FINANCE FOR ALL WHATS NEXT & HOW TO GET THERE PRESENTATION BY MR. ALBERT ESSIEN REGIONAL DIRECTOR FOR WAMZ, EAST & SOUTHERN AFRICA ECOBANK TRANSNATIONAL INCORPORATED

May 2007 Slide 2 CURRENT STRUCTURE The African banking sector has seen some governmental reform however bottlenecks still exist More focus on government and large corporates Low banking penetration Lack of adequate branch infrastructure Neglect of SME sector Lack of adaptable products for informal SME sector Affordability of minimum deposit requirements High cost of finance

May 2007 Slide 3 CURRENT STRUCTURE Low level of competition Cash orientation of markets Remoteness of communities Ineffective or absence of national individual identification systems Lack of verifiable address systems Lack of depth in financial intermediation Limited coverage of products

May 2007 Slide 4 HOW ECOBANK HAS ADDRESSED THESE CHALLENGES EXPANDING OUR REACH TO IMPROVE ACCESS: Two pronged approach – channels and products Strategic focus on Retail Banking Aggressive network expansion across the group through brick and mortar, ATMs, Kiosks, Direct Sales Agents strategic alliances Ecobank currently in 18 countries, with over 300 branches in West and Central Africa Will be in 25 countries in Middle Africa by 2009 with 1000 branches Provision of convenient, accessible and reliable banking and banking and financial products and services Focus on liability generation and transaction banking STRATEGIC ALLIANCES Partnership with ACCION on microfinance Partnership with AMADEUS to use their channels to sell banks liability products Partnership with WESTERN UNION Other local partnerships such as EBGs alliance with TRANSOL

May 2007 Slide 5 HOW ECOBANK HAS ADDRESSED THESE CHALLENGES IMPROVING EFFICIENCY TO REDUCE COST Setting up an efficient and reliable shared technology platform to deliver cost-effective services across the Group This will be the first of its kind in West Africa SHIFT FROM GOVT/LARGE CORPORATES TO SME SECTOR Retail banking desks in all affiliates to cater to the needs of SMEs and individuals Structured product programs for SME sector: distributorship financing, inventory financing, receivables financing, warehouse financing etc Partnering with relevant agencies to provide training and other support for SMEs Locally developed debt rating model focusing on limited disclosures common to African SMEs Working with Moodys to develop a West Africa specific database to be used to rate local corporates

May 2007 Slide 6 HOW ECOBANK HAS ADDRESSED THESE CHALLENGES ADAPTABLE PRODUCTS FOR SME/CONSUMER CLIENTS Introduction of customised Product Programs with local flavour to speed up credit delivery Group Guarantee schemes – lending to Tomato farmers who guarantee each other Guarantees from government and other donor agencies in supporting SME credits Liability products with affordable minimum deposit requirements e.g. savings product Mortgage financing Lease financing

May 2007 Slide 7 HOW ECOBANK HAS ADDRESSED THESE CHALLENGES ADAPTABLE PRODUCTS FOR SME/CONSUMER CLIENTS Non financial based indicators in assessing client risk profile and suitability for credit expansion Collaboration with Susu collectors who have in-depth knowledge local communities and help reduce loan defaults Electronic products – ATM cards, payroll cards, gift cards, travel cards, credit cards, debit cards, internet banking Telephone/Mobile phone banking to be rolled out in the near future

May 2007 Slide 8 STEPS TO FURTHER ENHANCE ACCESS: BANKS Need to tap into the vast potential that exists in large informal sector This will require -new products -revised documentation requirements -re-look at minimum deposit requirements e.g. Mzansi product in South Africa -new channels e.g corner shops, fuel stations, pharmacies -The African flavour: product branding, signage for branches, use of local people, ambience in banking halls, dress code etc Provision of shared infrastructure in rural areas to be spearheaded by banking sector as part of corporate social responsibility The Challenge is to THINK GLOBAL BUT ACT LOCAL How do we build African banking institutions that meet world class standards and portray our African-ness? How do we formalise the informal?

May 2007 Slide 9 STEPS TO FURTHER ENHANCE ACCESS: GOVERNMENTS Implementation of National ID system Transformation of Land tenure system Improving ICT Provision of legislative, administrative and funding support to network of community based banks to provide points for delivery of banking services to rural communities Improve investment climate to encourage more banks – will ginger competition Use of tax incentives to redirect lending to targeted areas and also to encourage project financing

May 2007 Slide 10 STEPS TO FURTHER ENHANCE ACCESS: DEVELOPMENT PARTNERS Need to forge partnerships with banking sector Investment in infrastructure development – telecommunications Provision of medium to long term financing for on-lending Technical expertise to bridge skills gap in banking industry

May 2007 Slide 11 CONCLUDING THOUGHTS Every morning a gazelle wakes up, it knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up, it knows it must outrun the slowest gazelle or it will starve to death. It does not matter whether you are a lion or gazelle, when the sun comes up, you better start running.

May 2007 Slide 12 THANK YOU