USB should focus on expanding globally and offer retail banking services to clients in Africa. There are many African nations that present USB with a ready market to exploit thus fostering its growth and development. Most of the African nations are developing economically thus allowing the bank to take advantage of the growing market. Besides, most of the nations are politically stable thus encouraging the bank to enjoy the political climate existing in the continent by offering banking services to the nations. Besides, many African nations have also fostered the use of technology in their operations that making them fit for investors like USB to invest(Worthington & Britton, 2006).
Botswana
PESTLE Analysis
Political and legal environment
Botswana is a politically stable nation with minimal wars and terrorist attacks. Besides, corruption level in the nation is minimal as reported by Transparency International’s Corruption Perception Index. Also, there is a minimal political influence on business matters in the nation. Therefore, politically Botswana is viable for investment. On the other hand, the nation has various regulations regulating the operation of foreign investors. Foreign investors need to comply with such provisions to survive in the market.
Economic environment
Botswana economy is growing steadily over the recent past. However, its Gross Domestic Product is growing at a very slow rate. The nation depends on mining whose contribution to the economy is going down thus affecting the GDP growth. All the same, the stability of the nation’s economy plays a great role in encouraging investment in the nation. On the other hand, the nation’s inflation rate remains very low at 2.7 percent, thus encouraging investment (Dini et al, 1970). The percentage economic growth of the nation for the past three years can be summarized as shown below.
GDP Percentage Growth
Technological Environment
The world is experiencing rapid growth in technology. Botswana is also developing in terms of technology use in its operations. However, the use of the internet in the nation is very small thus influencing investments that are powered by the internet. The nation has three mobile phone service providers. Therefore, it is worth noting that the nation needs to focus more on promoting the use ICT to encourage investments. The internet usage within the nation is as shown in the figure below.
Kenya
Pestle Analysis
Political environment
The political system of Kenya gives politicians very high power thus able to have high influence in business investments. Kenya remains one of the most corrupt nations in the world, and the level of transparency is also questionable. On the other hand, the levels of insecurity within the nation are also increasing currently. For instance, the nation has been subject to various terrorist attacks a good example is the recent Garissa attack that led to the loss of life of many Kenyans. Therefore, the nation is becoming very risk for investment.
Economic environment
Kenya is among the developing economies of the world. Although its economy is growing rapidly, its economy is unstable since it is never consistent in its growth. Agricultural production and tourism contribute very much to the economy. At the same time, overdependence on the some sectors makes the economy of the nation unstable. The GDP and inflation rates of the nation also remain inconsistent thus making the investment in the nation vulnerable (Tyler et al, 1999). The statistics for the economic growth of Kenya since 2013 to 2015 is as shown below.
GDP Percentage Growth
Technological Environment
Kenya is among the African nations where there is significant use of the IT. With the development of the IT sector, Kenya has taken the initiative to apply IT in all its sectors of the economy. The internet use within the nation is very high with many individuals and organizations using the internet in most of their operations. Smartphone and computer ownership in the nation are very high indicating that the nation promotes the IT use. The Kenyan banking system has also focused on the use of internet and phone banking. This is a clear indication that the USB can take advantage and invest in the nation. The following statistics show the internet usage in the nation.
South Africa
South Africa is among few African nations that have foreign bank investment. The percentage of foreign banks operating in South Africa is 25 percent as per World Bank report. Besides, the number of people owning accounts in these banks is very high making the nation suitable for foreign banks.
PESTLE Analysis
Technological Environment
South Africa has fully developed information technology infrastructure. The nation has fostered modern technology in all its sectors of the economy. It has well-developed satellite technologies that help the nation to connect to the outside world. Its banking sector is fully developed and uses modern technology in offering service to its clients. For instance, it’s banking sector uses modern technologies such as electronic transfer, the internet and phone banking and generated messages. The percentage of the internet users in the nation are as shown in the table below.
Economic environment
South African economy is very stable and is growing very fast as compared to many of the other world economies. Its GDP growth is very consistent, and its inflation rate remains very low compared to many other African nations. Natural Resources, Agriculture, food processing, and manufacturing are the main contributors to the nation’s GDP growth. Its economic environment is a big encouragement for any investor who needs to invest in the nation (Davenport, 1991). Its economic growth rate for the nation for the past three years is as shown in the table below.
GDP Percentage Growth
Political and Legal Environment
South Africa is a politically stable, which has resulted from strong political and legal structures provided by the government. Besides, the nation is not prone to civil wars and terrorist attacks, thus making it suitable for any investors who want to invest in the nation. On the other hand, the corruption levels within the nation are very minimal with more focus on transparency the nation’s political officials. In fact, the politicians have very little influence on investment in the nation. Besides, the nation has very strict regulations that investors must observe to survive in the market. Some of the examples of such regulations include Financial Advisory Act and the consumer protection Act.
Nigeria
Political and legal environment
Nigeria is a politically stable nation with very minimal issues of insecurity. However, there are some groups that threaten investments in the nation. An outstanding example of such groups in Nigeria is the Boko Haram group. Also, the nation is also subject to various corruption scandals that affect the operation of the business. Finally, the nation has a very complex legal environment that requires investors to comply to ensure success in operating in Nigeria (Inekwe, 2013).
Economic environment
Nigeria is one of the fastest growing economies in the world. It is an oil-producing nation thus receives much from the oil products. Its economy is growing steadily with minimal fluctuations thus making it economically stable. Besides, the agriculture sector is also another sector of the economy that contributes much to the nation’s GDP growth. In fact, since 2011, the GDP of the nation has increased from $247 to around $359 this year. This implies that it is economically stable and suitable for investment (Inekwe, 2013). The table below represents the economic growth of the nation for the past three years.
GDP Percentage Growth
Technological Environment
Nigeria is developed as it regards to the use of modern technology in all its sectors of the economy. This is it to mean that business and individuals in the Nigeria use the internet very much in conducting their operations. Besides, the nation has very developed banking systems that use modern technology in offering services to the clients. For instance, it uses mobile banking as one of the key technologies in banking. This makes Nigeria one of the best nations in Africa for investors to invest. The data below provides the percentage of the internet users in Nigeria.
Based on the PESTLE analysis of the four nations, it is worth noting that South Africa and Nigeria are two countries in which USB needs to invest. This is because their economies are very stable implying that there are no fluctuations due to economic factors. Besides, both nations are politically stable thus proving the organization with a conducive economic environment. Finally, both nations focus much on technology environment which is very vital in promoting services in the banking sector. USB needs to conduct various regulatory bodies of the nations to assist it in evaluating various procedures that are critical before venturing into the markets of the nation. The implementation should ensure that all legal steps are considered to avoid future issues.
References
Davenport, T. R. (1991). The Economy and the People of South Africa. South Africa, 485-517.
Dini, L., Quinn, B., & Wohlgemuth, L. (1970). The Economy of Botswana (L'economie du Botswana) (La economia de Botswana). Staff Papers - International Monetary Fund, 17(1), 127.
Inekwe, J. N. (2013). FDI, Employment and Economic Growth in Nigeria. African Development Review,25(4), 421-433.
Tyler, M., Hughes, J., & Renfrew, H. (1999). Kenya: Facing the Challenges of an Open Economy.Telecommunications in Africa, 79-112.
Worthington, I., & Britton, C. (2006). The business environment. Harlow: Financial Times Prentice Hall.
