Africa, a continent with high potential
Africa a new trade and investments destination
Doha, December 2013
I. Africa, a land of opportunity
1. Demography
2. A young population and urbanization
3. Improvement of the life conditions
4. Acceleration of the economic growth
5. Trade flows
6. Infrastructure investment
II. Attijariwafa Bank
1. Strategy and footprint
SOMMAIRE
Source: IMF, WB, UN
STRONG DEMOGRAPHIC GROWTH, POPULATION TO REPRESENT MORE THAN 20% OF WORLD POPULATION BY 2050
3,0%
2015f20102000
Strong demographic growth
Population (millions)
2005
Population to represent more than 20% of World population by 2050
GREAT GROWTH POTENTIAL: YOUNG POPULATION AND URBAN DEVELOPMENT
Strong urban population growth
40
Rural
60
2010
2015f
4852Rural
Urbain
Urbain
LIVING STANDARD IMPROVEMENT AND MIDDLE CLASS EXPANSION
SOURCE: World Bank
Life expectancy
Literacy rate (Subsaharan Africa)
In years
% of population older than 15
GDP per capita
Poverty (Subsaharan Africa)
PPP, US$
% of population with less than 1.25 US$/day
51.5%58.0%
47.5%
1981 1999 2008
23.0%
57.4%62.6%
1970 2000 2010
49.9
53.2
57.2
1980 2000 2010
1 016
1 900
3 060
1980 2000 2010
x3 +7
-4pts X2,7
1.5
2.8
3.1
3.7
4.5
5.1 *
8.6
Develope
d …
World
Latin America
Central Europe
Middle East
Africa
Emerging Asia
6
Acceleration of growth in Africa during the last decade…
1,9
2,3
4,6
6,0
4,0
STRONG GROWTH PERFORMANCE IN AFRICA SINCE 2000…
Source: Global Insight ; McKinsey Global analysis
… The second highest growth region worldwide
Source: McKinsey
Annual average GDP growth, 2000-2010GDP (USD Bn) CAGR (%)
6% at Dec. 2012
GDP growth in %
… GROWTH PERFORMANCE AND INFLATION IN AFRICA
5,2%
Inflation (%)
6,2%
Source: BAD
x% Average growth of GDP
• Strong economic growth, even past the 2008 global crisis
• Inflation under control, slightly trending lower for the past 5 years
EVOLUTION OF AFRICAN TRADE WITH THE REST OF THE WORLD
Source: BAD
Average annual growth
• Strong growth: averaged 16% in the 2005-2011 period•Still represents less than 5% of total world trade
6
Country Telecom Total
•Burkina Faso 1573
•Centrafrique 42
•Guinea Bissau 2
•Mali 460 460
•Niger 166
• Tchad 422
• Ivoiry Cost 21 1174
•Benin 59069 489
•Togo 780 572
•Cameroun 468
• Gabon 143 92
• Congo 735
• Guinea Equatorial 159322
•Senegal 31 2115260 398
Energy Transport
1
50
1 1 1
1
2 2(-)
1
1
1 1
2
1 1
1
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
773
85
(-)
(-)
(-)
(-)
(-)
(-)
(-)
50
573
1 148
166
1 352
42
468
235
735
481
422
INFRASTRUCTURE INVESTMENTS IN SUBSAHARAN AFRICA 2005-2011ZOOM: UEMOA, CEMAC
Volume #Projects Volume #Projects Volume #Projects Volume #Projects
1
2
3
6
1
3
1
1
1
4
1
2
2
1
Σ= 2016 Σ = 10 Σ=2 107 Σ = 10 Σ=2 867 Σ = 10 Σ=6 610 Σ= 30
in G$ US
UEMOA CEMAC
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
(-)
Source : World bank
Main political conflicts since 2000Main political conflicts during the 90’s
INCREASINGLY STABLE POLITICAL ENVIRONMENT SINCE 2000
• Fewer areas of political conflicts
• Several free and peaceful polls organized during the 2000’s
• Many forums for sub-regional dialogue set up in order to foster intra-African cooperation and conflict
management (ex: African Union, ECOWAS..)
