TAR117 – Q4 2021 – FINANCE special

Page 1

JEUNE AFRIQUE MEDIA GROUP

INTERNATIONAL EDITION

Belgium €7.90 • Canada CA$12 • Denmark DK80 • D.R.C. US$10 • France €7.90 • Germany €7.90 • Ghana GH¢35 • Kenya KES1000 • Morocco DH45 Netherlands €7.90 • Nigeria NGN2000 • Rwanda RWF7,500 • South Africa R75 (tax incl.) • Switzerland FS10.90 • Tanzania TZS20,000 • Tunisia DT15 Uganda UGX40,000 • UK £7.20 • United States US$15.99 • Zambia ZMW80 • CFA Countries F.CFA3,900 • Euro Zone €7.90

TOP 200 AFRICAN BANKS Rebuild, recapitalise, refocus

N° 117 • OCTOBER - NOVEMBER - DECEMBER 2021

SOUTH AFRICA Ramaphosa’s race to fix the ANC TITANS OF TECH The big beasts of Africa’s Silicon Savanna

www.theafricareport.com

BIG IDEA

DANGOTE’S


It’s probably because we started in the mobile sector that we’re moving up fast in financial services. More than 60 million people worldwide trust in Orange Money. Since its launch in Côte d’Ivoire 13 years ago, Orange Money has secured itself a place as a world leader in the financial services sector and aims to pave the way for financial inclusion in Africa and the Middle East. #OrangeMoney

Orange, limited company (“Société Anonyme”) with a share capital of €10,640,226,396 – Registered office: 111, quai du Président-Roosevelt 92130 – Issy-les-Moulineaux, France. Trade Register No. 380 .129 .866 Nanterre. Exclusive agent in banking and payment services for Orange Bank – Orias n° 13 001 387 (www.orias.fr).


EDITORIAL

CARBON MUST FALL!

Like calls to topple statues and governments, the war on carbon has the attributes of a resounding battle cry. More so, when almost everyone can agree. It’s not easy being green, but we must all try harder. The simplicity is deceptive. Beneath it lurks depths of hypocrisy and doubledealing. Ranged against that are the righteous campaigners to save the planet from carbon dioxide poisoning. Mostly young, they are angered by the obfuscation and lies of corporations and governments. Yet, this is another world – literally another century – from the Earth Summit in Rio in 1992. Uniting activists across the globe, Rio produced UN treaties on carbon levels, forests and water, triggering annual climate summits. At its core was the link between protecting the environment and accelerating sustainable development in Africa, Asia and South America. That has eroded. Governments are making climate less political and more about technical fixes and market solutions. It is leading to a deadly complacency. Red lights should be flashing when world leaders descend on Glasgow in November for the UN’s COP26 climate summit. In September, UN climate chief Patricia Espinosa reported that greenhouse gases are set to rise by 16%

in 2030 compared with levels in 2010. On these trends, she forecasts catastrophic global warming of 2.7°C by the end of the century. Africa has contributed less than 1% to cumulative global carbon emissions, yet it has been hit harder than any continent by climate change. If much of the bargaining at Glasgow is around carbon levels, developing economies risk being sidelined. The lion’s share of the global carbon budget, set at the summit, should go to low-emitting, energy-poor countries. That’sespeciallyrelevant for Africa’s hydrocarbon producers, as Nigeria’s vice-president Yemi Osinbajo argues. Bans or restrictions on public investment in Africa’s fossil fuels, especially natural gas, will stymie the region’s efforts to fix its energy crisis. Finance for adaptation to and mitigation of climate change will be another dividing line at the conference. In 2016, the G20 club of countries agreed to contribute $100bn a year in climate finance to developing economies. Only Germany and the Nordic countries have met their quotas. So far, the US has paid less than a fifth of its promise, although Biden has committed to boosting payments this year. African states will have to negotiate harder. Until now, they have secured less than 5% of the available funding. They should also get backing from the international financial institutions for more innovative funding. South Africa’s deputy finance minister, David Masondo, for example, has proposed a debt-for-climate swap that would allow the Eskom energy utility to raise $10bn to move from coal to renewable energy. Africa’s pioneering mobile-money systems are inspiring new ideas about off-grid and sustainable energy. Speeding up that work will need far greater investment in universities and technical colleges, as well as money from the markets. All of that will count next year when the UN Climate summit is held in Africa.

THEAFRICAREPORT / N N° 117 / OCTOBER-NOVEMBER-DECEMBER OCTOBER NOVEMBER DECEMBER 2021

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#117 / October-November-December 2021 THE AFRICA REPORT 57-BIS, RUE D’AUTEUIL 75016 PARIS – FRANCE TEL: (33) 1 44 30 19 60 FAX: (33) 1 44 30 19 30 www.theafricareport.com

CHAIRMAN AND FOUNDER BÉCHIR BEN YAHMED

PUBLISHER DANIELLE BEN YAHMED publisher@theafricareport.com

AFRICAN

EDITOR IN CHIEF PATRICK SMITH MANAGING EDITOR NICHOLAS NORBROOK editorial@theafricareport.com

BANKS A

To find the full editorial team, all our correspondents and much more on our new digital platform, please visit: www.theafricareport.com

SALES A JUSTE TITRE Tel: +33 (0)9 70 75 81 77 contact-ajt-sifija@ajustetitres.fr

8O 62 NIGERIA FOCUS The Buhari government has not delivered on major reforms for the business sector. And while many mega-projects are going ahead nonetheless, business leaders will have to adjust to the policies of a new resident at Aso Rock come 2023.

FEATURES 26 WIDE ANGLE / Dangote’s big idea We talk to Nigerian billionaire Aliko Dangote and make an exclusive visit to his $19bn fertiliser and oil refinery plants in Lekki, just outside of Lagos.

36 PROFILE / Ramaphosa’s land of the rising sun South Africa’s president has strengthened his hand in the governing ANC but faces a tough test in 1 November’s local elections due to Covid-19, poor service delivery and the slow pace ofhis reforms.

50 PROFILE / Team Biden A look at the US President’s hand-picked list of diplomats, envoys, spies and soldiers representing Washington in Africa and competing with the likes of China and Russia.

TOP 200 BANKS AND TOP 100 INSURERS Our exclusive ranking of the largest companies in the African financial services sector. They were hit by Covid-19 but are making plans for the days of more growth.

112 CONSTRUCTION DOSSIER Egypt’s new cities, Chinese troubles in DRC and Egyptian cement.

120 TOP 40 DIGITAL LEADERS Our exclusive ranking of digital innovators and power players.

130 MAURITIUS FOCUS Port Louis is looking for a new economic miracle.

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THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

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THE TRUTH ABOUT ECONOMIC LIFE IN NORTHERN NIGERIA The death of economic growth in northern Nigeria is not for the lack of rich economic factors – minerals, materials and men – but of trained minds! [‘Why is President Buhari looking north to Niger?’, TAR online edition, 22 June.] The early 1950s saw the southern Nigerian authorities embark on free education for their children. It was the foundation of knowledge acquisition and development. The development gap between the north and the south was so pronounced that in the 1978 Convocation Chancellor’s address, chief Ọbafemi Awolọwọ, the sage, said: “Stop the south for 50 years, no new schools built, no new admissions into existing schools, the north cannot catch up.” The oil boom of the General Yakubu Gowon era brought false wealth to the nation. Government contracts drove many out of their erstwhile legitimate

RAMAPHOSA WILL NOT CREATE A DECADE OF GROWTH Goolam Ballim is talking nonsense [TAR online edition, 24 June]. All the policy initiatives by Cyril Ramaphosa are directed at benefiting the old establishments that are still in control of the economy. The majority of South Africans are still poor, inequality is huge and unemployment among the majority blacks is over 64%. Cronyism is rifer than before. The reforms in [power] generation are to benefit foreign companies with local political connections. The 51% stake in South African Airways sold to Harith Group was not transparent and was parcelled out to individuals associated with the faction in the ANC that supports Ramaphosa. The new port regulatory authority is set up to weaken Transnet so that it can be primed for privatisation. Kwame Amuah

income sources and made them “emergency contractors”. A host of northerners fell for this. Nothing now originates from the north except if it is fully funded by the south. The burden of northern leadership today is how will they manage their untrained population without the funds from the south, now that the south has realised that the north has dragged them too

far below the height they should have attained? The north can definitely survive without the south, but will the feudal lords allow it? David Adebayọ Alabi

FIGHTING TERRITORIAL INEQUALITIES The painful thing is that whatever he does, President Muhammadu Buhari is wrong: if he does not develop

the north, he’s wrong, and if he develops it in this manner, he is also wrong. Why can’t Nigerian governments deliver a comprehensive approach to territorial inequalities and make a serious long-term plan to get it right? Short-term political mandates are clearly making rulers blind when it comes to the bigger picture and general interest. Sabine

HOW TO GET YOUR COPY OF THE AFRICA REPORT On sale at your usual outlet. If you experience problems obtaining your copy, please contact your local distributor, as shown below. ETHIOPIA: SHAMA PLC, Aisha Mohammed, +251 11 554 5290, aisham@shamaethiopia.com – GHANA: TM HUDU ENTERPRISE, T. M. Hudu, +233 (0)209 007 620, +233 (0)247 584 290, tmhuduenterprise@gmail.com – KENYA, UGANDA, TANZANIA: THE NEWZ POINT, Dennis Lukhoola, +256 701 793092, +254 724 825186, denluk07@yahoo.com – NIGERIA: NEWSSTAND AGENCIES LTD, Marketing manager, +234 (0) 909 6461 000, newsstand2008@gmail. com; STRIKA ENTERTAINMENT NIGERIA LIMITED, Mrs Joyce Olagesin, info.nig@strika.com – SOUTHERN AFRICA: SALES AND SUBSCRIPTIONS: ALLIED PUBLISHING, Butch Courtney; +27 083 27 23 441, berncourtney@gmail.com – UNITED KINGDOM: QUICKMARSH LTD, Pascale Shale, +44 (0) 2079285443, pascale.shale@quickmarsh.com – UNITED STATES & CANADA: Disticor, Karine Halle, 514-434-4831, karineh@disticor.com – ZAMBIA: BOOKWORLD LTD, Shivani Patel, +260 (0)211 230 606, bookworld@realtime.zm For other regions go to www.theafricareport.com

ADVERTISERS’ INDEX AFREXIMBANK P 19; ARDOVA PLC P 77; BPC P 91; BUA GROUP P 66-67; CFAO P 119; CIB P 89; CLARITY GLOBAL P 60; DANGOTE GROUP P 7; DASSAULT AVIATION P 140; DUBAI CCI P 99; EASY STEELSHEDS P 35; EURONEWS P 61; EXPO 2020 P 15; GENSER ENERGY P 54-55; KONNECT EUTELSAT P 73; LIEBHERR P 117; MCB GROUP P 25; MSC P 5; NIGERITE ETEX NIGERIA P 75; OCP GROUP P 71; ORANGE P 2, 85; PRUDENTIAL PLC P 93; REP. OF CHAD P 10-11; REP. OF COTE D’IVOIRE P 101-106; REP. OF TOGO P 44-49; SUBSCRIPTION TAR P 109, 137; TAGPAY P 99; TECNIMONT NIGERIA P 69; THE WHITAKER GROUP P 59; TOSHIBA P 139; UBA GROUP P 17; USAID P 57

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THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021



GALERIE DOMINIQUE FIAT

The Africa Report’s exclusive guide to the quarter ahead features key events from the worlds of politics, business and culture. Find out more about how to plan your October, November & December. Making bets on whether elections will take place as planned in Libya and Somalia? Looking to hit the highlights of the continental cultural calendar in October? Watching in worry as the world negotiates another climate-change deal at COP26? 14

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021



Q4

Luanda Biennale: culture for peace

/ OCTOBER

GALERIE DOMINIQUE FIAT

Prince Gyasi, The 12 Powers, 2020: 1-54 Contemporary Art Fair

UNESCO

FESPACO returns to Ouagadougou

CULTURE NIC BOTHMA/EPA/MAXPPP

Arts on the agenda On 4-8 October the Biennale of Luanda highlights arts, culture and heritage as ‘Levers for Building the Africa We Want’. The 1-54 Contemporary Art Fair in London celebrates the continent’s contemporary artists on 14-17 October, and from 16-23 October Ouagadougou welcomes back the pan-African film and TV festival FESPACO.

GOVERNMENTS OF SUDAN AND SOUTH SUDAN A businesslike joint press release announced that on 1 October four border posts would be opened for the first time since South Sudan’s independence in 2010.

APPOINTMENTS ALL RIGHTS RESERVED

‘The two parties engaged in extensive talks and candid discussion on all aspects and fields of cooperation’

SEGUN OGUNSANYA On 1 October Ogunsanya takes over as CEO of Indian telco Airtel Africa on the retirement of Raghunath Mandava. 7-9 October The Africa-France summit postponed in 2020 will be held in Montpellier, France. sommetafriquefrance.org 13-14 October The 6th Global Business Forum Africa in Dubai discusses ‘Transformation Through Trade’. globalbusinessforum.com 21-22 October Istanbul hosts the 3rd Turkey-Africa Economic & Business Forum. turkeyafricaforum.org

16

COVID-19 From October, Durban-based Aspen Pharmacare, a manufacturer for Johnson & Johnson, will make Covid-19 vaccines solely for Africa, following an outcry that Africa-made vaccines were being sent to Europe.

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

TAKELOT

EVENTS

MAMONGAE MAHLARE South African e-commerce outfit Takealot has appointed Mahlare as new CEO, and founder and CEO Kim Reid will become chairman (see page 123).



Q4

/ OCTOBER MOZAMBIQUE SADC

President Farmaajo celebrates Independence Day

salve

The Southern African Development Community (SADC) and Rwanda are sending troops to Mozambique to help quell the Islamist rebellion in Cabo Delgado Province. South Africa’s contingent of 1,495 troops are due to stay in the country from 15 July to 15 October.

TANZANIA a vum Ro

Nanngade Mocímboa da Praia

NANGADE Maputo Diiaca

Muedda

TWITTER/M_FARMAAJO

GAS FIELDS

PALMA

MOCIMBOA DA PRAIA

MUEDA MOZAMBIQUE

INDIAN OCEAN

MUIDUMBE

Somalia has settled for October and November 2021 presidential elections after President Mohamed Abdullahi Mohamed ‘Farmaajo’, tried to extend his rule beyond February without holding a vote. The organising of the delayed national elections has laid bare many tensions. The country’s institutions are weak, insecurity is rife and political trust is low. Abdullahi has been in conflict with Somalia’s federal member states and in September his relationship broke down with Prime Minister Mohamed Hussein Roble, who is in charge of organising the elections. The conflict could again spill over into the security forces, warns the think tank International Crisis Group. Opposition presidential candidates also criticised the government’s road map for elections in late August, providing yet another avenue that could lead to more election delays. Abdullahi had promised to hold a “one man, one vote” election, but insecurity, a lack of resources and a lack of political consensus made that impossible. So, now, elders from clans will pick the delegates responsible for choosing members of parliament (MPs). The MPs and senators then elect a president, in a race that will include three former presidents and Abdullahi.

18

QUISSANGA 50 km

ANCUABE

CABO DELGADO SITUATION

Metuge

Pemba

Major violent incidents Apr.-Sept. 2021

FRANCOIS MORI/AP/SIPA

The cheese stands alone

Macomia MELUCO

STEFAN HEUNIS/AFP

SOMALIA

SOURCE: CABO LIGADO OBSERVATORY

MACOMIA MONTEPUEZ

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

JUSTICE

High-profile trials Courts are in the spotlight in October. Former president of Burkina Faso Blaise Compaoré will be tried for the assassination of former president Thomas Sankara in 1987, when he led a coup d’état against his former associate that resulted in 12 deaths. In Nigeria, the trial for treason of Nnamdi Kanu, the leader of the Indigenous People of Biafra (IPOB) separist group, was adjourned to 21 October after he failed to appear before the Federal High Court of Nigeria in July.


