UBA positions itself as the mining and oil bank of French-speaking West Africa

Since its strategic move into Côte d'Ivoire, Nigerian banking group United Bank for Africa (UBA) has established itself as a key player in financing the mining and oil sectors in French-speaking West Africa. Also present in Senegal, Mali, Burkina Faso and Benin, UBA is showing remarkable growth, driven by an offensive strategy in the extractive industries, according to a recent analysis by Jeune Afrique.

Unlike its main Nigerian competitors, such as Access Bank, which left the region in 2013, or Zenith Bank, which operates remotely via its Paris branch, UBA has chosen to establish a long-term presence in French-speaking West Africa. This decision can be explained by the region's wealth of natural resources, with around 30% of the continent's oil and natural gas reserves, according to the Economic Community of West African States (ECOWAS).

In Côte d'Ivoire, the largest economy in the West African Economic and Monetary Union (WAEMU), UBA has made its Abidjan headquarters an operational base for supporting oil and mining projects. In Senegal, the bank is actively supporting the Société africaine de raffinage (SAR), which is finalising its technical adjustments to process crude oil locally, marking a key step towards energy self-sufficiency.

UBA stands out for its commitment to financing projects with a high economic impact. In Burkina Faso, where it took over Banque Internationale du Burkina (BIB) in 2008, UBA has consolidated its position, generating net profits up 145.6% in 2015. In Mali and Benin, the bank is supporting initiatives in mineral and hydrocarbon extraction, taking advantage of the post-Covid rise in commodity prices.

This strategy is based on a pan-African vision driven by Tony Elumelu, Chairman of the Group and an emblematic figure of Nigerian capitalism. "UBA's ambition is to become a global bank for Africa", he said in 2021, underlining the importance of supporting the internationalisation of African businesses, particularly in the context of the African Continental Free Trade Area (AfCFTA).

Despite its successes, UBA faces a number of challenges. In Côte d'Ivoire, where there are 23 banks, UBA's subsidiary remains in the second half of the rankings in terms of revenue, with net banking income of 3.61 billion naira in 2015, far behind its Senegalese and Burkina Faso counterparts. Increased competition, particularly from groups such as Ecobank and Coris Bank, is forcing UBA to innovate in order to capture a diversified customer base, from SMEs to large extractive companies.

In addition, the oil sector in French-speaking West Africa, while promising, faces risks. An article published by Jeune Afrique in 2019 warned against the "curse of raw materials", citing the pitfalls of corruption, the "Dutch disease" and environmental disasters, such as those seen in the Niger Delta. By supporting projects such as the Niger pipeline to Benin or the Tortue gas field in Senegal-Mauritania, UBA will have to promote transparent and sustainable practices to maximise the economic and social benefits.

Under the leadership of Oliver Alawuba, who will be appointed Africa CEO in 2020, UBA aims to increase the contribution of its African subsidiaries to 50% of its revenues, up from 22% in 2015. With a presence in 20 African countries and offices in Paris, London and New York, the group has a unique network to finance the continent's energy and mining ambitions.

As West Africa asserts itself as an energy hub, with projects such as the African Energy Bank supported by Afreximbank, UBA is well positioned to play a central role. By focusing on training local managers, as it has done in Senegal with the National Institute of Oil and Gas, and by supporting regional industrialisation, the Nigerian bank could transform "black gold" into a lever for sustainable development.