AWB’s African footprint (excluding
Morocco)
10
Arab spring, late
2011- early 2012, on-
going political
transition
SIGNIFICANT PROGRESS IN « DOING BUSINESS » RANKINGS
Countries
Rank Doing
Business
2013
Evolution
2007 - 2013
• According to « Doing Business 2013 » published by the World Bank, out of the top 50 improvements in "doing
business“ between 2005 and 2012, 17 are sub-saharan African countries (34% vs. a normal share of 25%) :
Rwanda, Burkina Faso, Mali, Sierra Leone, Ghana, Burundi, Republic of Guinea-Bissau, Senegal, Angola,
Mauritius, Madagascar, Republic of Mozambique, Ivory Coast, Togo, Sao Tome and Principe, Niger and Nigeria.
• Mauritius • 19th • +131
• Rwanda • 52th • +1064
• Botswana • 59th • -115
• Ghana • 64th • +306
• Zambia • 94th • +88
• Morocco • 97th • + 189
• Egypt • 109th • +5610
Case study : Morocco and Rwanda
Rwanda Morocco• Companies act helped
simplify new company
incorporation (2 procedures
and 3 days in order to start a
company) and strengthen
protection of minority
shareholders
• Laws facilitating access to
credit
• Simplification of
crossborders trade:
extension of border
checkpoint opening hours
and simplification of
paperwork
• Simplification of construction
licensing process
• Simplification of construction
licensing process
• Reinforcement of minority
shareholders’ protection and
improvement of mandatory
disclosure for listed
companies
• Suppression of capital
minimum requirement for
limited liability companies’
(SARL) creation
• Leaner procedures for new
company incorporation (one-
stop shop)
• South Africa • 39th2 • -10
• Tunisia • 50th3 • +30
• Namibia • 87th7 • +45
11
Source : «Doing Business» reports
6 countries :
• Cameroon
• Congo
• Gabon
• Equatorial Guinea
• Central African Republic
• Chad
INITIATIVES FOR SUB-REGIONAL INTEGRATION HAVE ENABLED
COORDINATION OF POLITICAL AND MONETARY POLICIES
Members DescriptionCommunities
* Member countries of Southern African Customs Union (SACU)
Southern African
Development Community
(SADC)
15 countries :
• South Africa*
• Angola
• Botswana*
• Lesotho*
• Madagasgar
• Malawi
• Mauritius
• Mozambique
• Namibia*
• DRC
• Seychelles
• Swaziland*
• Tanzania
• Zambia
• Zimbabwe
- Created in 1992, headquartered in Gaborone (Botswana)
- Projects of custom union and free trade zone
- Monetary union under construction
• Mali
• Niger
• Senegal
• Togo
West African Economic and
Monetary Union
(WAEMU)
8 countries :
• Benin
• Burkina Faso
• Ivory Coast
• Republic of Guinea-
Bissau
- Created in 1994, headquartered in Ouagadougou (Burkina Faso)
- Main governance bodies :
Authority of Heads of State and Government and
council of finance ministers
WAEMU commission
Common Central Bank headquartered in Dakar
- Common currency (XOF) and customs union
1
Economic Community of
Central African States
(ECCAS)
- Created in 1994, headquartered in Bangui (Central African
Republic)
- Main governance bodies :
Authority of Heads of State and Government
and council of finance ministers
ECCAS commission
Common Central Bank headquartered in
Yaoundé
- Common currency (XAF) and customs union
2
East African Community
(EAC)
5 countries :
• Kenya
• Tanzania
• Uganda
• Rwanda
• Burundi
- Created in 2000, headquartered in Arusha (Tanzania)
- Customs union and common market
- Monetary union under construction
3
4
12
13SOURCE: World Bank, Investment funds website ; (1) Acquired by Abraaj in 2012
ManagersFDI towards African countries
USD Bn
AFRICA INCREASINGLY TARGETED BY INTERNATIONAL INVESTORS
Growing FDI towards Africa Several investment funds dedicated to Africa
Funds Main operations Invested amounts
• ECP Africa III
• Moroccan
Infrastructure
Fund
• Central Africa
Growth Sicar
• Emerging
Capital
Partners
• OSEAD Maroc Mining
(Morocco 2007)
• Almes (Morocco 2009)
• Finadev (Benin 2010)
• Nairobi Java House
(Kenya 2012)
• NA
• West Africa
Fund
• East Africa Fund
• Africa Health
Fund
• Aureos1 • Bank of Africa (Kenya
2006)
• Athi River Steel Plant
(Kenya 2006)
• Southey Holdings
(South Africa 2009)
• Amounts invested in
Africa: 571 USD m
• NA• Actis • Adesemi
Communications
• Afribrand Holdings
• Heritage Place (Nigeria)
