Omar Cissé (InTouch): “In Africa, the fragmentation of monetary spaces is a real problem”

The place of the continent in the global technological revolution, the exit of ECOWAS from the AES countries, the impact of regional crises on the payments sector... The founder of the payment solutions aggregator InTouch discusses for Jeune Afrique the main news that affects his ecosystem, fintech, and his country, Senegal.

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Omar Cissé also shares his vision of the future for African businesses, in particular by stressing the importance of collaborations with global tech giants, while ensuring that Africa must develop a strong national private sector. He insists on the importance of a stable currency and regional cooperation to facilitate financial exchanges, while saying he is in favor of a single currency for Africa. Extracts.

Jeune Afrique: InTouch was launched in 2014 with the idea of simplifying payments in Africa. What were your main sources of inspiration? Have you looked at other African models, like M-Pesa in Kenya ?

Omar Cisse: Indeed, M-Pesa was a precursor and strongly influenced the development of mobile money in other countries, including in French-speaking West Africa. Statistics also show that this region is beginning to become one of the most advanced in terms of mobile money.

But we were also inspired by different experiences. I focused on a specific problem: how to develop financial inclusion in Africa. We found that it was difficult for a merchant to manage his transactions, especially by mobile. Right now, there are nearly 8 million retailers in the world, with more than half of them in Sub-Saharan Africa. Mobile money is highly developed there, with more than 118 billion dollars in transactions each year.

With ten years of perspective on the digitalization of payments in West Africa, how have you seen the fintech ecosystem evolve?

The evolution of the sector has been very rapid. Initially, we focused primarily on depositing and withdrawing, for 99% of transactions, with people using these services to send money. Today, the ecosystem has largely evolved. International payments and transfers have grown. We are now talking about over $30 billion in mobile money transactions, including remittances from abroad, which was previously impossible. Before, money came in cash and had to be withdrawn into a network. Today, payments are much more diverse. Retailers, for example, who originally used service stations such as TotalEnergies to receive payments, now see small retailers, such as those who sell coffee or fruit on the street, integrating these solutions.

As a fast-growing startup, how did you structure your business model to remain competitive against giants like Paystack or Flutterwave?

In the fintech sector, the advantage is that we often work together. Even though we are targeting the same customers, there is a certain amount of cooperation within this competition. Many of these players, mainly based in Nigeria and East Africa, also use our platform to transact.

‍Having growth points is insufficient if we do not have a strong private sector. It is essential to identify key sectors and to support the emergence of real economic champions in Senegal.

We have chosen to build a company that can adapt to this very dynamic ecosystem. Our business model has changed almost every year. I always emphasize to my collaborators that our survival depends on our ability to understand and adapt to market changes. Thus, in 2014, 99% of our turnover came from small retailers. Today, we reach 95% with large retailers, while offering tailor-made payment solutions.

The global fintech landscape seems to be reaching saturation. In France, for example, fundraising fell by nearly 70% in 2023, and worldwide, funding fell by 50%. Are you not worried about that?

This could have worried us, but I consider that this is a normal phase that the sector is going through. Last year, we recorded nearly 3 billion euros in transaction volume, with over 186 million transactions processed. This year, we expect to reach at least 4 to 5 billion euros.

The growth of fintechs remains solid. Certainly, a psychosis set in, which held back investors. Many businesses failed to present the expected results, which amplified this phenomenon.

This could have worried us, but I consider that this is a normal phase that the sector is going through. Last year, we recorded nearly 3 billion euros in transaction volume, with over 186 million transactions processed. This year, we expect to reach at least 4 to 5 billion euros.

The growth of fintechs remains solid. Certainly, a psychosis set in, which held back investors. Many businesses failed to present the expected results, which amplified this phenomenon.

However, I think that the sector is in the process of being structured. The real players are beginning to emerge, and we are seeing some big players take a stand. I believe that the world of payments will evolve towards a concentration around major players capable of offering solutions on a regional, pan-African or global scale.

A quarter of a century later Abdoulaye Wade, Senegal has just experienced an important political change with the coming to power of the duo Bassirou Diomaye Faye to the Presidency of the Republic and Ousmane Sonko as prime minister. What do you think are the most urgent economic challenges for Senegal today?

This gives me the opportunity to salute the great Senegalese democracy, which has proved its solidity through this transition. The way in which we overcame this difficult stage surprised the world. We need to continue to strengthen this democracy, as it is essential for building a stable society, which includes economic success.

With regard to emergencies, it is true that the people expect a lot and seem to have needs everywhere. The first challenge is to achieve food self-sufficiency. Agriculture is a key sector in Senegal, but we still import a large part of our food. As the saying goes, if we can't produce what we eat, we won't be able to thrive.

Another major challenge is the development of the national private sector. Having growth points is insufficient if we do not have a strong private sector, because it is this that supports the economy in the long term. It is essential to identify key sectors and to support the emergence of real economic champions in Senegal.

