UBS intends to expand its wealth management operations in Africa to tap the continent’s rising economic potential, where growth rates of over 5 per cent are helping to forge a new, affluent middle class, according to Bloomberg.

The news service interviewed Sean Bennett, managing director of UBS in sub-Saharan Africa, who is based in Johannesburg.

“Wealth management is key to the Africa franchise, that’s what we lead with,” he was quoted as saying.

“We want to increase our physical presence before year-end and then do more in the next few years,” he said, but did not elaborate on specific locations.

Other international firms of note doing business in this space include the likes of Barclays and Standard Chartered, both of which have long-established roots in Africa. South Africa/UK-listed Investec, for example, is another bank with a private banking arm. Kleinwort Benson, the UK-headquartered private bank, recently appointed a head of private wealth management for South Africa. Last November, the private banking arm of Societe Generale made a number of hires to boost its ability to serve the Africa market, as reported by WealthBriefing.

The report said Zurich-listed UBS has 80 people in South Africa and offers investment banking, equities research, debt capital markets services and asset management across the continent. It is targeting African entrepreneurs and high net worth individuals who have at least $3 million to invest, Bennett said.

“When countries grow at 7 per cent, that’s a lot of people starting to make serious money,” Bennett said. UBS has “hardly touched the tip of the iceberg” when it comes to banking Africa’s wealthiest, he said.

UBS focuses on managing funds that have been transferred outside the continent, reducing competition with domestic lenders, he said.

 The industries contributing most to wealth creation in Africa include resources, retail and consumer products, and telecommunications, Bennett told the news service.