Ecobank stops its continental expansion

The Ecobank group has put a hold on its continental expansion project to focus on the improvement of products and services in its 36 subsidiaries while pursuing the strengthening of governance.

The decision was taken during the 27th Annual General Assembly of the Ecobank Group's shareholders held in Dar-es-Salaam in Tanzania on June 19 to approve the accounts for the year ending December 31, 2014 and to adopt new resolutions by the Board of Directors.

The non-payment of dividends, governance, the oppression of the minority shareholders, case of Thierry Tanoh were concerns which were raised during the discussions held in the Julius Nyerere international convention center and led by the president of the Board of Directors, Emmanuel Ikazoboh.

2014 results

In December 31, 2014, the Ecobank Group recorded a total balance sheet of $ 24.2 billion which is more than 12 trillion F and a capital of 2.7 billion dollars equivalent to nearly 1400 billion F. According to the PCA who presented these results at the opening of the meeting, “the Group saw significant progress in internal control and governance during the past year. We have strengthened our governance instruments and I assert that good governance is one of the pillars of Ecobank. For the year 2015, we can provide positive results," said Emmanuel Ikazoboh.

On the expansion of the Group

Present in 36 countries in Africa, Ecobank no longer wants to open branches in other countries. "We are almost at the end of this process and we now want to consolidate the gains, i.e. focus on the development of the activities of our subsidiaries. We are yet to decide whether to open new agencies, or develop their e-banking services. We will not stop our growth within the country where we operate," said Albert Essien, the outgoing CEO of the Group during the press conference.

He added, "We are ready to compete with any bank which will enter into a market where we are present. It is therefore for managers of subsidiaries to implement strategies that will enable the group achieve more profits to pay dividends to shareholders”.

On the case of Thierry Tanoh

Shareholders and journalists came to the General Assembly of Ecobank with questions about the settlement of the dispute between the group and its former Director General, Thierry Tanoh.

"We are pursuing the matter. We are not going to pay more than what we have to pay legally", responded Emmanuel Ikazoboh.
Later, the PCA informed the press that the decision taken by the group is to settle the dispute amicably. “We are in discussions with him (Thierry Tanoh)”.
“If we fail to amicably settle, we will do this at the tribunal" he added.

The other reason for the General Assembly was to say goodbye to Albert Essien, the outgoing Dg of the group who retires on June 30 after 25 years of service. His successor, Ade Ayeyemi who was present at the meeting in Dar-es-Salaam will be effective on September 1.