By Abraham George, Head of Custody, Absa Mauritius
In an era where capital flows are global but regulatory, market and technological landscapes remain fragmented, investors face a simple but fundamental question. Who can they trust to safeguard their assets, ensure compliance and deliver seamless access to opportunity across borders?
The answer is increasingly found in the strategic role of custody services. No longer a technical back-office function, custody services has become a vital enabler of institutional confidence, operational continuity and governance integrity. This is especially true for fund managers, institutional investors, pension schemes and global business companies operating across multiple markets.
Custodians today are more than safekeepers. They are data stewards, compliance partners and strategic infrastructure providers. And as expectations grow, the institutions that deliver custody must evolve from transactional service providers into high-trust, insight-driven partners.
From administration to strategy: the evolution of custody
The transformation of custody services from a narrow administrative function into a strategic value-add is well underway. Safekeeping, settlement and reporting are now baseline client expectations. Custodians increasingly stand out through their ability to integrate value-added services to enhance operational efficiencies, reduce cost, improve returns and ensure regulatory compliance.
At Absa Mauritius, our custody services platform was built from the ground up with these expectations in mind. Since launching our offering in 2020, we have recorded sustained year-on-year growth across assets under custody and institutional client mandates. We serve clients through a hub model that offers seamless access to over 110 global markets via a single legal entry point.
Our partnerships with top-tier global custodians allow us to provide comprehensive coverage across all asset classes, including equities, fixed income incl. Govt securities, Mutual Funds and collective investment schemes.
The real differentiator is how the platform connects to clients' business models. Integrated systems provide real-time updates, AGM notifications, valuations and reconciliations directly into client workflows. This reduces friction and unlocks time for asset owners to focus on returns, not reconciliations.
Investor protection in a high-risk world
With greater global investment comes greater operational and reputational risk. The role of custodians in mitigating these risks is no longer passive. Beyond the traditional concern of asset safekeeping, today’s custodians must demonstrate leadership in cyber resilience, regulatory compliance and data security.
This is particularly relevant in Mauritius, where the Securities Act 2005, Private Pension Schemes Act 2012 and Securities (Collective Investment Schemes and Closed-End Funds) Regulations 2008 set the legal framework for regulated custody. Together, these instruments ensure that assets managed on behalf of others are held securely, transparently and separately from the custodian’s own balance sheet. It reinforces Mauritius' position as a well-regulated jurisdiction committed to protecting investor interests.
There is also a case for evolving local regulations to align with rising global expectations. Regulators play a critical role by providing a clear legal and operational framework that defines ownership rights, asset protection and risk management, licensing requirements for service providers, dispute resolution mechanism and standards for audit and reporting.
The next curve: custody as infrastructure
The most disruptive shift ahead is not operational, but architectural. Custody services are becoming core infrastructure in a data-driven investment environment. The rise of digital assets, tokenisation, ESG-linked reporting and real-time transaction processing will define the next decade of custody. Custodians will be expected to manage both traditional asset classes and digital assets and deliver insights alongside protection.
This calls for investment in automation, open APIs and scalable platforms that allow clients to extract value from their data while remaining compliant. It also calls for deep cross-functional collaboration across banks, regulators and market infrastructure providers.
At Absa Mauritius, we see ourselves not only as a guardian of financial assets but also of strategic infrastructure, protecting assets from loss or mismanagement and supporting the functioning of financial markets. We are building for scale, investing in technology and aligning our custody services with the broader ambitions of our clients across the African continent and globally.
Client confidence is the mantra of custody
In a world where geopolitical tensions, regulatory fragmentation and cybersecurity threats are growing, one truth remains. Institutions will always prioritise confidence. Custody services that are resilient, integrated and intelligent will remain critical to attracting and retaining that confidence.
Absa Mauritius is committed to advancing this next generation of custody. Not because it is expected, but because our clients need a partner who sees custody not just as a regulatory requirement but as a strategic enabler of growth.
The institutions that thrive in this new reality will be those who understand custody for what it truly is. Not a support service, not a back-office obligation but a frontline function that safeguards trust, enables mobility and powers ambition.
Click here to learn more about our Custody Services.