AFREXIMBANK

CENTRAL AFRICA REGIONAL OFFICE

24 September 2021

Uniting the Continent Announcing the opening of our Central Africa Regional Office in Yaoundé, Cameroon Friday 24 September 2021, Afreximbank proudly takes up residence in Yaoundé.

Republic of Congo, Chad and Gabon, reflects the expansion of the Bank’s Member States from 37 to 51 since 2015.

By extending further across the continent, the Bank continues to deliver on its pan-African mandate, adding to its presence in Cairo, Kampala, Abuja, Abidjan and Harare.

Our geographical growth reinforces our commitment to financing and promoting intra-extra African trade.

The Central Africa Regional Office, which covers Cameroon, Central African Republic, Congo, Equatorial Guinea, Democratic

Welcome to our office at the Headquarters Building of the National Social Insurance Fund (NSIF), Independence Square!

afreximbank.com


/ NOVEMBER TN N

MR

CLIMATE CHANGE

Africa’s COP26 agenda

LB B AL

MU

SE E GA RG

ML

EG

SU

NG

BF

Collector Femi Akinsanya, gallerist Sorella Acosta and art by Evans Mbugua

Lovely in Lagos Art X Lagos, the innovative Nigerian art fair, is returning after an online-only edition last year. It will take place from 4 to 7 November at the Federal Palace Hotel in Victoria Island, Lagos. The fair is known for highlighting up-and-coming artists, having included Hank Willis Thomas, Yinka Shonibare and Portia Zvavahera. After the in-person exhibition, this year’s fair will continue online until 21 November.

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THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

ART X LAGOS 2019

The 26th UN Climate Change Conference GU BE E NI (COP26), takes place in Scotland from 31 GH SL T O I C October to 12 November and is an opporLI CR tunity for African countries to highlight EG climate concerns that will inevitably have wideChange in potential GB spread impact. In the past year, Kenya declared a cereal output, 2080 state of national emergency after a harsh drought Decrease -50% or more and Madagascar entered a climate-induced Decrease 25%-50% famine. Decrease 5%-25% Gabon’s Tanguy Gahouma-Bekale is leading No change ±5% the African group of countries at COP26, and has laid out the challenge: “The continent contributes Increase 5%-25% just 4% of total global greenhouse gas emissions, Increase 25% or more the lowest of any region, yet its socioeconomic Not suitable development is threatened by the climate crisis.” Governments want strong measures to help them adapt to climate change. A projection map built for the UN Environment Programme predicts that Africa will be the hardest-hit continent. African activists are demanding that Africa should be at the centre of talks on climate and energy, before it is too late.

ART

ER

CH

DJ ET

SD

SS

CA

SO UG DC

KY SOURCE: UNEP 2009

Q4

RW BU

RC

TA

AN

MA ZA

MO ZI

MD

BT NA ES SA

LE

500 km

‘You begin to wonder why the Anambra people are more interested in elections at the centre and not the elections in their state’ PAUL JAMES, YIAGA AFRICA The election programme manager for the NGO Yiaga Africa says that turnout for the 6 November governorship elections in Nigeria’s Anambra State is likely to be low, after only 21% turnout in the 2017 elections. He describes Anambra as Nigeria’s worst case of voter apathy in governorship elections.


LUCA SOLA/AFP

African National Congress president Cyril Ramaphosa prepares for the 1 November polls

SOUTH AFRICA

Election day Insiders argue that President Cyril Ramaphosa is more popular than his party, the African National Congress (ANC). He will not be on the ballot in the 1 November municipal polls, which will be a chance for the rightists of the Democratic Alliance and the leftists of the Economic Freedom Fighters to convince voters that they should be entrusted with the job of running more major cities. The argument goes that if they can do a better job of running Johannesburg or Durban, the voting public should then trust them with more responsibility on the national level. If the current trend remains, the ANC will lose more support. What can Ramaphosa do? (See page 36)?

ALL RIGHTS RESERVED

APPOINTMENTS

NTSHAVHENI PETER MAPHAHA Major-General Maphaha has been appointed as the new surgeon general of South Africa, commanding the South African Military Health Service as the country continues to battle Covid-19.

BOOKS Two African writers feature in the Booker Prize shortlist of six this year, with a winner due to be announced on 2 November. In The Promise, South Africa’s Damon Galgut uses a family’s story to examine the country’s racial conflicts with a narrator’s eye that is ‘deliciously lethal in its observation of the crash and burn of a white South African family’. Somali-British writer Nadifa Mohamed’s The Fortune Men fictionalises the true story of Mahmood Mattan, a Somali shopkeeper wrongfully convicted and hanged for murder in Cardiff in 1952.

EVENTS 9-12 November Africa Energy Week will welcome players in the oil and gas sectors to Cape Town, South Africa to discuss the future of the sector and promising investments.

aew2021.com

15-21 November The African Continental Free Trade Area (AfCFTA) and its trade opportunities will be in the spotlight at the Intra-Africa Trade Fair in Durban, South Africa.

intraafricantradefair.com

13-20 November Nigeria’s culture lovers will head to the south-west region’s Ekiti State this year for the National Festival of Arts and Culture (NAFEST), celebrating unity in diversity.

ncac.gov.ng

TELECOMS Namibia’s largest telecoms company, MTC, will list on the country’s stock exchange in November. This is set to be the largest listing on the stock exchange since its establishment.

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

21


RAJESH JANTILAL/AFP

Features

26 WIDE ANGLE Dangote’s big idea We talk to Nigerian billionaire Aliko Dangote and make an exclusive visit to his $19bn fertiliser and oil refinery plants in Lekki, just outside of Lagos.

24

36 PROFILE Ramaphosa’s land of the rising sun South Africa’s president has strengthened his hand in the governing ANC but faces a tough test in 1 November’s local elections due to frustrations with lockdowns, poor service delivery and the slowness of reforms.

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

50 PROFILE Team Biden A look at the US president’s hand-picked list of diplomats, envoys, spies and soldiers representing Washington in Africa and competing with the likes of China and Russia.


ADVERTORIAL

Mauritius on the road to a post-pandemic economic rebound

“Reasons for optimism” Alain Law Min, CEO, MCB Ltd

I

t is an undisputed fact that the business and investment climate around the world has been significantly disrupted by the pandemic. Nevertheless, despite the unstable and uncertain economic environment, the financial services sector in Mauritius has remained strong and resilient. This resilience of our financial services sector gives us every reason to be optimistic about the recovery of our economy. Of course, much will depend on the evolution of the pandemic, the effectiveness of the vaccination campaign (as of 8 September, more than 770,000 of my fellow citizens had received two doses of vaccines) and on the sustained recovery of the tourism sector. The financial services sector is well positioned to provide support to stakeholders on the road to recovery and to contribute to building back Mauritius into a greener and smarter country in the medium term. In addition, the financial services sector has a crucial role to play in attracting, managing, structuring and channeling trade and investment flows, particularly towards Africa. In order to take full advantage of this postpandemic economic rebound, the Mauritian financial services sector can leverage on the country’s intrinsic strengths, linked to its business climate, its investment-grade, compliance with international norms and standards, and its

institutional and governance framework. It is also important to highlight the social and political stability of Mauritius, the investment protection conventions, its connectivity, reliable infrastructure, as well as its skilled and bilingual workforce. With the recent signing - a first in Africa - of free trade agreements with India and China, as well as other agreements such as the African Continental Free Trade Agreement and the country’s membership of regional economic groupings , the Mauritius financial centre is well positioned to become the preferred regional platform for trade and investment in the AsiaAfrica corridor. As the leading bank in Mauritius, MCB can facilitate commercial and trade activities and channel investments in Africa, by capitalising on the expertise acquired in key sectors. Over the years, MCB Group has extended its network regionally and across the continent. Beyond strengthening our correspondent banking relationship - more than a hundred in Africa - the Bank can leverage the Group’s subsidiaries in Madagascar, the Maldives and the Seychelles, its associates in Reunion and Mozambique, while taking advantage of its Representative Offices located in Johannesburg, Nairobi, Paris and Dubai. I remain confident that we have the elements that will enable us to sail through these challenging times.

mcb.mu



AFRICAN

BANKS A Shaken, like the rest of the continental economy, by the Covid-19 crisis, Africa’s big banks have nevertheless shown adaptability during this period, and some are already bouncing back

By PIERRE-OLIVIER ROUAUD


North Africa

Central Africa

West Africa

Southern Africa

East Africa

53 59

NUMBER OF BANKS BY REGION

32

W

Support for SMEs Apart from the repercussions of the crisis on their own activities, banks have been in the front line during this extraordinary period. Many governments have used the banking channel to help cushion the shock by targeting small and medium-sized enterprises (SMEs). From April 2020, many banks on the continent put in place measures to suspend debt payments or restructure loans – for example, KCB (#40) in Kenya. These measures, says one bank manager, were made possible “thanks to the action of the government, the Central Bank and international institutions such as the World Bank and the IMF”. In Côte d’Ivoire, a $300m loan granted by the World Bank in February is to be used to support credit to SMEs through the creation of a dedicated credit guarantee fund. The upper echelons of our ranking show little change. The top 12 banks remain the same, with a few modest ranking adjustments. Once again, only three countries are represented at the top of the ranking, namely Egypt, Morocco and South Africa, including the unchanging leader, Standard Bank Group (#1).

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THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

9 47

TOTAL PROFITS ($bn) 30

21.5

21.6

2015

2016

25.2

24.9

25.2 17.5

20

10

SOURCE: THE AFRICA REPORT RESEARCH

e are living in an unprecedented period. Like the rest of the planet, the African continent has been on an economic roller coaster since the beginning of 2020. At a time when we seem to be approaching the end of the crisis period, the African Development Bank forecasts a growth rate of 3.4% in 2021 and 4.6% in 2022 in sub-Saharan Africa, after growth of just 2.1% last year. In 2020, all the countries on the continent saw their growth slump or even collapse. These poor figures are reflected in the net banking income (NBI) of the 200 banks in our ranking. This key indicator – which measures the difference between revenue and expenditure – plunged, cumulatively, by 14.7% in 2020 to $71.4bn. A historic drop that follows the record high reached in 2019, with a global NBI of $83bn. At the same time, the total balance sheet of these 200 banks is up 12.4% to $1.97trn. This sharp increase, which was rather unexpected during this recessionary period, can be explained, in large part, by the effect of the so-called ‘unconventional’ monetary policies put in place to deal with the crisis. These policies include the provision of large amounts of liquidity by central banks and an often historic cut in key interest rates.

2017

2018

2019

2020

TOTAL ASSETS BREAKDOWN $1.46trn

$1.74trn

$1.61trn

$1.76trn

$1.97trn

2016

2017

2018

2019

2020

In terms of relative share, Southern African banks, mainly composed of the 14 South African banks ranked, once again dominate our Top 200 in terms of total balance sheet. However, at 42% of the total, their share has fallen by 4% to the benefit of North African (35% of the total) and West African banks (16%), whose relative weight has increased by 2% each. The share of East African banks has remained stable at 16% of the total. Surprisingly, this year of crisis was not marked by any major bank defaults. This is in part due to the measures to strengthen prudential ratios implemented in recent years. Tiémoko Meyliet Kone, governor of the Banque Centrale des États de l’Afrique de l’Ouest, said that, in 2020, “the average levels of solvency ratios, both for credit institutions and large decentralised financial systems, were higher than the minimum standards in force”. This resilience does not hide the fact that it has been a tough year for the banking sector, with rising risk costs, loan defaults and a decline in activity due to the depression in sectors such as tourism. On average, the profitability of


TOTAL LOANS ($bn) 416

336

367

255

106

200

0

35 10

10

2020

511

455 405

152

50

0

140

131 53 11

39 11

40

11

2020 2019

2018

0

2.58 -21

%

2020 assets ($bn)

Banco Angolano de Invest.

Fidelity Bank Ghana

4.60 -15

1.58 -14

1.00 -19

TOP 10 MOST PROFITABLE BANKS Africa uth So

cco oro Attijariwafa Bank

$539m

21

Firstrand Banking Group

Standard Bank Group

$2.17bn

$2.09bn

National Bank Banque of Egypt Misr

$1.26bn

15

12

12 12 4.5 1

13

4.6 1 2016

5.4 0.9

2018

$889m

5.9

5.4 1.2

$1.2bn

Commercial Int. Bank

14 16

Qatar National Bank Alahli

$560m

29 30

30 17

100

35

35

300 200

0.92

14

13

TOTAL NET INTEREST INCOME BREAKDOWN ($bn)

400

0.93

85

77

2017

2016

500

4.62

212

300

100

1.00

2.57 -43

357

133

2.59

United Equity BCDC United Bank of Orabank Bank for (Ex-Equity Bank for Khartoum Sénégal Africa Bank Africa Côte Burkina Faso Congo) d’Ivoire

Banco Banco de Millennium Banco Fomento Atlântico Sol de Angola (Angola) (Angola)

530

319

200

+73

TOP FIVE FOR ASSET DECLINE

434

440

400

+78

2017

435

462

9 2019

2018

AFRICA’S DEPOSITS ($bn)

500

46

43 10

66

9

2016

600

+102

1.3 2020

2019

2017

our Top 200 banks – net profit divided by NBI – is 24.6%, compared to 30% last year, which is the worst ratio since our ranking began. McKinsey estimates that the return on capital for African banks has been halved to 7%. However, interim results for 2021 often showed a marked recovery in profits, such as with Standard Bank, whose profit for the first half of the year rebounded by 41%. Finally, beyond the ratios, one of the consequences of this crisis has been the acceleration of the digitalisation of banking processes and products. At the Kenyan bank KCB, 98% of transactions in the third quarter of 2020 were carried out online. And the share of mobile payments in the consumer-to-business sector increased from 16% to 44% in one year. This trend has been driven by traditional institutions and networks, but also by new banks and fintechs. The past 18 months has seen record fundraising in this area, including the $200m raised by Wave, a company based in Senegal, which has become the first unicorn in Francophone Africa.

Zenith Guaranty Bank Trust Bank

$734m

$716m

Zenith Bank Nigeria

$572m

Eg

yp

t

g e ria

34

86

97

102

+106

129

241

100

+231

244

260

300

2020 assets ($bn)

Ni

500

%

M

470

400

TOP FIVE FOR ASSET GROWTH

453 424

METHODOLOGY We compiled our ranking of Africa’s Top 200 banks by sending out detailed questionnaires to more than 2,100 financial institutions spread across the continent. Their replies were used to create a systematic ranking of Africa’s top banks based on total asset size. Our list features only the top 200 banks & 100 insurers. All data is communicated to us by the banks or their parent companies. These figures relate to the 2020 financial year. Where that information was unavailable we used 2019 figures, indicated in the rankings by italics. Banks are removed from the list if they do not supply data during two consecutive years. The data was converted to US$ using the exchange rates applicable on 31 December 2020. Numbers in the ‘Rank 2020’ column refer to a bank’s position in The Africa Report’s Top 200 Banks ranking of October 2020.

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

83


‘Access Bank has a vision to be Africa’s gateway to the world.’

1-40 Rank 2021

Rank 2020

Diff.

