Shared Growth: Working to improve people’s lives and strengthen communities, while creating value for shareholders

Education & Skills10 The challenge of hope12 Learning to be the best14 ReadytoWork

Enterprise Development16 Creating their own opportunities18 Working to take on the world

Financial Inclusion20 Count us in22 A customer for life24 Rise of the FinTechs

Excellence28 The Citizenship Awards30 Caroline’s climb

The way forward 4

Our African opportunity 6

Work in progress 8

Our promise to you 26

How we do business 31

FOREWORD: WENDY LUCAS-BULLOVER THE LAST DECADE, THE TRIPLE bottom line principle – accounting for social, environmental and financial delivery – has evolved to become an integral part of board and management responsibility. At Barclays Africa Group we have thought carefully about how to live this responsibility, and we are delighted to share with you our Shared Growth strategy.

Doing our part to empower individuals, build communities, and grow wealth and economies is now central to how we do business. This is why we are committed to Shared Growth – uplifting society while creating value for our shareholders.

This can be seen in our annual integrated report (http://barclaysafrica2015ar.co.za), which sets out how we have responded to

INTRODUCTION 3

the needs of the communities in which we work, while delivering commercial returns to our shareholders.

Our shareholders and business may change over time, but our ambition to be Africa’s leading financial services group – and our determination to build Shared Growth – will remain unchanged. In the years ahead, we will continue working with governments, business partners and civil society in all the countries in which we operate to increase economic opportunities for individuals and businesses, and to build and share prosperity in our communities.

Wendy is Chairman of Barclays Africa

Respect: We respect and value those we work with and the contribution they make.Integrity: We act fairly, ethically and openly in all we do.

Service: We put our customers and clients at the centre of what we do.Excellence: We use our energy, skills and resources to deliver the best sustainable results.Stewardship: We are passionate about leaving things better than we found them.

OUR VALUES

THE WAY FORWARD: MARIA RAMOSWE ARE EXCITED BY THE OPPORTUNITIES the African continent presents to our business, and the long-term potential for growth for both ourselves and the communities we serve. We believe that the two are interdependent and this is reflected in our strategy, which has so far delivered great results for our shareholders and stakeholders.

Because we see our destiny as interwoven with that of the continent, we have given careful consideration to how our growth can prompt the development of the communities we serve. This speaks to our values as a business and in particular to our sense of stewardship – leaving things better than we found them.

Our job is not just to strengthen our business, but to help create wealth for our customers and shareholders, and make our continent a better place to live. This is what we call Shared Growth.

As a bank, we do this by empowering individuals to participate meaningfully in the economy. Whether we are helping large businesses find sources of capital, enabling families to buy their own home or simply extending access to financial services to more people, we are helping the communities on whose success we all depend to grow, creating business opportunities for Barclays Africa and others in the process.

The challenging economic conditions that we face this year are likely to continue into 2017. Yet, despite these short-term economic pressures, the case for Africa’s long-term

4 INTRODUCTION

growth remains strong. Achieving this growth will require careful nurturing and support. There is no silver bullet to overcome income and wealth inequalities across Africa. We recognise that no single set of institutions – government, the private sector or civil society – can fix these problems. It takes all of us working together, and we are determined to do our part.

So, where are we focusing our attention? Some of our Shared Growth initiatives are already in place. Others will be rolled out in the months and years ahead.

We are focused on: � Improving access to quality education� Helping small and medium-sized

businesses succeed and grow � Ensuring more people have access to

financial services.

These are areas of great need. They are also areas we know well, where even modest successes can empower people to improve their lives. This publication describes our approach so that we can be measured against our commitments, celebrate our achievements and share our experiences.

We will invest R1.4 billion in youth education programmes across Africa over the next three years. In 2015, we launched our flagship ReadytoWork programme, which delivers skills-building curricula online. ReadytoWork is running in eight countries and will be rolled out to others this year.

Last year, we provided business advice and support to 25 966 small and medium-sized enterprises. We are increasing this support in 2016. We also spent R14.6 billion with more than 5 000 suppliers, including 560 black-owned suppliers in South Africa.

Across the continent, unemployment – especially among youth – and a lack of access to quality, affordable education continue to trap many in poverty. By working to ensure that Africa’s people can share in its growing opportunities, we will improve living standards and prospects for economic development.

This will be our legacy.

Maria is Group Chief Executive of Barclays Africa

INTRODUCTION 5

EDUCATION AND SKILLS• Providing access to skills

development and training• Providing access to education through

affordable finance and funding

ENTERPRISE DEVELOPMENT• Providing financial and business support

to small and medium enterprises• Helping corporate clients link up with

small businesses

FINANCIAL SERVICES• Offering improved services to

those outside the banking system• Working to better understand the

needs of customers

ReadytoWorkOffers online skills training to improve prospects of employment or starting a business

Enterprise development centresSupports small and micro enterprises with mentorship, incubation and other services

AccessTechnology is being used to offer convenient, low-cost services to consumers

Scholarship and bursary fundOffers scholarship bursaries and mentoring support to young people

Supply chain developmentOffers entrepreneurs the opportunity, support and funding needed to become a supplier to Barclays Africa and its corporate and business bank clients

ProductsProducts and services are tailored to be affordable and meet the particular needs of low-income customers

Adopt a TVETOffers support and training to principals and administrative staff Creates workplace exposure opportunities for students

Inclusive procurementAssists existing Barclays Africa suppliers to create jobs and contribute to economic growth

Study loansInnovative products are being used to make education more affordable

University strategic supportSupports academic researchDirectly supports students in need of assistance

Consumer educationRaising awareness of the importance of insuranceFinancial literacy training on savings and debt management

SHARED GROWTHUsing our assets and expertise to develop commercial solutions to the challenges facing society

� Increasing access to employment opportunities and sustainable livelihoods� Supporting small and medium enterprises to help grow the economy � Providing greater access to appropriate financial services � Engaging our colleagues as we do business in a responsible manner

WHAT WE ARE DOING

OUR AFRICAN OPPORTUNITYAfrica will remain among the fastest

growing regions in the world between 2016 and 2020, says the International

Monetary Fund.

