Lucky Fiakpa
6 October 2008
interview
Beijing — This interview was conducted by Lucky Fiakpa in Beijing, China during the First China-ECOWAS Economic Forum held between September 22 and 26, 2008.
Here Dr. Arnold Ekpe, the group managing Director of Ecobank Transnational Incorporated, bares his mind on a number of issues especially on the China-ECOWAS relations. Excerpts;
Ecobank and other Nigerian Banks opening shop in China, how soon is this?
We are on it and we hope to shop as soon as we get the regulatory approval. We have contacted the regulator to try and start the process.
How deep and how prepared is Ecobank to actually play a leading role in this emerging ECOWAS-Chinese relationship?
We are the perfect people for that. We are in 25 countries. I don't think they want to go to every country and be talking to different banks. When they talk to Ecobank, they've covered 25 countries and I think that is perfect partnership for them.
How profitable or how strong are those Ecobank branches outside Nigeria to be able to handle the type of investment in view?
They are very profitable and strong. I've been to Ouagadougou, Kigali, everywhere. We know these places. They may not be as big as Nigeria but they are very profitable with a lot of growth potential. The capital requirement for businesses in the various countries is relative.
The amount of money you need for business in Nigeria might be bigger than the amount of money you need for business in a place like Malawi, so it's relative. For each one of them, you mobilize the amount of money that is needed for that market. But not all market are of the same size and the point we are trying to make is that whether it is a big market, medium size market or a small market, we are ready to accompany the Chinese companies there as long as we have that objective of developing Africa.
Progress on Public Offer
It's been very well received by all. Bear in mind that it is the first time they've done a regional offer in Africa. We're pioneers in this and so exciting and we've received a lot to interest and support because the Ecobank brand is very well known across the region.
Product integration across the various countries where you have offices
It depends on the market. The most interest thing is that if you go across all the 25 countries you have a reliable partner - Ecobank.
So it's not so much the product but the partnership because the product will vary according to the market. But what you want to do is that whether you go to Nigeria or you go to Ghana, you have a partner, that is most important to us.
Branch expansion, how many are we looking at here?
The countries we have as our target is about 33 and we are already in 25 so we are almost there.
You were initially a local bank within the ECOWAS sub-region and now you are reaching out wide. Are you not afraid of the growth rate?
Our strategy from beginning had been regional. We were set up by shareholders from 14 different countries from day one. However our branching out to other regions of Africa has not proved any problem. We have shown so far that we can manage them and the evidence is there. We've been growing and we've been making profit.
We've managed the growth very well. I think the challenge for us is that a lot of Africans need to understand that Africa has changed. The Africa of old is not the Africa of now, the strategy they you used ten years ago, you cannot use it now. And a lot of Nigerian banks are now trying to copy our strategy, except that we've been doing it for 20 years and they are new at it.
But the aggressiveness with which those ones are doing it Ecobank don't seems to have it.
Ecobank does not like to promote individuals, we like to promote the institution and we want to do this professionally. We think being conservative is a virtue. We are not aggressive, we try to be effective. We are in 25 countries, we didn't make a lot of noise, we just did it. I think we've done more acquisition than any other bank. We didn't make a lot of noise, we just did it.
So some of these countries you go you acquire?
Yes, we aquire, we don't always start up. But one thing I want you to know is that Ecobank is not a Nigerian bank, is not a Togolese bank it's not a Ghanaian bank, it is a pan-African bank. We employ 29 African nationalities in the Ecobank Group. Our Board of Directors is made of eight or nine nationalities.
Our senior management is made up of ten nationalities. We are Anglo-phone, we are Franco-phone and we are Luxo-phone. So we represent the future and if you look at the future of Africa, that's what Ecobank stands for. But sometimes people can't understand this because they look at things in a nationalistic sense. And if you believe as I believe that the future of Africa is bright, then the future of Ecobank is bright.
That is the message. In Nigeria we are not very big but if we do a deal in Nigeria then we'll become very big and we will because there is only one Ecobank and there are 23 Nigerian banks. We can deal with that and we would do a deal one of these days. So in all those markets, the objective for us is to be a major player but to be a regional bank and not a national bank.
When people look at Ecobank, they don't say it is a Nigerian bank going into Kenya or going into Malawi. But if they look at some of our competitors, that is what they would say. We're seen as neutral. We are not own by any nationality, shareholders or any interest group. People are more comfortable with us, that is what makes the difference. And when you buy Ecobank shares, you buy a dollar investment in local currency but get your dividend and share certificate in dollars and also sell it in dollars. No other institution gives that type of advantage.
The fear was that as at the time you came to the market, the Nigerian capital market was on the downwards glide and many investors were simply lamenting their investment. So it was though that your timing was not right
But isn't it the best time to buy when the price is down? You want to buy when the price is high? The market is not going to be down forever. If you wait for the market to go up you'll lose your chance. This is the time to buy.
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