Total assets

Net interest income

Loans

Deposits

1

1

2

2

South Africa

172 822 496

7 408 482

79 148 301

103 042 788

South Africa

131 453 010

4 288 324

81 281 103

104 734 073

3

4

+1

National Bank of Egypt

Egypt

126 860 000

4

3

-1

Standard Bank of South Africa

South Africa

113 225 433

ND

45 669 600

101 488 000

4 537 977

76 706 759

89 979 882

5

6

+1

Nedbank Group

South Africa

83 795 788

6

5

-1

Absa Bank

South Africa

79 134 860

2 803 844

57 538 564

65 071 974

2 264 144

55 345 583

54 235 140

Bank

Country

0

Standard Bank Group

0

Firstrand Banking Group

7

8

+1

Banque Misr

Egypt

77 877 598

1 815 598

21 273 922

58 851 182

8

7

-1

Attijariwafa Bank

Morocco

63 071 311

2 648 722

37 047 642

39 591 304

9

9

0

Banque Centrale Populaire

Morocco

49 323 307

2 141 248

28 376 952

36 818 507

10

11

+1

Rand Merchant Bank

South Africa

43 172 874

567 332

ND

ND

11

10

-1

Investec Group Ltd

South Africa

37 508 760

968 047

19 603 502

25 533 576

12

12

0

BMCE Bank of Africa

Morocco

36 848 848

1 554 507

21 556 387

22 990 781

13

-

-

Fonds National d’Investissement

Algeria

30 897 812

38 921

22 418 418

ND

14

13

-1

First National Bank of South Africa

South Africa

29 198 892

ND

ND

ND

15

15

0

Banque Extérieure d’Algérie*

Algeria

27 273 407

1 038 423

18 291 908

17 979 805

16

16

0

Commercial International Bank

Egypt

27 138 029

1 596 687

7 584 325

21 640 378

17

14

-3

Banque Nationale d’Algérie

Algeria

25 939 643

661 876

13 130 480

ND

18

17

-1

Ecobank Transnational Inc.

Togo

25 939 473

1 679 765

9 239 948

18 296 952

19

18

-1

Commercial Bank of Ethiopia

Ethiopia

25 504 470

ND

ND

18 764 550

Access Bank Group

Nigeria

22 654 142

686 300

9 424 523

14 583 162

Zenith Bank

Nigeria

22 136 120

782 170

13 937 168

7 253 260

20

19

-1

21

21

0

22

20

-2

Crédit Populaire d’Algérie

Algeria

21 020 588

677 654

12 558 669

12 541 076

23

26

+3

United Bank for Africa Group

Nigeria

20 091 728

1 063 953

6 668 485

15 905 778

24

23

-1

First Bank of Nigeria

Nigeria

20 068 363

656 715

5 787 069

12 775 206

25

22

-3

Access Bank Nigeria

Nigeria

19 901 197

517 497

7 357 266

12 613 463

26

25

-1

Zenith Bank Nigeria

Nigeria

18 596 216

627 394

6 889 870

11 218 453

27

24

-3

Qatar National Bank Alahli

Egypt

18 107 739

910 445

10 463 544

14 835 776

28

28

0

Arab African International Bank

Egypt

14 266 534

350 609

4 145 212

9 775 581

29

29

0

30

32

+2

31

27

-4

MCB Group

Mauritius

13 127 252

541 605

5 944 311

9 637 558

32

33

+1

Guaranty Trust Bank

Nigeria

12 905 545

662 074

4 339 730

9 159 323

33

30

-3

Soc. Gén. Marocaine de Banques

Morocco

12 420 807

554 323

9 880 669

7 469 537

34

31

-3

MCB

Mauritius

11 986 487

475 440

5 594 589

9 167 569

35

35

0

Bank of Africa Group

Senegal

10 730 355

705 679

5 125 276

7 684 224

36

36

0

Capitec Bank

South Africa

10 678 472

1 035 726

39 019 888

8 087 464

37

40

+3

CIH Bank

Morocco

9 943 657

306 379

6 992 413

5 969 447

38

44

+6

Equity Bank Group

Kenya

9 237 349

501 854

4 348 409

6 741 287

39

34

-5

WesBank

South Africa

9 099 972

ND

ND

ND

40

37

-3

KCB Group

Kenya

8 989 071

873 564

5 416 821

6 981 738

Crédit Agricole du Maroc

Morocco

13 768 445

452 995

9 956 691

9 323 654

United Bank for Africa Nigeria

Nigeria

13 592 444

412 972

4 730 719

9 981 013

2020 results in thousands of US dollars; *in italics 2019 results; ND: no data

84

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

CHEVENING

HERBERT WIGWE CEO of Access Bank Group (#20)


It’s probably because we started in the mobile sector that we’re moving up fast in financial services. More than 60 million people worldwide trust in Orange Money. Since its launch in Côte d’Ivoire 13 years ago, Orange Money has secured itself a place as a world leader in the financial services sector and aims to pave the way for financial inclusion in Africa and the Middle East. #OrangeMoney

Orange, limited company (“Société Anonyme”) with a share capital of €10,640,226,396 – Registered office: 111, quai du Président-Roosevelt 92130 – Issy-les-Moulineaux, France. Trade Register No. 380 .129 .866 Nanterre. Exclusive agent in banking and payment services for Orange Bank – Orias n° 13 001 387 (www.orias.fr).


$223 m

In February, National Bank of Kuwait – Egypt (#76) announced an EGP3.5bn increase in issued and paid-up capital.

41-80 Rank 2021 41

Rank 2020

Diff.

39

-2

42

46

+4

43

43

0

44

41

45

53

46

47

47

52

48

-

-

Bank

Country

Kenya Commercial Bank

Kenya

Total assets

Net interest income

8 632 315

607 662

Loans

Deposits

4 982 259

6 323 235

Al Barid Bank

Morocco

7 493 274

231 361

792 131

6 380 325

Atlantic Business International

Côte d’Ivoire

7 434 269

354 399

3 884 338

4 773 555

-3

BMCI

Morocco

7 395 021

338 785

5 646 037

4 953 754

+8

HSBC Bank Egypt

Egypt

7 389 203

407 542

2 303 439

5 722 653

+1

Faisal Islamic Bank of Egypt

Egypt

7 288 927

293 157

ND

ND

+5

Fidelity Bank

Nigeria

7 198 766

271 761

3 461 137

4 434 458

SBM Holdings Ltd

Mauritius

7 115 371

276 847

3 354 701

5 596 686

49

51

+2

Banque Int. Arabe de Tunisie

Tunisia

6 595 149

347 136

4 184 602

6 562 973

50

54

+4

BGFIBank Holding Corp.

Gabon

6 576 790

368 390

4 185 060

4 276 690

51

45

-6

Bank of Alexandria

Egypt

6 484 956

382 039

3 042 357

5 392 248

52

50

-2

Crédit du Maroc

Morocco

6 248 886

249 352

4 584 084

4 921 832

53

55

+2

54

64

+10

55

57

+2

56

-

-

57

56

58

49

Stanbic IBTC Chartered Bank

Nigeria

6 187 464

180 894

1 631 613

2 171 222

Oragroup SA

Togo

6 111 616

290 589

2 963 711

3 971 970

Equity Bank Kenya

Kenya

6 075 613

364 187

2 848 893

4 520 408

West African Development Bank

Togo

5 997 586

145 385

4 051 690

63 591

-1

Union Bank of Nigeria

Nigeria

5 718 578

271 790

1 508 680

2 428 361

-9

Ecobank Nigeria

Nigeria

5 707 318

241 989

2 300 929

3 696 423

59

42

-17

SBM Bank Mauritius

Mauritius

5 656 338

213 815

2 733 140

4 715 029

60

72

+12

Bank Audi Egypt

Egypt

5 429 610

195 822

1 924 021

4 777 210

61

62

+1

First City Monument Bank

Nigeria

5 372 407

334 038

2 147 437

3 281 112

62

59

-3

Arab International Bank*

Egypt

5 359 670

80 342

548 672

3 786 645

63

60

-3

Banque Nationale Agricole

Tunisia

5 321 472

254 575

4 400 026

323 888

64

66

+2

Co-operative Bank of Kenya

Kenya

4 887 395

487 123

2 608 371

3 445 537

65

61

-4

Banque de l’Habitat de Tunisie

Tunisia

4 844 562

206 575

3 728 627

2 616 854

66

107

+41

NCBA Group (ex-CBA)

Kenya

4 804 381

231 989

2 261 331

3 835 691

67

63

-4

Al Baraka Bank Egypt

Egypt

4 800 000

198 600

ND

ND

68

132

+64

69

78

+9

70

48

-22

71

68

-3

72

70

73 74

Bank of Khartoum

Sudan

4 621 989

ND

ND

ND

Abu Dhabi Islamic Bank – Egypt

Egypt

4 615 761

199 066

ND

3 984 991

Banco Angolano de Investimentos

Angola

4 597 950

351 830

554 170

4 084 550

Egyptian Gulf Bank

Egypt

4 572 000

65 515

1 503 000

3 824 000

-2

Société Tunisienne de Banque

Tunisia

4 556 330

229 240

3 350 961

3 104 480

74

+1

Société Générale Côte d’Ivoire

Côte d’Ivoire

4 482 755

306 796

3 007 878

3 751 745

69

-5

Banco de Poupança e Crédito*

Angola

4 149 383

(31 469)

85 536

2 952 747

75

76

+1

AfrAsia Bank

Mauritius

3 958 968

94 980

697 914

3 723 246

76

71

-5

National Bank of Kuwait – Egypt

Egypt

3 944 938

167 321

2 189 387

3 153 437

77

82

+5

Housing and Development Bank

Egypt

3 893 821

189 999

1 202 768

2 980 043

78

75

-3

Diamond Trust Bank Kenya

Kenya

3 867 992

228 798

1 898 195

2 713 316

79

80

+1

Attijari Bank

Tunisia

3 812 599

200 685

2 394 951

2 805 521

80

88

+8

Export Development Bank of Egypt

Egypt

3 599 553

26 769

1 982 905

2 806 808

2020 results in thousands of US dollars; *in italics 2019 results; ND: no data

86

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021


First National Bank of Botswana (#106) recorded a 23% drop in profit after tax for the six-months ended 31 December 2020.

81-120 Rank 2021

Rank 2020

Diff.

Bank

Country

81

94

+13

Ahli United Bank Egypt

Egypt

3 575 791

82

73

-9

Absa Bank Mauritius

Mauritius

3 526 256

90 243

1 444 799

2 725 172

83

79

-4

Absa Bank Kenya

Kenya

3 450 866

211 857

1 900 581

2 319 672

84

85

+1

Suez Canal Bank

Egypt

3 445 508

98 508

1 127 038

2 812 724

85

84

-1

Sterling Bank

Nigeria

3 390 586

213 200

1 557 718

2 481 679

Amen Bank

Tunisia

3 386 340

147 764

2 215 009

2 162 593

Crédit Agricole Egypt

Egypt

3 291 494

182 567

1 628 407

2 616 600

Land Bank*

South Africa

3 282 841

46 309

2 955 752

ND

86

86

0

87

90

+3

88

77

-11

Total assets

Net interest income ND

Loans

Deposits

1 883 804

ND

89

87

-2

HSBC Mauritius

Mauritius

3 192 345

35 333

1 165 330

2 230 515

90

91

+1

First National Bank of Namibia

Namibia

3 129 551

137 377

2 046 473

2 621 890

91

81

-10

Banco BIC

Angola

3 098 702

395 894

1 000 886

2 033 422

92

95

+3

Banque Atlantique – Côte d’Ivoire

Côte d’Ivoire

3 090 257

137 385

1 683 458

2 322 213

93

96

+3

CRDB Bank

Tanzania

3 083 303

101 553

1 689 511

2 319 727

94

97

+3

National Microfinance Bank

Tanzania

3 052 182

243 232

1 766 982

2 289 946

95

104

+9

Ecobank Côte d’Ivoire

Côte d’Ivoire

2 996 376

161 794

1 166 427

1 829 937

96

92

-4

Stanbic Holdings

Kenya

2 990 210

116 436

1 786 330

2 365 727

97

89

-8

Société Générale Algérie

Algeria

2 986 059

172 674

1 622 088

2 405 298

98

93

-5

Standard Chartered Bank Kenya

Kenya

2 963 006

242 870

1 105 868

2 334 132

99

118

+19

100

98

-2

Coris Bank International

Burkina Faso

2 926 915

141 716

1 606 581

1 899 144

Bank Windhoek

Namibia

2 923 839

166 742

2 230 566

2 205 133

101

-

-

Stanbic Bank Kenya

Kenya

2 902 736

115 889

1 439 447

1 982 990

102

121

103

115

+19

NSIA Banque Côte d’Ivoire

Côte d’Ivoire

2 897 630

133 451

1 799 269

1 768 179

+12

Rawbank

DRC

2 894 197

203 545

788 316

2 217 134

Banque de Dévelop. du Mali

Mali

2 855 043

118 038

1 132 083

1 637 322

I&M Bank

Kenya

2 776 314

184 834

1 499 470

2 141 286

104

145

+41

105

100

-5

106

106

0

First National Bank of Botswana

Botswana

2 763 535

122 542

1 344 867

2 121 851

107

99

-8

Arab Tunisian Bank

Tunisia

2 730 162

96 681

1 889 594

2 202 915

108

114

+6

Ecobank Ghana

Ghana

2 711 764

232 740

846 275

2 006 886

109

102

-7

African Banking Corp. Holdings*

Botswana

2 627 400

231 400

644 100

723 700

110

113

+3

GCB Bank

Ghana

2 627 317

256 494

614 176

1 928 804

111

-

-

Equity BCDC

DRC

2 594 255

88 079

ND

ND

112

83

-29

Banco Millennium Atlântico

Angola

2 577 944

ND

698 597

2 085 424

113

65

-48

Banco de Fomento Angola

Angola

2 572 629

423 055

446 722

1 860 514

114

125

+11

Wema Bank

Nigeria

2 556 542

109 738

939 799

2 100 720

115

101

-14

116

110

-6

117

103

-14

118

122

+4

119

116

-3

120

133

+13

Banco Comercial e de Invest.

Mozambique

2 530 790

201 870

900 317

2 007 550

Banque de Tunisie

Tunisia

2 487 248

140 369

1 806 193

1 517 934

Banco Int. de Moçambique

Mozambique

2 450 340

211 824

635 261

1 837 448

Citibank Nigeria*

Nigeria

2 399 611

57 351

420 807

816 918

Union Internationale de Banques

Tunisia

2 383 331

148 401

2 152 254

1 893 923

Stanbic Bank Uganda

Uganda

2 316 302

132 514

976 955

1 483 239

2020 results in thousands of US dollars; *in italics 2019 results; ND: no data

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

87


‘MSMEs** hold the key to the inclusive and sustainable development of our economy.’ ABENA OSEI-POKU MD of Absa Ghana (#126)

Rank 2021

Rank 2020

Diff.