Senegal recently suffered a downgrade in its sovereign rating by the American agency Moody's, raising concerns about debt and the public deficit. What does that mean in terms of prospects for the country?

A downgrade in rating is actually unfavorable. It automatically leads to higher credit costs for the country, which could increase the debt burden. It creates a vicious cycle. However, once this episode has passed and the debate has been clarified, it is possible to consider better prospects.
Behind this situation is in fact a desire to improve transparency and governance, which can reassure markets about the commitment of the new authorities to adopt transparent economic management.

It's a way of looking at the glass as half full...

I would say that this difficult moment, even if it seems negative, can be an opportunity to build a solid foundation. If that means going through a temporary downturn to restore investor confidence, then I consider that to be a useful step.

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As an entrepreneur, how do you perceive the impact of planned economic reforms? Could this create opportunities for tech companies like yours?‍

Our businesses will only be able to develop within a framework of good governance. I am convinced that governance is a key issue, and the signals sent by this government are positive. Admittedly, the reform process is difficult and everyone is feeling the effects, including us. The economy has slowed down, consumption has fallen, and the fiscal burden is stronger. But that's not a problem if the tax base is expanded fairly. It is crucial that all businesses participate in this effort, not just a few.

If we succeed in establishing healthy governance, where decisions affect everyone in the same way, we will move towards a more just and equal world, which will promote business development.‍‍

‍The new Senegalese president recently visited China, meeting with Xi Jinping during the Forum on China-Africa Cooperation. What is your vision of economic relationships between Senegal and global powers such as China, the United States or the European Union?‍

The president sent a strong signal by increasing his visits abroad, especially to France, the United States and recently to China. This reflects Senegal's traditional position, which has always been open to the world. Historically, we have maintained a privileged relationship with France, but Senegal has opened up a lot to China under Abdoulaye Wade, and Macky Sall has expanded this openness to Asia.
What we are looking to build is a diversified approach. Senegal is not in a logic where it limits itself to certain partners while neglecting others. The president's recent visits clearly demonstrate this desire for openness and cooperation with various global powers. We want to continue to build on this diversity because it is what allows us to maximize opportunities for our economy.

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Senegal, in the West African context, seeks to strengthen regional synergies to promote economic integration. How do you see collaborating with neighboring countries to create an ecosystem, especially in tech, but also in other sectors?‍

This is a major challenge, even if we are currently experiencing difficulties. We operate in several countries in the region : in Mali, Niger, Burkina Faso, Guinea, with local collaborators. We see ourselves as a pan-African company, and we live with the realities of these countries. Regional integration is essential to create a solid ecosystem, especially in tech, but also in other sectors.

‍Have you been held back by recent events in these countries, especially in the Sahel?‍

Not really. In the payment sector, crises do not have the same impact. No matter what happens, people continue to transact, and there is often even an increase in international money transfers in times of crisis. That said, these situations complicate long-term stability for businesses, as we need to be very careful to comply with the rules in force. Sometimes this means suspending our operations in certain countries based on political decisions, which can be difficult.
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You mention that crises can increase money transfers, but is there a long-term risk if these countries withdraw from the Monetary Union or the ECOWAS ?

These countries have their reasons for leaving ECOWAS, which we respect. However, I hope that this will not happen until the exit of UEMOA. Currently, transfers within UEMOA are very smooth, but outside this zone, it is extremely complicated. Strengthening monetary and economic areas rather than weakening them is crucial.
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I sincerely hope that these countries can find common ground, and that the economic barriers that have been removed will not be re-established. Our president is committed to working for these countries to reintegrate ECOWAS. I am not going into the details of the political reasons, but I am convinced that it is in our interest to maintain and strengthen these economic zones. This makes it easy to travel and trade without barriers, which is essential for our economies.

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Concerning the ECOWAS area, exchanges are more complicated. Do you call for a calming down of the debate, especially on the CFA franc, a divisive subject in the region?‍

It is a complex subject, indeed. What is certain is that we need a stable currency, shared by as many countries as possible. The fragmentation of monetary areas is a real problem for business and for populations. I hope that we will reach a peaceful debate to make the best decisions. I don't know what the best option is, but it is clear that we have every interest in operating in the same monetary area that guarantees the fluidity of exchanges, both between us and with the rest of the world.

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You therefore recommend that you do not act urgently or in a dispersed manner. In your opinion, should a possible transition to another currency take place at the regional level?‍

Absolutely. Personally, I would even dream of a single currency for all of Africa. It would be a huge step forward. A unique space where one could travel and trade without barriers, as in UEMOA. It is not normal that, to go to South Africa or Kenya, you need visas and go through complex processes.

I strongly believe in the regional interconnection tool that is being put in place. This would facilitate financial exchanges between our countries. There are bottlenecks to be removed, and even though we talk a lot about the African Union, we don't talk enough about these concrete obstacles that hinder our exchanges.

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