Africa would likely see an increase in the need for banking services, as it continues to expand, Mauritius-registered AfrAsia Bank CEO James Benoit said on Thursday.

The bank, which offers corporate, investment and private banking services, on Thursday opened a representative office in Johannesburg, while another office in Cape Town had already opened its doors.

Benoit said that as commodity exports continue to boost local industries in Africa, this would lead to the need for more infrastructure and, subsequently, banks to finance these projects.

He added that aid flows in Africa were being replaced with trade growth, with a lot of this lead by India and China.

Trade between Africa and China would likely reach $100-billion this year, while Africa’s exports to India and China represented about half of its growth in exports.

Trade flows between Africa and these Asian markets were increasingly moving through Mauritius, while 40% of investments to India were also flowing through Mauritius.

The country had a strong and transparent international financial services centre and was considered a low tax jurisdiction, noted Benoit.

As Mauritius was an ideal conduit for trade and investment flows between Asia and Africa, the bank saw plenty of opportunity to expand its base in Africa, starting in South Africa.

Benoit said that it would, in future, consider setting up more representative offices across Africa, but that its focus would initially be in South Africa.

The two offices it had already set up in South Africa provided it with access to Africa’s biggest economy and an opportunity to learn more about the African market.

Meanwhile, as part of its corporate and institutional banking service offering, AfrAsia would also provide Mezzanine project finance, primarily focused on property development.