But 2016 will be a difficult year for the continent’s economies, and these conditions are likely to persist into the next year. Barclays Africa believes that despite the seriousness of the current economic environment, there are many reasons to be confident that over the long term the continent will continue to grow strongly.

6 AFRICA

Africa has a young population with a growing labour force – half of its 1.1 billion people are under the age of 25 and have increasing levels of education, a highly valuable asset in an ageing world. And the continent’s cities are still growing. Much of the economic benefit of this lies ahead, as urban expansion contributes to rapid growth in consumption by households and businesses, according to a report prepared for this year’s World Economic Forum on Africa.

To become the financial services group of choice on the continent, Barclays Africa is:� Investing in growth opportunities

and connecting Africa to international capital markets

��Making the lives of our customers easier and helping them prosper

��Simplifying our business and sustainably reducing costs to improve efficiency

��Empowering our workforce with technology, information and innovation.

“Shared Growth is a great vehicle to enhance prosperity and growth in the communities in which we operate. It visibly demonstrates that Barclays has heart and soul, especially when it comes to improving the lives of the Seychellois youth.”

Johan van SchalkwykManaging Director, Barclays Bank Seychelles

“As a bank, we recognise that in order to secure our own future, we have to invest in future generations. Our biggest goal right now is to become a relevant and relatable institution that helps them achieve their ambitions in the right way.”

Jeremy AworiManaging Director, Barclays Bank Kenya

“Shared Growth is a game changer in preparing our youth for life beyond the formal education sector. It opens a world of opportunities that are transformative and truly help society to prosper.”

Saviour ChibiyaManaging Director, Barclays Bank Zambia

“Our natural resources are our greatest assets. We have a collective responsibility to ensure that our products and services

are cognisant of this, and that we provide innovative solutions to sustain and conserve our natural resources for future generations.”

Reinette van der MerweManaging Director, Barclays Bank Botswana

“Our Shared Growth strategy allows us to be an organisation that makes a difference in the lives of people in our community. The real success of our citizenship initiatives lies in the engagement of our colleagues and the legacy that we leave for future generations.”

Ravin Dajee Managing Director, Barclays Bank Mauritius

“For me, it’s all about rapid and sustained poverty reduction through inclusive growth that allows people to contribute and benefit from economic development. We are providing an enabling platform for opportunity, development and success through literacy and entrepreneurship.” Edward MarksManaging Director, NBC Tanzania

“We strive to ensure that each small or medium enterprise that chooses to partner with us is equipped with the right tools to

accelerate their development, sustainability and financial independence.”

Abdi MohamedManaging Director, Barclays Bank Tanzania

“The success of our business is more than just the profits we make. It is the sum of the impact of our operations on society and how we are empowering businesses, communities and people to grow and prosper.”

Patience AkyianuManaging Director,Barclays Bank Ghana

“By investing in productivity and empowerment, Shared Growth is the ultimate approach to citizenship.”

Rui BarrosManaging Director, Barclays Bank Mozambique

“By supporting young people to build skills and providing them with guidance on the opportunities they need to make the transition into work or self-employment, we are contributing to meeting critical societal challenges, while creating win-win solutions for our consumers and business.”

Rakesh JhaManaging Director, Barclays Bank Uganda

This is what our leaders from across the continent have to say:

AFRICA 7

Barclays Africa has operations in ten countries and representative

offices in Namibia and Nigeria. They include:

12.3 million customers

1 251 branches10 378 ATMs

41 772 employees

“Shared Growth means taking advantage of our position as one of the leading African banks to make a real contribution to the success of our continent and its people.” Mizinga MeluRegional Management Chief Executive, Barclays Africa

WORK IN PROGRESSBarclays Africa Head of Citizenship, Sazini Mojapelo, talks about making a difference across the continent

Why should companies get involved in social issues?

Business and social progress depend on each other.

Companies need a stable society and a growing economy to succeed, and successful companies support and contribute to the prosperity of communities.

The social issues we face today – such as high unemployment, the quality of education and the lack of appropriate workplace skills – can only be tackled through public-private partnerships between government, private companies and civil society organisations.

Shared Growth enables companies to make a broad impact on society, which supports their commercial interests by creating a skilled workforce and developing new markets.

8 CITIZENSHIP

What distinguishes Shared Growth from traditional corporate social responsibility programmes?

The shift from traditional corporate social responsibility programmes is being driven by the realisation that, despite substantial investments, communities continue to be plagued by challenges that impede inclusive growth.

Shared Growth is not corporate social responsibility or philanthropy – it focuses on making profits in a way that benefits the business and society.

Why prioritise access to financial services, education and enterprise development when poverty relief and food security, for example, are also pressing needs?

Africa has largely failed to translate its economic growth into opportunities for its young workforce to earn decent livelihoods. This means that much of the continent’s growth potential is wasted, which feeds the risk of social unrest and crime. Our aim is to make a difference in society while generating a commercial return. We want to apply our substantial resources to address socioeconomic challenges through innovative services, products and partnerships.

We aim to build on our existing activities across the continent, with a focus on areas where we can make best use of our core competencies, assets and skills.

Who are our partners across Africa?

Shared Growth requires collaboration and strong partnerships between companies,

CITIZENSHIP 9

government and civil society organisations. Achieving Shared Growth is a national challenge that needs real leadership and sustained commitment.

We have started engaging and partnering with business, government and the non-profit sector to leverage our expertise in delivering Shared Growth.

What is the rollout plan for Shared Growth?

