14 | The Lion King
In terms of strategy, we have
tried to focus on using single ac-
tions to reach a wider target.
We have found a way to group
multiple players in the same sec-
tor for marketing purposes. Using
this approach, we hosted 23 of
the 33 ambassadors of African
countries that had diplomatic
representation in Senegal for
lunch.
Today, all African embassies
open their doors to us and facili-
tate meetings with all the differ-
ent communities living in Sen-
egal. This is making it possible to
increase our marketing efforts to
visiting officials, students, expatri-
ate staff and business people,
and give us cross-selling opportu-
nities. It was replicated with some
targeted sectors, and we have
started getting mandates for E-
banking and cash management.
What challenges were overcome
to achieve these milestones?
It is not easy to do mass market
retail with 4 branches and five
cash points, all in Dakar while the
average number of branches per
bank in Senegal is 19.
To overcome this difficulty, we
built a network of partners with
whom we have signed strategic
alliances to be able to reach cus-
tomers through their outlets; and
through these partnerships we
now have access to 800 points
across the country.
Another area that a feat was
achieved is in the card business;
UBA Senegal has been able to
penetrate the local card market
with our international Visa Cards
despite it being more expensive,
especially when the target is the
low-income earner. For example,
we signed a mandate to pay 800
dock workers though our pre-
paid card which has enabled
us create a presence in the port
with an ATM gallery.
The learning point as a CEO is to
know how to adapt to situations,
and proffer solutions to problems
encountered.
What is the competitive land-
scape in Senegal like?
The country’s financial system is
made up of 20 banks and two
other financial institutions. Sen-
egal’s banking system has seen
six new entrants in the past seven
years.
The banking penetration rate
remains low, just about 7%,
excluding micro finance sector,
and 20% including micro finance
institutions. The major risks are in
the areas of sector concentra-
tion, in particular sectors that are
exposed to the international mar-
ket. Competition has become
very tough creating a price war
among banks especially in the
corporate banking segment.
Margins are thin with lending
rates in Senegal among the low-
est in the UEMOA zone ranging
from 3% to 7%, while deposit rates
average 5%. Faced with these
challenges, we have concen-
trated on creating innovative
products that help improve our
market penetration.
However, despite all the chal-
lenges, including tightening of
the regulatory framework, bank-
ing business is still profitable and
attracting more financial service
firms to Dakar.
How will Senegal’s projected 5%
growth rate this year impact on
UBA Senegal?
The outlook is based on the
implementation of the economic
and social agenda of the gov-
ernment, with the support of the
International Monetary Fund.
Major investment programs
underway include road infra-
structure, with further works on a
toll road and the Blaise Diagne
International Airport, as well as
energy (electricity distribution).
In 2013, UBA Senegal participat-
ed in the government’s econom-
ic agenda to the tune of USD 10
million, providing counterpart
funding to the government of
Senegal, which payment was
required by donors to release the
2nd tranche of funding for the
new airport.
There are emerging opportuni-
ties in the energy sector, which
we intend to take advantage of.
Senegal is implementing plans to
restructure the electricity sec-
tor, and this will require funding
to the tune of USD3.8 billion. This
plan is expected to boost the
supply and distribution of elec-
tricity
In addition, Senegal just ob-
tained funding of more than
$7billion USD for the ‘Emerging
Senegal’ programme at the last
Paris Club meeting in February.
These funds are intended primar-
ily to fund 14 major projects to
enable Senegal to achieve eco-
nomic emergence in 2035. We
intend to position ourselves for
certain key investments including
the construction of seven region-
al universities, the establishment
of the economic zone and social
housing, not only for financing
but also for the cross-selling op-
portunities that we can offer the
new economic players that will
be created.
Which are the fastest growing
economic sectors in Senegal?
The most dynamic sectors are
the telecommunications and
construction sectors. The tel-
ecommunications sector is the
most dynamic and most produc-
tive with a turnover of $2billion
USD annually, nearly 7% contribu-
tion to GDP and more than 12%
contribution to budgeted rev-
enues. It is by far the most pros-
perous sector in the economy.
The sector also helps positively
project Senegal abroad, with the
notable presence of Sonatel (the
foremost Senegalese telecoms
company) in the West African
sub - region, its role as a hub for
communications between Africa
and the rest of the world as well
as its lead position in the regional
stock exchange, BRVM. We have
a healthy banking relationship
with two major phone operators.
The second key sector is con-
struction of buildings and civil en-
gineering which is 4% of GDP and
25% of the average GDP of the
industrial sector. The sector will
experience a significant boom in
the next 3 years with the infra-
structure to be constructed as
Growing the Seed
