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SOFIBANQUE

DR CONGO - Finance

Henry Wazne

General Director, Sofibanque

Bio

Henry Wazne has been a leading figure in Congolese banking since 2012 as Managing Director of Sofibanque. He holds a Master’s in Law from the University of Nice Sophia-Antipolis and has 23 years’ experience, primarily in international trade. A third-generation member of the Wazne family in Africa, he has driven Sofibanque’s growth and expanded into the insurance sector with the creation of SFA in 2019. Since 2016, he has served as First Vice-President of the Association Congolaise des Banques and, in 2021, was elected Representative of the French people in the DRC.

"Currently, only 5-6% of the Congolese population has a bank account. Sofibanque is working hard to increase financial inclusion by opening branches and developing more points of sales."

TBY talks to Henry Wazne, General Director of Sofibanque, about financial inclusion, the growth of the bank, and international investment in the DRC.

As the third-largest bank in the DRC, what is Sofibanque doing for financial inclusion in the DRC?

Currently, only 5-6% of the Congolese population has a bank account. Sofibanque is working hard to increase financial inclusion by opening branches and developing more points of sales. However, in reality, these have a limited impact on financial inclusion and increasing the number of bank accounts. The main reason for this is that 75% of the Congolese economy is informal. Even digitalization has its limitations given this high level of informality. Some might think that mobile payments, mobile money, and other fintechs are a form of financial inclusion. However, I do not view it that way; they are just payment services. Financial inclusion is about people with bank accounts gaining access to credit, financing, and so on. Mobile money does not do that. The country needs incentives for people and companies to move toward the formal sector, and these incentives have nothing to do with banking institutions. The government needs to enact policies and create incentives to move people from the informal sector to the formal one.

One of the key drivers of growth for Sofibanque has been its insurance branch Société Financière d’Assurance (SFA). What role has SFA played in the company’s growth in the DRC?

Sofibanque was one of the first three companies to receive a license when the market was liberalized, and we have done fairly well in a limited time. The insurance market in the country grew from USD80 million to some USD400 million today; however, there is still a great deal of potential growth—we estimate the market to be worth around USD1.5-2 billion in premiums. There is still much to do to keep growing and meet the full potential.

How does Sofibanque work with other banks or payment systems to ensure more interoperability in the economy?

The banking sector as a whole is doing its part. I am the first vice president of the Banking Association. Still, at the end of the day, there are limitations on what banks themselves can do. The central bank has created what we call a switch that allows banks to interoperate among themselves with regard to payment services and credit. It also plans to put in place a local clearing system in US dollars. This would be extremely helpful, because at the moment whenever we make a US dollar transfer to another Congolese bank, it goes to New York before coming back, which is not convenient or quick. With the switch, it will become significantly easier to operate in the DRC and will make the country more attractive.

How did Sofibanque quickly become one of the largest banks in the DRC?

When we opened in the country, we were at the bottom of the ranking and had to develop a strategy to grow: doing things differently from other banks. If we copied others while starting from the bottom, there would be no reason for customers to work with us. Our business strategy was to always remain close to our clients and be as accessible as possible. We started with corporate clients and later worked with the subcontractors and employees of these clients as well as the entire value chain. Sofibanque offers a complete service while developing a custom-made product for our clients. We do not just give clients a menu of product offerings, like other banks. When we meet with a client, we listen to their needs, their issues, and their problems, and we create specific products. The DRC also has a high level of bureaucracy, which is why we also offer advisory services that we do not charge for, which our clients appreciate.

How diversified is Sofibanque’s portfolio?

Approximately 90% of our deposits are short-term deposits or current account deposits. A bank belongs to its depositors, which is why we must be prudent with people’s money. It is not easy to tell them to invest their money with us in an investment vehicle that will earn a profit in 15 years. Instead, we focus on investment vehicles that are imminent or ongoing, like mining and the like. However, the DRC has immense potential beyond just the mining sector. We also work with the telecommunications sector, many of the major mainland companies, importers, and public utility companies.

What would be your message to an international investor looking into the DRC?

If an investor can look beyond the messages in the international press regarding the business climate and so on, they will realize that the DRC is the only country in Africa where all sectors of the economy are open for investors. This country is, in reality, the most open country for business in Africa. The day-to-day business might be somewhat complicated; however, it is equally complicated for everyone. In the DRC, a business does not need a politician or an influential figure as their shareholder in order to grow.

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