Shared Growth is at the core of what we do as a business. While we focus on broadening access to financial services, enterprise development and education, we are also working to embed the ethos of Shared Growth in all our activities.

This year, we will train 250 000 young people through skills development programmes like ReadytoWork. This will be supported by several other initiatives that enable access to quality education for young people across Africa.

We aim to raise more than R1.3 billion to finance and support small and medium enterprises. We will also offer business development support to 30 000 businesses. Our procurement portal connects corporate and government buyers to small businesses to help them find markets and business opportunities.

Our retail and business banking units aim to have more than 500 000 customers using new digital platforms designed for those who have not had access to formal financial services.

PROFESSOR ADAM HABIB:THE CHALLENGE OF GIVING PURPOSE AND HOPE FOR THE FUTURE

students get the funding they need.

The missing middleThen there are those known as the “missing middle”. It is these students who have been at the forefront of the #FeesMustFall movement. They are too wealthy to qualify for financial aid funding, but too poor to pay their own way.

Potential solutionsThe Scandinavian and Western European models present the easiest solutions – tax the rich to subsidise the underprivileged. However, this system is unlikely to work in South Africa given the lack of political will, the declining economy, the deterrent of further taxes for potential investors, and many South Africans’ lack of trust in how the state spends their money.

There are about 4 million young South Africans who have not completed secondary school or who have

matriculated without the appropriate skills to enter universities. They find it difficult to find jobs, and those who do join the labour market struggle to progress in their occupation given their lack of skills. These young individuals need purpose and hope for the future.

One of the ways in which this challenge can be tackled is by expanding and upgrading technical vocational education and training (TVET) colleges. This is already a national priority, but the quality of education currently on offer at these colleges is lacking. As long as this is the case, these colleges will not attract enough students, nor develop the skills needed to boost the economy. The country needs a quality-driven TVET sector that speaks to our society’s immediate needs.

University entrantsAbout 200 000 students enter universities every year. Many of these students cannot afford to fund their studies. Although the National Students’ Financial Aid Scheme’s funds have quadrupled in recent years, it is still not sufficient to cater for the vast number of students who need financial support. We need to find ways to ensure that poor, talented

10 EDUCATION & SKILLS

“The labour market prospects [of South African youth] differ markedly.” – SOUTH AFRICAN

STATISTICIAN-GENERAL, PALI LEHOHLA

EDUCATION IN AFRICASub-Saharan African countries increased their real expenditure on education by 6% each year between 2000 and 2010. Despite gaps in quality, this commitment has improved education levels. Based on current trends, by 2030, 59% of Africans between the ages of 20 and 24 will have at least a secondary school education, up from 46% today.

Despite this progress, nearly half of all youth on the continent (aged 15–24) are unemployed and not in education or training programmes.

And if they cannot improve their livelihoods, then they may get caught in a vicious cycle of social unrest, political instability and crime.

But, if adequately equipped, Africa’s young and growing workforce can lead the continent’s social and economic development.

ADVOCATE PUSCH COMMEY:

INVESTING IN INNOVATIONIn the digital age where facts are at our fingertips, finding

the right knowledge and applying it to a problem is key to the development of communities. To address its

developmental challenges, Africa needs to invest in creativity and innovation through the immense power of technology.

The continent has a young population who are already natives of the digital world, yet centuries-old systems are being used to educate and train them.

Education in Africa is still organised around classrooms, teachers and textbooks, when global educational initiatives are moving towards quality online education. Course material can be delivered instantly, video lectures can be downloaded, exams can be written online and chats can be held electronically. Massive open learning courses (MOOCs) offer free education to anyone willing to learn, while top universities offer online versions of their degrees at a fraction of the cost.

Some of the billions in African education budgets should be invested in scattered technological hubs where learners can access education. These resources should also be used to empower learners with devices and broadband access. Governments can also partner with entrepreneurs running local internet cafes to help deliver course content and boost local economies.

Technology is making financial services more easily available in Africa. Banks should partner with governments and communities to help do the same for education.

Ghanaian-born Pusch Commey is an associate editor of the New African Magazine, an author and an advocate of the High Court of South Africa

Universities, the banking and financial services sector and the National Students’ Financial Aid Scheme are making significant progress towards developing a cooperative model based on low-interest loans. The downside of this model is that students will accumulate and graduate with debt. Essentially, it is a toss-up between having students who cannot graduate or students who graduate with debt. This proposal may enhance inequality, but there is no other immediate solution. In the drawn-out struggle for social justice, trade-offs will be required and hard choices will have to be made.

Investing in higher educationAll South Africans should help safeguard the future of the higher education system. Urgent intervention is required before unthoughtful activism destroys our universities, which produce the capacity for innovation, knowledge creation and the skills needed to strengthen our economy and our country.

Professor Habib is Vice-Chancellor and Principal of the University of the Witwatersrand, South Africa

EDUCATION & SKILLS 11

12 EDUCATION & SKILLS

LEARNING TO BE THE BESTAcross the continent, the challenge for all is to strengthen the public education system, so countries can produce the qualifications and skills needed to be globally competitive

Education and training is a critical investment for a bank. The expected returns include greater social stability and more commercial

opportunities in key markets, and building a relationship with potential customers and future colleagues. Barclays Africa has put aside R1.4 billion for education and skills training across the continent over the next three years.

The announcement of the investment, to facilitate skills development and access to quality education, was made on 1 March 2016 at the presentation of the group’s annual results.

Africa has the youngest people in the world with an estimated 50% of its population aged between 15 and 24. But nearly half of all youth on the continent are not in education, employment or training. And limited budgets have seriously constrained the ability of governments to provide adequate and stable funding to their education and training institutions.