121

128

+7

Bank

Country

Total assets

Société Ivoirienne de Banque

Côte d’Ivoire

2 289 422

Net interest income

Loans

Deposits

139 253

1 598 584

18 063 172

122

109

-13

Awash International Bank

Ethiopia

2 279 523

ND

1 462 205

1 896 011

123

105

-18

Standard Bank Namibia

Namibia

2 257 151

80 134

1 505 708

1 651 870

124

130

+6

Union National Bank Egypt

Egypt

2 175 899

79 782

781 128

1 591 647

125

140

+15

Stanbic Bank Ghana

Ghana

2 166 290

105 554

743 544

1 643 481

126

119

-7

Absa Ghana

Ghana

2 133 026

164 083

761 844

1 106 161

127

129

+2

CBAO Groupe Attijariwafa Bank

Senegal

2 108 835

158 273

1 472 608

1 765 835

128

112

-16

BNP Paribas El Djazair

Algeria

2 075 056

119 925

1 135 007

1 604 222

129

111

-18

Gulf Bank Algeria

Algeria

2 036 696

119 095

1 275 280

1 534 207

130

143

+13

Société Générale Cameroun

Cameroon

2 008 689

147 236

1 245 790

1 585 820

131

123

-8

132

117

-15

133

124

-9

134

120

-14

135

126

136

127

Afriland First Bank*

Cameroon

1 986 143

110 399

868 789

1 502 290

Banque Al Baraka d’Algérie

Algeria

1 976 988

85 202

ND

ND

Attijariwafa Bank Egypt*

Egypt

1 969 082

ND

1 096 990

1 331 286

African Bank

South Africa

1 955 608

ND

ND

ND

-9

BGFIBank Gabon*

Gabon

1 934 436

108 942

1 268 921

1 578 465

-9

Standard Bank Mozambique

Mozambique

1 895 575

117 877

500 566

1 476 192

137

134

-3

Absa Bank Botswana

Botswana

1 883 400

120 172

1 273 218

1 456 251

138

153

+15

Banque Nat. d’Investissement

Côte d’Ivoire

1 853 859

97 185

915 151

1 648 878

139

147

+8

Bank of Africa – Burkina Faso

Burkina Faso

1 847 898

88 576

1 036 487

1 423 371

140

138

-2

Société Générale Sénégal

Senegal

1 808 539

130 317

1 204 862

1 477 264

141

142

+1

Ecobank Burkina Faso

Burkina Faso

1 775 954

89 786

718 218

1 392 785

142

152

+10

Standard Bank Mauritius

Mauritius

1 750 166

34 810

187 758

1 604 722

143

154

+11

Banque Zitouna

Tunisia

1 736 116

94 225

1 388 840

1 464 911

144

144

0

Stanbic Bank Botswana

Botswana

1 720 696

62 765

799 267

1 278 144

145

135

-10

Dashen Bank

Ethiopia

1 742 711

119 397

1 073 984

1 365 698

146

139

-7

147

137

-10

148

141

-7

Bank of Africa – Benin

Benin

1 688 221

84 685

752 802

1 146 875

149

131

-18

Fidelity Bank Ghana

Ghana

1 577 396

169 460

415 550

1 107 958

BICICI

Côte d’Ivoire

1 554 692

84 739

900 742

1 338 099

Bank of Baroda Kenya

Kenya

1 513 444

69 388

433 481

1 228 502

Investec Bank South Africa

South Africa

1 482 911

57 245

ND

ND

150

168

+18

151

155

+4

152

-

-

Investec Bank Mauritius

Mauritius

1 698 411

30 808

883 832

986 918

Misr Iran Development Bank*

Egypt

1 692 660

39 234

317 104

1 488 546

153

151

-2

Nedbank Namibia

Namibia

1 476 622

50 520

833 028

843 065

154

165

+11

Bank of Abyssinia

Ethiopia

1 452 415

98 591

939 453

1 215 933

Zenith Bank Ghana

Ghana

1 447 892

178 634

189 191

936 807

Bank One

Mauritius

1 409 816

32 490

509 189

1 185 394

155

167

+12

156

148

-8

157

157

0

Standard Chartered Bank Ghana

Ghana

1 365 465

173 875

288 203

977 834

158

163

+5

Calbank

Ghana

1 347 259

117 070

408 186

707 973

159

160

+1

Cooperative Bank of Oromia

Ethiopia

1 340 031

107 146

748 883

1 147 386

160

156

-4

Natixis Algérie

Algeria

1 332 001

65 583

612 331

1 050 782

2020 results in thousands of US dollars; *in italics 2019 results; ND: no data **micro, small and medium enterprise

88

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

LINKEDIN

121-160



Centenary Rural Development Bank (#171) lost more than $992,000 since 2019 due to fraud committed by staff members.

161-200 Rank 2021

Rank 2020

Diff.

161

162

+1

Bank

Country

Standard Bank de Angola

Angola

Total assets 1 329 226

Net interest income 77 293

Loans

Deposits

211 867

1 044 418

162

-

-

Orabank Togo

Togo

1 320 527

64 883

677 325

774 612

163

178

+15

Bank of Kigali

Rwanda

1 304 004

102 468

851 100

790 811

164

150

-14

Standard Chartered Bank Botswana

Botswana

1 287 675

63 012

743 153

1 085 069

165

159

-6

Development Bank of Nigeria

Nigeria

1 284 903

55 854

558 540

ND

166

-

-

167

184

+17

168

161

-7

Unity Bank

Nigeria

1 284 173

55 689

527 431

930 766

Bank of Africa – Côte d’Ivoire

Côte d’Ivoire

1 283 822

76 317

562 460

852 269

UBCI

Tunisia

1 280 627

89 104

922 037

975 415

Société Générale Burkina Faso

Burkina Faso

1 260 750

64 300

908 240

1 033 788

Stanbic Bank Zambia

Zambia

1 217 822

109 053

303 676

991 589

169

-

-

170

175

+5

171

188

+17

Centenary Rural Development Bank

Uganda

1 214 960

194 538

528 903

846 900

172

182

+10

Trust Merchant Bank

DRC

1 181 000

68 000

401 000

1 037 000

173

171

-2

National Bank of Kenya

Kenya

1 154 259

63 868

505 407

902 987

174

177

+3

SCB Cameroun

Cameroon

1 140 696

100 966

609 155

910 080

175

-

-

Orabank Côte d’Ivoire

Côte d’Ivoire

1 125 069

37 490

498 275

576 134

176

-

-

Orabank Mauritanie

Mauritania

1 107 451

65 582

607 584

932 921

177

172

-5

Hibret Bank (Ex-United Bank)*

Ethiopia

1 102 329

ND

673 860

902 057

178

174

-4

Mercantile Bank*

South Africa

1 086 197

66 428

658 603

864 664

179

183

+4

NIB International Bank

Ethiopia

1 084 099

72 163

652 839

859 113

180

185

+5

Bank of Africa – Mali

Mali

1 083 624

60 491

471 941

756 727

181

180

-1

FMB Capital Holdings

Malawi

1 078 580

127 261

409 710

757 729

182

176

-6

183

195

+12

184

-

-

185

186

+1

Prime Bank

Kenya

1 076 106

62 679

327 933

802 524

Bank of Africa – Sénégal

Senegal

1 050 170

56 094

522 800

697 850

Bridge Bank Group

Côte d’Ivoire

1 039 651

52 468

525 053

843 740

Ecobank Bénin

Benin

1 028 754

ND

ND

ND

186

136

-50

Banco Sol

Angola

1 002 461

63 498

309 413

792 994

187

-

-

United Bank for Africa Côte d’Ivoire

Côte d’Ivoire

1 000 335

55 348

367 650

706 642

188

-

-

Access Bank Ghana

Ghana

989 533

104 970

176 875

654 792

189

-

-

CFG Bank

Morocco

982 882

31 696

623 010

475 588

190

194

+4

Wegagen Bank

Ethiopia

975 246

112 332

605 061

768 453

191

196

+5

Banco Comercial do Atlântico

Cap-Vert

973 792

37 586

572 473

869 700

192

-

-

Agricultural Development Bank

Ghana

971 742

94 181

325 057

727 819

193

190

-3

Citibank NA Kenya

Kenya

968 730

80 113

337 658

720 658

194

193

-1

Absa Bank Uganda

Uganda

956 711

108 026

352 871

636 579

Devel. Finance Co. of Uganda

Uganda

944 616

82 146

479 335

700 744

Steward Bank*

Zimbabwe

940 866

24 852

55 046

751 330

195

-

-

196

191

-5

197

-

-

United Bank for Africa Cameroun

Cameroon

937 076

61 601

169 990

417 740

198

-

-

SBI Mauritius

Mauritius

936 953

19 198

404 422

510 190

199

-

-

United Bank for Africa Burkina Faso Burkina Faso

929 705

49 838

299 623

662 661

200

-

-

Orabank Sénégal

923 776

38 883

483 152

712 799

Senegal

2020 results in thousands of US dollars; *in italics 2019 results; ND: no data

90

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021


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INTERVIEW

Lungisa Fuzile

CEO, Standard Bank of South Africa

‘There is pent-up demand’ The CEO of South Africa’s largest bank by assets is optimistic about the country’s growth prospects thanks to the Covid-19 vaccination roll-out and President Ramaphosa’s reforms. He outlines the bank’s strategy for a sustainable recovery

92

Thumbs up for Godongwana

SANI

Further cause for optimism, according to Fuzile, comes from Ramaphosa’s appointment of Enoch Godongwana as finance minister in August. Analysts such as Jacques Nel at NKC African Economics have argued that Godongwana has shown “statist impulses” in positions he has taken as head of the African National Congress (ANC)’s economic transformation committee. In July 2020, the committee released a discussion document saying that Covid-19 had ‘legitimised a greater and more active role of the state in guiding the economy’. Godongwana has given few early hints of his reform priorities. Fuzile’s view is that the new finance minister understands and E BAS

South African reforms have the potential to lift the country’s rate of growth above historical trend levels, Lungisa Fuzile, CEO of Standard Bank of South Africa (#4), tells The Africa Report. Structural reforms being carried out by President Cyril Ramaphosa mean that the country’s long-term growth rate of 2% is likely to “tick up” over the coming years, says Fuzile, a former director general of the national treasury. This year, the country is poised for a “somewhat strong rebound” to a GDP growth rate of about 4% after the 2020 Covid-19 lockdowns, he adds: “The internal dynamics of the South African economy are positive. There is pent-up demand.” The government has been “diligent” in pursuing reforms, says Fuzile, pointing to Ramaphosa’s decision in June to allow private companies to generate their own power up to 100MW without a licence. That is likely to reduce corporate reliance on state provider Eskom and the risk of load-shedding this entails. The move “opens up the path to investment in renewable energy,” Fuzile says. “That’s huge.” Fuzile argues that the global economic backdrop is likely to remain favourable, despite signs of a

Chinese economic slowdown. Progress towards collective Covid-19 immunity through vaccination means that Europe may be able to compensate for weaker Chinese growth, he says. He is confident that South Africa can catch up with European vaccination rates. Most businesses in the country have reopened, he says, and there is “a bit of a positive mood”. “Supply constraints on Covid-19 vaccines in South Africa now seem a thing of the past.”

PIERR

By DAVID WHITEHOUSE



can navigate complex ANC policy-making processes. “He is not a newcomer to ANC politics or economic policymaking,” Fuzile says, pointing to Godongwana’s role in putting the finances of the Eastern Cape provincial government on a sustainable footing. He describes Godongwana as “very decisive” and “an insider through and through”. Some analysts question whether Ramaphosa’s reforms go far enough, and whether he will be able to sustain the momentum. South Africa is “not moving on the toughest structural reforms,” says Charles Robertson, chief economist at Renaissance Capital in London. South Africa will reach 4% growth this year, Robertson says. He is encouraged by investments in the country by Amazon and Ford this year. But, he argues, 40 years of South African history show that such a growth rate is unlikely to be maintained.

2% to 3% – but that, he adds, is not enough to make people feel better off. Standard Bank Group (#1), which is Africa’s largest bank by assets, has 9.7 million customers in South Africa. It recovered strongly in the first half of 2021, with group headline earnings up 52% on the previous year. The rebound was led by South Africa, where earnings were almost three times higher than in the first half of 2020.

‘Retailers have got space they don’t fully utilise. This will radically change our distribution strategy’

Distribution overhaul

The bank is counting on an overhaul of its distribution strategy to sustain the recovery in South Africa. The bank can now onboard individual customers digitally for its low-cost MyMo accounts. The accounts, which cost R4.95 per month, reward customers with free mobile data. The bank now has more than 1m MyMo accounts. The concept of branches is also being redefined. In July, the bank partnered Demographics don’t add up with the retailer Pick n Pay to open Robertson’s view of growth prospects branches within their stores, starting in emerging markets is based on demography. Large in the Western Cape and Gauteng. Discussions have average family sizes of five or six children, he says, started with “one or two” further retailers to expand are unable to sustain rapid economic growth. That, in the concept, Fuzile says. turn, means that banks are unable to cheaply finance The Pick n Pay branches run according to the retailer’s the private sector or government. trading hours rather than traditional banking times. South Africa, according to Robertson, stands out as They typically use two bankers and an area of six to a country that has long had a promising demographic 10 square metres within an open retail space. That profile but has failed to take advantage of it. Historical represents a huge saving over full branches of between 100 and 300 square metres, Fuzile says. growth rates of 1% to 2% are about 3% below what should The roll-out will lead to a “far more effective distrihave been achieved given low family sizes, he says. Over the long term, he says, South Africa has bution network” and will take up to two years to complete, he says. “This is the been “the biggest underperformer in emerging markets”. future. Retailers have got space they don’t AN EYE FOR fully utilise. This will radically change Robertson argues that this trend is NUMBERS our distribution strategy,” Fuzile says. likely to continue due to high minimum January 1997 Began wages, which hinder job creation. South A further contributing factor to the working at Statistics Africa has “priced a large share of the bank’s recovery was its decision not to South Africa “pull the handbrake” on lending during workforce out of jobs,” but it is politically very hard for Ramaphosa to roll back the the pandemic, unlike some of its competMay 2011 Became legislation, Robertson says. The result, itors. “We kept our doors open,” Fuzile director general of South Africa’s national treasury he says, is that mass unemployment is says. “Home buyers came our way.” likely to continue, adding to political The bank in July offered to buy out the January 2018 Named remaining shares in financial services risks for businesses. Multinationals CEO of Standard Bank of and property holding company Liberty looking to start new factories will find South Africa lower minimum wages and well-educated Holdings, in which it currently holds 54%, workforces in countries like Egypt and to achieve greater scale in insurance and July 2019 Appointed to Vietnam, Robertson says. “Why would asset management. The agreement still the board of directors of you go to South Africa?” His base-case needs regulatory approval, but Fuzile Business Leadership scenario is for South Africa to muddle says “the signs look good” that it will South Africa be secured. along after 2021 with growth rates of

94

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021


FINANCE

BLUE PLANET STUDIO/STOCK ADOBE

Will AI risk analysis expand access to credit in Africa? For informal-sector workers and the unbanked, the nascent adoption of artificial intelligence (AI) by banks for credit risk assessment could open up channels to loans By OLIVER NIEBURG

lenders, First National Bank of South Africa (#14), Kenya’s NCBA Group (#66) and Equity Bank Group (#38), and Orange Bank in Côte d’Ivoire have been early adopters.

