Glenn Povey, deputy head: Corporate finance and Investment Banking at Absa Corporate and Merchant Bank

, says there are two main approaches when considering doing business in the rest of Africa having a physical presence in the markets, or operating from SA and travelling to the various countries.

"We decided to operate from SA and retain our core skills in this country. As opportunities occur so we fly in and assist," Povey says.

Telecommunications has provided an area of activity in Africa, particularly as SA's cellular network operators position themselves on the continent.

However, he says the International Monetary Fund, privatisation, and infrastructure developments are driving most of the deals.

"There is insufficient deal flow in individual countries to justify offices in each country. At the same time, in total there is a market that makes it worth our while."

He says South African banks compete directly with the international investment banks.

However, Povey says South African banks have an advantage in terms of their salary structures and exchange rate, enabling them to be more price competitive.

"We continue to win deals in the face of international competition. In addition, we are finding that there are smaller local operations in Africa that want to link up with us to make bids," Povey says.