Left in poverty and without hope for the future, frustrated young Africans could become a danger to the social and political stability on

which all countries depend for their economic development. But given the right education, training and opportunities, they could become a financially secure generation with jobs and entrepreneurial flair. As stronger participants in

the economy, not only can they become valued customers and clients of Barclays Africa, they could provide the skills and talent the Group will need as it achieves its ambitions across the continent.

But first, young people have to be given the opportunity to get the education and skills that companies need – or that they can use to start their own business. Over the next three years, the Barclays Africa investment will be used for:

� ReadytoWork: which will offer skills training to 250 000 young people in 2016

� Scholarships: which will support an estimated 250 disadvantaged students in 2016

� TVET colleges: to support their administration and offer students workplace exposure

� University support: for academic research and innovation

� Consumer education: to increase financial literacy and awareness about the need for insurance.

In South Africa, the challenge is to build excellence in the public education system, so that the country can produce people with the qualifications and skills it needs to be internationally competitive, says the Chief Executive of the National Education Collaboration Trust, Godwin Khosa. The state cannot do this on its own, and the growth of

private schools for the lower income bracket is an indication of increasing dissatisfaction of parents and learners with public schools. But any thought of private schools significantly meeting the demand for public education is short-sighted.

Rather, new ways are needed to help schools make more effective use of their human and material resources. The trust is working to improve coordination among private organisations that fund innovations in education.

HELPING HEADSThe Shared Growth Advisory Council will assist with the rollout of our R1.4 billion education investment over the next three years.

The Advisory Council will be made up of experts and thought leaders who share our commitment to sustainability in Africa. It is an independent body that will provide insights and guidance to the Group on our efforts to build sustainability.The council will also evaluate the effectiveness of our efforts to bolster access to quality education and help us to deal with stakeholder concerns.

The council will be drawn from civil society, academia, business, government and environmental non-governmental organisations, among others, but its members will not necessarily represent particular organisations.

EDUCATION & SKILLS 13

Young people have to be given the opportunity to get the education and skills that companies need – or

that they can use to start their own business.

READY TO WORK

It provides free education and skills training – with accredited institutions, online as well as through workshops

– to young people to help improve their chances of securing work or becoming self-employed.

Barclays Africa launched ReadytoWork, its flagship education and skills training programme, last year and it is now running in eight countries.

For those who want to find a job, the programme seeks to ensure they have the skills for which employers are looking.

For those who want to be entrepreneurs, ReadytoWork offers training that will help them succeed in starting a business.

Once young people have completed the curriculum, they receive a certificate of participation. In the months to come, they will also be able to apply for workplace exposure at Barclays Africa or one of our partners. Aspiring entrepreneurs can also be put in touch with one of our enterprise development centres.

The curriculum is aimed at young people in high school, college and university. It is also relevant for those who are already in the workplace, so they can sharpen their skills and advance their careers. By June 2016, around 16 000 young people had registered for the curriculum online, with numbers increasing daily.

To reach the greatest number of people on the continent through the ReadytoWork initiative, Barclays Africa works with a range of organisations across academia, government, civil society and the private sector.

ReadytoWork teams, armed with tablets, have also been visiting schools, technical colleges, universities and community forums to register young people on the site. Their feedback is used to constantly improve the programme to make sure it meets their needs.

For more information, go to: (South Africa) www.absa.co.za/readytowork (Rest of Africa)www.readytowork.barclays

14 EDUCATION & SKILLS

ReadytoWork helps prepare young people for the world of work, giving them better prospects of finding a job or starting a business

THE SCHOLARSHIP PROGRAMME

The cost of an average degree is increasingly becoming unaffordable for most South Africans, especially those in

low-income households.

A recent survey by Statistics South Africa found that “rising costs present a barrier to those seeking an education”, with 33% of individuals up to the age of 24 citing a lack of funds as the reason they were not attending an educational institution.

Barclays Africa has established the Scholarship Programme to provide financial and non-financial support to talented young people in need.

In 2016, the scholarship will be available to young people who wish to study for a three-year undergraduate degree at an accredited South African university, and who demonstrate academic commitment, leadership potential, community engagement and a passion for the country. Degrees in the humanities, commerce, science, technology and engineering will be considered.

The scholarship will fund education expenses, including full tuition, accommodation at a university residence and prescribed textbooks. It also offers a programme to help support and encourage the young person during their studies.

The scholarship has been launched in South Africa and there are plans to implement it in other countries.

EDUCATION & SKILLS 15

“School leavers are emerging from school never having double-clicked a mouse, typed a CV or conversed in English with a tertiary education admissions officer, or filled in an

online application form. ReadytoWork delivers comprehensible soft skills in one online and

engaging programme.”– RYAN ADAMS, GOOD WORK FOUNDATION MANAGING DIRECTOR

The foundation runs digital learning campuses in rural African communities.

MORE THAN 1 900 BARCLAYS AFRICA EMPLOYEES HAVE SIGNED UP AS READYTOWORK VOLUNTEERS. THEY TAKE COURSE MATERIAL DIRECTLY TO COMMUNITIES THROUGH FACE-TO-FACE LEARNING SESSIONS, MENTOR STUDENTS OR PROVIDE JOB-SHADOWING OPPORTUNITIES.

CREATING THEIR OWN

OPPORTUNITIESAcross the continent, young people are finding it

tough to get a meaningful job and hold onto it. And this will only get harder. Small businesses

can help Africa to deal with the challenge of youth unemployment

16 ENTERPRISE DEVELOPMENT

Barclays Africa Wealth, Insurance, Management and Investment (WIMI) is using its share of the insurance market to create business opportunities for small and medium enterprises.

WIMI is providing small companies with opportunities to work on Absa clients’ insurance claims. These claims include replacing geysers and repairing water-damaged roofs.

This initiative will give small business access to R75 million worth of claims work in 2016, providing a regular source of contracts. Small and medium businesses that are interested in being part of this enterprise development initiative can register at procurement.aic@absa.co.za.

