Conduits of Capital – Onshore Financial Centres and Their Relevance to African Private Equity

The report analyzes African financial centres—specifically Casablanca, Johannesburg, Port Louis, and Nairobi—against a global peer group using the Global Financial Centres Index (GFCI). It defines the roles of onshore and offshore centres, identifies the 'dynamic' nature of certain African hubs, and highlights a significant 'reputational advantage' in Casablanca where marketing exceeds quantitative performance. The document argues that improving the business environment, rule of law, and infrastructure is critical for growth. It proposes a strategic framework for donors and governments to enhance capacity through regional integration, professional accreditation via a proposed Financial Training and Qualifications Institute (FTQI), and the development of standardized regulatory frameworks to attract long-term capital.

• African financial centres exhibit varying profiles: Casablanca is a 'transnational specialist' with wide North African connectivity; Johannesburg is a 'local, broad and deep' centre driven by the local economy and mining; and Port Louis (Mauritius) is a 'local specialist' serving as an important domicile for African private equity and investment funds.
• Casablanca and Johannesburg are classified as 'dynamic' centres, meaning they have the potential to move toward greater stability in GFCI ratings. Casablanca specifically shows a high 'reputational advantage,' where its marketing and promotion have led to perceptions that are more favourable than quantitative measures suggest.
• The report identifies a specific sequence for financial centre growth: basic infrastructure is critical up to 400 GFCI points, followed by the 'business environment' (400-600 points), then 'financial sector development,' and finally 'human capital' and 'reputational' factors from 600 to 800 points.
• Investors identify several critical barriers to the African investment climate, most notably the rule of law and corruption, the slow pace of decision-making and reform, and a lack of clear, comparable regulatory frameworks for sectors like Islamic finance and local fund management.
• Sustainability reporting among the largest listed companies in Sub-Saharan Africa is very low, with only 15% (13 companies) reporting on sustainability, except for those listed on the Johannesburg Stock Exchange (JSE).
• To address skills shortages, the report suggests establishing a regional Financial Training and Qualifications Institute (FTQI) to provide world-class accreditation and certification for practitioners and regulators in partnership with international bodies.

APA

FSD Africa (2015). Conduits of Capital – Onshore Financial Centres and Their Relevance to African Private Equity. https://fsdafrica.org/wp-content/uploads/2025/05/16-08-10-FSDA_EMPEA_Conduits-of-Capital_web_version-ZYEN.pdf

Chicago

FSD Africa. Conduits of Capital – Onshore Financial Centres and Their Relevance to African Private Equity. 2015. https://fsdafrica.org/wp-content/uploads/2025/05/16-08-10-FSDA_EMPEA_Conduits-of-Capital_web_version-ZYEN.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Conduits of Capital – Onshore Financial Centres and Their Relevance to African Private Equity |date=January 2015 |url=https://fsdafrica.org/wp-content/uploads/2025/05/16-08-10-FSDA_EMPEA_Conduits-of-Capital_web_version-ZYEN.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2015conduits, author = {{FSD Africa}}, title = {{Conduits of Capital – Onshore Financial Centres and Their Relevance to African Private Equity}}, institution = {FSD Africa}, year = {2015}, month = jan, url = {https://fsdafrica.org/wp-content/uploads/2025/05/16-08-10-FSDA_EMPEA_Conduits-of-Capital_web_version-ZYEN.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }