One week before the start of Mining Indaba 2017 in Cape Town, our editorial team had asked the organizers to facilitate interviews with some captains of banks, global financial organizations and multinational mining companies.
Rawbank was on our shortlist because of its growing importance in the mining sector of the Democratic Republic of Congo.
It was without any formality that Administrator Michel Notebaert, who was accompanying the bank’s President, recognized us in the exhibition hall of the Cape Town International Convention Center (CTICC) and confirmed the meeting. An appointment was made – and kept – for early the morning of February 9th, the closing day and two hours before our return flight to Johannesburg, at the Westin Hotel adjacent to the CTICC, in the presence of his colleague and delegation member, Etienne Mabunda.
A frank and exclusive interview on the bank’s strategies, the role of mining and individual investors, the incidents involving the VISA card, and its strong presence at Mining Indaba with the man who was the first to forge the Rawbank-mining sector relationship in the DRC while he was Regional Director for Katanga. Discover more.
■ Rawbank President Mashar Rawji is leading a large delegation from the bank to Mining Indaba. What role does the mining sector play in the bank’s strategy and what is its importance in its portfolio?
The mining sector is essential to the economy of the Democratic Republic of Congo (DRC) and represents an increasingly significant portion of its GDP ( Gross Domestic Product ). For Rawbank, the importance of this strategic driver is paramount.
In the Copperbelt region (former Katanga province), the mining sector represents more than 50% of our activities. It is more than 30% in the East of the Republic.
Strategically, we are developing a relationship of trust with most mining companies, which serves as a base for us to create a positive dynamic not only with local and expatriate staff and their subcontractors, but also with the entire economic fabric gravitating around the mine.
■ What is your current strategy for attracting mining companies? What products do you offer them?
Rawbank, acting as a development accelerator in the DRC, aims to offer accessible, high-quality, and high-value-added services. The motto of the bank’s President, Mashar Rawji, is “Rawbank must be the leading bank in terms of service quality in the Democratic Republic of Congo.” All our colleagues, the Rawbankers, are focused on achieving this ambitious goal.
In this context, we offer specific services to the mining sector, such as:
– financing of imports and exports,
– short and medium-term loans,
– foreign exchange transactions
– account in all currencies, including the Chinese remimbi
– cash management
– national and international payments
– electronic banking, Rawbankonline.
We provide the same services to subcontracting companies and offer an extensive range of services for mining company staff:
– consumer credit
– debit/credit cards
– savings accounts.
■ Rawbank is developing an aggressive strategy. It’s a case of “No mines without Rawbank” …
We want to be close to our customers’ concerns. Therefore, we need to be physically present from the moment they install their systems. We are thus developing a very extensive network, which currently includes nearly 80 branches.
Our short-term goal is to have an office in each of the 26 provinces of the Republic, as well as in every commune of Kinshasa. Our goal is also to open offices wherever a mining project is being developed.
In addition to our agencies in Lubumbashi, Likasi, Kolwezi, Bukavu, Bunia, we are present in Fungurume, Kakanda, Sakania, Watsa and plan to open very soon in Kalemie, Kipushi, Kamoa.
This proximity strategy is one of the essential elements that led Rawbank to the position of leader in the banking sector in the DRC.
■ Rawbank has a “Moodys” rating, isn’t that a risk for the bank?
This is first and foremost a source of immense pride for the bank, rewarding over ten years of effort by Rawbankers. Thanks to this Moodys rating, Rawbank’s positive image has been strengthened among its clients and correspondents.
It is not a risk, on the contrary, it is a great responsibility.
– That of respecting international prudential rules;
– That of maintaining the balance rations within the limits required by local or international authorities;
– Those of adapting its operating rules, particularly in terms of compliance and the fight against money laundering and terrorist financing;
– That of working daily to ensure the sustainability of the bank in the interest of its shareholders, its employees, and its depositing clients.
All Rawbankers are aware of this responsibility and continue to be fully committed to improving the energy, visibility and reputation of the Bank.
■ For the average customer, the service fees are very high. The bank is obviously there to make a profit, but is that business without humanism?
Our credo is to offer all our customers, throughout the territory of the Republic, the best quality of services, innovative and efficient products at a competitive but reasonable price.
Our pricing should be assessed based on these criteria and therefore on the quality of services that we strive to maintain in all our branches.
■ What lessons has Rawbank learned from what happened to BIAC?
Under the authority of the Central Bank of Congo, commercial banks must ensure the sustainability of their activities so that the sector is solid and contributes to the economic development of the Republic.
Rawbank is strongly aligned with this principle; its shareholders provide Rawbank with the necessary and essential resources to achieve its ambitious goals. As a result, Rawbank’s equity significantly exceeds US$100 million.
The Board of Directors sets the strategic direction, geared towards the bank of the future, while also establishing acceptable risk limits. Thus, outstanding loans to be disbursed cannot exceed 50% of customer deposits.
Through dynamic yet rigorous management focused on customer satisfaction, the management committee maintains Rawbank’s leadership, positive image, and innovative reputation. As a result, the bank’s total assets exceeded one billion US dollars in 2015.
-The net NPL ( non-performing loans ) rate remains below 2%.
Rawbank is therefore a sustainable, solid bank, as demonstrated by the partnerships forged over time with numerous international institutions such as IFC ( International Finance Corporation ), AFD ( African Development Corporation), EIB ( European Investment Bank ), SHELTER AFRIQUE ( A Housing Bank ).
Rawbank has shown interest in diamonds, financing Miba. The copper-cobalt sector is significant in its portfolio, as is gold. What is its interest in cassiterite and coltan?
The tin sector is more difficult, often operating in the informal sector.
Mining activities are governed by law, the mining code, exchange regulations, and international compliance rules . Any operator that respects all the rules is welcome.
■ I saw that Rawbank is very well represented at Mining Indaba 2017 with a high-level delegation. What message did you want to convey?
Rawbank aims to be a major player in the economy of the Democratic Republic of Congo (DRC), accelerating development in the DRC. It strives to be innovative, future-oriented, and to offer its clients solutions tailored to their needs.
Through regular field visits, it aims to stay grounded in reality by being an attentive, always listening and trustworthy partner.
■ Regarding our payment cards, are recent incidents with VISA International cards not detrimental to the image of this service offered by banks in the DRC?
Payment card transactions are increasingly common, both locally and internationally. The payment method is highly secure, and the proportion of fraudulent transactions is very low.
However, one must be very careful and vigilant when using cards for online payments via websites that are not sufficiently secure.
The accidents you are referring to involved these specific types of operations.
Preventive measures have been taken to limit the risks of fraud
We were able to observe that our cardholder customers had been made aware and had taken steps to prevent any unwanted use.
■ What message did Rawbank send to its clients in 2017?
Our long-standing slogan , “Rawbank is my bank.” Our 2017 slogan: “Rawbank, accelerating development in the DRC, Rawbank is your partner. You, our customer, are at the heart of our concerns.”
Rawbank is resolutely future-oriented; we continue to expand our branch network.
We continue to forge partnerships with international institutions to increase our financing capacity. We remain innovative and creative in offering you products tailored to your needs and technological advancements; our partnership is founded on mutual trust and confidence in the future of the DRC.
Interview conducted by Franck Fwamba and transcribed by Divine Mvenda & Jeef Kazadi
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