In this interview, Diakarya Ouattara, Managing Director of Coris Bank International Burkina Faso, invites Senegalese companies to massively join the support project of the International Islamic Society for Trade Finance (ITFC). Banking partner of the ITFC in the program, the director of Coris Bank Burkina also takes stock of the pilot phase in Burkina Faso, which saw significant participation by SMEs in the country. The program aims, among other things, to strengthen management and leadership capacities, the structuring of business plans and the financing of SMEs.
Why were you chosen by the ITFC as a partner bank for its support program for SMEs in Burkina Faso?
Diakarya Ouattara: Thank you very much. I am Diakarya Ouattara, Managing Director of Coris Bank International Burkina Faso. If you allow me, I would already like to say a word about our institution. It must be said that Coris Bank International-Burkina Faso is the first subsidiary of the Coris group. The West African banking group, which is located in seven countries in West Africa and Coris Bank International, is also the leader in its market today with 20% of the shares. We are listed on the regional stock exchange. We have the largest network of bank branches in the national territory, numbering 52.
Since our creation, it must be said that we are a bank that has been committed to supporting small and medium-sized businesses, as our vision also reflects. We decided a long time ago to be the bank of reference in supporting SMEs in the sub-region.
And indeed, this vision has translated into real support for the economy. It should be noted that as of September 30, 2019, we totaled 595 billion CFA francs as outstanding credit granted to the economy. But in these 595 billion CFA francs, it must be said that we have more than 60% which is financing for SMEs around 350 billion CFA francs. So it is with this expertise of Coris Bank International that the ITFC, which is our traditional partner, has actually chosen to work with us in its support programs for small and medium-sized enterprises.
How do you assess the progress of the program in Burkina Faso?
Diakarya Ouattara: it must be said that this program is an innovative program which is a first in the sub-region in the sense that it is a program which is based on support in terms of advice, capacity building, leadership small and medium enterprises, structuring business plans; but also in capacity building. Overall, it is an initiative piloted today with the Maison de l’Entreprise du Burkina Faso, which is the real house of companies. And it is also a program that has a part that actually deals with the development of international trade instruments.
It must also be said that it is a program that consisted in selecting more than sixty SME files that had been rejected for shortcomings in the business plans and various other reasons. And these companies have therefore been the subject of support at the level of the Maison de l’Entreprises. And today, more than twenty files have been managed at the bank level. And the latter have been able to benefit from financial resources for the implementation of their projects and for the development of production capacity. So this is actually what the program put in place by the ITFC consists of.
How much financing did you grant at the end of the upgrading of SMEs?
Diakarya Ouattara: so, it must be said that already the support of the ITFC is not limited in reality to this program. You know that we are traditional partners and as such, we have twice benefited from lines of financing from ITFC, from the granting of finance. A grant of $18 million, which in reality therefore enabled SMEs to benefit from credits for imports. So, it must be said that this program which was put in place after about twenty files were elected to benefit from financial support of 2 billion CFA francs; is already being put in place for the files that have been selected. Other SMEs that have already received funding have already disbursed in this program.
Can companies that have participated in the program obtain credit from other banks?
Diakarya Ouattara: so it should be noted, I said earlier that it is an innovative program in our sub-region that companies can be fished out so that they are granted a second chance for credits. Generally in our sector of activity, it is rare to actually see this kind of experience. It must be said that the program that has been put in place does not only concern the bank. These programs also integrate other actors such as the business house which has consultants who have therefore been recommended by ITFC as part of this program.
Companies will therefore benefit from support on leadership, support on the management of the company, support on the development of business plans. Which is a substantial contribution to the long-term success of these companies. Beyond the financing which is granted by the institution, what is most important is above all this aspect of advice, of support therefore for these companies which in reality will become the added value that must be noted. I think that we have a lot of companies that have participated in this program not only come to obtain financing but actually want to benefit from this advice program that ITFC has put in place. So there are many companies that are actually very satisfied with the support.
What will be the particularity of your support for SMEs in Senegal?
Diakarya Ouattara: it must be said that Senegal is one of the territories with high potential in terms of SMEs, so the program that will concern these countries, which is one of the countries where the group is normally present, must be a success. In any case, we have set ourselves the objective of supporting the Senegalese subsidiary given that we already have good expertise here in Burkina. We are going to support the subsidiary in Senegal so that this program is a success. The Senegalese State is well organized in supporting small and medium-sized enterprises. There is a ministry dedicated to supporting and promoting SMEs. And so I think that this program will actually be a plus to allow small and medium-sized enterprises in Senegal to be able to benefit from an ITFC loan.
Are you going to work in Senegal with the Maison de l’Entreprise?
Diakarya Ouattara: In all countries where ITFC operates, it works with local bodies and institutions so that support is direct. An intervention by the Maison de l’Entreprise du Burkina will not be very effective and therefore it is also planned that a group of experts in Senegal can intervene; especially since they know the Senegalese economic fabric well. So it is recommended that we work with experts on site in Senegal.
For the continuation of the program in the other WAMU States, do you think you are still the partner bank of the ITFC?
Diakarya Ouattara: indeed. We have been ITFC’s partner bank since 2015 and we intend to strengthen this partnership in all the countries where we are present today. We are present in seven WAEMU countries. Beyond Burkina, we are present in Senegal, Mali and Côte d’Ivoire where there is great potential. Also, we are present in Benin and Togo. And this year too, the group will set up in Niger. So in all these countries, we will be ITFC’s partner in supporting SMEs. It is part of the vision of our group today to work with other countries, small and medium enterprises in the sub-region and we will work on this together.
Do you have a word for the owners of Senegalese SMEs, who are today attending the launch of the program in their country?
Diakarya Ouattara: so before saying a word to the owners of SMEs in Senegal, I would also like to ask ITFC, which is my partner in this program, to extend the initiative to all SMEs. The selection was made today on SMEs that have difficulty accessing financing. Because these are SMEs that have already presented files to banking institutions. What we want is for the program today to be extended to all the poles. If, in reality, all SMEs should be allowed, beyond funding, to be able to benefit from valuable advice, important for the sustainability of their institutions, of the company. In reality who work in these sectors.
On SMEs in Senegal, I am going to call for a great mobilization in these programs so that this one is a success. I think that beyond financial support, it’s a program that will enable them to build their capacities in terms of leadership, in terms of structuring, organization, which are precisely the shortcomings that are largely noted by the banking sector for SMEs. I think this is a real opportunity offered to them and I hope that there will be a great mobilization of these SME owners so that we can make this one a success but also in order to continue to benefit from the reinforcement of these programs by the initiator, ITFC.