• NA
• PAIP II• Kingdom
Zephyr
Africa
• First Hydrocarbon
(Nigeria)
• Consolidated Infra
Group (South Africa)
• Mixta Africa (Maghreb)
• Amounts invested in
Africa: 200 USD m
2.15.9 7.4
29.3
36.3
52.6
60.0
49.0
39.2
Mo
y. 1
980-
89
Mo
y. 1
990-
99
Mo
y. 2
000-
04
2005
2006
2007
2008
2009
2010
• Modern Africa
Fund
• Helios
Investment
Partners
• Shell Africa Downstream
Business (2011)
• Continental Outdoor
Media (South Africa
2009)
• Equity Bank (Kenya
2007)
• ~1 000 USD m (in
partnership)
• ~147 USD m
• ~179 USD m
x30
Decline of incoming FDIs in the aftermath of the international crisis, amount remain significant
13
14
GROWING INTEREST FROM EMERGING COUNTRIES ESPECIALLY CHINA
Trade between China and Africa
28%
26%
Chinese FDI towards Africa
USD Bn
USD Bn
10%
Suppliers Sectors Funding 1
USD mCountries
Source: National bureau of statistics of China, World Bank
Several infratructure projects are funded by China and
involving chinese suppliers
Top 10 infrastructure projects implemented by Chinese companies
CCECC Transportation 2 500Nigeria, DRC, Congo1
Sinohydro
Corp.
Electricity 2 242Ghana, Guinea, Sudan,
Togo2
ZTE Telecom 2 101Ghana, Kenya, DRC,
Mali
3
CGC Water &
Electricity
1 024Cameroon, Nigeria 4
CGXIG Transportation 1 000Nigeria 5
CGGC Electricity 1 000Nigeria 6
CMEC Transportation
& Telecom
721Sudan, Senegal,
Zimbabwe7
TEC Transportation 620Mauritania8
SEPC Corp. Electricity 512Sudan9
CATIC Electricity 500Zimbabwe10
(1) The total of Chinese fundings that concerns the projects implemented by each supplier
Attijariwafa Bank Strategy and footprint in Africa
Attijariwafa bank in a nutshell
• Date of creation : 1904
• Employees as of June 30th 2012 : 14 861 in 22 countries
• Network as of 30th 2012 : About 2 352 branches
• First market capitalisation of the Moroccan financial sector
• Total assets 2011 : 30.9 billion € / Total customer Loans 2011 : 20.8 billion €
• Total Deposits 2011 : 26.7 billion € / Total shareholders’ equity 2011 : 2.7 billion €
• Rating S&P (long term / short term / perspective) : BB / B / Stable
• Shareholding structure as of June 2012 :
- SNI Group : 46.98%
- Insurance companies : 17.47%
- Other institutional investors : 10.91%
- Santusa Holding : 5.33%
- Personnel : 4.98%
- Free float :14.33%
1st national banking network
2nd banking group in Africa
(excluding South Africa)
N°1 in terms of loans in Morocco
1st branches network in Morocco
N°1 in asset management and stock-related
transactions in the Maghreb
More than 6.0 million clients worldwide
2nd insurer in Africa
(excluding South Africa)
Operating in 22 countries :11 countries in Africa / 7 countries in Europe
ATTIJARIWAFA BANK, A PAN AFRICAN LEADING PLAYER
Market share (%)
26% 24% 14% 7% 5% 26%28% 15% 7% 5% 22%25% 16% 8% 7%
Leader in the Moroccan Market
2011 Loans (MADbn) 2011 Deposits (MADbn) 2010 Retail & Corporate Branches
1616
A WELL THOUGHT DEVELOPMENT STRATEGY…
« Country scan » : 23 countries covered in 3 geographic areas : Maghreb, Western & Central Africa
- Countries attractiveness:. Economic indicators. Stability of the political and social
environment. Size of the banking market
- Banking market attractiveness. Revenues & margins. Competition. Regulation
- AWB’s ability to penetrate the markets
Selection of acquisition opportunities
• Majority control of every acquisition in order to activate relevant synergies
• Act as a significant player in every country of presence
• A pragmatic approach in order to adopt the ‘Best Practices’ in every acquisition
• Clear governance rules
• Business synergies plan in every acquisition
Consolidate the strong position in the increasingly
mature Moroccan market
Reach new high growth markets
Activate optimal synergies through
- Duplication and adaptation of the Moroccan successful business model in new environments
- Implementation of operating business lines in other branches networks (ex: insurance, consumer credits, investment banking…)
- Costs mutualization and sharing of best practices
Support Moroccan and regional corporate clients in their regional expansion and business development (trade & investment).
