TMB began in 2004 in Katanga and currently has 96 branches, making it the largest bank in DRC in terms of numbers of clients on the retail side. Can you highlight any recent developments at TMB and the importance of Fintech to its core strategy?

By the end of this year, we expect to have more than 100 branches in the country and we will be present in some 35 cities across the DRC. For three years now, TMB has been investing in our mobile banking system called Pepele Mobile. This platform has been developed in a way such that clients can now use their mobile device as a bank account, and every person with a mobile phone can benefit from transacting their financial needs through the Pepele platform. Banking penetration in DRC is only around 6%, or 4-5 million people with a bank account, compared to a population of 35 million with mobile phones. The market thus presents financial service providers that can distribute financial services via mobile phones, as TMB can, with a huge opportunity in terms of potential new clients. Beyond the consumer to consumer segment, there are also opportunities on the B2C and B2B levels, such as payroll services for example. Corporate clients are increasingly confident in our mobile platform’s ability to manage huge numbers of beneficiaries and transactions in real-time.

To what extent does TMB have the capacity to finance power sector projects?

We are very much aware of the challenges faced by the mining community due to the lack of electricity. There is significant opportunity for us to support investment in the power sector, because developments in this space also encourage the growth of our existing mining clients across the value chain and the general development of the country. We are financing some energy projects including greenfield ventures, and while we know we must support these activities, a commercial bank cannot do it alone. These projects involve huge amounts of capital, but it is clear that our experience and knowledge of the local market will allow us to participate in co-financing with international partners.

In your experience, what do potential international partners look for in a local bank when examining co-financing opportunities?

Quite simply, a financially sound partner who understands the local business environment inside out. With our unrivalled scale and presence right across the Congo and robust balance sheet, TMB are leaders in understanding the local market. At the end of the day, with large scale investment projects, it is vital that risk can be adequately assessed and all relevant stakeholders are accounted for so that payment can be recovered. This is where a local banker has a role to play, in providing insight into the local players and reality of country-specific risks. Technical risk can be assessed through different experts that are brought in during construction, but when it comes to managing the other elements of the project, a trusted local partner is key.

Has the banking sector experienced competition from increased Chinese presence in DRC?

For commercial banks there is a cost of opportunity in the sense that we lose out on some financial deals that are driven by Chinese investments. On the other hand, increased Chinese investment is good for the sector because, on the transactional side, there is increased volume. Local content laws around subcontracting allow space for growth for the local banks because even if most of the assets are owned by Chinese investors, there will be a need to finance the value chain through the services provided by local financiers.

What is your take on the Mining Code mess?

There will never be a perfect time to change these sorts of things. Anytime you want to change something as important as a country's mining code, there will always be plenty of arguments as to why it is not the right timing. However, it must be done. The old code was promulgated in 2002 and we believe the framework outlined by the new code will create more growth and revenue for the country. Compared to the previous code, there is much more consideration for creating impact on the local economy. The key question is how to manage existing contracts and investment. For new investors, these are the new rules and the new status quo. For existing investors, discussions are ongoing to reach a compromise that benefits all stakeholders. Existing investors have made significant investments in, and commitments to, the DRC at a time when the environment was more complicated. They should then benefit from their early commitment as they invested during difficult period for the country. There would be no advantage to losing these key players and it is better to keep them in the country.

What do you believe will entice new investors to continue coming to the DRC?

After the uncertainty of the election, by 2019 I am confident we will have new investors entering the country. The DRC will attract new investors over the next two to three years in part because we have more instruments to mitigate risk. The liberalization of the insurance sector is a huge opportunity that addresses the challenge investors experienced in securing their investments in the country. Previously, a state-owned company had a monopoly on the sector and investors were obliged to take most of their insurance needs outside the country, which comes at a premium rate as there were no local alternatives. By the end of this year, we expect to see many new companies playing a role in insuring investments, including TMB, which will invest in an insurance company.  A more competitive market will lead to a greater choice of products and at better prices. Even if new investors will not benefit from the same advantages enjoyed in the era of the previous mining code, insuring their investments will cost less.

Can you elaborate on how the fiscal environment is evolving in support of new investors?

The government has recognized that it can use fiscal tools to attract investors. For example, the financial sector recently received new instructions from the Central Bank regarding leasing activities that are attractive for investors. Leasing fees are now tax deductible. Rather than buying equipment, companies can take advantage of this opportunity to lease equipment, utilizing borrowing structures provided by banks like TMB.

What final message would you like to share about the role TMB will play in driving the industry forward over the new few years?

Investors that bank with TMB benefit from having a reliable partner in all financial aspects of their projects. In addition to ensuring safe and secure transactions, it is important to have a local financial partner that can provide services and expertise tailored to the DRC market. TMB is both a retail and corporate bank, and through all the changes occurring in the market we will play a leading role in providing bespoke solutions toinvestors as they navigate the challenges and opportunities of operating in DRC.