In May this year, the eighth centre was opened in Port Elizabeth and, in time, they will be rolled out to the rest of the continent. For now, in many markets outside South Africa, local Barclays Business Clubs provide an opportunity for business owners to learn and network.

With education must come opportunity.Barclays Africa Head of Enterprise and Supplier Development, KeaObaka Mahuma, says: “Many large businesses are looking to support local businesses, but corporate buyers face the challenge of finding suitable, smaller suppliers. Our procurement portal – a virtual marketplace – looks to address this by linking buyers and suppliers.” To date there are 42 000 small and medium enterprises and almost 6 000 corporate buyers registered on the portal, with some R2 billion worth of tenders advertised monthly.

He continues: “In 2016, Barclays Africa aims to unlock R1.25 billion in finance for small and medium businesses in partnership with its corporate clients, as part of its Enterprise Supplier Development Programme. We seek to provide finance and business support to enterprises that supply, or partner with, us and our corporate clients. The purpose is to increase the number and stability of small and medium suppliers, while deepening the relationship with our corporate clients and building a pipeline of customers for business banking.”

In South Africa, Barclays Africa has committed R250 million a year to fund small, medium and micro enterprises that typically would not meet the normal lending criteria required by banks.

Last year around R5.1 billion was lent to small and medium enterprises.

Eleven million young people are expected to enter the African labour market every year for the next decade, according to

the MasterCard Foundation. Vibrant small businesses can create meaningful work opportunities for these young people who will need to secure a livelihood.

Almost half the labour force in Africa is employed by small businesses. They are especially important in low-income communities, where they provide informal work to those who do not have the qualifications or experience to secure formal employment in larger companies.

Besides creating jobs, small businesses can help increase a country’s resilience by diversifying the local economy and boosting productivity through innovation and by increasing competition.

But these businesses often fail. Unnecessary red-tape, as well as a lack of access to markets, networking opportunities, business development skills and appropriate financial services and products, can hinder the most determined entrepreneur.

Barclays Africa is offering them help. Craig Bond, Chief Executive for Retail and Business Banking, explains: “Our pan-African enterprise development programmes provide aspirant entrepreneurs with training and a safe environment to develop the knowledge, skills and insight they require to make entrepreneurship a viable career option.”

In South Africa, Barclays Africa’s enterprise development centres provide entrepreneurs and early stage businesses with advisory services and space to work. They are open to all entrepreneurs, not only Barclays Africa clients.

ENTERPRISE DEVELOPMENT 17

CLAIMING A SHARE

WORKING TO TAKE ON THE WORLDBy supporting local companies with advice and financing, Barclays Africa is getting them ready to take on their international competition

18 ENTERPRISE DEVELOPMENT

More than two-thirds of Africa’s unemployed youth live in rural areas, where there are

opportunities for small businesses in agriculture and mining, says Sagay Moodliar, the TechnoServe Country Director in South Africa.

TechnoServe is a non-profit company that has partnered with Barclay’s Africa to create opportunities in agricultural industries. One of its projects, the African Youth Agripreneurship Programme (AYAP), is working with Anyako Farms Limited, in Ghana, to help it take advantage of high demand for its products.

� Anyako produces corn, rice and livestock in the Volta region of Ghana. It is one of the leading commercial farms in the region and is attracting investors because of the strong market for rice and maize.

Alongside this farm, Anyako runs a poultry operation, where it is planning to boost production to meet the high demand for chicken in the country. Anyako plans to use corn and rice from its own farm as raw materials for the feed for the poultry.

AYAP is assisting Anyako Farms to meet global standards in cereal and livestock production and is providing them with the technical and business advisory services they need to stay competitive in the market.

Anyako Farms currently employs 19 full-time staff and over 100 casual labourers from the local community, as well as supporting five farm-based organisations, with 315 farmers. AYAP and TechnoServe are also supporting young farmers in Kenya, Mozambique and South Africa by giving them access to business and technology services.

Big companies can often create valuable opportunities for small businesses. Bolton, a footwear manufacturer, approached Absa Corporate and Investment Banking to help them partner with other businesses that had similar goals, says Alan Fleetwood, Bolton’s Managing Director.

� Bolton and its partners have fostered partnerships with 17 local small businesses, creating jobs for more than 2 600 people. “Our business enables them to operate in their communities while we receive their components through a

supply pipeline that beats alternative off-shore sources,” says Fleetwood.

“When I started working with Bolton, the company only had a few factories. We created a bespoke solution for the company, customised completely for their circumstances and goals,” says Brian Zwiegelaar of Absa Corporate and Investment Banking. Bolton is now the largest footwear manufacturer in South Africa.

� But determined entrepreneurs often need more than just financial advice. Growing up in one of the country’s most poverty-stricken communities, Orange Farm, Vonani Mathebula (24) was surrounded by unemployment, poverty, teenage pregnancies and many of the other ills that plague young people. Refusing to be a statistic, Vonani occupied her mind and time with development initiatives in her community, including a stint as a presenter at the local radio station.

In 2012, she started Successful Women Magazine to empower women by providing them with articles on entrepreneurship and other useful skills. Vonani participated in a mentorship programme at the Absa Enterprise Development Centre in Johannesburg in 2014. She received advisory services and training that helped her grow her business.

Today her company, Brains Empowerment Media and Communications, continues to enjoy business development services and market access opportunities through the centres. Last year, she introduced ‘Visionary Youth’, a newspaper for young small and medium enterprises. Brains Empowerment now has four full-time and 1 500 part-time workers.

ENTERPRISE DEVELOPMENT 19

“Micro, small and medium enterprises have an intimate knowledge of their community and a deep relationship with their clients. This allows them to provide business intelligence to larger companies and expand the reach

of goods and services.” – MEREDITH LEE, MASTERCARD FOUNDATION

COUNT US IN

Promoting financial inclusion is vital for our continent’s economic future. A growing number of governments recognise that

financial inclusion lies at the heart of inclusive, sustainable economic growth.

