UPDATE 1-Citi expects 10 pct per year Africa revenue growth
LAGOS Oct 4 (Reuters) - Citigroup expects revenues from Africa to grow by 10 percent a year for at least the next five years on the back of soaring prosperity on the continent, the head of its sub-Saharan Africa business told Reuters on Friday.
"Growth of 10 percent of revenue is the minimum that will come from Africa. From where we are today ... if you think about it the economy will grow between 6 and 7 percent ... (so) you want your financials to grow at 10 percent or higher," Ade Ayeyemi said. Current revenue growth rates were 5-6 percent, he said.
Speaking to Reuters on a visit to the commercial hub of Lagos, he said Citi had led 13 Eurobond mandates in the past three years on the continent and was bidding for more.
Emerging markets contributed more than two-thirds to Citi's global revenue growth in the past two years and now made up half of pre-tax earnings, he said.
Citigroup has operations in 12 sub-Saharan countries and has a history in Africa dating back to the 1950s. But it faces increasing competition on the continent from local lenders, pan-African banks and other international players targeting rising trade between African nations.
"We are seeing more cross-border transactions within clusters in east and west Africa. Inter-African trade is growing very well but ... from a low base," he said.
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