Major impacts, risks and opportunities of the Orabank Group

The Orabank Group is committed to reducing risks, especially those related to the health crisis and climate. We are mobilized around the SDGs according to the expectations of our stakeholders and innovators to contribute to their targets.

Introduction

African context
In a context of strong population growth where 40% of the population is under 15 and 82% of the economy is informal, the Orabank Group ensures the identification and understanding of both the major expectations of its ecosystem, the various risks it faces in its activities and the opportunities that its activities and territory present to it. Like all companies, the Orabank Group, through its activities, interacts with its societal environment. The identification and analysis of the Group’s impact on its environment is part of its sustainable development approach to guide its actions towards a reduction of negative effects and a valorization of positive effects, both for itself and for its stakeholders.
The COVID-19 health crisis remains the event that could impact the group’s performance. In response to COVID-19, the group took the necessary measures very quickly to continue to serve our customers while ensuring their safety and that of our employees, in accordance with the recommendations of the authorities. Against the Covid-19 crisis, Africa must develop an inclusive strategy that takes into account its economic and social constraints. Two major factors in health systems will complicate the response to Covid-19 in Africa. First, the continent has a double burden of disease: that of endemic infectious diseases and that of Covid-19, which has just declared itself. Second, its capacity to provide intensive care is the lowest in the world. Social distancing seems difficult to implement on the continent, where the majority of the population lives on less than two dollars a day and the weight of the informal economy is considerable. In 2018, the sector employed 86% of jobs, according to an ILO study. This means that the vast majority of the inhabitants do not have a formal job with a salary that allows them to support themselves on a regular basis.
The Sustainable Development Goals (SDGs) defined by the United Nations set the social, environmental and economic challenges facing our world. The Orabank Group is mobilizing around these SDGs. On the basis of the expectations expressed by its stakeholders, its activities and the three commitments that shape its CSR policy, the Orabank Group mapped its contribution to the SDGs by identifying the intensity of the commitments and actions with reference to the detailed targets for each of the SDGs. The actions concern both the mitigation of societal risks and the development of opportunities contributing to sustainable solutions.
In Africa, there is evidence of shortcomings and trends that are reducing the continent’s ability to grow.

Governance

  • Weak state governance to change patterns, ensure private-sector growth, and develop financial markets.

Economic

  • Strong growth in the WEMOA countries;
  • Closing of liquidity in foreign currencies in oil exporting countries;
  • Higher debt and more difficult and volatile financial conditions;
  • Trend to protectionism.

Social

  • Poverty rates still high;
  • Water and sanitation, transportation, housing, energy and governance;
  • Security threats and political uncertainty;
  • Within 10 years, 11 million young Africans will enter the labor market every year.

Environment

  • Insufficient electrical capacity;
  • The need for access to reliable, sustainable and affordable energy;
  • To help countries to ensure food security.

Impacts

The Group will accelerate its progress as a universal bank, while addressing developments in its banking ecosystem in line with the United Nations Sustainable Development Goals (SDGs):
  • Strengthening the regional and international regulatory framework and the imminent implementation of Basel II/III;
  • Establishment of the Credit Information Office (BIC) in the UEMOA space;
  • Evolution of the bank’s business model;
  • Emerging new players offering opportunities for partnerships;
  • Digital transformation and financial inclusion strategy;
  • Development of projects with positive impact.

Risks

  • Credit risks and consideration;
  • Market Risks;
  • Operational Risks;
  • Risks of political instability;
  • Legal Risks;
  • Image and reputation risks.

Opportunities

The Orabank Group has long been committed to a continuous approach to reducing its main risks, particularly those affecting the environment. At the same time, thanks to its innovative capacity and its know-how, the Orabank Group is developing new products and solutions that provide a very wide range of opportunities to contribute to the challenges of sustainable development.
  • Ecosystem changes;
  • Strengthening the regional and international regulatory framework and the imminent implementation of Basel II/III;
  • Establishment of the Credit Information Office (BIC) in the UEMOA space;
  • Evolution of the bank’s business model;
  • Emerging new players offering opportunities for partnerships;
  • Digital transformation and financial inclusion strategy;
  • Development of positive impact projects;
  • Growing economy;
  • Potential of the banking market;
  • Technological and regulatory developments;
  • Digitalization opening opportunities for diversification;
  • Opportunities for partnership with new players;
  • Implementation of the BIC in UEMOA;
  • Development of guarantee bodies.