A regional expansion plan based on a well thought
strategy …
….and a systematic approach
1717
1818
… SUPPORTED BY A GLOBAL VISION
Develop Retail banking in every
country of presence as a global
banking player
Positioning AWB as a universal bank, addressing the needs of large groups and multinational companies, as well as SMEs and retail
Low income banking, insurance, financial services, Migrant banking through AWB Europe …
Develop the economic regional
integration
Development of Trade finance
Cooperation with international institutions
Support european companies in stimulating their trade and investments towards Africa, through AWB Europe
Long term commitment and sustained
investments in every country of
presence
Extension banking network
Recruitments
Training
Support investment
Project finance and PPP
Private Equity
Investment banking
Private banking
September 2005
License to open a subsidiary in
Sinegal granted
November 2005
Acquisition of a 54% stake in
Banque du Sud (Tunisie)
July 2006
Creation of
Attijariwafa bank
Senegal
December 2004
Merger of
BCM/WafabankJanuary 2007
Takeover of the Senegalo
Tunisienne Bank (67%)
March 2011
Acquisition of a
51% stake in SCB
Cameroon
Market shares Morocco* 22.6% 26.2%25.6%25.4% 25.6%25.0%21.6%
NBI Morocco - MMAD
Market capitalization (as of
31/12) - MMAD
NBI International - MMAD
2004 20112005 2006 2007 2008 2009 2010
April 2008
Acquisition of a 79% stake in
the CBAO (Senegal)
Presence in Guinea-Bissau
following the acquisition of
CBAO (through its
subsidiaries)
November 2008
Acquisition a 51% stake in the
BIM (Mali)
Merger of Attijari Bank
Senegal and CBAO
*Market shares : Customer loans**Nbr. of countries (except Morocco)
0 1 94 72Presence in Africa**10
December 2010
Acquisition, by a consortium of
AWB (67%) and Banque
Populaire (33%), of a 80%
stake of BNP Paribas
Mauritania
Creation by CBAO Attijariwafa
bank of a branch in Burkina
Faso.
September, December 2009
Acquisition of Crédit du Congo and
Union Gabonaise de Banque ;
Acquisition of Société Ivoirienne de
Banque and Crédit du Sénégal.
5 1145 637
7 415
8 793
10 967
13 255
14 667
7% 9% 14% 15%22%
A PROPERLY PERFORMED STRATEGIC DEVELOPMENT PLAN …
26.0%
15 882
24%
67.6
78.5
52.149.7
59.4
44.4
23.918.3
1919
2
Tunisia
Mali
Senegal
Mauritania
Morocco
Ivory
Coast Cameroon
GabonCongo
Burkina
Faso
UNIQUE, LARGE AND DIVERSIFIED PAN-AFRICAN NETWORK
Source: Company information based on Dec-2011 data
Note: NBI contribution to 2011 to consolidated Group NBI; USD/MAD FX average for 2011: 8.09; market shares as of Sep-2011 but for Morocco (Dec-2011)
1. Including specialised subsidiaries in Morocco.
Mauritania
Attijari Bank Mauritanie
Year of entry: 2010
Loan market share: 5% (#9)
Branches: 2
NBI: n.m.