By analysing new-age mobile and web data, fintechs are starting to expand credit to individuals and small and medium-sized enterprises (SMEs) without a financial Selfies not just for fun footprint. Traditionally, African lenders use credit bureau scores, assessing, for instance, if a customer Singapore-based CredoLab, established in 2016 and has a history of missed credit-card payments. When present in South Africa, Nigeria, Kenya and Ghana, no history exists, they evaluate social demographics: uses mobile metadata to assess credit risk. The fintech is the customer female (in which case they are likelier embeds a mobile software development kit (SDK) into to repay), do they work in a stable job market and can lenders’ banking apps and collects privacy-consented they prove a regular income? But this micro-behavioural data points on Android can exclude those who are unbanked or and iOS. These include the percentage of informally employed. selfies on a customer’s phone, the number Michele Tucci, chief product officer at of games installed, videos created per fintech company CredoLab says: “African month, if a virtual private network is used and even the speed at which they type – all lenders lack data to make good credit of African banking collected once one applies for a loan. decisions, and social demographic data customers cannot procure can bring you only so far.” He estimates Aristide Ouattara, a partner and risk a loan through credit that 70% of African banking customers advisory leader at Deloitte Afrique, says: bureau scores, according have no credit bureau score and are simply “African banks are still setting the minimum to one estimate. rejected by lenders. Indeed, 57% of Africans base of credit-risk management tools and frameworks.” But he says such methods remain unbanked, have a cash-in-hand are the future and expects more banks to join in soon. income or prefer to use debit over credit cards. CredoLab lacks visibility on financial inclusion, but Alternative credit scoring began emerging in the mid-2010s, driven by artificial intelligence (AI) tools says it is likely that for every million applications it has built into Safaricom’s M-Shwari mobile-credit services processed in Africa, 200,000 borrowers were given access in Kenya. to credit, 180,000 of whom were first-time borrowers. Ultimately, however, loan decisions rest with lenders, Home-grown fintechs such as Cape Town-headquartered which have mainly focused on the strongest applicants Jumo and Nigerian start-up KiaKia have since emerged, during the pandemic. while overseas players like CredoLab and US-based To read the full article, see www.theafricareport.com/107432/ Branch are also gaining traction in Africa. Among

70%

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

95


Ade Ayeyemi INTERVIEW

‘Nigeria is a long-term strategic, important market’ The CEO of Ecobank says Nigeria is crucial to the pan-African bank’s fortunes and that the troubles exacerbated by the Covid-19 crisis will not hurt its long-term trends Interview by PATRICK SMITH As one of the pioneering pan-African financial institutions, Ecobank (#18) should be enjoying its halcyon days with the region’s economies accelerating plans for integrating their markets and using new technologies to bring banking services to a fast-widening customer base. Ecobank’s headquarters in Lomé, Togo, is a short drive from the newly built secretariat of the African Continental Free Trade Area in Accra, Ghana – the nerve centre of the continent’s single market. But history intervened. First, in the shape of the legacy of management ructions a decade ago, which included some bad investment decisions. Then, weaker commodity prices hit the export economies of Ecobank’s key markets in 2016, to be followed by the shock of the Covid-19 pandemic. Instead of hitting boom time, Ecobank has had to take tough decisions on costs, business direction and shareholder dividends. The current management team, headed by group chief executive Ade Ayeyemi and chairman Alain Nkontchou, has fought back hard, winning a reputation in the markets for prudent liquidity management and contingency plans in a volatile era. The outcome was, Ayeyemi tells The Africa Report, that the group’s results for the last financial year were better than many had expected, with revenues growing by 4%. “We had good growth of our customer deposits, by $2bn,

and we were also able to use that period to increase the acceleration of digital adoption,” says Ayeyemi. Building on its commercial navigation of the pandemic in 2020, the group launched two fundraising operations this year. Ecobank Transnational Incorporated (ETI), the bank’s holding company, floated $350m of sustainable bonds on the London capital market in June. And then, in September, Arise BV, which has a 14% stake in the Ecobank group, invested another $75m into its balance sheet. In May, Fitch affirmed its rating for ETI at B- with a stable outlook, but added a proviso on its concerns about the group’s ‘double leverage’. The bank holding company has used a debt offering to buy a stake in a subsidiary bank.

Prudence, and no dividend Fitch says the ratio is heading in the right direction: ‘We expect ETI’s double leverage to decrease to 140% by end-2022, in line with management guidance, supported by resumed dividends from subsidiaries, stronger performance and continued earnings retention at the bank holding company,’ the agency says. For shareholders, the prudence has a downside: they have not received a dividend for the past four years. That looks set to change next year, according to Fitch. Last year, Ecobank’s corporate and investment activities grew by 34% but commercial bank activities fell by 54% and consumer bank operations were down by 37%. Those trends aren’t an indicator of the direction the bank is taking, argues Ayeyemi: “In economics, there is this thing that you guys call ‘discontinuity’ in the trend. You can’t use 2020 as a basis of a forecast because it’s a one-in-100-years event.” So, rebalancing Ecobank’s operations last year may prove to be a temporary expedient: “We'll find opportunities to enable our corporate and investment bank to also serve customers, serve governments and serve institutions in a

‘YOU CAN’T USE 2020 AS A BASIS FOR A FORECAST BECAUSE IT’S A ONE-IN-100YEARS EVENT‘

96

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021


from almost 20,000 to close at 14,000 people,” Ayeyemi says. The other big story for Ecobank is Nigeria – its historical hits and future growth. Chief among the hits was Ecobank’s purchase of Oceanic Bank back in 2011. Some $159m of the one-off $164m goodwill charges on Ecobank’s 2020 accounts relates to its purchase of Oceanic. Apart from Oceanic, there are Ecobank Nigeria (#58)’s non-performing loans. These stood at 19% last year, compared to 3.5% in the CFA franc zone and 8.9% in Central, Southern and Eastern Africa. “We’ve got a challenge in Nigeria,” concedes Ayeyemi, but he says it is more specific than it looks: “That 19% [of non-performing loans] is dominated by two names […]; those two names together are $200m out of the $484m of the non-performing loans.” One is an oil and gas project put on hold by the pandemic; the second is a pipeline that has been delayed by tax liabilities; and a third is to an oil company that has gone into restructuring.

More to Nigeria than oil Take those away, says Ayeyemi, and the Nigerian loan book looks much more sustainable, given the size of the market and business potential. Neither, he insists, are the bad loans an existential threat to the bank or a reason to shift much of its focus away from Nigeria. “Nigeria is a long-term strategic, important market for us. By 2050 Nigeria will be about 400 million people – that will be number four in the world. Second, if you take oil away, there are a lot of other things, whether technology, unicorns, startups of new technology business and fintech.” The N64bn questions for Nigeria, says Ayeyemi, are about A BANK OF policy: “The problem of the counEXPERIENCE try is lack of supply, not lack of demand […]. A supply problem 1988 Joined Citibank Nigeria is easier to solve with your own savings and foreign investment, March 2006 Became whereas investment is looking Citibank’s head for for yield.” Kenya, Uganda, Tanzania Key to the supply of almost anyand Zimbabwe thing in Nigeria is access to energy. And again, for Ayeyemi, there are September 2013 positive signs as the country’s enerAppointed as Citibank’s gy transition takes shape – its new director for sub-Saharan oil and gas laws bringing in more Africa investments, specialising in gas-to1 September 2015 power projects but also more solar Became CEO of Ecobank and wind-energy projects. For all Transnational Inc. those reasons, as well as having a market offering the fourth-largest 2017 Named noncountry customer base in the world executive director of by 2050, Ecobank’s fortunes will be Ecobank Nigeria closely tied to those of Nigeria. GUILHEM ALANDRY/DOCULAB FOR JA

way that allows us to add a cushion [to offset] the decline in some other businesses,” Ayeyemi says. Households are the bedrock of Ecobank’s business, according to the CEO: “The household, in terms of financial leverage, is normally about half of the financial leverage of the overall economy […] whether in mortgages, car loans, auto loans, school loans, student loans – so we need to start being able to provide financing to the households.” The bank is also striving to cut its cost-to-income ratio. That went down to 62.7% last year and the target is 55% by the end of next year. “We’ve trimmed our structural costs, we’ve reduced our branch network from about 1,300 in 2015 to about 680 now […] and we’ve reduced our people

N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

97


HASSAN OUAZZANI FOR JA

Attijariwafa Bank headquarters, Casablanca

MOROCCO

Attijariwafa shows its digital agility Since 2016, the leading Moroccan banking group has accelerated the digitalisation of its operations and services – a major effort that has won the support of its customers By FAHD IRAQI in Casablanca

Bank (#189), are also working on digital technology, AWB has made a fundamental effort to modernise all its business lines, including insurance products. “In this respect, it is ahead of its Moroccan rivals, Banque Centrale Populaire [#9] and BMCE Bank of Africa [#12], and is closing the gap that could separate it on the continent from an international bank such as Société Générale,” says Yoann Lhonneur, director of Devlhon Consulting. In 2020, AWB recorded 12 million customer logins per month, up 60% in one year. It also claims pole position in Morocco for the number of transactions integrating electronic payments, with 39% of this market in 2020.

Five years ago, Attijariwafa Bank (AWB, #8), the leading bank in Morocco, set the tone: the group’s ambition was to position itself as ‘the top customer-centred bank, focused on satisfying the needs of its clients [by] taking advantage Facial recognition of new technologies linked to digitalisation’. With 27 major programmes and 105 projects, its strategic plan AWB’s 100% digital bank, L’bankalik, launched in 2016, illustrates this trend. In a service launched in February, ‘Energies 2020’ put the emphasis on digital technologies. At this time, the bank set up an entity called Wenov “opening an account is now done through a simple selfie, dedicated to digital and entrepreneurial innovation, incorusing the latest technology in facial recognition and electronic signatures,” says a bank executive. porating WeLab, a technological laboratory. In mid-2021, AWB’s management announced that this facility had led Across AWB, four out of five transactions by clients are to collaborations with 120 startups. now carried out via digital channels. The digital strategy, In 2019, the group integrated a digital centre into the using big data, has also made it possible to refine loan information systems department to develop its products applications. Between 2014 and 2020, the number of and processes. This centre brings together around 250 decision-making strategies and scores increased from people and operates on the basis of ‘agile’ methods, a five to 20. The group is currently working to ensure that all subsidiaries can use these tools. multidisciplinary approach and a lighter methodological framework. The idea is for This digitalisation will continue throughthe Moroccan giant, which has more than out the implementation of its 2021-2025 20,000 employees, to become more flexible. strategic plan. The challenge for the group While the bank remains somewhat conis to improve its operational efficiency, while its branch network and the increase servative, and some of its smaller competIncrease in customer in operating costs impact its results. logins at AWB in 2020 itors, such as CIH Bank (#37) and CFG

60%

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THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021


#fintech #digitization #financialinclusion

https://tagpay.fr/en/


FINTECH

Three’s a crowd in the credit-card crunch China’s UnionPay is giving the US payments giants Visa and Mastercard a run for their money in Africa; fighting back, the two are investing in new financial services, from purchasing fintechs to buying stakes in telecoms firms By QUENTIN VELLUET

“Fintechs that want to expand geographically can quickly be held back if they do not have the support of investment funds or industrial operators,” says Lhonneur. “Players like Visa and Mastercard have enormous advantages because they have a network role that allows synergies and offers international growth prospects.” According to data provided by Devlhon, Visa and Mastercard processed about €23.5bn ($26.8bn) in transactions on the Absa Bank network in 2019, compared with €395m ($450m) for the rest of their competitors (UnionPay, American Express, Discover, JCB, etc.).

Issuing bank cards in Africa, where cash and mobile money are king, is a strange sort of bet. But, for the past 15 years, the two United States payment giants Visa and Mastercard have been fighting a battle for supremacy in the payments space, which the Covid-19 pandemic and the accelerated development of fintech have only intensified. In recent years, their duel has been shaken up by the arrival on the continent of China’s UnionPay, which has been targeting the position of Mastercard. Since 2018, the Chinese heavyweight, which was launched back in 2002, has been keen to increase its The number of countries activity in African markets and has been on the continent where active in seeking partnerships with local China’s UnionPay has financial institutions. established a presence Following on from its 2018 deal with South Africa’s Standard Bank and Nigerian fintech giant Interswitch, the company, which brings together 175 Chinese banking players, announced an alliance with PostBank in Uganda in November 2020, The amount Mastercard and with Bank of Africa in Morocco in invested in Airtel Money May 2021. UnionPay is present in Africa to help it gain market in more than 40 countries. intelligence

40

$100m

Visa’s African advantage In contrast with Mastercard, Visa still has some leeway, holding a leading position in almost all its markets, especially in the Union Economique et Monétaire Ouest Africaine zone, where Mastercard has only a small presence (7% market share in 2018) compared to Visa’s 47% hold on the market. “In Southern Africa and the Eastern region, the game is becoming more balanced”, says Yoann Lhonneur, of the Paris-based strategy consulting firm Devlhon Consulting. Like Visa, Mastercard has several trump cards to play to develop its services quickly. First, the US group, whose 2021 turnover is expected to be close to $19bn, can use its financial power to buy companies that threaten its development or can expand its customer base.

100 THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

Platform purchases

Mastercard’s March 2019 investment of $300m in Network International is the perfect example. The operation enabled Visa’s rival to develop a partnership with this specialist in payment solutions in the Middle East for the development of services in Africa. The partnership resulted in the creation of a digital platform in early 2021 that allows merchants to accept different types of payments, from USSD (a protocol that allows data to be sent and received without internet access) to QR codes, mobile money or NFC (contactless phone). In April, Mastercard, led since January by Michael Miebach, invested $100m in Airtel Money. There are several advantages for a card provider to invest in mobile money, as the head of a pan-African operator explains: “As a financial partner, it is easier for them to know what these companies are planning to do and thus become privileged partners. It is also a way for them to diversify, taking into account the threat that mobile money represents to their core business [payment by card].” The company that can kill costs will win. “The problem in Africa are the margins being made,” says Jean Sideris, a former employee of Visa and Mastercard, now at consulting firm Edgar, Dunn & Co. “For an average transaction of around $3 on the continent – compared to around $50 in Africa and Europe – the charges and commissions of the current operators are too high.”


INSURERS Our exclusive ranking and analysis of the continent’s largest insurance companies shows how the sector continues to grow but faces challenges from Covid-19 and the low take-up of insurance products in Africa


By PIERRE-OLIVIER ROUAUD and HONORÉ BANDA

F

asten your seatbelts! For the African insurance world, 2020 was a year like no other, marked by the Covid-19 pandemic and a halt to the rapid expansion seen in recent years. Prior to the coronavirus crisis, McKinsey consultants predicted compound annual growth rates for the sector of around 7% between 2020 and 2025. Once the dust settles after the crisis there is every likelihood of a return to rapid growth. Africa remains the least insured region of the world. In 2019, the insurance penetration rate (insurance premiums compared to gross domestic product) stood at 2.78%, compared to a global average of 7.2%. McKinsey is bullish about the continent’s insurance potential. In a December 2020 report, it said: ‘The pandemic is profoundly affecting both lives and livelihoods, and consumers are cutting back on discretionary expenditure

— including insurance — in the face of income and market volatility. However, this impact is expected to delay rather than alter the pattern and potential of future growth. And in some cases, the crisis may accelerate existing trends — notably the shift toward digital and remote channels, which has the potential to offer new opportunities to both insurers and consumers.’ The McKinsey report sets out what has been helping the insurance market to grow in Africa: ‘Africa’s insurance sector is being driven primarily by economic growth rather than deepening market penetration. And where penetration is occurring, it is mostly accompanied by structural reforms. Market liberalisation and deregulation, the enforcement of compulsoty insurance, increased access through wider distribution, public-private partnerships and regulation to support innovation and access have all been shown to build consumer trust and develop more resilient insurance industries with better-protected populations in comparible markets.’

Ambition and resilience Our exclusive ranking of Africa’s Top 100 insurers shows the resilience of the major players. At $50.11bn, their cumulative turnover was up 0.3% compared to 2019, when it had jumped by 19.4%. While the sector is now re-establishing its dynamism, most markets experienced a recession or at least a sharp slowdown last year. This was the case in Morocco, where the sector’s turnover grew by a meagre 2% to Dh45.8bn ($5.1bn), according to the Autorité de Contrôle des Assurances et de la Prévoyance Sociale – a rate two to three times lower than in previous years. Morocco is in second place in our ranking, with 15 companies included in the Top 100.

32

North Africa Central Africa West Africa East Africa Southern Africa

TOP FIVE FOR REVENUE GROWTH %

25

+62 15 1

2020 revenue ($m)

+46

+41

+38

2 226

103

292

57

+29 80

SPA (Morocco)

WAICA Re (Sierra Leone)

SCR (Morocco)

Swan (Mauritius)

COMAR (Tunisia)

27

TOP FIVE FOR REVENUE DECLINE %

TOTAL REVENUE & PROFITS 2019

2020

Revenue

Profits

$49.98bn

$4.71bn

$50.11bn

$2.02bn

108 THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

2020 revenue ($m)

SUNU AV CI (Côte d’Ivoire)

Trustco GH (Namibia)

Leadway (Nigeria)

SONAS (DRC)

CNMA (Algeria)

103

42

140

-69

-44

98 -18

-58

52 -24

SOURCE: THE AFRICA REPORT RESEARCH

NUMBER OF INSURERS BY REGION


In South Africa, which is by far the continent’s largest market, insurance revenue fell by about 8% in 2020. The sector is not expected to return to pre-Covid levels until 2024. The 15 South African companies represented in our rankings still account for 66.1% of total premiums and South African insurers hold nine of the top 10 places. There is one Moroccan group in the top 10, Saham (#8) but it is also now part of the South Africa’s Sanlam (#1). Sanlam, meanwhile, is not dialling back on its ambitions. The group has declared a goal of having 50 million customers by 2025. Announcing a partnership with South Africa-based telecoms giant MTN in September 2021, Sanlam CEO Paul Hanratty said in a statement: ‘We anticipate strong long-term growth in mobile financial services, and insurance and investments are no exception to this.’

