Trust Merchant Bank (TMB) is a major player in the banking ecosystem in the Democratic Republic of Congo (DRC), with a large network of branches throughout the country, and plays a key role in financing small and medium-sized Congolese businesses.
In an exclusive interview granted to zoom-eco.net as part of the tenth edition of the Makutano business forum, Oliver Meisenberg, Managing Director of TMB, asserted that TMB is one of the leading players in SME financing in the DRC.
Zoom Eco: What is your vision for SME support in the DRC?
Oliver Meisenberg: To put Trust Merchant Bank (TMB) in context, it was created 20 years ago. From the outset, it has focused on financial inclusion, in particular the financing of small and medium-sized enterprises (SMEs), micro-finance and even micro-credit, but above all SMEs. The latter are the very basis and bedrock of our financing of the economy. Without hesitation, I can say that we are the leading financial intermediary for SMEs in the country. We have created a multitude of products tailored to SMEs, including leasing. Trust Merchant Bank was the first bank to advertise leasing in the country, and to this day we remain the leading player in this field, especially for SMEs with low equity capital but attractive contracts. It’s thanks to leasing that we’re able to meet some of the challenges faced by SMEs. What’s more, small SMEs are at the heart of our business. We support SMEs that create jobs and wealth. So, without hesitation, we see ourselves as one of the leading players in SME financing.
Zoom Eco: How is Trust Merchant Bank positioned in relation to its competitors when it comes to supporting SMEs?
Oliver Meisenberg: The big difference between TMB and other banks lies in our positioning on financial inclusion. We are the bank for financial inclusion in this country. This means that we support around 20% of all bank customers in the Democratic Republic of Congo; in other words, one in five bank customers in the DRC is with TMB. Then there’s SME financing, and thirdly, our banking network. We have the most extensive banking network across the DRC, which makes a big difference to other banks that focus mainly on the major economic centers and don’t explore rural areas.
Zoom Eco: What do you think makes TMB a major player in the DRC banking ecosystem?
Oliver Meisenberg: Since its creation 20 years ago, TMB has continued to expand its branch network across the country. As I said, we have the largest network of bank branches. On top of that, every month we deploy to remote areas to pay government employees; a third of them are paid at TMB. Many of them are in unbanked areas due to the lack of infrastructure and where it’s very difficult to have branches. However, we deploy in these areas to pay the salaries of civil servants.
Zoom Eco: What role does technology play in supporting SMEs?
Oliver Meisenberg: Today, we see that many financial institutions are positioning themselves digitally. At TMB, we launched our Pepele Mobile digital solution 10 years ago. It’s been 10 years since we launched Pepele Mobile, which is our digital solution for managing a bank account from a telephone. There’s no difference compared to current solutions. We’re 10 years ahead of our competitors, and this was done to push financial inclusion beyond the beaten track and into the countryside.
Zoom Eco: What is the scale of loans granted to small and medium-sized enterprises (SMEs) by TMB, and how does this influence their economic development in the Democratic Republic of Congo?
Zoom Eco: How do you assess the risk associated with SME loans?
Oliver Meisenberg: Banking is a risk-taking business. For a banker, risk-taking is part of his DNA. When a loan is granted, the bank is taking a risk. At our level, we are equipped to analyze loan applications from all customer segments. As far as SMEs are concerned, we’ve noticed that over the past decade they’ve taken a quantum leap; they’re becoming more structured and professional. Most of them are facing greater constraints, particularly those revolving around the value chain. In this respect, we’re quite optimistic. Today, there are more and more well-organized and well-structured SMEs that meet the conditions for easy access to the bank financing offered by TMB.
Zoom Eco: What is your assessment of recent developments in the business climate in the Democratic Republic of Congo?
Oliver Meisenberg :
I’ll borrow a metaphor to illustrate the issue of the business climate: it’s a long haul. I believe that every country in the world is working hard to improve its attractiveness. In the Democratic Republic of Congo, authorities at all levels are aware of the importance of improving the business climate. It’s true that there are still administrative challenges, as well as challenges linked to judicial and legal aspects; however, we are optimistic because this is a subject shared by all stakeholders: the private sector, the public sector and the media. I dare to believe that, in the years to come, the business climate will continue to improve, creating an environment that is conducive to the development of the private sector in the DRC and to large-scale job creation.
Zoom Eco: What role does the Makutano forum play in the socio-economic development of the Democratic Republic of Congo, and how does it contribute to strengthening synergies between local and international economic players?
Oliver Meisenberg: It’s an important network for advancing the economic debate in the Democratic Republic of Congo, bringing all stakeholders together around the same table to discuss opportunities and challenges.
Mitterrand MASAMUNA