Net income: n.m.
Morocco 1
Attijariwafa Bank
Year of entry: NA
Loan market share: 26% (#1)
Branches: 1,590
NBI: USD1,508m
Net income: USD474m
Tunisia
Attijari Bank
Year of entry: 2005
Loan market share: 8% (#7)
Branches: 179
NBI: USD134m
Net income: USD24m
Senegal
CBAO & Crédit du Sénégal
Year of entry: 2005
Loan market share:
CBAO: 17%(#2)/CdS: 5%(#8)
(#1 overall)
Branches: 164
NBI: USD108m
Net income: USD16m
Ivory Coast
Société Ivoirienne deBanque
Year of entry: 2009
Loan market share: 10% (#5)
Branches: 306
NBI: USD54m
Net income: USD13m
Mali
BIM
Year of entry: 2008
Loan market share: 12% (#2)
Branches: 79
NBI: USD38m
Net income: USD2m
Cameroon
SCB
Year of entry: 2011
Loan market share: 12% (#4)
Branches: 21
NBI: USD42m
Net income: USD4m
Congo
Crédit du Congo
Year of entry: 2009
Loan Market share: 14% (#3)
Branches: 14
NBI: USD34m
Net income: USD10m
Gabon
Union Gabonaise de Banque
Year of entry: 2008
Loan market share: 16% (#3)
Branches: 10
NBI: USD53m
Net income: USD8m
North Africa
West Africa
Central Africa
Guinea
Bissau
% % of International NBI contribution
11%
7%
9%11%
23%
n.a.
28%
8%
n.a.
n.m.
AWB African Footprint Overview of Main International Operations
6New acquisitions in 2013: Togo and Niger
8.2
1.3
AWB UBA ECOBANK BOA BGFI
17.2
4.9 4.5
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
26%
8%22%
10% 15% 14% 11% 11%
Morocco Tunisia Senegal Ivory Coast Gabon Congo Mali Cameroon
A Major African Player in Terms of Total Assets… …With a Leading Platform in North, Western and Central
Africa…
Source: Total Assets in $bn (2011 Data with the exception of BoA(2010) – Annual reports, press)
Note: 1NGN: 0.0062 USD (source:forexticket.fr); USD/MAD FX average for 2011: 8.047306
(1) Number of countries of presence in Africa. 2011 figures (except for BoA – 2010)
(2) Assets outside domestic activities
… And Leading Positions in its Key Markets
Source: Attijariwafa bank
Note: Dec-2011data
Rank of AWB
1st 4th5th1st 3rd 4th3rd6th
Mark
et
Share
(in C
usto
mer
Loans)
African footprint1
11 19 32 14 9
AWB Other players
Tota
l A
ssets
($bn)
AN ATTRACTIVE PAN AFRICAN FOOTPRINT WITH DOMINANT POSITION ACROSS FRENCH SPEAKING AFRICAN COUNTRIES
6th
Source: Jeune Afrique HS n°25
Note: Total Assets in $bn (2010 data with the exception of Libyan banks that are as at
December 2009)
201.0
107.8
98.3
91.6
51.2
36.6
32.0
30.6
26.1
25.4
Standard Bank Group
Absa
Firstrand Banking Group
Nedbank
National Bank of Egypt
Attijariwafa Bank
BEA
Bank Misr
Gumhouria Bank
Crédit Populaire du Maroc
42.7
12.0
22SOURCE: World Bank
Fund Managers
AFRICA, A NEW FRONTIER FOR INTERNATIONAL INVESTORS …
A growing interest of private equity funds
Funds Main transactions Amounts
• ECP Africa III
• Moroccan
Infrastructure
Fund
• Central Africa
Growth Sicar
• Emerging
Capital
Partners
• OSEAD Maroc Mining
(Morocco 2007)
• Almes (Morocco 2009)
• Finadev (Benin 2010)
• Nairobi Java House
(Kenya 2012)
• n/a
• West Africa
Fund
• East Africa Fund
• Africa Health
Fund
• Aureos • Bank of Africa (Kenya
2006)
• Athi River Steel Plant
(Kenya 2006)
• Southey Holdings
(South Africa 2009)
• Total : 571 USD m
• n/d• Actis • Adesemi
Communications
• Afribrand Holdings
• Heritage Place (Nigeria)
• n/a
• PAIP II• Kingdom
Zephyr
Africa
• First Hydrocarbon
(Nigeria)
