22 | The Lion King
could, if properly developed, transform
the economy and bring social and
economic development. But this major
potential is not much used, as shown
by the small primary and secondary
sectors.
Obstacles to structural change and
proper management of natural
resources include poor-quality
infrastructure in energy and transport,
an ill-qualified labour force with skills
not matched to the country’s needs,
especially in key sectors.
However, the government is tackling
these obstacles especially within the
framework of the 2012–16 National
Development Plan (NDP), which is
in its fourth year of implementation.
This ambitious public investment
program aims to address large social
and infrastructure gaps, diversify the
economy, and put Congo on a path
to become an emerging market
economy.
What sectors of the economy is UBA
most active in?
UBA is most active in the oil and gas
sectors, the FMCG sector, Construction
and the Telecom sectors of the
Congolese economy. These are also
the sectors driving major economic
activity.
Tell us about the financial industry; how
active is it, who are the major players
and how well is UBA competing in this
market?
The banking industry is made of 10
banks and one major micro-finance
institution. Market deposits as at
December 2014 stood at XAF 1 990
billion (USD 3,6 billion) and loan XAF 1
086 billion(USD 2 billion).
The absence of collateral and
inadequate protection of creditors’
rights continues to hinder financial
sector development. Banks remain
averse to granting loans to SMEs in spite
of substantial sectoral liquidity.
The major players are BGFI (42%deposit
market share), LCB(13,5%), CDC(13,4%)
Ecobank (12,7%). UBA is currently
ranked in the top 10 in terms of deposits
and loans. Our ambition is to be in the
top three by December 2015.
The banking industry is likely to welcome
new banks in 2015. Notably, China’s
EXIM Bank subsidiary (by mid 2015).
Others whose commencement timeline
are uncertain include, the state
sponsored “Banque de PME/PMI”, RAW
Bank, AFRILAND, First Bank, etc.
The market place is going to be
increasing very competitive and only
banks with substantial public sector
business and support shall strive.
Considering the history of conflict, has
human capital acquisition been a
challenge and how have you resolved
it?
As stated earlier, one of the major
challenges to development of the
country is an ill-qualified labour force
with skills not matched to the country’s
needs, especially in key sectors.
Our work force is a blend of highly
experienced and skilled resources
redeployed from Head Office and
CEMAC subsidiaries, mainly Cameroon.
UBA Academy is assisting us with
periodic trainings and some senior
recruits undergo induction programs in
Cameroon and Lagos.
What other challenges do you face in
running banking operations in Congo
and how do you overcome them?
We currently have limited sales outlets,
as we look forward to rolling out a few
more branches. Our card products are
very competitive and we are partnering
with prominent and strategically
located businesses to widen the
distribution network.
What are the milestones of UBA in
Congo?
Notwithstanding our limited outlets we
can pride ourselves of having opened
35, 000 new accounts in one and a half
years in a market where the average
number of accounts per bank is 24,
000. It is worth noting that the banking
market has 240,000 bank accounts for
10 commercial banks.
Late last year UBA Congo signed a
contract with MTN Congo to issue 450,
000 visa prepaid co-branded cards and
also entered into partnership with AIRTEL
Congo for the use of Visa Prepaid
Cards by its subscribers to top up AIRTEL
Mobile Money virtual accounts.
We have co-arranged large ticket loans
for the State of Congo and the National
Petroleum Company.
What are your growth projections for
UBA Congo in the next three to five
years?
The main player in the Congolese
economy is the public sector. Our
target therefore is to grow our market
share substantially in this sector in
order to catch up or beat immediate
competition.
We are also expanding in the retail
space. We have entered into strategic
partnerships with MTN Congo and
AIRTEL as earlier stated. Our branch and
other distribution outlets for our very
competitive retail products are on the
increase and brand visibility is being
promoted by various sales campaigns.
New accounts growth is exponential
and public perception of our brand is
on a positive trend.
All of these put together, it is our
ambition is to break into the top three
banks in Congo Brazzaville in the next
three to five years. We must have
surpassed by then, USD 500 million
deposits base.
Where do you see the economy of
Congo in the next 10 years?
Within the framework of the National
Development Plan (NDP) Congo aspires
to be an emergent economy by 2025.
The Republic of Congo’s favourable
maiden sovereign credit rating issued
in 2013 (B3-Moody’s) was recently
reaffirmed and is among the strongest
in the region. The rating agencies
credited the Republic of Congo’s
strong net asset position and robust
growth prospects.
Growth in the non-oil sectors will
be driven largely by activity in
the construction, transport and
telecommunication industries, with
public expenditure levels providing the
main supporting element.
According to IMF forecasts, the
economy is projected to expand
by about 6 % per annum between
2014 and 2019, as new oil fields come
on stream and an ambitious public
investment program is implemented
to diversify the economy and make
growth more inclusive. Oil production is
expected to peak in 2017.
The medium-term outlook for non-
oil growth and poverty reduction
hinges on progress addressing deep-
seated structural weaknesses and
fiscal adjustment. Risks to the outlook
relate to oil price volatility and political
instability.
Faced with a fragile social context,
what contribution is the bank making to
human development?
As part of our corporate social
responsibility, UBA Congo assisted
victims of the 2012 MPILA explosions.
We regularly visit orphanages and other
needy centres to assist them financially
and materially. Recently we distributed
1,000 text books to colleges and high
schools in Brazzaville and Pointe-Noire.
Growing the Seed