According to the African Development Bank, financial inclusion refers to all initiatives that make formal financial services available, accessible and affordable for all. It focuses on those who have been excluded because of low or unstable income, gender, where they live or their level of financial literacy.

An inclusive financial sector has the catalytic effect of helping a nation diversify its economy and boost other sectors like agriculture, tourism and manufacturing. Access to finance allows individuals and small businesses to manage their money more effectively and grow their enterprises.

Leading multinational banks are already playing a role in promoting financial inclusion and are able to share lessons and best practices across borders. Technology plays an important part in expanding access and reducing reliance on brick-and-mortar branches. This goes hand in hand with consumer education. Previously unbanked households need to be encouraged to put their savings in a formal bank account, rather

than “under the mattress”, so that they can manage their money and finances efficiently.

Zambia is one of several countries in the region working to improve access and inclusion. Its work highlights successes and challenges experienced over a relatively short period of time. The country’s Financial Sector Development Plan, which has just come to an end, encouraged the creation of innovative products and services, such as mobile and agency banking, and developed a national financial education strategy aimed at those running small and micro enterprises, and schoolchildren, among others.

But broad access to financial services remains a challenge in Zambia, despite the country’s steady economic growth, which averaged above 5% per year in the last decade. Financial inclusion has increased significantly, from 37.3% in 2009 to 59.3% in 2015. To date, increased access has largely been driven by mobile money services. The government plans to increase formal financial inclusion in rural and other unbanked areas.

Phiri is an expert in financial inclusion. This is an edited version of an article for Barclays Africa. He writes in his personal capacity.

20 FINANCIAL INCLUSION

Unbanked households need to be encouraged to take their savings out ‘from under the mattress’ and into a formal accountMusapenda Phiri

Nonso Obikili

Sub-Saharan Africa has more unbanked people than anywhere else in the world. According to the global financial inclusion database:

� Only 34% of people older than 15 years in sub-Saharan Africa have a bank account. The global average in 2014 was 60%.

� Only about 20% of businesses have credit with a bank, compared to the global average of about 45% in 2009.

But technology is changing this. Mobile phone ownership in Africa has grown exponentially since the turn of the century. For example, according to the Pew Research Center, 73% of adults in Tanzania owned a mobile phone in 2014.

In Kenya, M-Pesa, a money transfer and microfinancing service that uses mobile phones, grew rapidly to about 8.5 million users in 2009, with transfers worth about $3.7 billion – the equivalent to almost 10% of Kenya’s gross domestic product at the time. Financial products have to evolve to take advantage of new technologies. And financial groups need to be open to innovation and learning, to adopting new technologies, and to investing in start-ups. The best ideas often come from the most unlikely places.

Dr Nonso Obikili is an economist at Economic Research Southern Africa. This is an edited version of an article for Barclays Africa.

FINDING THE NEXT BIG THING

FINANCIAL INCLUSION 21

22 FINANCIAL INCLUSION

A CUSTOMER FOR LIFE

FINANCIAL INCLUSION 23

In many ways, affordable financial products demonstrate how business expertise and commercial interests can provide the services necessary to boost social and economic development

According to the World Bank, only one in four adults in Africa has access to a formal bank account, despite 15 years of

sustained economic growth. The rest either do not have accounts, do not have access to all the financial services they need, or are engaged in informal banking. This is a serious hindrance to economic development on the continent.

Shared Growth aims to create appropriate products and services that meet the needs of this market. This will increase our pool of customers, but bringing more people into formal financial services will also support the efforts of government and civil society to bolster economic development.

Consumer education, especially about saving, debt management, and financial services and products, is an important part of building the market for financial services. And, by starting these financial literacy programmes in primary schools, we are able to help establish the habits necessary for a lifetime of good financial management.

The Group is using digital platforms to provide affordable, cost-effective financial services to the unbanked on a large scale:

� Our Wealth, Investment Management and Insurance unit is working with partners to educate consumers on the importance of insurance and investment products.

WIMI is also assessing the feasibility of micro-insurance products that can be bought using mobile phone technology, making it easy for customers to access these products.

� The Group Save Account offers customers

the chance to earn a higher interest rate by putting their savings together – the more people who contribute, the higher the rate. And, unlike informal savings groups, like stokvels in South Africa or motshelos in Botswana, each member of the group can put away as much as they like and make withdrawals as often as they need.

� MegaU is an account that aims to increase young people’s financial independence and savvy. It is being promoted through youth empowerment initiatives with schools and other partners. The account doesn’t have bank charges and offers benefits like movie tickets and data bundles. “The youth are our customers of tomorrow. So we need to make every effort to attract them and become involved in the realisation of their financial goals when they are young,” says Pierre Loubser, Barclays Africa Head of Personal Banking Customer Segments.

Women, despite their contribution to the economy in Africa, are more likely to be excluded from financial services than men. In Uganda and Kenya, women own about half of all small businesses, yet they struggle to access finance. This financing gap is estimated at $20 billion.

Formal savings among youth in sub-Saharan Africa sits at a dismal 9%. And many of the young people who are saving are not using the formal sector. A MasterCard Foundation study found that youth between the ages of 12 and 19 in sub-Saharan Africa hold up to $2.2 billion in savings outside of formal banks.

THE MARKET

RISE OF THE FINTECHSTen financial technology start-ups have an opportunity to change their fortunes – and the future of banking – when they finish their stint in the Barclays Accelerator Programme at Rise in Cape Town

“The Accelerator gives us the ability to supercharge our business by fast-tracking our ability to work with the Barclays Africa and the TechStars network. By the end of the programme we are looking to

close several major deals with global financial institutions and position Beyonic for rapid growth in multiple markets.” – BEYONIC CEO, LUKE KYOHERE

Selected from 450 start-ups from 45 countries, the 10 ventures are based at the Rise innovation hub

in Cape Town, where they are receiving a wealth of knowledge and experience from industry experts and Barclays’ executives.