• Consolidated Infra
Group (South Africa)
• Mixta Africa (Maghreb)
• Total : 200 USD m
• Modern Africa
Fund
• Helios
Investment
Partners
• Shell Africa Downstream
Business (2011)
• Continental Outdoor
Media (South Africa
2009)
• Equity Bank (Kenya
2007)
• ~1 000 USD m
• ~147 USD m
• ~179 USD m
Bn USD
Growing FDI inflows towards Africa
2.15.9 7.4
29.3
36.3
52.6
60.0
49.0
39.2
Mo
y. 1
980-
89
Mo
y. 1
990-
99
Mo
y. 2
000-
04
2005
2006
2007
2008
2009
2010
x30
22
CASE STUDY
REGIONAL EXPANSION OF MOROCCAN COMPANIES IN AFRICASub-Saharan footprint of Moroccan companies Moroccan FDI outflows towards sub-Saharan Africa (USD m)
Mali
Senegal
Mauritania
Morocco
Ivory Coast Cameroon
GabonCongo
Burkina FasoGuinea
Centrafrican
Rep.
Main Moroccan companies operating in sub-Saharan Africa
Equatorial Guinea
2008 2009 2010
248
321
495
41%
xxx CAGR 08-10
51% 73% 87%
Share in total Moroccan FDI outflows xxx
Democratic Republic of
Congo
Gambia
Sierra Leone
Chad
Benin
KenyaUganda
Madagascar
Niger
TanzaniaBurundi
Ghana
Sudan
Angola
Togo
Source : Moroccan press
1,8% 1,5%
CAGR 05-11
1,04% 3,14%
Trade between morocco and sub-Saharan Africa* (USD m)
*Includes only South Africa, Nigeria, Equatorial Guinea, Gabon, Ivory Coast,
Centrafrican Republic, Democratic Republic of Congo, Cameroon, Guinea,
Senegal, Togo, Ghana, Madagascar, Mali, Benin, Burkina Faso, Kenya, Tanzania,
Congo
Moroccan ImportsMoroccan exports
% of total
Moroccan
imports /
exports
Tunisia
2323
385
437
264
637
2005 2011
Global services for investors through complementary business lines
ATTIJARIWAFA BANK, PARTNERSHIP WITH INVESTORS
Financing/
Trade finance
• Leadership acquired through its
long experience in financing
SMEs and large companies
investments ;
• Effective financing of major
projects in Morocco;
Project finance
• Large experience in financing
complex projects (Project finance)
and structuring banking
syndicates in Morocco and
abroad
Investment banking
• Support investment through a comprehensive and integrated range
of products and services: specialized subsidiaries, investment banking,
private equity ...
Private Equity Capital markets,
offshore
• Ability to support the effort by
investment maturities and
appropriate pricing formulas.
• Global capital markets supports
• Offshore solutions through
Attijari International Bank
Attijari Finances Corp. Attijari Invest
Segment Subsidiary Subsidiary Segment
Recognized leader in M&A and
debt/equity origination ;
Significant advisory experience
in :
Privatisations ;
Infrastructures ;
M&A transactions.
The strategy of the investment
bank is to duplicate its valuable
experience and leadership in
Africa. The opening of offices in
Tunis and Dakar reflects this
commitment.
Recognized player in the
Moroccan Private Equity market,
Attijari Invest manages several
funds mainly including :
Agram Invest ;
Moroccan Infrastructure
Fund;
Igrane
H Partners ;
Foncière Emergence ;
Maroc Numeric Fund ;
3P Fund
Leadership in all segments of the
capital market :
Foreign exchange ;
Commodities
Interest rate instruments
Derivatives/Forex
A leading player :
Project Finance ;
Assets financing ;
Acquisition financing;
Financing corporate
investment ;
Financing structured real
estate projects.
2424
Thank you for your attention
Top Related