Chamu Mugangavari, Executive Director of Corporate Investment Banking (CIB) at Standard Chartered Bank Botswana, says he is excited about his new role as the bank explores the possible sale of its Wealth and Retail Business (WRB).
Mugangavari, who considers himself a well-rounded banker with extensive experience in credit and the wider financial sector, also continues to serve as Sector Head for Public Sector and Development Organisations for Southern Africa.
โThis involves working with sovereigns and governments to assist them. For Standard Chartered, public-sector business is very key for us, particularly in Africa,โ he toldย Business Weekly & Reviewย in an interview during this week’s Global Expo.
As the bank shifts its focus toward CIB, Mugangavari said he hopes to play a key role in positioning the division as a central driver of growth, particularly in the emerging critical minerals sector.
โI am coming in at a very exciting time for our franchise, and we will continue to prove that we are an investment bank,โ he said.
He noted that Botswanaโs pivot toward critical minerals, building on its success in diamonds, presents a major opportunity.
โThe pivot to critical minerals is amazing. At Standard Chartered, our biggest strength is our network,โ he said. โWe are present in 54 markets, some of which are the most dynamic in the world. Being in those markets allows us to identify pockets of liquidity and channel them where they are needed most.โ
According to Mugangavari, Botswana is among the markets where such liquidity will be needed most as it advances into the critical minerals space.
Standard Chartered, he said, will leverage its network to connect investors and provide tailored financing solutions. โWe also have in-depth capability to structure fit-for-purpose targeted financing solutions,โ he said. โFor example, we can make market deals and provide risk-mitigating products such as hedging.โ
Mugangavari added that Botswana must move quickly to establish its place in the critical minerals sector, supported by strong policy frameworks.
โThe right things have been said and the right framework has been created. The key thing is that the speed of execution is going to be critical,โ he said. โSome estimates put the average time from exploration to financial benefit at between 15.5 and 17 years. This means the speed of execution becomes critical.โ
He said Standard Chartered aims to help address challenges impeding investment in the sector beyond financing.
โCredit extension alone is not sufficient for these types of projects,โ Mugangavari said. โThey have long tenures and high-risk profiles. What we need is to bring in other external players in the capital and investment space, such as Development Finance Institutions, to solve these challenges. Because the biggest challenge is the risk profile, credit enhancement structures will be needed.โ
Mugangavari also said Botswana has an opportunity through the critical minerals sector to drive beneficiation and industrialisation, supported by strong fundamentals.
โBotswana is one of the greatest investment destinations โ one of the few remaining in Africa,โ he said. โIn my view, Botswana has all the elements needed to bring beneficiation for critical minerals.โ
He added that managing the geopolitical landscape and maintaining sound economic policies will be key, especially as many critical minerals are used in electric vehicle batteries.
โEngaging with markets that can absorb those products and securing favourable trade agreements will be essential,โ he said.
Beyond financing, Mugangavari highlighted infrastructure as a crucial enabler of the sectorโs success, adding that Standard Chartered continues to support infrastructure development in multiple ways.
