In the midst of a pandemic context, NSIA Banque Côte d'Ivoire decided to list its securitization fund launched last February on the regional stock exchange. In this interview with La Tribune Afrique, Léonce Yacé, Managing Director of NSIA Banque CI, explains the reasons for this strategic orientation aimed at supporting SMEs, provides information on the commitment of the banking sector in the current context and shares, among other things, his analysis of the situation in the WAEMU's largest economy.

La Tribune Afrique - Stagnation of the continent's economic activity, decline in tourism receipts, decline in diaspora transfers and investments, ... In these times of pandemic, how is the banking fabric and especially NSIA in Côte d'Ivoire doing? Léonce Yacé - The health crisis has somewhat destabilized the functioning of our entities. It must be recognized that in West Africa, the Regional Central Bank (BCEAO) has made good decisions. A number of measures to encourage banks to support SMEs have been put in place, making it possible to avoid a generalised liquidity crisis. On the ground, we had to adapt and digital technology played a key role. Especially since the Covid-19 crisis has truly been an accelerator of digital transformation in Africa. Long before, the banking sector displayed reluctance related to the mastery of certain tools by the populations, the availability of digital links, the fear generated by cybersecurity... But this reluctance disappeared with the occurrence of Covid-19, because everyone understood that it was necessary to move towards dematerialization and to commit to it strongly. First internally, in terms of working methods, then in the distribution of our services. At NSIA Bank, for example, we no longer hold our management committees and boards of directors face-to-face since March. We use the digital tool. We used teleworking for certain functions and capitalized on "NSIA Banque Direct", our remote banking solution launched in 2019. We were therefore pleased, during this crisis, to have solutions acquired during the years 2018-2019, which were being deployed and which strongly helped us to cope with the situation. Is the partnership with Orange Bank also part of this framework? Indeed, it is a partnership between the NSIA group and the Orange group to develop a digital banking offer aimed at a different target of our traditional customers. That is to say, the actors of the informal sector and the consumers of micro-credits of which Orange has a perfect knowledge of the consumption habits, since they were previously users of their Orange Money service. The interest of this partnership for NSIA is to learn about the solutions and expertise developed by Orange and which can serve us in the context of our traditional activities. It is also to use this channel for the distribution of insurance products designed by our group. The 40 billion CFAF (about 60 million dollars) Common Debt Securitization Fund (FCTC) of your banking group has been listed on the BVRM since last September. An operation deemed "historic". Does the timing of this IPO respond to a particular strategic direction? We started working on this project in 2019. When we were finalizing the securitization transaction in February, Covid was not yet a reality in Côte d'Ivoire and we had to complete it in early 2020, since the agreement given by the board of directors of the IFC [International Finance Corporation, editor's note] for their participation as a reference investor expired in March. In addition, 2020 marks the launch of NSIA Banque CI's new five-year strategic plan, whose support for SMEs is at the heart of its priorities. There is therefore a form of coherence between the reflection carried out for the development of the five-year strategic plan, the implementation of the securitization operation and the IPO of our FCTC. All this aims to better support SMEs and make NSIA Banque Côte d'Ivoire the bank for SMEs. As everywhere else in Africa, SMEs represent the bulk of the entrepreneurial fabric. In the current economic context, how could a fund such as the FCTC play in favor of SMEs and more particularly what NSIA Côte d'Ivoire is doing today to support these companies? First, the CTF arrived in a timely manner, as the needs of SMEs, which were already important before, were exacerbated by the pandemic. Having this liquidity has therefore allowed us to better support them. But you should know that the support we provide is based on several pillars. In addition to the necessary availability of resources that the securitisation operation responds to, the pillar relating to the Financing Security Guarantee Facility is very important. SMEs are very active, but generally suffer from governance problems, particularly in terms of the quality of financial information, in terms of the availability of real security (mortgage, subdivision, pledge, etc.). We have therefore – with a number of partners including the IFC and other bodies providing portfolio guarantees – put in place mechanisms to secure risk by financing SMEs. Everyone talks about SME financing, but not everyone has a structured plan that ensures liquidity, the guarantee mechanism and the quality of financial reporting. To do this, we work closely with the Order of Chartered Accountants of Côte d'Ivoire, to ensure that our SME clients have quality financial information, which can serve as an instrument for the examination of financing applications. The State is also involved in these initiatives, since we have worked with the Ministry in charge of SMEs and we are in the process of finalizing a draft agreement for these companies. While you are referring to the state, Côte d'Ivoire is currently experiencing a certain uncertainty that worries economic actors. How do banks – and NSIA in particular – intend to help companies get through this period? I believe that you are referring to the upcoming elections and the concerns that may arise among business leaders and banking players. I may surprise you, but I am hopeful that everything is going well in Côte d'Ivoire, simply because Ivorians have the particularity of knowing how to find each other when the essential is at stake. I have no doubt that in 2020, faithful to the tradition of dialogue in Côte d'Ivoire, we will be able to find solutions internally to solve the current problems. Business leaders are willing to continue their activities. They take initiatives in this direction and make it known. The banks in turn, especially NSIA Bank, stood by the bosses during this period. We have not taken any special measures to slow down our activity. We believe that we must guarantee business continuity in order to support companies and particularly SMEs that have a significant need for investment. In my opinion, the electoral deadline at the end of October will be managed in a serene manner, as was the case in 2015. Today, all operators, decision-makers, entrepreneurs, ... And all strategies, public policies, etc. converge on almost a single question: how to ensure economic recovery? What does NSIA Bank propose in the current context in Côte d'Ivoire to support the recovery process? I believe it is important to ensure that the regulatory framework that applies to banks does not kill their ability to support SMEs effectively and sustainably. We are all concerned about improving the rate of banking and integrating the informal sector into the banking sector. This presupposes having an appropriate regulatory framework, which is not only a transposition of international standards. Initiatives are needed to promote access to financial resources for banks at reasonable costs to be able to meet the financing demands of SMEs. We must also manage to create a climate of stability, generating serenity and confidence for all stakeholders, because it is clear that without this, we cannot have a major initiative in terms of investment. The responsibility is therefore shared between political actors and populations, including business leaders. The Continental Free Trade Area (AfCFTA), scheduled for implementation in January 2021, is expected to change the situation in Africa, on all levels: economic, legal, mobility of people and products... Are you already ready for this reconfiguration of the market? We are following the gradual establishment of this free trade area. For the moment, the available information does not allow us to project ourselves sufficiently. But as a pan-African group present in twelve countries of the continent, the NSIA group considers that the Zlecaf converges with our project whose horizon goes beyond Côte d'Ivoire. Thus, all initiatives aimed at promoting trade, relaxing fiscal or customs measures must be accompanied.