Encouraged by his good African results, the leader, who has placed relations with the continent in a long-term perspective, details the French group's system. At the helm of Societe Generale (SG) for twelve years, Frédéric Oudéa has gone through a tumultuous period, between dizzying fines, tightening regulations, negative interest rates and sluggish growth on the Old Continent. It is under his supervision that the group has however strengthened its base in Africa, particularly outside the French-speaking areas (a mission led by Alexandre Maymat, replaced since September 2019 by Laurent Goutard) and recorded a rise in power of African executives. Among them, Cameroonian George Wega (head of the West Africa region), Ivorian Sionlé Yéo (Central and East Africa), Senegalese Mohamed El Fadel Kane (structured finance) and Togolese Cathia Lawson-Hall (key accounts and investment bank for Africa). In his first major interview with JA, the former classmate of Tidjane Thiam at Polytechnique defends the place given to Africa and gives his diagnosis on an industry disrupted by technology and increasingly demanding regulations. Jeune Afrique: When SG launched Grow with Africa, your continental growth strategy, some analysts described it as a distraction, given its size in your revenue (5 %). What do you say to them? Frédéric Oudéa: I find it strange to talk about distraction about development in Africa. We have 11,000 employees and 4 million customers. We have been present for a hundred years in Morocco and for more than fifty years in Ivory Coast, Senegal and Cameroon ! In 2050, there will be 2 billion Africans. This demography is structurally a factor of growth. It will take local, anchored and sustainable economic development for all these extraordinarily young populations, and for Europe to be able to manage migratory pressures. We are part of a long-term perspective. As an international player with a presence in Africa that very few banks have, we can make a difference and have an important contribution to this development. So the continent is not a distraction, but one of Societe Generale's major strategic objectives.  Is it really the job of a French bank to be concerned about demographic dynamics and their impact on Europe? I am just making one observation. In contexts of stable political and climatic environments, demography is, I repeat, a positive factor for growth; and there is, in this regard, a business interest in the continent, therefore a role to play and opportunities for our bank. In addition, governments and development agencies also want to put resources at African economies, and we know how to work with these partners. I am focused on the advantages that SG can bring and the benefits that can be derived from these developments. If our action can have an indirect positive effect on the stability of populations and economies – that's even better. Isn't it surprising that SG is reducing the sail in corporate banking in Europe while insisting on this segment in Africa?

We moved out of the capital-intensive over-the-counter (OTC) commodity markets to focus on investment solutions based on our recognized leadership in equity derivatives and structured products. But the other part of corporate banking (large companies, international trade, cash management, etc.) continues to develop everywhere, if only in renewable energy. At the same time, we continue to develop other activities such as bonds, particularly in Africa, to enable sovereign issuers and – we hope – large companies on the continent to access international markets. We have a marketplace in Abidjan that is already performing very well. What was SG's performance in Africa in 2019? We recorded a 6.1 % increase in loans and a 6.3 % increase in deposits, while GNP increased by almost 10 %. We had very good results in Morocco, Tunisia, Ivory Coast, Senegal and Cameroon. Algeria has slowed down, but the situation remains under control. As far as Grow with Africa is concerned, the group is in line with the objective of increasing outstanding credit to SMEs by 60 % over the period 2018-2022, since it now exceeds €7 billion (+ 12 % in 2019). Our Yup e-wallet already has 1.4 million customers and 14,000 agents, compared to 1 million customers and 8,000 agents originally planned for 2020. The structured finance platform in Abidjan has about fifteen people, and we have completed emblematic projects, including a water treatment plant in Abidjan (€250 million), a ring road around Ouagadougou (€275 million) and a gas-fired power plant in Ghana ($75 million). And we are studying great possibilities (Mozambique, Uganda, Togo, Kenya, Ivory Coast, Senegal, Mauritania ...). Some fear that behind the promotion of financial inclusion in Africa will pierce the risk of excessive financialization of the economy. Is this a danger? In modern economic history, money and payment facilitation are part of an important step in the modernization and development of trade; they secure and lower the cost of transactions. Allowing money transfers for a service or sale develops economic activity and helps the company develop new business models. When we deployed our Yup offer for Cargill, in Côte d'Ivoire , it made it possible to secure payments to thousands of producers supplying the company with cocoa beans and thus contribute to the efficiency of the sector. A year ago, you entered into a partnership with the South African Absa. In what perspective? SG is present in 19 countries, and Absa in 12, with a joint presence in Ghana and Mozambique. Our groups cover almost the entire African economy, with the main exception of Nigeria. We have already jointly won tenders for cash management and together have additional financing capacity. Other cooperations are conceivable in CSR and e-wallet. Can a bank have an African strategy without being in Nigeria? In the very long term, probably not. We are not present in retail banking and, for the moment, there are no opportunities. But SG has trusting relationships with Nigerian entrepreneurs, especially in the energy sector. In the short and medium term, we are very good where we are. Our priority is not the acquisition of banks, but organic growth. How do you view the debates around the CFA franc and the transition to eco? This is a fundamental trend: Africa is evolving these devices in the direction of integrating its economies, whether in terms of currency or trade. I see this as an opportunity. Which financial actors will be able to support economies in these transitions? Those who will have a diverse and multiple presence! From this point of view, SG is particularly well placed. You talked about integration. How do you feel about Brexit? In itself, this is not good news, even if the prospect of a disorganized exit has been avoided. But it reinforces the demand for Europe to say what it wants as a financial sector. Seen from Africa, this can be an opportunity for us. Because if Europe develops as a financial market, we can be the natural gateway for African states and groups who want to access the savings of households in our region. But it's a ten-, twenty- or thirty-year perspective... You've been in charge for twelve years. How has the industry evolved in Europe since that time?

The financial soundness of banks today has nothing to do with it. We have multiplied by 2.5 the mass of capital and have 190 billion euros of available liquidity. It is a considerable safety mattress. The danger is not that of a crisis like that of 2011, but rather the management of very profound transformation issues. The sector is facing four challenges that will mark the coming years. The emergence of new technologies, which are an opportunity to ensure a better service, at a better cost, with a more efficient internal operation. Significant regulatory changes. Low interest rates, which can last a few years or longer as in Japan. Finally, CSR, whether it concerns climate issues, human resources or diversity. You often talk about ICT. What have they changed in your approach as a manager? I am struck by their importance in our sector. My job has changed in the last four or five years, I spend time learning new technologies to imagine and contribute to imagining new services and business models. It's a different exercise: creating the conditions for teams to experiment, telling them that they can fail, as long as they learn from it. The exercise of our profession as a leader has changed and requires us to be in a learning position in the face of a new world . 

Bruno Levy - JA
On February 14, at the group's headquarters in La Défense.
Bruno Levy - JA
Frédéric Oudéa, CEO of Société Générale, on February 14, 2020 at the headquarters of Société Générale, La Défense,
Puteaux.
Bruno Levy for JA

Frédéric Oudéa, CEO of Société Générale, on February 14, 2020 at the headquarters of Société Générale, La Défense,
Puteaux.
Bruno Levy - JA
Frédéric Oudéa, CEO of Société Générale, on February 14, 2020 at the headquarters of Société Générale, La Défense,
Puteaux.
Bruno Levy - JA
Frédéric Oudéa, CEO of Société Générale, on February 14, 2020 at the headquarters of Société Générale, La Défense,
Puteaux.