By JACKSON MUTINDA

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The EquityBCDC Director-General Celestin Mukeba speaks to Jackson Mutinda about the trade and investment opportunities in DRC and the lender’s role in promoting financial inclusion in the country.

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How has the US dollar fluctuation affected business in Congo?

DRC is a unique market because it’s very dollarised. The dollar is basically legal tender in the economy, which makes it good because it protects your business as you generate income in dollars.

In the banking industry, assets are 90 percent in dollar terms, so the fluctuation of the dollar has a positive effect.

Also, the macroeconomic aggregate has been strong in DRC. GDP growth is 8.5 percent; last year it was 6.2 percent, so there’s stability. Inflation is low; what we endure is imported inflation, but it doesn’t affect the economy so much due to the fact that it is hedged on the dollar.

What’s the state of ease of doing business in DRC?

If I were to advise someone who wants to invest in Congo, I’d tell them to look at what we have done. The investment we have made since 2015 shows the enormous potential in DRC for all types of business.

The challenges can be overcome. DRC is under International Monetary Fund programmes, so there are a lot of reforms happening.

In mining, you will see growth because of the reforms which began in 2001. It's work in progress in terms of ease of doing business, as is in other countries in Africa.

But there are institutions like ANAPI (Agence Nationale pour la Promotion des Investissements), which support businesses, so one needs to knock on the right door.

We at Equity are also promoting trade and investment within the continent and DRC.

How easy is it to find land to establish an industry?

There’s a plan to digitalise the land administration process. The bank did acquire land and we own property in DRC.

Everything is about knocking on the right doors and being informed about the right process.

There are legal and audit firms so someone can be properly guided. There are also state agencies that help people.

Mining companies have been granted space for investment.

There are special economic zones being put in place, for example, for making the batteries (for electric vehicles).

What are some of the challenges you’ve encountered doing business in DRC?

I have been managing director at Equity since 2008, so I know the market well. The DRC market is growing and the regulatory environment is evolving, and there are a lot of reforms.

The country is making progress in attracting investors. Twenty years ago, there were only seven banks operating in DRC; today the number is double.

There are a lot of stereotypes about the DRC market, but when you get there, you realise the enormous opportunity in business, because the country depends a lot on importation of goods; so there’s opportunity for putting up factories or venturing into various types of business that will reduce this dependence.

In terms of infrastructure, the challenges are actually opportunities for entrepreneurs.

But to venture into the country, one needs to be informed about the laws and they can be guided and supported.

So, how is business at EquityBCDC?

We started the journey in 2015 with an acquisition: Equity acquired a German bank, ProCredit Bank. That time banking penetration was very low, but the acquisition helped the business grow.

A lot of progress has been made. By the time of the acquisition, ProCredit had $150 million in total assets and in 2020, it had close to $1 billion in assets. That was a big leap.

That gave confidence to the Equity Group to go to the next step of accelerating growth by acquiring the oldest bank in Congo, BCDC – Banque Commerciale Du Congo – and then the merger occurred.

After the merger the bank had an asset base of $2.6 billion. In one year, we managed to grow the assets to $3.7 billion.

How has EquityBCDC impacted banking and financial services in DRC?

We have the largest agency network and we are the only bank offering that business and others are coming up.

We have close to two million customers. When Equity entered the market, we had 136,000 customers.

Our aim is to transform lives and to expand the opportunities for wealth creation.

We want to be the champions of socioeconomic prosperity of the people of Africa.

First, we want to accelerate financial inclusion in the DRC. Today, the country has very low banking penetration – only seven percent of the people have bank accounts, so we think we can play a big role in driving financial inclusion and supporting access to credit, from corporate to SMEs.

So far, we have managed to grow a network of agency banking, with 15,000 agents across the country.

DRC has about 100 million inhabitants, so we think it is a big market that can be served by going digital so we launched digital banking.

In addition, we have the biggest ATM network. On April 7 I will be receiving 300 ATMs that we bought so that we double our ATM network.

