Banking
From The Report: Cote d'Ivoire 2020
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The banking sector has been central to the country’s ongoing economic recovery, providing a strong growth platform for lenders operating in Côte d’Ivoire. As liquidity demands become stricter, new opportunities for mergers and acquisitions may arise – especially as some smaller competitors face difficulties raising new capital and expanding their customer base. Challenges for the sector’s growth in the short term notably include the 2020 presidential election, which may lead investors to adopt a wait-and-see approach. On a global level, it remains to be seen how far – and for how long – banking operations and economic activity more broadly will be disrupted by the Covid-19 pandemic. In the meantime, the ongoing integration of more stringent liquidity and lending ratios is helping to solidify the Ivorian banking sector. This chapter contains interviews with Tiémoko Meyliet Koné, Governor, Central Bank of West African States; and Jean-Luc Konan, Managing Director, Groupe COFINA.

Articles from this Chapter

Overview

Sound base: New prudential rules are implemented as banks attempt to reach more customers
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Côte d’Ivoire’s banking sector has been a critical instrument for the country’s economic recovery. As several sectors returned to growth following the end of political and military unrest in 2011, Ivorian banks helped finance expansion in infrastructure, energy, industry, agriculture and services. As a result of this revival, the economy has posted successive years of expansion, with annual GDP growth averaging 8.5% between 2012 and 2018. The country’s robust economic performance…

Analysis

In network: Mobile money fills the gaps left by traditional banks
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When it comes to widespread access to financial services, no other mechanism has been able to compensate for the shortcomings of the traditional banking system like mobile banking services. As mobile operators have expanded their offerings, such as the transfer of money between telecoms users, mobile money has become a lifeline for traders, independent businessmen and isolated populations across West Africa. Mobile money transactions in Côte d’Ivoire rose from CFA4.5trn ($7.7bn) to CFA6.3trn…

Interview

Widening reach: Tiémoko Meyliet Koné, Governor, Central Bank of West African States (Banque Centrale des Etats de l’Afrique de l’Ouest, BCEAO), on improving accessibility of financial services
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Interview:Tiémoko Meyliet Koné How has the penetration of financial services in Côte d’Ivoire evolved in recent years? TIÉMOKO MEYLIET KONÉ: As of the end of 2018 there were more than 90,000 financial services access points, 60 per 10,000 people and 293 per 1000 sq km compared to 16 per 10,000 people and 168 per 10,000 sq km in 2014. As a result, the financial inclusion rate increased from 39% to 70% during the same period. In fact, in 2015 the BCEAO issued new e-money guidelines which…

Interview

Tailored offering: Jean-Luc Konan, Managing Director, Groupe COFINA, on meso-finance and increasing financial penetration rates
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Interview:Jean-Luc Konan What role can meso-finance play in Côte d’Ivoire? JEAN-LUC KONAN: Meso-finance is the branch specialised in financing small and medium-sized enterprises (SMEs). In Côte d’Ivoire SMEs account for 98% of the companies registered and contribute around 20% of GDP, 12% of national investment and represent 23% of the active population. SMEs respond to the growing demand for local services, allow for greater specialisation, support large companies through their goods…

Analysis

Broader reach: Financial inclusion takes centre stage locally and across the region
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The authorities in Côte d’Ivoire have prioritised the expansion of financial inclusion as a mechanism to spread economic growth across a wider share of the population. As of 2015 almost 46% of Ivorians lived on less than CFA750 ($1.29) per day, according to the World Bank. Policymakers have identified limited access to financing mechanisms, for individuals as well as for small and medium-sized enterprises (SMEs), as a key obstacle to the distribution of economic prosperity. Strategy Launch In…