Keen to work in investment banking in Africa?

Many of the top investment banks are expanding into Africa. The principal purpose of an investment bank (and of investment banking in general) is the underwriting of new securities issued by an investment bank's clients. An investment bank may also provide other services, such as professional advice, working with mergers & acquisitions, and private wealth management. Unlike commercial banks and retail banks, investment banks do not normally take deposits.

The most well-known global investment banks are Goldman Sachs, JP Morgan and Morgan Stanley. Other investment banks are regionally oriented or situated in the mid-size market, or are small, specialized firms called boutiques which might be oriented toward a specific niche.

There are two main lines of business in investment banking. Trading securities for cash or for other securities is known as the "sell side", while dealing with pension funds, mutual funds, hedge funds, and the investing public (who consume the products and services of the sell-side in order to maximize their return on investment) constitutes the "buy side". Many firms have buy and sell side components.

These firms have lots of different areas and groups within them, some roles are specific to the function of investment banking and some are support roles found in all companies. The support roles such as human resources, legal, marketing, investor relations and information technology are also needed in investment banking.

Departments specific to this industry that require definite skills are:

Corporate Finance / Private Equity

Securities and Trading

Treasury

Compliance

Financial Management

Investment Research

Merchant Banking

An investment banker’s job description may cover many different areas, especially within developing markets in Africa. Most investment bankers start at the bottom, working as financial analysts or some other entry-level position for at least three to five years.

Most aspiring investment bankers will have a degree in a finance related field, such as economics, marketing or accounting and maybe an MBA. The skills and attributes most sought after are:

Advanced financial analysis capabilities and computer skills

Ability to research and prepare proposals on prospective business deals

Up to date knowledge of current financial events and news within the region

Adaptability to new cultures and different business methods

Well developed inter-personal skills and ability to persuade

Foreign language skills especially French and/or Portuguese

In investment banking expect to work very long hours and take on extra responsibilities in order to get on the path to success.