Having been at the origin of the 2008 economic crisis, the banking sector is nevertheless among the few economic sectors that have been only marginally affected by the consequences of the Covid-19 pandemic. In very good health—particularly in Africa—bankers say they are ready to support the continent’s economic recovery.

In Central Africa, the banking sector posted very strong results last year, as illustrated by BGFIBank.
“We are the leading bank in Central Africa, present in 11 countries, and in 2020 we reported our best results since the Group’s creation,” explained Francesco De Musso, Chief Executive Officer of the Group’s European subsidiary.

These results were partly driven by the slowdown in activity among most economic operators. “What we clearly observed in 2020 was a decline in demand for financing. This had a positive effect, as our African subsidiaries focused on managing their portfolios. That approach enabled us to achieve the results we recorded in 2020: closer relationships with our clients, stronger monitoring and support for existing financing facilities. This contributed to improved risk management and better overall performance,” he added.

Watching closely for the recovery

Like other financial players, BGFIBank is closely monitoring post-Covid economic trends.
“We are watching the recovery as a major opportunity to support entrepreneurs and finance economies. That is what we have been doing for 50 years now, as we are celebrating our fiftieth anniversary this year. We are already working to identify promising and dynamic sectors that were either less affected by the crisis or will be in high demand as part of the expected economic recovery.”

As the post-Covid recovery approaches, economic forums are attracting bankers. Henri Wazne, Chief Executive Officer of Sofibanque, a family-owned bank operating in the Democratic Republic of Congo, took part in the CIAN Forum held on July 1 in Paris. He believes the country’s risk perception is largely overstated, despite its poor image for business.

“The reality is very different from the perception of risk. You really have to go there and see for yourself. For example, in the banking sector, non-performing loans are slightly higher than in France, but the gap is not significant. If credit is properly structured and analyzed, repayment follows. Unfortunately, that is not how the situation is perceived—and this applies to many areas,” he said.

In a country where the informal sector accounts for 75% of economic activity, Henri Wazne hopes that more Congolese entrepreneurs will formalize their businesses. To encourage this shift, he argues that a simpler and lighter tax system would be essential.

Source: Radio France Internationale (RFI)