Banking
From The Report: Gabon 2013
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While Gabon’s banking sector is one of the more developed in the Economic Community of Central African States, penetration lags behind its sub-Saharan African peers. Banking assets accounted for 21% of GDP in 2012, according to the IMF, while the private sector’s ratio of credit to GDP stood at 11% (19% of non-oil GDP). As of April 2013 there were just over 266,000 accounts for 1.5m people. Yet as banks’ over-liquidity continues to grow, the sector will be looking to expand its intermediation to the real economy. The €25.5bn Emerging Gabon development strategy is expected to create greater demand for long-term funding, and Gabonese banks should have a bigger role to play in this as new regulations aim to encourage local content.

This chapter contains a viewpoint from Lucas Abaga Nchama, Governor, Bank of Central African States (BEAC); and an interview with Thierry Tanoh, Group Chief Executive Officer, Ecobank Transnational.

Articles from this Chapter

Overview

Thinking long term: The sector will have to offer lasting solutions to reduce over-liquidity
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While Gabon’s banking sector is one of the more developed in the Economic Community of Central African States (Communauté Économique et Moné- taire de l’Afrique Centrale, CEMAC), penetration lags behind its sub-Saharan African peers. Banking assets accounted for a mere 21% of GDP in 2012, according to the IMF, while the private sector’s ratio of credit to GDP stood at only 11% (19% of non-oil GDP). Greater competition amongst more banks – the number has grown from seven to 10 since…

Viewpoint

Lucas Abaga Nchama, Governor, Bank of Central African States (BEAC), on access to finance and regulatory reform
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In June 2013 we held debates concerning two central themes: firstly, access to finance, and secondly, institutional, regulatory and structural reforms. As a result, we have drawn and suggested many conclusions and recommendations to the main economic and financial players of the Economic and Monetary Community of Central African States (Communaute Economique et Monetaire de l'Afrique Centrale, CEMAC) zone. CEMAC member states have a crucial role to play in strengthening the economic governance…

Interview

OBG talks to Thierry Tanoh, Former Group Chief Executive Officer, Ecobank Transnational
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Interview:Thierry Tanoh How can the sector take advantage of low penetration rates to boost retail growth? THIERRY TANOH: With innovations in technology, such as mobile and internet banking, and given changes in regulation, with agency banking as an example, this is probably the most exciting time in recent history for African banks to increase the banking penetration in hereto unprofitable territories. Resistance to change is the most common obstacle faced in the push to encourage the African…

Analysis

Access for all: New services will help increase penetration rates
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Successful diversification of Gabon’s economy depends on greater bank intermediation in the real economy: expanding financial access for its people and facilitating access to retail credit. While a small consumer finance sector has developed to cater to the limited cadre of formally employed workers, banks are increasingly testing mobile money services to entice the majority of the population that remains unbanked. LIMITED REACH: With 266,345 accounts in April 2013, out of a population estimated…

Analysis

On the market: Offerings set to increase as new banks enter and existing players expand
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Whilst still concentrated, the market is becoming increasingly contested, with foreign banks establishing a presence, as well as the emergence of domestic institutions. The sector is gradually feeling the impact of this growth through greater reach and more product differentiation. With the Bank of Central African States’ (Banque des États de l'Afrique Centrale, BEAC) capital requirements at an admittedly modest CFA10bn (€15m), lenders will have to expand their intermediation to succeed…