Even if all the BANK OF AFRICA are unforgettable for those who knew their birth, BANK OF AFRICA-MADAGASCAR (BOA-MADAGASCAR) holds a special place for the fears and enthusiasms, the sorrows and the happiness that it has inspired.
It was by accident, in 1997, that a trip to Antananarivo took place for a leasing company project. The discovery of the « Big Island » is disconcerting by its populations, its civilization, its landscapes, so far from West Africa, the initial framework of the young Group under construction and its teams. But we see it as a great opportunity to learn more about this African diversity and to be accepted by it.
The leasing project is carried out but will never be a great success. On the other hand, the stays it imposes allow us to better understand the national banking system. It is not very dense, and has several banks in the process of being privatized. The call for tenders is being launched for the largest, the National Bank for Rural Development (BTM). It is a behemoth compared to the five existing BOAs, with its 1600 employees and 70 agencies, and reviving it would be a gigantic task to conduct in an unknown world. But how can we resist this new challenge? The Group then sends four employees to the site at the end of 1998 for detailed analyses, then submitted an offer. In the absence of major European or South African competitors, and to our happy surprise, BOA is selected in February. The adventure can begin…
Three difficult battles will be fought in the next 8 months. One, internal, will take place within the board of the holding company. Three camps stand out as soon as the « deal » is presented: the private directors, who are quickly won over by the prospects of the project; institutional investors, always cautious in the face of the unknown, and the european bank shareholder, frankly hostile. For the latter, the dangers exceed BOA’s ability to succeed in this challenge: distance from other BOAs, excessive size of the target, difficulty in managing an entity outside the franc zone, too high cost. The file was reviewed by patiently responding to all the objections, which satisfied Proparco and the FMO, but the allied banker was inflexible. On the third attempt, the Board broke the taboo of the unanimity rule and validated the proposal: no one would ever have to regret it. Another phase then began in front of the Malagasy negotiators, who were used to such discussions and determined to have the objectives set for them accepted. Each side is firmly defending its positions and progress is slow. Between March and September 1999, it took no less than 5 « rounds » of tense negotiations in Paris, Antananarivo and Washington. Twice, the discussions are about to be broken off as the demands of one seem so far removed from the demands of the other. But the two teams end up to regard with esteem, mutually appreciating each other’s frankness and clarity of positions. The protocol signed in July in Paris has found an acceptable solution to the main issues under discussion: the fate of the BTM staff; procedures for maintaining branches; long-term leases of premises; financing by the State of outstanding debts; shareholding structure. It remains to be seen how the Group will finance the purchase of this major bank. Once again, solidarity, prudence and imagination will bring the right solution. A sub-holding company of the Group, domiciled in Mauritius, was created in partnership with the BOAs of Benin and Côte d’Ivoire and, together with the holding, obtained approval to set up a banking subsidiary. The latter then buys BTM’s healthy assets at the same time as the final composition of the shareholder’s pool is completed : The State, national private shareholders, FMO and IFC, and later Proparco, were added. In this set, BOA-MADAGASCAR will have the chance to rely on Malagasy private investors of exemplary quality and loyalty and on the State which will always respect its obligations. The lucky star continues…
The follow up was easier from September 1999. The Group’s usual « recruiters » carefully and without incident choose the staff who are kept in place definitively and the others are compensated by the State. A team of five managers, including the Group’s two most experienced managers, moved to Antananarivo, and led all the planned structural transformations, with the full support of the retained national executives and agents. Computer scientists even managed to find a simple and economical solution to the « year 2000 bug » that worried us. At the end of November 1999, everything was ready: the legal « closing » was signed while all the BTM agencies switched overnight to the colours of the BOA. Even the mild sunshine of the season and the unique blue of the jacaranda flowers give this moment a festive air.
From then on, the exciting work of reviving this bank began. The strategy is based on the optimal exploitation of the presence and audience of the former BTM, while giving the new entity the modernity, the diversity of services, the variety of audiences, ranging from households to the largest companies, which the Group knows well. The success of Tahiry accounts, savings accounts previously uncommon in BTM, will be particularly impressive. BOA-MADAGASCAR is also boldly and efficiently launching the subscription of Treasury bills. The shareholders themselves actively support these efforts: the share capital has thus increased sixfold in 25 years, with broad support for the requests. The years that have passed, however, have brought their share of unfortunate events: a serious political crisis in 2002, paralysing the activity of a country divided in two; heavy currency devaluation in its wake, reducing the value of the investment in Euros by 50%; above all, the distressing death of two of the Group’s best executives, posted in Antananarivo. Despite these setbacks, the teams continue to fight, confident that the strategy followed is the right one and that the results will be there. This is what is confirmed. BOA-MAGASACAR has established itself at the forefront of the banking market; its footprint of agencies, already gigantic, is still expanding; all types of customers, large or small, private and public, are loyal to him; still profitable, it pays generous dividends that strengthen shareholder confidence; its social actions have multiplied over time, anchoring the BOA in the national landscape.
The Bank has now built a beautiful headoffice, better suited to its size and ambitions. But its former headquarters, part of which has become a Cultural Centre, still sits majestic and peaceful at the top of Independence Square, as if it took great delight in the sounds of the capital. No doubt so that the elders remember with pride that the adventure began here, and to confirm that the founders, while nurturing hope and enthusiasm for a dazzling future, did not deny anything of a glorious past.
Happy birthday of 25 years of work and great achievements.
Paul Derreumaux