more.
Vista Bank gets set to establish its subsidiary in France in the second half of this year. This will be Vista Bank’s first banking operation outside of Africa and its first greenfield bank since acquiring acquired BNP Paribas and Societe Generale’s subsidiaries in several African countries. Simon Tiemtore, Chairman of Vista Group Holding, says establishing the Bank in France is a milestone in the Group’s global expansion strategy which will also greatly benefit African businesses. He joins me now for more on this. Simon, thank you for joining us today. Thank you. Thank you for having me on. Well, let's start with a question. Why France? What is the strategic, what's the significance of this location? Well, you know, first of all, France is well known as a global financial place, you know, and we do operate in a number of French-speaking countries. We have acquired, as you mentioned earlier, that we have acquired many French-speaking banks, you know, BNP Paribas, Societe Generale, and as we continue to expand in Africa with our strategic plan to be in 25 countries by 2026, you know, we chose France as a first place for our global expansion, you know, to have access to Europe and to the rest of the world. Obviously, we're looking at a number of other places to connect Africa to the rest of the world, including Asia, the Middle East, and the US. But France is a free stop for our global expansion. Right. And for your presence currently in Western Africa, I know that you've said that your strategy, your strategic expansion is global, but looking at your footprint on the African continent, it's not particularly extensive. Is this also strategic? Well, yes. Look, it's deliberate. I mean, I think one of the things that we have to do as we strategically expand into the African continent to connect, you know, regional economies and in light of the Africa free trade area, which requires strong banks with a diversified financial product to support the national economic development plan of our countries and the entrepreneurs and the SMEs, you also need access to the global market to provide the very much needed, you know, services for international trade, for dollar clearing, for euro clearing, and any other currencies to enable soft trade. Obviously, one of the key link here is to enable trade between Africa and the rest of the world. And within the African continent itself is to, you know, leverage our relationship with institutions such as our Frexin Bank, which will allow PAPS, the Payment African Platform, to enable African countries to trade with their own local currencies without relying on the dollar. So, we plan on both sides of the aisle, one by enabling intra-Africa trade through our partnership with PAPS, but secondly, but also providing the gateway for Africa to the rest of the world to enable them to trade in other currencies. All right, and staying with your expansion plans, 26 countries by the year 2026 is the plan. I know you're also eyeing markets in the US, UAE, and at some point Asia. I know you mentioned Afrexin Bank. Is this how all of this is being funded? How is all of this being funded? Well, it's being funded through our own resources. Afrexin and I, Afrexin is our strategic partner. We act as a trade finance intermediaries of Afrexin Bank, and we align our strategic initiative to promote trade and intra-Africa trade. And as such, you know, obviously, we're not simply focusing on West Africa. We're also looking at other parts of Africa. Today, we operate in Mozambique, for instance. So we're looking to expand in the southern part of Africa, Namibia, Uganda, Zambia, and South Africa, and also in Eastern Africa, you know, to connect, as I mentioned earlier, you know, the largest economies in the continent in light of the upcoming Africa free trade area, which will require, you know, global pan-African banks, such as Vista Bank, to provide the very much needed financial muscle that our country needs to fulfill our destiny. I'm not sure if I asked this earlier, but I'm just going to go ahead and ask it. How Vista Bank France will differ from other correspondent banks already established in Europe? What will set you apart? Well, look, the other corresponding banks established in Europe, you know, will be partners. I mean, not a single bank can take control of all the risk of trade. So we will be one of the outfit out there. A leading outfit, obviously, will be the newest one. So we'll be more agile when relying more on technology, you know, to drive our platform. And I think one of the novelty that we bring in as a differentiation is our connection to PAPS. You know, we will be the gateway to Africa. And once we land in Africa, we can, we will work with PAPS to promote intra-Africa trade. That in itself, you know, will de-risk transaction and make transaction cheaper for consumers and our clients and our government and our state that are transacting with the rest of the world. Well, I wanted to get your thoughts on African trade, especially its share of global trade. That's still quite low at the moment. I mean, you've talked about PAPS, obviously, that is helping businesses trade, businesses trade outside of their home countries. But talk to us about what your outlook is for global trade, especially for African businesses who are looking to expand, who are looking to put out more exports into the global sphere. I think Africa, intra-Africa trade and Africa trading outside with the rest of the world will increase as a result of having institutions such as Vista Bank, you know, being present in a global financial market. We are first and foremost a Pan-African institution. So our role is to essentially de-risk the transaction on behalf of our clients, you know, to promote intra-Africa trade, first and foremost, which is still at a very low, and then trade between Africa and the rest of the world. You know, by doing so in partnership with other banks, as I mentioned, such as Afrexin Bank and the African Development Bank and other, the IFC, other financial institutions that we work with, JP Morgan is one of them, I think we will be able to increase the share, Africa trading more globally and then African trading among themselves, which is key for economic growth. Well, staying with intra-African trade, talk to us about what your outlook is for the businesses themselves. I mean, you probably listened to my previous guests talking about how businesses need to be innovative, how they need to position themselves, guard against, at least navigate the headwinds coming this year in terms of global trade. Of course, you've heard talks about tariffs, protectionist policies in some regions of the world, et cetera. Good that we have the African Continental Featured Era here, but what advice would you have, do you have for businesses, what it would take for them to navigate these headwinds? Look, I think the first thing, you know, we put together, Afrexin put together a fantastic platform called ATG, Africa Global Tradeway Platform, and they also put out a number of instruments, one of which is MUNSA, which is a compliant platform that enable businesses to register there and be known across the globe. Because the key thing that people do see is that they don't know our businesses, they don't know our traders, and they see them as a risky factor. And we have to de-risk in our businesses by essentially providing the information about them to their counterpart. And we as a bank, working with Afrexin Bank, essentially leveraging the platform and the investment that they've made on the KYC, on the Know Your Customer platform such as MUNSA, and leveraging PAPS among other tools to essentially provide a complete suite of platform to our traders, one to be known, and then second, to have access to cheaper financing, to trade and stuff. And then third, by leveraging our platform outside of Africa to enable them to trade with the rest of the world. And I think it's a matter of education. And Afrexin also has another platform called the IETF, the Intra-Africa Trade Forum, which is also a fantastic marketplace that enable traders also to connect to the rest of the world and be known and de-risk their transaction. All right, Simon, we're going to have to leave you there. Thank you so much for talking to us today. We appreciate your time on the show with us today. Simon Teandere, chairman of Vista Group.
