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Can Nairobi be Positioned for Financial Success in the 21st Century?
Anyone who predicted in 1965 when we separated from Malaysia that Singapore would become a financial centre would have been thought mad. How did it happen, the gleaming modern office blocks in the city centre with banks of computers linking Singapore with London, New York, Tokyo,
Frankfurt, Hong Kong and other major financial centres? It had a most improbable start in 1968. In his oral history, Dr Winsemius recalls his telephone call to his friend, the vice-president of the Bank of America branch in Singapore, who was then in London. “Look here, Mr Van Oenen, we (Singapore) want, within ten years, to be the financial centre in Southeast Asia.” Van Oenen replied, “All right, you come to London. In five years you can develop it.” Winsemius immediately went to London where Van Oenen took him to a large globe standing in a boardroom, and said, “Look here, the financial world begins in Zurich. Zurich banks open at
9 o’clock in the morning, later Frankfurt, later London. In the afternoon Zurich closes, then Frankfurt and London. In the meantime, New York is open. So London hands over financial money traffic to New York. In the afternoon New York closes; they had already handed over to San Francisco. When San Francisco closes in the afternoon, the world is covered with a veil. Nothing happens until next day, 9:00 am Swiss time, then the Swiss banks open. If we put Singapore in between, before San Francisco closes, Singapore would have taken over. And when Singapore closes, it would have handed over to Zurich. Then, for the first time since creation, we will have a 24-hour round-the-world service in money and banking.”
In the 21st century, Nairobi has the potential to play a significant role in facilitating round-the-world service in money and banking, albeit with strategic positioning and robust infrastructure development. Here’s how Nairobi can carve its niche in the global financial landscape:
Geographical Advantage: Nairobi’s strategic location in East Africa positions it as a gateway between Africa, Europe, Asia, and the Americas. With its time zone falling between those of major financial centers like London and Singapore, Nairobi can serve as a crucial link in the 24-hour cycle of global financial transactions.
Growing Financial Hub: Nairobi is already emerging as a major financial hub in East Africa, with a thriving banking sector, a vibrant stock exchange, and a rapidly expanding fintech ecosystem. The presence of multinational banks, financial institutions, and tech startups underscores Nairobi’s potential to become a key player in international finance.
Infrastructure Development: To facilitate round-the-clock financial services, Nairobi needs to invest in state-of-the-art infrastructure, including robust telecommunications networks, data centers, and digital banking platforms. Improved connectivity and technological capabilities will enable seamless transactions and real-time communication with global counterparts.
Regulatory Framework: A conducive regulatory environment is essential to attract foreign investment and ensure the stability and integrity of the financial system. Nairobi should prioritize regulatory reforms that promote transparency, investor protection, and innovation while adhering to international best practices in banking and finance.
Partnerships and Collaboration: Nairobi can leverage partnerships with established financial centers and international organizations to strengthen its position in global finance. Collaborative initiatives in areas such as cross-border payments, fintech innovation, and regulatory harmonization can enhance Nairobi’s competitiveness on the world stage.
Specialization: Nairobian professionals can specialize in niche areas such as fintech, Islamic finance, green finance, or sustainable investing to differentiate themselves in the global marketplace. Acquiring specialized skills and certifications can enhance their expertise and credibility in their chosen fields.
Networking: Building strong networks with industry peers, investors, and policymakers both locally and internationally is crucial for staying informed about global trends, accessing new opportunities, and forging strategic partnerships. Participating in industry conferences, seminars, and professional associations can facilitate networking and knowledge exchange.
Continuous Learning: Given the dynamic nature of the financial industry, continuous learning and professional development are essential for staying ahead of the curve. Nairobian professionals can pursue ongoing education, attend workshops, and seek mentorship opportunities to expand their knowledge and skills in finance, technology, and regulatory compliance.
Entrepreneurship: Nairobian entrepreneurs can seize opportunities to launch fintech startups, consultancy firms, or advisory services catering to global clients. By leveraging local expertise, innovative solutions, and strategic partnerships, they can offer value-added services that address the evolving needs of international markets.
In conclusion, Nairobi has the potential to become a key player in facilitating round-the-world service in money and banking by capitalizing on its geographical advantage, fostering a conducive business environment, and embracing innovation and collaboration. With strategic positioning, continuous learning, and entrepreneurial mindset, Nairobian professionals can seize the opportunities presented by the global financial landscape and contribute to Nairobi’s emergence as a leading financial center in the 21st century.