The Barclays Accelerator is an intensive three-month programme that will culminate in a “demo day” where the start-ups will pitch their businesses to prospective investors.

The programme is a partnership between the Barclays Accelerator Programme and Techstars, which helps entrepreneurs bring technology to market. This is Techstars’ first foray into Africa.

Small and medium business can be a great source of innovation. Barclays Africa Head of Open Innovation, Paul Nel, explains: “Actively supporting those businesses that offer some potentially disruptive innovation or technology can enhance our core business and help it retain a competitive advantage in financial services.

“Our Seeker Fund enables us to invest in these businesses, from across Africa, and build a portfolio of digital companies with global potential. We work with entrepreneurs and innovators that are challenging traditional technology and ways of doing things.”

For more information about Rise in Africa, please visit http://thinkrise.com.

24 FINANCIAL INCLUSION

In May 2016, developers, designers, players in the financial services industry, technology entrepreneurs and social innovators came together to tackle the challenge of financial exclusion.

The Rise innovation hub hosted this problem-solving hackathon, which focused on developing innovative and affordable saving, micro-credit and micro-insurance solutions for low-income communities.

The teams got to grips with what it means to be financially excluded, before brainstorming and testing ideas through rapid prototyping. These ideas were then presented to stakeholders.

Governments, donors, and international financial institutions are increasingly recognising that technology is key to providing access to the financial services that play a pivotal role in alleviating poverty and developing businesses.

The hackathon was held at Rise in Cape Town in partnership with the Bertha Centre for Social Innovation, IBM, Cenfri and Thomson Reuters.

HACKING FOR FINANCIAL SERVICES

Starting-up� iNuka Pap, Kenya: Partners with credit

cooperatives to allow their members to access instant micro-loans and other services.

� BenBen, Ghana: A way for governments to convert physical land titles to digital copies on a secure platform.

� Beyonic, US, Uganda, Rwanda and Tanzania: Enables businesses to quickly deploy two-way mobile money payments, eliminating the need to use cash.

� SimbaPay, UK, Kenya: Allows you to send money to family and friends’ accounts or mobile wallets – or pay merchants – from abroad.

� Asoriba, Ghana: Simplifies church administration and improves engagement with members using mobile apps.

� Social Lender, Nigeria: A lending

platform that determines credit worthiness based on your reputation on social media platforms. The platform is licensed to financial institutions.

� WizzPas, South Africa: A parking solutions app that facilitates entering and exiting shopping malls, office parks and gated communities using smartphones.

� Tech4Farmers, Uganda: Provides farmers with real-time access to market information through an electronic commodity exchange and warehouse receipt system.

� Re-Able, Lebanon: Provides tools and apps that promote financial literacy and inclusion of people with special needs.

� BimaAFYA, Tanzania: Micro-health insurance using mobile phones.

“The Accelerator has transformed me into a more confident entrepreneur. It has [helped me] understand my work and the worth of my business. I hope to have attracted enough investors to expand my business in Tanzania, and later grow in Kenya, Uganda, Rwanda,

Ghana and South Africa.” – JAMII CEO, LILIAN CHARLES MAKOI

FINANCIAL INCLUSION 25

Share. Grow. Prosper.

Sharing. It’s the most powerfulform of humanity. It is somethingwe are taught before we can even walk. Because in sharing lies positive growth for all. The chanceto prosper. To give and receive. It holds the promise of a strengthened society. It connects us and evolvesus. From learning to getting people ready to work. From dreaming of careers to studying for them. From having fun to meetingresponsibilities. From being bornfree to living free. It stimulatesthe innovators and inspires future leaders. Sharing is something we practice every day. We listen, we care, we design, we add value, to your life and that of others. We empower small businessesto think big and big businesses toremember the small. There is a beginning to Shared Growth. But there is no end. And eachtime we share we know that someday, in some way, it will be shared again. When we share, we grow.When we grow, we all prosper.

26 MANIFESTO

This device represents our philosophy of Shared Growth. The one block represents people and community needs. The other represents the bank’s product and service offering. Where these two meet, there is Shared Growth.Shared Growth is about making a difference. It is about creating value for Barclays Africa Group in a way that also creates value for its customers and communities. When we share, we grow, and when we grow, we all Prosper.

Shared Growth. When two worlds come together to create value.

MANIFESTO 27

THE CITIZENSHIP AWARDS

28 EXCELLENCE

Doing business the right way and sharing the benefits of our success cannot be done from behind a desk. Across the continent, teams from Barclays Africa have gone into their communities to show that we put our values into action

more than 1 800 hours at the care home. This has helped the organisation secure a new centre for their operations, which also provides accommodation for the children in their care.

The Wote Branch in Kenya raised funds to buy and install two tanks to collect rain water at Ngugi Primary School. The nearest seasonal river is 20 km away from the school.

The local community has also benefited – they can now buy affordable water from the school. The money raised is being used to further develop the school. Thanks to the team’s efforts, 15 teachers and several community members have opened accounts with Barclays.

Muhammad Bera, in South Africa, founded a further education college, which offers skills training in diamond polishing to deaf and disabled students between the ages of 17 and 25.

The Bera Diamond Academy has a fully equipped diamond polishing workshop. In 2015, 35 students completed the course and became qualified junior diamond polishers. A partnership has also been created with the Julius Klein Diamond Group to offer apprenticeships to the academy’s top students.