Theme: Vista Bank expands its global footprint by launching a subsidiary in France to enhance international trade and support African businesses
Vista Bank, a key player in the African banking sector, is gearing up to make a significant move by establishing its subsidiary in France in the second half of 2025. This strategic decision marks Vista Bank's first foray into the European market and its first greenfield bank since the acquisition of BNP Paribas and Societe Generale's subsidiaries across various African countries. Simon Tiemtore, Chairman of Vista Group Holding, highlighted that the establishment of Vista Bank in France is a pivotal milestone in the Group's global expansion strategy, with a strong emphasis on benefiting African businesses in the process. In an exclusive interview with CNBC Africa, Tiemtore shed light on the significance of this move and the broader implications for the banking landscape. Tiemtore explained that the choice of France as the primary location for this expansion was deliberate, given its standing as a prominent global financial hub. With operations already in several French-speaking countries, including those from recent acquisitions, such as BNP Paribas and Societe Generale, Vista Bank saw France as an ideal gateway to Europe and the wider world. He further elaborated that as part of their ambitious plan to establish a presence in 25 countries by 2026, France serves as a pivotal starting point for their global reach. Tiemtore outlined that Vista Bank's expansion into France aligns with their strategic goal to connect regional economies, support national development plans, and foster entrepreneurship and SME growth across the African continent. By offering diversified financial products and facilitating international trade services like dollar and euro clearing, Vista Bank aims to bolster intra-Africa trade and provide a vital link to global markets. The Chairman emphasized their commitment to enabling trade within Africa and beyond, leveraging partnerships with institutions like Afrexim Bank and initiatives such as the Payment African Platform (PAPS). With aspirations to extend beyond Western Africa, Vista Bank has its sights set on additional African regions, including Mozambique, Namibia, Uganda, Zambia, South Africa, and Eastern Africa. By harnessing their resources and strategic alliances, such as with Afrexim Bank, Vista Bank is paving the way for strengthened financial infrastructure across the continent. In response to a question about the differentiation of Vista Bank France from existing correspondent banks in Europe, Tiemtore underscored their agility, technological prowess, and unique offering through their affiliation with PAPS. By positioning themselves as a gateway to Africa and promoting intra-Africa trade, Vista Bank aims to streamline transactions, reduce costs, and drive economic growth for clients and governments. Tiemtore shared an optimistic outlook on the future of global trade, particularly for African businesses, citing Vista Bank's role in mitigating risk, facilitating trade finance, and enhancing market access. Through collaborations with industry partners like Afrexim Bank and the African Development Bank, Vista Bank endeavors to bolster Africa's share of global trade and promote economic prosperity. As businesses navigate challenges in the global trade environment, Tiemtore recommended leveraging platforms like the Africa Global Tradeway Platform and tools like MUNSA for enhanced visibility, risk mitigation, and access to financing. He emphasized the importance of education and connectivity in unlocking business opportunities and fostering a conducive trading environment. In conclusion, Vista Bank's expansion into France signals a significant leap towards its strategic objectives of establishing a robust financial network spanning multiple continents. With a steadfast commitment to driving economic growth and facilitating trade, Vista Bank is poised to play a key role in shaping the future of banking and commerce in Africa and beyond.
"Simon Tiemtore, Chairman of Vista Group Holding, emphasized that the establishment of Vista Bank in France is a pivotal milestone in the Group's global expansion strategy, with a strong emphasis on benefiting African businesses in the process."
['Vista Bank', 'France', 'African banking sector', 'global expansion', 'international trade', 'financial hub', 'partnerships', 'economic growth', 'businesses', 'trade finance']