Equity is known for its double engines: the economic engine and the social engine. So, we launched the Equity Leaders Programme for gifted high school graduates from across the country. So far, we have 230 beneficiaries, who are being nurtured to become future leaders.

We have other initiatives to support agriculture, as well as financial literacy and we will soon launch Equity Afia – a network of franchised medical outpatient centres run by doctors.

How does EquityBCDC stand apart from other Equity banks in East Africa?

EquityBCDC is part of the Equity Group and we align with its vision. We tap the Group’s resources in terms of strategic guidance but the unique thing is the nature of our market.

DRC is a big country with huge opportunities. We have managed to integrate all segments. We’d like to enable the value chains of corporates, small and medium companies… the entire ecosystem… supporting them with financial services to empower them to make a difference in the country.

The country is known for its rich mineral resources – it owns 70 percent of the world’s cobalt and copper – so, it has a lot of potential in terms of growth. Last year, GDP grew by 8.5 percent, making it one of the fastest growing economies in the world.

Equity is tapping these resources to make a difference: to support businesses and individuals to realise their dreams by enabling them financially.

What is the impact of technology in what you’ve done at the bank?

The growth is supported by digital and mobile solutions, which enable clients. To reach two million clients you can’t do it in brick and mortar.

From day one we decided to roll out the Equity model, which comprises agency banking, digital solutions and mobile solutions. We have integrated all the mobile solutions in DRC and now one can transact seamlessly. That has enabled us to reach masses.

How did Covid-19 affect your operations?

We have been lucky Covid didn’t have a severe impact in the DRC. The economy survived due to its mineral exports – the country is exporting critical minerals, which will change the energy landscape in the world.

We are in an energy transition and DRC holds the natural resources that are required for that transition: copper, cobalt, nickel and others. Those exports helped the country mitigate the Covid crisis.

We didn’t suffer lockdowns, except in one district, which was locked down for a month and that didn’t significantly impact the economy.

What’s your transformation plan?

EquityBCDC is an actor in executing the Group’s vision, especially the recovery and resilience plan, which intends to reach 100 million people; and DRC will play its role.

Looking at the unbanked population, we can play a big role there by bringing in close to 25 million in the years to come… to remove them from poverty to support financial inclusion; to support agriculture; to support mining companies, even artisan miners.

We have partnerships with development agencies such as USAid and others to ensure that we achieve those objectives.

We’d like to support SMEs. We’ve begun the journey already. In eastern DRC, we are financing more than 10,000 farmers to grow coffee and they’re exporting it to the US.

When we started, they were able to export four containers and, in the first round of financing, they sold 16 containers. Today, they have signed with Starbucks.

In education, we launched the Equity Leaders Programme and we’d like to nurture future leaders by supporting them, giving them induction in the bank and allowing them to work while being coached and mentored; and giving scholarships to study abroad.

In energy, we have signed a partnership with Schneider (Electric) who we’d like to provide more than one million kits in the country.

Eastern Congo is infamous for conflict. How did you overcome the fear of disruption by violence to invest there?

We appreciate that efforts are being made to make sure there’s peace and stability in that part of the DRC and we are making our contribution.

When people get financial inclusion, they create wealth, which will help them avoid conflict so, the business we are driving is a business of transformation in which we are helping people to create wealth. Wealth disincentivises people to go into conflict.

Equity Group CEO James Mwangi says in five years, the Congo business will be driving the group’s growth; that in fact it will grow bigger than the Kenyan business. Are you confident to achieve this?

DRC is a growth market; Kenya is a mature market. DRC will grow bigger.

In one year, we managed to grow close to 50 percent of our balance sheet. In five years, it should happen for sure.

DRC is the place to be and it will play a big role in development of Africa, with the minerals and population; so it’s a place of opportunity.

Is there one thing you celebrate in your leadership of the bank?

Enabling customers to realise their dreams. I remember a widow whose three children’s education we paid for.

When the lastborn got his diploma, she came to the bank to celebrate.

When we empower a customer, give them dignity, transform their life, that makes me happy.