Team Lafleur realised that over half the potential clients referred to large corporate relationship managers were being rejected because the small businesses lacked the expertise needed to correctly prepare their financial reports.In response, the team, from Mauritius,

proposed the establishment of a Micro Support Unit to help these businesses prepare the statements needed to successfully apply for loans. This will allow Barclays Africa to access an untapped market, build strong relationships with new clients and increase access to funding for these businesses.

The Rhino Debit Card helps protect rhinos in Botswana by raising awareness and providing sustainable financial support to young people who aspire to run their own conservation-related businesses.

The project has seen more than 900 young people attend financial literacy and conservation sessions. Twenty young people have completed a professional course in conservation and been placed at game parks. Barclays has agreed to pay 0.2% of its income from the card into a rhino conservation fund. To date, 6 000 Rhino Debit Cards have been distributed to customers.

The Indian Ocean Legal Team, based in Mauritius, successfully partnered with several organisations to train 50 women entrepreneurs in practical business skills and 500 legal students in technical skills. The team has also provided free legal and governance advice to non-governmental organisations that provide social services.

The Diepsloot Mountain Bike Academy runs a sports development programme for young people in the township in South Africa, where 60% of the youth are unemployed.

The Barclays Bank of Kenya Human Resources Team organised a book drive for Glory Secondary School, located in

one of the largest slums in East Africa.

While mentoring at the school, the team noticed that there was only one textbook for each classroom. In response, they launched a book drive and fundraising campaign for the school’s 200 students. Now, there is a book for every three students and teachers are noticing an improvement in their studies.

The Proud to be Barclays Committee, in Uganda, supports the Bless a Child Foundation, a non-governmental organisation that provides care and support services to children suffering from cancer. The team has campaigned to increase awareness about the foundation’s work, helped raise funds and volunteered

EXCELLENCE 29

The academy’s beneficiaries have received life coaching, skills training and educational support for mathematics and English. To date, the academy has helped more than 240 young people.

The Corporate Affairs team partnered with Zimbabwe Farmers Union to help address the high unemployment rate among young people in the country. Through their efforts, 17 000 school drop-outs across the country were trained in numeracy, farming and financial management skills. Nearly 200 Young Farmers Clubs were started throughout Zimbabwe, creating job opportunities for more than 2 000 young people who now grow produce for sale and earn an income to support their families.

The Citizenship Awards celebrate those in Barclays Africa who have made an exceptional contribution to the community in which they live and work, and who are outstanding ambassadors for the Group and its values.The individuals and projects considered are those that most clearly demonstrate our Shared Growth approach to business:

� Business value: Does the initiative lead to tangible business value – new products, greater efficiency, and a better reputation, among other considerations – for Barclays Africa?

� Value to society: Does the initiative address a social, environmental or economic need in a community?

� Competitive differentiation: Does the initiative demonstrate innovation in using our core assets and expertise?

The efforts of these nominees will be recognised at the 2016 Barclays Africa Citizenship Awards.

CAROLINE’S CLIMB

30 EXCELLENCE

Caroline Ndung’u, the Director of Marketing and Corporate Relations at

Barclays Bank of Kenya, teamed up with friends to climb Mount Kenya, the country’s highest peak, to raise school fees for underprivileged children.

“Climb High, Educate a Child” is an initiative of the Social Justice department in Caroline’s church, Nairobi Chapel. The team sought to raise 15 million Kenyan shillings to sponsor the education of 208 students in September 2015.

Caroline has been active since first hitting the gym after the birth of her first-born daughter almost 22 years ago. Since then, her love for physically challenging activities, such as hiking and running, has continued to grow.

“Climbing Mount Kenya is one of the things I have always wanted to do. I decided to do it with a purpose. There was no better way of doing it than with an initiative that would give underprivileged children access to education,” Caroline says.

The Climb High team members were required to raise at least 100 000 Kenyan shillings to participate in the climb. Caroline managed to raise 605 000 Kenyan shillings.

For Caroline, the greatest lesson from the climb is that we can always do more if we push ourselves. “I cannot describe how tough it was. The distances you have to cover, the low levels of oxygen, the cold, sleepless nights and altitude sickness make it a big struggle, but with the right spirit, resolve and determination, you will get to the top,” she says.

Barclays Africa has a tradition of supporting the communities in which we live and work. Our employee community programmes – matched funding, volunteering and giving – help our colleagues support the causes about which they are passionate

HOW WE DO BUSINESS:

STEPHEN VAN COLLER

THE LAST WORD 31

Being this disciplined about how we do business helps us stand out as a responsible corporate citizen and ensures the success of our commercial strategy. Our strong governance structures ensure that we remain a responsible investor that helps to build, not exploit, and works to protect the environment.

But we are more than just a bank. We at Barclays Africa are involved in community projects and support local businesses across the continent. We now have the technology to work with others to share knowledge and provide services at an ever-increasing scale and speed. Technological innovation in the service of our communities will define our future.

WITH 41 772 EMPLOYEES IN 12 COUNTRIES across the continent and a balance sheet of more than R1 trillion, Barclays Africa can do a tremendous amount of good if we carefully consider each action that we take.

In practice, our commitment to Shared Growth means that every business decision not only contributes to the bottom line, but also improves the lives of the communities in which we work.

To help us do this, there are five simple questions we ask about all our decisions and actions. The answers tell us if we are doing the right thing – if we are putting our values into practice, or simply talking about them.

Our checklist:Are we being transparent and clear in our communications and dealings with customers, clients and stakeholders?

How are we creating long-term value?

How are we making a profit (directly or indirectly)?

How are we creating shared value that benefits Barclays, our customers and clients, and wider society?

Is this the right thing to do?

Every day we hold ourselves accountable to best practice. The success of our business strategy depends on us being an outstanding corporate citizen.

Stephen is Chief Executive: Corporate and Investment Bank and Chairman of Barclays Africa Citizenship Leadership Committee

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