In Nigeria, the market plunged 15.3% last year, according to the National Bureau of Statistics. AIICO Insurance (#39) is Nigeria’s largest retail insurer, working in the life and non-life sectors. In September, AIICO’s CEO, Babatunde Fajemirokun, said that diversification is a priority: “The firm has revised its vision and the board has given the management the approval to look beyond Nigeria’s insurance space and explore opportunities across sub-Saharan Africa. Despite [the fact] that Nigeria has one of the lowest penetration rates in Africa, we still believe that, in terms of our business models to improve the level of diversification, is important to look outside.” Egypt, meanwhile, stands out for its resilience. Its economy has weathered the crisis well and this is reflected in the insurance market, which jumped 16% in fiscal year 2020/2021, according to the Financial Regulatory Authority.

Nigeria’s AIICO is looking for opportunities to diversify across sub-Saharan Africa


‘We are bullish in the long run about Africa. The demographics are fantastic.’ PAUL HANRATTY CEO of Sanlam (#1)

Rank 2021

Profits

2020/2019 Profit change

9 065

248

-14%

4 944

-365

- 4%

South Africa

4 691

1 230

-1%

Discovery Health

South Africa

3 396

12

11%

5

Liberty Holdings

South Africa

2 675

-183

-6%

6

Santam

South Africa

2 611

44

2%

7

Momentum Metropolitan Holdings

South Africa

2 271

20

-13%

8

Sanlam Pan Africa (Ex-Saham Finances)

Morocco

2 226

ND

62%

9

Rand Merchant Investment Holdings

South Africa

1 104

130

3%

10

Munich Reinsurance Co. of Africa

South Africa

957

ND

23%

11

Wafa Assurance

Morocco

930

45

2%

12

Compagnie d’Assurances et de Réassurances

Tunisia

854

18

21%

13

African Reinsurance Corp.

Nigeria

805

56

-5%

14

Royale Marocaine d’Assurance

Morocco

763

ND

9%

15

Mutuelle Attamine Chaabi

Morocco

643

ND

22%

16

Hollard Insurance

South Africa

599

26

-1%

17

Saham Assurance Maroc

Morocco

569

16

2%

18

Atlanta Sanad Assurance (Ex-Atlanta Assurances)

Morocco

551

49

11%

19

Axa Assurance Maroc

Morocco

541

ND

13%

20

Metropolitan Life

South Africa

483

ND

-4%

21

Sunu Group

Côte d’Ivoire

373

13

14%

22

Avbob Industries

South Africa

323

1

9%

23

Société Centrale de Réassurance

Morocco

292

31

41%

24

Jubilee Holdings

Kenya

271

37

-5%

25

Botswana Insurance Holdings

Botswana

264

49

9%

26

Britam Holdings

Kenya

262

-106

-3%

27

Compagnie Centrale de Réassurance

Algeria

254

31

-15%

28

La Marocaine Vie

Morocco

240

7

3%

29

Société Nationale d’Assurances

Algeria

219

17

-10%

30

Zep-Re (PTA Reinsurance)

Kenya

208

17

1%

31

The Rand Mutual Assurance Co.

South Africa

202

153

-6%

32

Mutuelle Centrale Marocaine d’Assurance

Morocco

200

ND

26%

33

Swan Group

Mauritius

198

19

-7%

34

Britam Kenya

Kenya

191

ND

-13%

35

Jubilee Insurance Kenya

Kenya

183

-17,35

-4%

36

Compagnie Algérienne des Assurances Transports

Algeria

187

21

-9%

37

Allianz Assurances Maroc

Morocco

175

ND

14%

Insurer name

Country

Revenue

1

Sanlam

South Africa

2

Old Mutual Life Assurance Co.

South Africa

3

Indequity Group

4

38

Kenya Reinsurance Corp.

Kenya

169

27

-2%

39

AIICO Insurance

Nigeria

162

13

18%

40

CIC Insurance Group

Kenya

155

-3

-11%

41

Custodian & Allied Insurance

Nigeria

152

33

17%

42

Clientele Life Assurance Co.

South Africa

152

22

-6%

43

UAP Holdings

Kenya

150

-12

-5%

44

Conduit Capital

South Africa

144

-45

-1%

45

Leadway Assurance Co.

Nigeria

140

30

-44%

46

Mauritius Union Assurance Co.

Mauritius

138

9

13%

47

Enterprise Group

Ghana

134

25

19%

48

Société Tunisienne d’Assurances et de Réassurances

Tunisia

133

6

0%

49

Continental Reinsurance Co.*

Nigeria

131

16

40%

50

African Trade Insurance Agency

Kenya

126

39

12%

2020 results in millions of US dollars; *in italics 2019 results; ND: no data

110 THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

SANLAM

1-50


Axa Mansard (#51) in Nigeria recorded a 22% rise in gross premiums in the first half of 2021, compared to the first half of 2020.

37.2 bn

51-100 Rank 2021

Profits

2020/2019 Profit change

Insurer name

Country

Revenue

51

Axa Mansard Insurance

Nigeria

124

12

4%

52

Mutuelle Agricole Marocaine d’Assurance

Morocco

121

ND

14%

53

Jubilee Insurance Uganda

Uganda

121

7

22%

54

Compagnie Algérienne d’Assurance et de Réassurance

Algeria

113

9

-12%

55

Swan Life

Mauritius

112

14

-10%

56

Nico Holdings

Malawi

110

24

7%

57

Compagnie d’Assurances des Hydrocarbures

Algeria

106

5

-1%

58

CICA-RE*

Togo

105

9

14%

59

Sunu Assurances Vie Côte d’Ivoire

Côte d’Ivoire

103

6

-69%

60

WAICA Reinsurance Corp. – Sierra Leone

Sierra Leone

103

13

46%

61

Sanlam Côte d’Ivoire (Ex-Saham Assurances Côte d’Ivoire)

Côte d’Ivoire

98

ND

1%

62

Caisse Nationale de Mutualité Agricole

Algeria

98

14

-18%

63

APA Insurance

Kenya

91

5

-2%

64

State Insurance Co. of Mauritius

Mauritius

82

15

-7%

65

Compagnie Internationale d’Assurance et de Réassurance*

Algeria

82

ND

-2%

66

Old Mutual Malawi

Malawi

81

22

-3%

67

Cie Méditerranéenne d’Assurances et de Réassurances

Tunisia

80

9

29%

68

Sanlam General Insurance Kenya

Kenya

79

-1

16%

69

Compagnie d’Assurances Transports

Morocco

77

ND

8%

70

Groupe des Assurances de Tunisie

Tunisia

70

6

13%

71

Santam Namibia

Namibia

66

ND

-11%

72

NSIA Vie Côte d’Ivoire

Côte d’Ivoire

66

ND

27%

73

Suez Canal Insurance

Egypt

63

3

1%

74

Assurances Maghrebia

Tunisia

69

ND

12%

75

Maroc Assistance Internationale

Morocco

62

ND

6%

76

Liberty Kenya

Kenya

61

6

-7%

77

Tanzania Reinsurance Co.

Tanzania

60

3

-1%

78

Société Tunisienne de Réassurance

Tunisia

58

5

1%

79

NEM Insurance

Nigeria

58

13

6%

80

Swan Insurance Co.

Mauritius

57

7

38%

81

Swaziland Royal Insurance Corp.*

Swaziland

56

11

22% -24%

82

Societe Nationale d’Assurances – DRC

DRC

52

-2

83

Mutual Benefits Assurance

Nigeria

52

13

2%

84

Allianz Assurances Vie Côte d’Ivoire

Côte d’Ivoire

52

ND

14%

85

Mutuelle D'assurances des Transporteurs Unis

Morocco

51

ND

20%

86

Allianz Assurances Côte d’Ivoire

Côte d’Ivoire

50

ND

16%

87

Mutuelle Assurances de l’Enseignement

Tunisia

50

1

16%

88

Groupe Sonam Assurances

Senegal

49

ND

1%

89

Sanlam Assurance Vie Côte d’Ivoire

Côte d’Ivoire

49

-2

12%

90

BH Assurances

Tunisia

47

4

13%

91

Cornerstone Insurance

Nigeria

46

6

28%

92

Salama Assurances Algérie*

Algeria

45

ND

4%

93

Ghana Reinsurance Co.*

Ghana

44

5

5%

94

Fidelidade Angola

Angola

43

2

-5%

95

Kenindia Assurance Co.*

Kenya

42

-2

27%

96

Trustco Group Holdings

Namibia

42

-23

-58%

97

SIC Insurance Co.

Ghana

41

1

11%

98

Axa Assurances Côte d’Ivoire

Côte d’Ivoire

41

ND

18%

99

NSIA Assurances Côte d’Ivoire

Côte d’Ivoire

40

ND

20%

Coronation Insurance (Ex-Wapic Insurance)

Nigeria

40

3

-5%

100

2020 results in millions of US dollars; *in italics 2019 results; ND: no data

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

111


TOP 40 DIGITAL LEADERS IN AFRICA

TOP 40 DIGITAL

LEADERS IN AFRICA Tech builds the future for Africa’s youth, providing jobs, opportunities and access to knowledgee. As A the th ecosystem geets ever more crowde ed with talent, The Africa A Report launcches its first ranking of the digital econo omy’s power playerrs

120 THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021


THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

121


TOP 40 DIGITAL LEADERS IN AFRICA

education. Even governments have started to use them in the hope of bridging the gap between citizens and administrations. Alongside MTN, Vodacom, Orange and others, thousands of startups, investors, incubators, fibre-optic network operators, data centres and influencers are enriching the ecosystem. This profusion of players has inspired The Africa Report’s first ranking of the top 40 personalities who make up digital Africa, with the goal of updating it every year. To select 40 from this crowded field was an ambitious undertaking. It includes telecom operators with hundreds of millions of subscribers, the heads of specialised investment funds and founders of startups that have become unicorns, but also African representatives of the FAANG (Facebook, Amazon, Apple, Netflix and Google) giants and finally some public decision-makers.

By JULIEN CLEMENÇOT and HONORÉ BANDA

I

If there is one industry that has continued to exceed expectations in Africa, it is telecommunications. Today, the continent has more than 500 million mobile phone users. That is almost one in two Africans. It is far beyond what Rwandan-Congolese businessman Miko Rwayitare, creator of the continent’s first mobile network, Telecel International, could have imagined in 1987. At the time, the entrepreneur was only targeting a few thousand of the happy few, and his phones, which could not even send an SMS, were still the size of a brick. In three decades, operators have gone through global crises without a shudder. After the development of 2G networks, then 3G and 4G networks, submarine cables and mobile-mobile payments, the continent has taken a new technological leap – that of the platform economy. It first appeared in the field of e-commerce, which has been active for a few years now, to be joined by financial services, energy, agriculture, health and

Innovation, funding, leadership

$1.1bn Amount raised by African tech startups in the first 8 months of 2021, according to Disrupt Africa

122 THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

For our ranking, we used a series of criteria ranging from innovation capacity to financial strength and the size of funds raised, as well as leadership and notoriety, with the main focus on events that occurred during the period 2020 to 2021. This ranking cannot claim to be an objective truth, but it presents our vision of a revolution that we have followed since its beginnings. We could have immediately placed the top 10 telecom operators, without whom very little would be possible, but we also wanted to highlight the adoption of e-commerce, the explosion of fintechs, particularly in Nigeria, the growing interest in energy-access services, the development of data centres, and the first truly significant projects from the FAANG companies in Africa, particularly in infrastructure. Finally, we note that women are still in the minority in this ecosystem, and particularly in the top roles. However, they are far from being absent. In addition to the personalities in our ranking, we would like to mention Odunayo Eweniyi, co-founder of the startup Piggyvest, Coura Carine Sene, who runs Wave mobile money in Senegal, Fatoumata Ba, whose fund, Janngo Capital has pledged €60m ($70m) for women-led startups, and Andreata Muforo, partner of the investment company TLcom. We hope to see more women in the elite of the sector in 2022, so watch this space.


RANKING

The shapers of Africa’s digital landscape The Africa Report’s exclusive ranking of the infrastructure builders, telco CEOs, startup founders, e-retailers and policymakers creating the continent’s digital future Infrastructure

Rank 2021 1 2&3

Startup

Telecom

Finance

Policy

E-commerce

Media

Name

Nationality

Position

Organisation

Strive Masiyiwa

Zimbabwe/UK

Founder & Executive Chairman

Econet Paystack

Shola Akinlade & Ezra Olubi

Nigeria

Co-founders & CEO

Olugbenga Agboola

Nigeria

Co-founder & CEO

Flutterwave

K. Bekker & P. Mahanyele-Dabengwa

South Africa

Chairman & CEO for South Africa

Naspers

7

Ashraf Sabry

Egypt

Founder & CEO

Fawry

8

Mitchell Elegbe

Nigeria

Founder & CEO

Interswitch

4 5&6

9

Ralph Mupita

Zimbabwe

President & CEO

MTN Group

10

Peter Ndegwa

Kenya

CEO

Safaricom Vodacom

11

Shameel Joosub

South Africa

Group CEO

12

Alioune Ndiaye

Senegal

CEO

Orange Middle East & Africa

13

Issam ‘Sam’ Darwish

USA

Chairman & Group CEO

IHS Towers

14

Michael David Francois

USA

Network Infrastructure Strategy TL – EMEA

Google

15

Nunu Ntshingila

South Africa

Regional Director for Africa

Facebook

16

Mostafa Kandil

Egypt

Founder & CEO

SWVL Technologies

17

Michael Seibel

USA

Managing Director & Group Partner

Y Combinator

18

Tayo Oviosu

Nigeria

Founder & Group CEO

Paga

19 & 20 Jérémy Hodara & Sacha Poignonnec 21

France

Co-founders & Co-CEOs

Jumia

Ismail Ahmed

Somaliland

Founder and Chairman

WorldRemit

22

Jan Hnizdo

South Africa

CEO

Teraco Data Environments

23

Moustapha Cissé

Senegal

Director of the Africa AI Center, Accra

Google

24

Ryosuke Yamawaki

Japan

General Partner

Kepple Africa Ventures

25

Zhu Zhaojiang

China

President

Transsion Holdings

26

President Paul Kagame

Rwanda

President

Rwanda

27 & 28 Tope Lawani & Babatunde Soyoye

Nigeria

Co-founders

Helios Investment Partners

29

Sim Shagaya

Nigeria

Founder & CEO/former CEO

uLesson, Konga.com, E-Motion

30

Jason Njoku

Nigeria

Co-founder & CEO

iROKOtv

31

Iyinoluwa Aboyeji

Nigeria

Co-founder

Future Africa, Andela, Flutterwave

32

Zhou Yahui

China

Founder & CEO

OPay

33

Moulay Hafid Elalamy

Morocco

Founder/Minister of Industry, Trade & Tech.

