Oragroup S.A. is a holding company that comprises banking entities located in 6 Western and Central African countries.  Each bank is supervised by the Central bank of the country in which it operates.

It applies a universal banking model serving all types of clients with a focus on SMEs.

With a total of over 250 operators, the banking industry in Western and Central Africa (the Region) remains highly fragmented.  There exist only 10 regional banking groups operating in several countries located in the Region.  Oragroup is expected to rise among the lead regional banking groups. The level of bancarization in West and Central Africa remains one of the lowest in the world: less than 20% of the population have access to financial services, 50% of SMEs have a deposit account and 25% access to credit (Mc Kinsey & IFC data). The potential for growth in the retail and SME segments remain therefore significant in the coming years.

Oragroup did not have the initial means to fully support the planned development and BIO played a key role in completing the capital calls needed and attract new investors.

Thanks to the first investment of BIO in 2010, the financial structure of the Group and its subsidiaries was reinforced and some important investments in IT were achieved. BIO also played a catalytic role to attract Tier 2 investors in order to achieve the planned development strategy, i.e. expansion through  acquisitions.

The reinforcement of the equity base in 2012, enables the Group to leverage and thereby develop its loan portfolio, especially towards the SMEs that are the backbone of Oragroup’s client positioning.

This investment fits perfectly with BIO’ strategy of supporting private regional banking groups that contribute to the enhancement of financial inclusion in LDC countries (85% of the Group’s presence), with a strong emphasis on SMEs and disposing of a good level of corporate governance.  In this context, the Group has made conscious efforts to increase its weight in the market by expanding its branch network, its geographical presence in the Region through acquisitions and moving from its corporate banking roots to become a real universal banking group targeting all segments.

In Q1 2013, BIO and Proparco participated to a new capital increase, part of a more global funding plan, to support the strategic acquisitions (privatization) of the BTD and the BRS network.

The role of the equity investors and of BIO in particular was therefore crucial as they brought the necessary financial resources to reinforce the financial structure of the Group (and its subsidiaries) and make some important investment (IT) while playing a catalytic role to attract Tier 2 investors and DEG as potential new shareholder in order to achieve the planned development strategy (expansion through acquisitions).

In 2014, BIO invested another EUR 15 million in debt to financing the growth of the SME and MFI portfolio of the bank.

Website: www.orabank.net

  • Investment amount (€):

    €8M; €15M

    Headquarters: Togo

  • Contract signature :

    2011; 2014

  • Nature of intervention :

    Debt & Equity

  • Development impacts :

    • 1 — Deepening and professionalization of an underdeveloped local financial sector
    • 2 — The emergence of a universal commercial regional banking group managed in a professional way
    • 3 — The significant increase in the quantity and quality of banking products offered to the local population and businesses (retail, SMEs and corporates)
    • 4 — The creation of assets and jobs