More than a year after the start of its activities in Mali, UBA is positioned as one of the most innovative banks, particularly in terms of digital technology. Alhassane Sissoko, its Managing Director, takes stock of this first year of operation and analyzes the consequences of Covid-19.

When we set up in February 2019, our ambition was to give UBA Mali systemic importance, to be among the top three banks in the market in three years, to become a major economic player through our contribution to financial inclusion and socio-economic development of Mali and, finally, to position ourselves in the sector with all customer segments as the bank of reference in terms of digital solutions. We pursue this ambition. We exceeded the symbolic bar of 10,000 customers at the end of May 2020. The total balance sheet increased from 24 billion CFA francs in January 2020 to around 40 billion as of May 31, 2020. We have intervened in the Telecommunications and Energy sectors at respectively up to 20 billion FCFA of financing and a little more than 45 billion FCFA in execution. We popularized our alternative payment channels and deployed our digital solutions, in particular our virtual banker Leo on Messenger and WhatsApp, Mobile banking and Internet banking. We launched our Bank to wallet product in partnership with Orange and deployed SAMA by UBA in collaboration with SAMA Money. The U CONNET product was launched 3 months ago to boost regional trade. We have stabilized the availability rate of our payment machines at more than 99% and our cards are already a reference on the market. Finally, we have methodically managed to develop a real culture of customer service, to make it a distinctive skill. These efforts will continue to make UBA a reference bank in Mali.

In view of the above, I would say that the progress is notable, but that there is still a long way to go. In the months to come, we will start extending the network, to bring us even closer to the people and our customers. A market branch should be inaugurated by the end of August 2020 and another on the right bank by the end of the year. Malians will soon be able to pay their EDM, SOMAGEP and CANAL+ bills on our various platforms.

Our outstanding loans increased by 40%, with 0% of non-performing loans. Our credit portfolio, due to its recent construction, has been spared the direct consequences of the Covid-19 pandemic, which has impacted certain sectors of the economy.

Our deposits increased by 10%, due to the expansion of the customer base and the conversion of certain institutional prospects, whom we thank for their trust.

The central bank has relaxed certain elements of the prudential system, to support the economies of the zone in this period of pandemic. The postponement of the maturities of receivables from companies that have been affected by Covid-19, for a period of 3 months renewable once, and the classification of these as sound receivables by credit institutions are part of these provisions. We strictly adhere to it.

The partitioning of borders, the fall in the price of certain raw materials, the foreseeable recession of the world economy, etc., will not leave any economy without cracks. Admittedly, the 2007 banking reforms in the WAEMU Zone, which required banks to raise their minimum level of capital to 10 billion, as well as the protective effects of the recent Basel II and III provisions, are likely to alleviate the effects of certain exogenous shocks. In addition, the government of Mali has anticipated and taken measures to support the economy, by deciding to allocate a hundred billion FCFA to the extinction of part of the domestic debt, held by the banks. These factors, coupled with the numerous measures taken by the BCEAO , in particular the massive injection of liquidity and the ease of access to the refinancing window at a subsidized rate, are reassuring. However, a prolonged crisis could contribute to the alienation of the capital of certain institutions and impose de facto recapitalizations on the chain.

SMEs represent the bulk of the African economic fabric and constitute one of the most effective vectors for combating unemployment, but also an important factor of development. Supporting start-ups is a personal battle of UBA Group Chairman, Tony Elumelu, who encourages entrepreneurship through a program of his Foundation. It has committed since 2015, the year of the 1st edition, to the tune of 100 million dollars, to finance 10,000 African entrepreneurs over 10 years. It is this state of mind that guides us in the markets in which we operate. We are also part of the SME financing program carried out by the BCEAO and are in contact with guarantee funds such as the FGSP to further boost support for this category of customers, who are beginning to turn to financing methods. alternatives, in particular private equity, financial markets, etc., to fill the funding gap in macro-finance, explaining it in part by the absence of the required guarantees and the transparency of financial information.

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