In this response to Covid 19 and support for vulnerable populations, several financial institutions are trying to provide support in the form of cash or through the supply of equipment. This is the case of the Ecobank group which made a contribution of 3 million dollars on the continent to deal with the spread of the virus and stabilize the state of the economies. Financial Afrik organized a telephone interview with the Managing Director of Ecobank Cote d'Ivoire and Regional Director for WAEMU, Paul-Harry Aithnard. Who gives details not only on the amount allocated to WAEMU in this global portfolio of 3 million dollars but also on the solutions proposed by his group to help the government authorities.

How has the Ecobank group been doing in recent years?

The group is doing well. We have implemented certain bases of our strategy since 2015. And this strategy is now being deployed successfully and we are convinced that the banking business is evolving towards the distribution of financial services more and more more through digital channels. Our goal is to create an ecosystem around Ecobank that will allow us to offer services and solutions to several types of customers, in particular SMEs and large companies through either physical or digital channels. It was also important for us to set up several partnerships with international, regional and local companies. It is all these elements that make us say today that the Ecobank group is doing well. The results we announced for the year 2019 for both the UEMOA region and Africa show that we continue to post robust figures.

With the health crisis linked to the Coronavirus, we see that the bank is increasingly involved in helping vulnerable groups and bank customers. How much does this portfolio weigh for the group? Can we evaluate it?

Yes we can assess it. But, it must first be understood that support for working classes and interest in customers are part of the group's DNA. Our mission was to participate in the integration and development of Africa. So Ecobank is not a bank like the others. Today we do not see any negative impact for the moment on the portfolio from our exposure to the working classes and to the bank's clients. But we are fully aware that we are in uncharted territory for each of us. It is for this reason that we try to be as careful as possible and to ensure that the bank continues to have liquidity. Moreover, deposits at the bank level continue to increase, which demonstrates that our customers continue to trust us despite this pandemic situation.

We note that West Africa is in the line of fire in the number of infected people, particularly in Côte d'Ivoire where the peak has really been reached. This situation will not considerably affect the portfolio of the Ivory Coast subsidiary?

As I told you earlier, we are looking at this with a very cautious eye. Today West Africa presents more than 3000 cases. Côte d'Ivoire is one of the countries with the most cases. We try to be very close to both the authorities and the people to play our role, which is to be part of the solution. So we try to offer a range of digital services and products accessible to all populations living in the Uemoa zone. Either services that allow them, for example, to send money to their families inside or outside the area, or services that simply allow them to send money to populations in rural. These are all the elements that we are trying to put in place. We encourage our individuals and businesses to use our digital solutions which allow them to make transactions while remaining protected and respecting the rules of social distancing.

What is your contribution in supporting SMEs? What sectors do you support the most?

The subject of SMEs is very important and requires everyone's support, both SMEs and the State. SMEs generate jobs and represent more than 80% of informal jobs. What we are trying to do is first of all to get closer to these SMEs by using the different options offered to us by the Central Bank (Bceao) to provide a little more liquidity to SMEs; the second thing we have done, we are working with the various ministries of economy and finance in the region to see how we can participate in the various financial support mechanisms that will be put in place. This, to see how to participate in risk sharing if necessary or how to continue to provide liquidity to very important companies that generate income and wealth on the continent. It is also important to note that we have tried to get closer to these SMEs by accelerating the deployment of express points (Ecobank mini branches that allow the bank to get as close as possible to these customers).

The group recently announced that it has contributed $3 million to the fight against Covid 19 on the continent. Can we have an idea of the share that has been allocated to the WAEMU countries, given that you are also the Uemoa regional executive director of the Ecobank group?

Indeed the group has contributed more than 3 million dollars on the continent for the fight against Covid 19. In the Uemoa zone we have contributed nearly 400 million CFA francs. This amount was granted on the basis of three areas that were important to us. The first is to be close to the government by providing the necessary sanitary equipment; the second axis is to be with the government to strengthen hospital capacity (respirators and food) and the third axis for us is to promote telemedicine. Because we believe that telemedicine is an answer in the treatment against covid 19. Within these 400 million for the area, we have granted about 70 million to the State of Côte d'Ivoire. We remain available to be part of the pandemic response.

During the granting of the group's 3 million dollars, there is the general manager, Adé Ayeyemi who affirmed: "we are also aware of the effect of the Covid-19 pandemic on our customers and have taken the decision to mitigate the negative fallout in various ways by already making certain bank charges on our digital platforms free of charge”. Are bank charges actually withdrawn from transactions in your branches?

There are no fees to pay, we have done two important things. The first is that we've removed fees when you make transfers from our mobile app. For example if you send money by E-mail, sms or with our service which we call cash express, you pay zero fees. The second thing we did, we raised the amounts authorized by allowing larger transactions to be made without going to a branch. It is through these elements that we are also trying to provide a digital response to the pandemic.

Isn't the crisis affecting your activities? What do you suggest for West African countries in the fight against the spread of the virus?

I moderate the point when you say that the crisis has not affected our bank. I made it clear that we are entering uncharted territory and we cannot believe that this crisis will not have an impact on the future of the bank. For the moment it is difficult to quantify this impact, but it is obvious that with a fall in GDP by half in terms of growth there will be less supply, less demand and that financial services as an important transmission belt in the economy may be impacted. What is difficult today is to quantify this impact. It is also important to insist on the fact that the context is not only linked to the Uemoa region or to Côte d'Ivoire. We are in a global context. According to the McKinsey firm, Covid 19 could cause an 8% drop in the GDP of African economies in 2020. Nearly half of the world's population is confined and the World Bank estimates that sub-Saharan Africa could experience a first recession on the last 25 years. This could lead to production losses of between 37 and 79 billion dollars in 2020. We are in an extremely difficult context and that is why we must participate in the response in terms of advice to be given to the populations. We must respect barrier gestures, it is essential for the survival of our populations. The second important thing, companies must show solidarity, is what we try to do with regard to the social actions that we have had to do and also with regard to the recommendations that we give in order to be able to help the authorities to respond adequately to the crisis. Another important point for us is public awareness and education. It is only at this price that we will come out of this crisis much stronger.

Do you have any final words, Regional Director ?

What I can say is to insist on the world after. This crisis will create very profound upheavals. We have entered full foot into this world after characterized by two elements: in the health crisis we must do our best not to turn towards the economic and social crisis. This is precisely why we are doing everything to be able to create partnerships and provide financial solutions to the working classes. The second element that will define the world after is the acceleration in digital and Ecobank today is one of the banks that offers the best responses to this.