Saham Group/Govt. of Morocco

34

Akshay Grover

India

Acting Group CEO

Cellulant

35

Jesse Moore

USA

Co-founder and CEO

M-Kopa

36

Kim Reid

South Africa

Founder & Group Chairman

Takealot

37

Ory Okolloh

Kenya

Director of Investments

Omidyar Network

38

Funke Opeke

Nigeria

CEO

Main One Cable Company

39

Rebecca Enonchong

Cameroon

Founder & CEO

AppsTech

40

Harvesh Kumar Seegolam

Mauritius

Governor

Bank of Mauritius

THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

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AFRICAN N LEADERSHIP Insight, conviction and a touch of idealism sent these pioneers where others feared to tread. Now they are the power players in Africa’s digital space, and it’s only the beginning By JAYSIM HANSPAL

Africa is often associated with the ‘digital divide’, as the internet and its manifold benefits remain out of reach for the majority of the continent’s population – only 28.2% of Africans had access to the internet in 2019, according to the International Telecommunication Union’s estimate. At the same time, the continent is a breeding ground for innovation and homegrown initiatives that have changed Africa’s digital landscape, paving the way for economic transformation. As the need for social distancing brought by Covid-19 continues to affect families and businesses alike, the digital sector has provided solutions. From cashless transactions to digital health technology and online educational tools, African pioneers have invested in innovations that both predated and will outlast the Covid-19 pandemic. After studying the impact of technological change in Nigeria, Senegal and Tanzania the World Bank is categorical about the power of digital tools: ‘One key takeaway is that the more digital access Africans have, the more likely they are to reduce poverty over time,’ the Bank says in the introduction to its findings. As the young population increases, there will be new opportunities for African businesses. Digital innovation could greatly improve the economic growth of many countries, creating jobs, helping to alleviating poverty and improving quality of life. Africa is famous for its leapfrogging – for example, from no phone to cell phone. But education systems will also need to keep up if young Africans are to be the inventors of a new future rather than simply the users of technology developed elsewhere. A focus on the following trailblazers raises important questions about the future of an expanding digital sector on the continent, and how it will deal with issues like data privacy, promoting inclusive access, and the dominance of a handful of players who create popular platforms that quickly become ubiquitous.

124 THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

HALDEN KROG/BLOOMBERG/GETTY

DIGITAL #5&6

Koos Bekker SAVVY CHOOSER

N

aspers is the Africa’s biggest digital media powerhouse. It owes its financial firepower to a single investment that skyrocketed in value. In May 2001, Naspers bought 46.5% of Chinese internet company Tencent. The man in charge at the time was Koos Bekker. Bekker is a big name in South Africa. After founding one of the first two pay-television services outside of the US, he took his success to Naspers as CEO in 1997. Naspers, or De Nasionale Pers


Phuti MahanyeleDabengwa

D

UTT EAN H

ON/BL

OOMB

ERG/G

#5&6

ETTY

IN TECH WE TRUST

Beperkt as it was originally called, was started in 1915 as a publishing company. It now has a value of $78bn and has expanded its activities to include online retail and venture-capital investments. Before joining Naspers, Bekker founded M-Net/Multichoice pay-television service, which now operates in 48 African countries. He was also a founding director of South Africa-based telecoms giant MTN, now the largest mobile network operatator in Africa.

Public apology Naspers owns Africa’s largest publishing company, Media 24, and South Africa’s largest online retailer, Takealot.com. Naspers has not always been on the side of progress, however, and made a public apology in 2015 for funding the National Party during apartheid. The same year Bekker sold 70% of his shares in Naspers and became chairman of the board. Tencent is now in Beijing’s crosshairs, as policymakers seek

to regulate the country’s tech giants. Such a move may encourage Naspers to focus on other opportunities for growth. In 2019 it listed its global internet investment business unit Prosus on the Euronext bourse, retaining a 56.92% stake. Naspers had already sold some of its stake in Tencent for $10bn in 2018 to have funds for other ventures, including a stake in Russia’s Mail.ru Group. “E-commerce is not a get-richquick business. […] You need a good amount of patience,” Bekker told media. On 31 August, Naspers announced a deal for its Prosus company to buy Indian payment platform Billdesk for $4.7bn. This marks an increased interest in the Indian market, with more than $9bn spent since 2014. The Billdesk deal is its biggest investment so far. Moving on from its ignominious past, Naspers in 2019 created the role of CEO for South Africa and appointed the influential entrepreneur Phuti Mahanyele-Dabengwa.

A child of Soweto who was 23 when South Africa gained its freedom, she was CEO of Shanduka Group, founded by South Africa’s current president, Cyril Ramaphosa, before forming her own black economic empowerment (BEE) investment company, Sigma Capital, in 2015.

Inclusivity inc. Mahanyele-Dabengwa is a big believer in the power of technology, telling reporters: “We need greater connectivity for inclusivity. […] Technology can transform our economies, create jobs and boost growth and make possible the transition to a more sustainable and equitable society.” She says the focus on “healthcare connectivity” and e-commerce is a priority for Naspers moving forward, with an eye on Brazil, Russia, India, China and South Africa. As South Africa CEO, Mahanyele-Dabengwa also oversees Naspers Labs, a social impact organisation with the aim of creating tech jobs for the unemployed in South Africa, and Naspers Foundry, a $1bn investment vehicle for early tech companies. Seven startups, including Aerobotics, WhereIsMyTransport, and Food Supply Network have received R400m ($28 million) in funding. In July, the Foundry backed digital insurance advice firm Ctrl $2.3m and in early August it invested $8.3 million in the artificial intelligence insurtech startup Naked.

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TOP 40 DIGITAL LEADERS IN AFRICA

Mitchell Elegbe CHAMPION OF CASHLESS COMMERCE

M

RICCARDO SAVI/GETTY FOR CONCORDIA SUMMIT

itchell Elegbe founded Interswitch in 2002, after his first encounter with an ATM swallowed his card in Scotland. An alumnus of the China Europe International Business School (CEIBS) Global CEO Programme and the African Leadership Institute’s Archbishop Tutu Fellowship Programme, he now wants to help transform African economies and push towards a cashless marketplace. Interswitch is a Nigerian digital payments company and one of the continent’s first unicorns. In 2010, shareholders decided to sell

two-thirds of the company to raise more funding. Nine years later, after a $200m cash injection from Visa, it was valued at $1bn. Its planned initial public offering in London, though, has repeatedly been delayed and does not yet have a launch date.

Pan-African designs Interswitch’s main market is Nigeria, but it is set on becoming a pan-African digital payments platform. This year, it is expanding its Quickteller Business ‘seamless payment solution’ to businesses in East and West Africa.

Z

imbabwe’s Strive Masiyiwa is a digital innovator through the Econet Group, both in Zimbabwe and beyond through Econet Wireless, and through Liquid Intelligent Technologies, which has built fibre-optic networks in 13 African countries. Liquid is also helping to experiment with new technologies in partnership with Alphabet, the parent company of Google. With Project Taara it is testing ways to send data through space, which

#1

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With Elegbe at the helm, Interswitch has grown at an incredible rate; now it provides fintech and digital services such as technology integration to governments, banks and high-net-worth individuals. In alliance with the Cross River State government, Interswitch developed software responsible for digitalising all government departments. Elegbe says that digital tools need to be rolled out in many other sectors to help African economies to grow, calling for Nigeria’s national ID programme, which was launched in 2014, to

had a successful test this year in Brazzaville and Kinshasa. In September, Afreximbank’s Fund for Export Development in Africa announced an investment in Liquid Intelligent Technologies solutions, adding to the list of big international backers of Masiyiwa’s digital business ventures. Billionaire Masiyiwa has also backed other initiatives in the digital space, with the EcoCash mobile-money platform becoming so important to the Zimbabwean economy that the authoritarian government of Emmerson Mnangagwa sought to weaken its role. Econet Wireless became the first African telecoms company to buy a bank in order to carry out its fintech plans. The government looks set to continue


#8 services, helping local startups to grow and develop. Digital payments will not cover the payment landscape overnight, so Interswitch has about 11,000 ATMs across different banks.

Funding innovation

those markets already exists. But in West, Central and East Africa, there is still room for development, so we felt we should begin to spread our tentacles across these regions,” he said. Through its credit card company, Verve, Interswitch has supplied more than two million cards and has 190,000 businesses using its

using regulations and the threat of lawsuits to manage the activities of the mobile-money sector more tightly. And so, with the Zimbabwean business environment tied to the current political power structure, London-based Masiyiwa is keeping a more continental view.

electric ride-hail taxi network in 2020. But Kwese TV, the satellite TV broadcaster, failed to become a profitable business and closed down in 2019. Masiyiwa’s influence extends far beyond the continent, as he sits on the board for numerous international companies including Netflix, Unilever and Stanford University. His foundation has provided scholarships to more than 250,000 young Africans. During the early days of the Covid-19 pandemic, he and other business leaders used their negotiating

skills to set up the not-for-profit Africa Medical Supplies Platform, enabling African governments to purchase items such as personal protective equipment online. As the African Union’s coronavirus envoy, Masiyiwa has been fighting the continent’s corner: “We want to make clear to all suppliers […] if you want a long-term future with us now, you produce from Africa.” Meanwhile, his daughter Elizabeth now runs Akello, a subsidiary of Econet, which aims to use tech to improve African education systems.

TAIWO OYEMADE

create digital identities and make them easily verifiable. Fintech expansion in Africa can have varying levels of success. In a 2013 interview with Forbes, Elegbe said that Interswitch may not be successful everywhere. “Southern Africa is quite developed and so chances are that any payment infrastructure you need to have in

Interswitch also wants to put its money into African fintech. It launched a $10m venture arm in 2015, which the following year acquired Vanso, a Nigerian fintech security company. At TechCrunch Disrupt in 2020, Elegbe said: “We’ll be very selective in the companies we invest in. They should be companies that Interswitch clearly as an entity can add value to. They should be companies that help accelerate growth by virtue of what we do and the customers that we have.”

Data and determination Africa Data Centres is building more digital infrastructure in Africa. Last year, Masiwiya’s project received $300m from the World Bank’s International Finance Corporation to fund its expansion into other parts of Africa. Masiyiwa and Econet have got involved in a slew of other startup activities. Distributed Power Africa works on off-grid renewable energy and signed a partnership with EDF in March. Vaya Africa launched an

Strive Masiyiwa CONNECTING PEOPLE

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Ralph Mupita

investors seem to like Mupita’s style: the group’s shares were up 124% between late August and the start of 2021 – and this despite MTN’s suspension of its dividend payment in order to pay off debt and deal with the uncertainties of the Covid-19 pandemic. Under Mupita’s leadership, the value of transactions on its MoMo mobile-money platform rose 88% year-on-year in the first half of 2021. At the end of 2020, MTN had 46.4 million mobile-money users in its subscriber base.

AT THE TOP OF A TELCO TITAN

Focus on Nigeria MTN is planning to get out o of operations outside of its main focus in Africa, meaning g that Nigeria is likely to be cen ntre stage for the telco. But th he relationship with the authorities in Nigeria’s capital, Abuja, have been fraughtt over the years and there are no signs of a long-terrm rapprochement. Mupita became CEO of o the group on 1 Septembe er 2020, taking over from the long-serving Rob Shuter. His background is as a high-level manager rather than a telecoms specialist, having studied civil engineering and

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business administration. He spent more than a decade at financial services group Old Mutual before joining MTN as its chief financial officer in 2016. MTN has some 277 million customers in 21 markets in Africa and the Middle East. It plans to invest big in technology, for example, with plans to roll out 5G networks in Ghana next year. And

Spinning off operations

CHRIS RATCLIFFE/BLOOMBERG/GETTY

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he continent’s top telco is gearing up to get leaner and meaner for its next transformation. Under Zimbabwean CEO Ralph Mupita, South Africa-based MTN Group is betting on mobile money, fintech innovations and building platforms to expand its bottom line. In Nigeria, the group’s biggest market, data revenue is soon set to overpass voice revenue for the first time. While the Nigerian auth ii thorities are stonewalling MTN’s attempts a to get a full mobile-money licence l – potentially of one of the last great growth markets on the co ontinent – this was not enough to pe ersuade Mupita and his team to be et big on a licence in Ethiopia th his year, after they lost out in a first round to Safaricom. Mupita say ys he is planning to continue a divestment programme worth about $1.6bn over the next three to five e years.

Other investor-friendly options h table bl for f MTN include on the M d listing its fibre spinning off and ney businesses. and mobile-mon dia this year that Mupita told med “within the core [connectivity business] there are a some infrastructure assets and platforms that is putting we believe the market m e on”. little to no value Mupita wants to use MTN as a ng other actors into platform to brin a. In September, the digital arena MTN and South African insurance a partnergiant Sanlam signed s ship allowing the sale of the financial services company’s products and investments to mobile customers. Mupita said in a media release that the alliance is focused on ‘driving financial inclusion across the continent and providing customers with c insurance and nvestment products in taiilored to the eds of the African nee conssumer’.

#9


RICHARD DREW/AP/SIPA

#32

Zhou Yahui PLANTING THE SEEDS OF A DIGITAL HARVEST

A

mobile-money platform also known for its motorcycle-based delivery service in Lagos, Nigeria, OPay has become one of Africa’s rare unicorns (a startup with a valuation of more than $1bn). The company’s value is estimated at $2bn, after it raised $400m during an August fundraising round that included Japan’s SoftBank. Opay is part owned by Chinese billionaire Zhou Yahui, founder of Kunlun Tech Co, a web game developer in China. OPay is an important company to watch as it is also part of the widening and deepening interest of Chinese players in Africa’s digital space, from telecoms provider StarTimes, to mobile manufacturer Transsion and telecoms big players like Huawei and ZTE. Zhou controls OPay through Opera, a Norwegian company based in the Cayman Islands. He got his start in the digital sphere by creating a website for sharing animations while at Tsinghua

University and then went on to work for social media platform Renren. He is chairman of the Board and co-CEO of Opera, which runs a mobile browser and news service.

Eyes only for OPay

In January, Opera, which is listed on the NASDAQ stock exchange, denied claims by short-seller Hindenburg Research that its lending practices breach Google’s Play Store rules. Opera Mini, Opera’s browser, says it has more than 100 million users and is rolling out new chat programmes and other services. Company statistics show 25 million active users for the Opera News service. Zhou is no longer in a leadership role at Beijing Kunlun and is focusing his attention on the development of OPay, where he is the CEO, with eyes on the wider African market. Through agent banking, OPay gives individuals the ability to act as a payment processor, handling $3bn a month,

according to the company. It also claims to operate 80% of mobile banking transfers in Nigeria, a market that has big potential but has been further behind in developing mobile money than the likes of continental leader Kenya. The mobile payment service and consumer platform incorporates banking but also allows users to order food and groceries. OPay developed the bike-hailing app ORide, the loan application OKash and food-ordering platform OFood in the Nigerian market. The app market in many African countries is spurring big competition from global players like US-based Uber, Spain’s Glovo and Africa-focused e-retailer Jumia. After raising the $400m in August, Zhou told media: “We want to be the power that helps emerging markets reach a faster economic development.” Summing up his long-term view, he told Chinese media outlet Xinhua: “The utilisation of internet data will speed up the establishment of a credit system, improve the overall commercial credit and tech ecosystem, thus optimising the investment environment in the long run. […] It may be a long and difficult process, but we will ultimately reap a harvest.”

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FOCUS /

BENOIT DECOUT/REA

MAURITIUS

Looking for a new economic miracle 130 THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021


FOCUS

By KERVIN VICTOR in Port Louis Mauritius is often cited as a symbol of resilience in Africa, having defied the odds and entered the select club of high-income countries in 2019. For the first time, Mauritius’s gross national income per capita exceeded the $12,535 threshold needed to be included in this elite group. The island country was hardly able to savour its success before it was hit by a series of challenges. Cases of Covid-19 were first detected in Mauritius on 18 March 2020. The government reacted swiftly, closing its border to international arrivals and imposing a strict lockdown to limit infection. Consequently, the country recorded a decline in its GDP of 15% last year. Financial services and information and communications technology (ICT) were the only sectors to record growth, at 4.9% and 1% respectively. The tourism sector declined by 80%.

Back to square one

Port Louis looks forward to buzzing again after borders open on 1 October

With tourism deflated, regulators on the prowl and reeling from a series of procurement scandals, the government of Prime Minister Pravind Jugnauth needs new growth strategies to win back respect

This crisis has underlined Mauritius’s economic dependence on tourism. The absence of tourists caused a sharp decline in foreign exchange and fiscal revenues, curbing the country’s public spending capacity. Earnings from the tourism industry fell from Rs63bn ($1.5bn) in 2019 to Rs17.7bn in 2020. Back again in the high-middleincome trap, Mauritius also saw its local currency, the rupee, nosedive. In its economic statement published in September 2021, the Mauritius Chamber of Commerce and Industry reported that the rupee had depreciated 22.7% against the US dollar between January 2020 and 30 June 2021. ‘The outcome has been destructive to the competitiveness of businesses in Mauritius, coupled with an exorbitant hike in freight charges,’ the report said.

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MAURITIUS FOCUS / Looking for a new economic miracle

The country further recorded an 8.4% GDP contraction in the first quarter of 2021, but the IMF projects that Mauritius’s GDP will grow by 5% in 2021, assuming some recovery in the tourism industry. Mauritius opens its borders for fully vaccinated travellers on 1 October. Despite the resilience shown by the financial sector, which accounted for 13% of GDP in 2020, Mauritius remains under the international spotlight due to concerns about tax justice and governance. The Financial Action Task Force (FATF), an international intergovernmental organisation, placed the country on its grey list in February 2020, after identifying deficiencies in Mauritius’ anti-money laundering and combating the financing of terrorism (AML/CFT) regimes. The European Union included Mauritius on its black list in October 2020.

More rigour required Since then, the government has gone to great lengths to fill the gaps identified by the FATF. In June 2021, the FATF said the country had made progress. A visit by FATF officers took place on 13-15 September. The FATF will make its decision on whether to remove Mauritius from the grey list in its plenary in October. As the country emerges from the pandemic, the government led by the Mauritian Alliance is far from enjoying the unanimous support of the population. The alliance is composed of the Militant Socialist Movement (MSM) and its allies, Plateforme Militante and Muvman Liberater. Prime Minister Pravind Jugnauth and his government face

FABIEN DUBESSAY/MCB ST JEAN

The financial sector is working to improve its image

sharp criticism that they have mismanaged the country and failed to fight corruption and fraud. Thousands of Mauritians have taken to the streets over the past 12 months to demand the government’s resignation. Among their grievances are the poor management of the worst ecological disaster the country has ever faced – the 1,000tn oil spill caused by a Japanese bulk carrier MV Wakashio, which ran aground in July 2020. Citizens are also riled by the sharp depreciation of the rupee, which is affecting Mauritians’ purchasing power, by the fuel tax introduced to finance the purchase of anti-Covid-19 vaccines, and by revelations concerning the granting of public contracts to those close to the government. ‘The whole public procurement process, including current legal provisions and procedures, must be reviewed with a view to strengthening accountability and transparency and ensuring that emergency procurement does not become a fertile ground for the commission of financial abuses

and malpractices at the expense of taxpayers,’ recommended the National Audit Office in its report for the financial year 2019-20. Another ‘bombshell dossier’ arrived with the discovery in a sugar cane field at Moka on 18 October 2020 of the partially burnt body of MSM activist Soopramanien Kistnen. It forced the minister of commerce, Yogida Sawmynaden, to resign in February 2021. Before his death, Kistnen was about to contact the anti-corruption agency about bidding practices at state-owned corporations.

Death of a whistleblower A police investigation ascribed the death to suicide. It took the perseverance of a panel of lawyers, including former justice minister Rama Valayden, for a judicial inquiry to be launched. The revelatory hearings, worthy of a thriller TV series, ended in June but the magistrate’s conclusions have not been made public. Kistnen’s was merely the start of a troubling series of untimely deaths. Pravin Kanakiah, a procurement

3,899 MAURITIUS

776 1980

1985

132 THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

2,506

1990

1995


officer at the finance ministry, was found dead on 11 December 2020. A few days later the body of Sarah Boitieux, a civil servant working at the prime minister’s office, was found under suspicious circumstances. In January 2021, Deven Vythelingum, secretary of the State Trading Corporation, died after facing intense stress at work. Ivan Collendavelloo, the number two of the government and leader of Muvman Liberater, was dismissed as energy minister in June 2020 following a report from the African Development Bank that he was involved in corruption around the Saint Louis power plant. The government is also facing a series of petitions aimed at invalidating the 2019 election of several of its members, including that of Prime Minister Jugnauth.

Economic reset One of the government’s lifelines to try to regain popularity is to boost the economy by supporting businesses, limiting defaults and preserving jobs. Unemployment reached 9.8% at the end of June. Then public debt reached 95% of GDP and inflation hit 5.9%. Mauritian economist Kevin Teeroovengadum tells The Africa Report that Mauritius is struggling to develop new sectors. “We have been depending on the same economic pillars for over 15 years, and we haven’t been able to

Mauritius will invest Rs1bn in biotechnology, including vaccine production launch anything new. […] For more than a decade now, we have been talking about the emergence of the blue economy [the exploitation, preservation and regeneration of the marine environment], but, in reality, we are still struggling to launch this sector.” Kee Chong Li Kwong Wing, a former chairman of the State Bank of Mauritius Holdings, says the administration needs to push the reset button: “The government should show capacity and competence to shift to a new economic model and the mindset to face a changing global economic environment post-pandemic.” Political scientist Avinaash Munohur argues: “The emergence of China as a superpower capable of offering a new vision of globalisation different from the American hegemony, and the immense challenges linked to climate change are two major axes that will redefine our public policies and

the relationship of our country to its region.” In his presentation of the 2021/2022 budget in June, finance minister Renganaden Padayachy announced a new three-fold strategy: giving an exceptional boost to investment, creating a new economic architecture and restoring confidence. The government has earmarked Rs65bn for infrastructure projects. It plans to generate 60% of Mauritius’s energy from green sources and to phase out coal by 2030. It also wants to seize opportunities created by the pandemic. The government announced an investment of Rs1bn in biotechnology for the production of vaccines and other pharmaceutical products, accompanied by fiscal incentives. Padayachy said that the government is following the philosophy of the late Anerood Jugnauth, who died on 3 June, aged 91. Jugnauth is often cited as the father of the Mauritian economic miracle. It was under his prime ministership that the country diversified its economy, with new sectors such as financial services, the free port and ICT, among others. It may take a new miracle for Mauritius to emerge from its current quagmire.

MAURITIUS’S GDP PER CAPITA ROLLER COASTER Current US$

11,208 9,197

12

10,153 9,260

10

8,030 8,622

5,388

7,318

UPPER MIDDLE-INCOME COUNTRIES

8 5 4

SUB-SAHARAN AFRICA

2 0 2000

2005

2010

2015

2020

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MAURITIUS FOCUS /

INTERVIEW

Ken Poonoosamy

‘We believe that we can position ourselves as a manufacturing hub’ The CEO of the Economic Development Board (EDB) talks with The Africa Report about Mauritius’s strategies and policies to attract foreign investment Interview by KERVIN VICTOR in Port-Louis

Ken Poonoosamy thinks of the Economic Development Board (EDB) as Mauritius’s “think tank” generating ideas to attract investment and develop the country’s export potential. He has been a top official in the field since heading up the Board of Investment – the EDB’s precursor – in 2011. What is the role of the EDB in promoting investment? Acting under the aegis of the ministry of finance, economic planning and development, the EDB’s main role is to attract and retain productive investments, and to amplify their development benefits through policies. The relevance of synchronising investment and export policies is becoming globally more and more evident. Whilst acting as the apex body for both trade and investment initiatives, the EDB also undertakes research and planning to analyse national and global economic, technological and social trends, and to advise on, or shape, strategies and policies accordingly. With the Covid-19 pandemic hitting Mauritius, how do you

expect FDI inflows to evolve in the coming years? Mauritius witnessed decades of continuous positive GDP growth before the Covid-19 pandemic struck us. During this current crisis, private-sector investment remains a key driver of growth and all efforts are being deployed by the government and the EDB to facilitate projects within a reasonable time frame to give an exceptional boost to investment. For the year 2021, we project a relatively modest recovery in FDI inflows due to persistent uncertainty on access to vaccines by many countries, the emergence of virus mutations and the revival of economic sectors. What new measures are there to encourage investors? Major reforms are being carried out to further improve our business

‘THE FREE-TRADE AGREEMENTS CREATE HUGE OPPORTUNITIES IN VAST MARKETS’

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climate. One of our new products is the Premium Investor Certificate, which allows companies investing at least $12m to benefit from negotiable incentives. Also, a high-level committee chaired by the Prime Minister will be meeting on a regular basis to facilitate the obtention of permits, licences and approvals of investment projects. What about visas and residency? [We have advocated] a series of amendments to make it easier for investors and professionals to move to Mauritius combining the ‘work, live and play’ concept. Occupation-permit holders are now given a 10-year permit outright, while permanent residence permits are given for 20 years. We have also alleviated the burden on retired non-citizens: a foreigner aged 50 or above can now retire to Mauritius with just $1,500 monthly to benefit from a 10-year residence permit. [Plus, a new] long-stay premium travel visa allows digital nomads and other individuals to work and live in Mauritius for a year. Which are the Mauritian economic sectors offering the best prospects for foreign investors? In collaboration with our parent ministry, we have set the foundation for Mauritius to propel itself towards its next phase of development, which will be driven by innovation and [sustainability] while embracing inclusive growth.


EDB

The EDB also participated in implementing the strategy for the financial services sector, which relates, first, to enhancing the status of our financial centre, and, second, to deepening its service offerings and being compliant on anti-money laundering/combating the financing of terrorism matters. Our free-trade zone is also developing as one of the most attractive zones in the region and it has been ranked ninth out of 61 zones globally by fDi Intelligence. Other prominent sectors we are promoting include the ‘blue economy’, where we are maximising the potential of the fisheries sector, and the biotechnology and pharmaceutical industry. Mauritius recently signed freetrade agreements with India and China and also plans to take advantage of growth on the African continent. How do you balance all those relationships? The Comprehensive Economic Cooperation and Partnership Agreement (CECPA) with India, the China free-trade agreement and the African Continental Free Trade Area (AfCFTA) create huge opportunities in vast new markets that could provide demand for more complex Mauritian products. We believe that these agreements are complementary and Mauritius has a prime role in making sure that the benefits are larger than the sum of their parts. The EDB has already initiated […] capacity-building of our exporters to make the most of these opportunities. India and China are amongst the two major trading partners of Mauritius. With the entry into force of the AfCFTA, we strongly believe that we can position ourselves as a manufacturing hub as well as a jurisdiction of choice for Indian and Chinese businesses to service Mauritius. For the full interview, visit theafricareport.com

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MAURITIUS FOCUS /

MAFH

Networking at an MAFH event

FINTECH

Play and profit inside the sandbox Innovation is the focus of the government’s recent regulations in the financial services space, with the goal of making Mauritius a hub for African fintech By KERVIN VICTOR in Port-Louis Many in Mauritius’s finance sector and government hope that fintech innovations will help boost the critical sector as Covid-19 hammers tourism. Michal Szymanski, CEO of the Mauritius Africa Fintech Hub (MAFH), says fintech in Mauritius is just in its early stages. The MAFH was launched in 2018 to help Mauritius develop the sector. “The role is to be the fintech ecosystem facilitator. Our role is to identify the gaps that exist in the ecosystem […]. We’ve identified four key areas that we feel, based on the feedback of the main stakeholders, that we need to tackle to be able to be a truly premier fintech hub in Africa. Those are: regulations, skills, innovation and deal flow,” says Szymanski.

Paul Perrier, CEO of Fundkiss, the first peer-to-peer lending platform in the country, agrees with a lot of what Szymanski has to say. “The Mauritius Fintech sector is in an emerging but very promising state. […] Over the past three years, Mauritius has witnessed the rise of an ecosystem, with incubators such as Turbine and La Plage Factory, and structured business angel investors like Mo Angels. Public institutions, such as the Mauritius Research and Innovation Council, are also

$20m

The amount raised by Finclusion Group from Lendable, which it will deploy in Southern and East Africa

136 THEAFRICAREPORT / N° 117 / OCTOBER-NOVEMBER-DECEMBER 2021

supporting innovation through grants,” Perrier says. Recent fintech activity in Mauritus includes the August launch of ARIE Finance’s digital ‘know your customer’ service for companies in financial services. Mauritius is also a source of investment for African start-ups, with Port Louis-based Finclusion Group investing in South Africa’s HelloHR payroll startup in September. Mauritius has sought to promote innovation through the creation of a ‘regulatory sandbox’ that allows companies to operate and experiment while the authorities decide on how fintech activities should be regulated. The central bank, the Bank of Mauritius, and the country’s Financial Services Commission issue sandbox licences for banking and non-banking financial services.

Digital rupee The island nation also plans to have its own digital currency. The central bank has announced the introduction of a ‘digital rupee’ on a pilot basis. The latest amendments to the banking legislation already provide provisions for the launching of a digital currency. Perrier says: “There is also a strong political will to develop the fintech sector in Mauritius as we need to reinvent our financial industry. Slowly but surely, things are taking shape.” For MFAH’s Szymanski, the fintech sector is critical to the long-term success of the Mauritian financial sector. “The country has had an amazing 30 years as an international financial centre. The revolution of fintech or technology in the financial sector that has happened over the past decade or so has not only [produced] a rise in new jobs, new opportunities. We have also found, across the globe, that all the small jurisdictions are maintaining competitive advantage with the use of technology.”



LAST WORD

WHAT THE PAPERS DON’T SAY AFRICA NO FILTER

MOKY MAKURA Executive director, www.AfricaNoFilter.org

By the end of 2021, 13 African countries will have held presidential elections. That’s 13 different opportunities for global media to paint the same picture of rigged and, in some cases, violent elections. This has become the single story of democracy in Africa. Is it an African election if it’s not unfair, violent or marred by chaos and social-media shutdown? We won’t have long to wait for an answer because in the next three months Somalia, Cabo Verde, Gambia and Libya will hold their elections. Elections in Benin, Chad, Djibouti, Niger, Congo, São Tomé e Príncipe, South Sudan and Uganda have done little to change the narrative, so it was with great interest that I kept my eyes on Zambia’s August elections for the country’s next president. It was a race with two frontrunners: President Edgar Lungu, who had been in office since 2015, and businessman Hakainde Hichilema, who won 59% of the votes. Contrary to the dominant narrative in the reporting, Zambia is not new to democratic elections. Hichilema himself has participated in five previous elections and will be the country’s seventh president since the late Kenneth Kaunda, Zambia’s first president, who served from 1964 to 1991 and died earlier this year.

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With a free and fair election now under Zambia’s belt, and with the benefit of hindsight, many of the media headlines and predictions appear almost laughable. For The Economist, a free and fair election was not on the horizon. ‘Zambia’s election is crucial,’ the magazine reported some days before election day, ‘but it’s not a fair fight. Hakainde Hichilema deserves to be elected, but the world should prepare for a rigged vote.’ The Economist wasn’t the only news platform that predicted chaos. ‘Zambians head to the polls, but hopes of a free election are slim,’ said South Africa’s Business Day Live. CAJ News Africa declared the country had hit ‘rock bottom’ after Lungu initially rejected election results. However, Lungu went on to accept the results and subsequently congratulated the new president in a handover of power that was free from violence. Reports that didn’t suggest that the elections would be unfair said poverty, economic woes and Covid-19 underscored the polls. Zambia’s economy is indeed in recession due to Covid-19, but this is a global issue that also created a public health and economic crisis in the US. The Zambian election had its expected clichés. The internet was shut down, but the law prevailed when the High Court ruled that access should be fully restored. There were accusations and counteraccusations of violence against members of the campaigning parties, and even a military presence on election day. Still, there was a high turnout at polling stations. It showed that Zambians had faith in the democratic system working, as evidenced by the peaceful handover of power in previous general elections. This stereotypical framing of African elections is problematic and feeds a narrative about this continent that many Africans and their leaders are trying to move away from. Elections in Africa are not a test for democracy; they are proof that democracy and institutions meant to uphold the system work, despite the typical politicking of elections everywhere.


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