MCB CEO Optimistic About Mauritian Rupee’s Stability Amidst Challenges

In a nation where the numbers speak volumes, the Mauritius Commercial Bank (MCB) boasts an impressive customer base of approximately 1.2 million, nestled within a population of just 1.3 million. This makes MCB a cornerstone of the local banking landscape, but it also presents formidable challenges.

Thierry Hebraud, the dynamic Chief Executive Officer of the MCB, candidly discussed the pressing issue of customer experience in a recent episode of the MCB Talk podcast.

He asserted, “Customer satisfaction is a key performance indicator for all MCB employees.”

However, the bank is grappling with two significant hurdles: the overcrowding of its branches due to an influx of clients and the struggle to address their needs swiftly and effectively.

“Is MCB a victim of its own success?” one might wonder.

Hebraud acknowledged that the bank is now operating almost as a “public bank” and admited:

“We have lost our ability to adapt to the situation and have not equipped ourselves appropriately.”

To tackle these concerns head-on, MCB has undertaken a proactive approach over the past few months, forming working groups to analyse the situation deeply and devise sustainable solutions.

Among the first measures implemented was the establishment of a specialised Domestic Banking department last year, designed to streamline the operations of both Retail Banking and Business Banking.

This initiative is aiming to enhance operational consistency while addressing the unique needs of local customers, including individuals and small to medium enterprises (SMEs).

As the conversation shifted to the current economic landscape, Hebraud touched upon the troubling weakness of the Mauritian rupee.

He expressed confidence that the currency situation would improve, thanks to collaboration among various stakeholders, including the Bank of Mauritius, exporters, and banks.

He posited that the massive injection of rupees into the economy post-Covid-19 lockdowns had driven up consumption significantly.

Given that the bulk of Mauritius’ goods are imported and paid for in foreign currencies, this scenario has inevitably led to the devaluation of the rupee and sparked inflation.

On a more expansive note, the MCB has gained accolades for its growing performance across Africa, recently receiving the prestigious Bank of the Year award from The Banker.

This recognition underscores MCB’s rising influence, as it now stands as the top banking institution in East Africa and the thirteenth on the continent.

MCB is carving a niche in sectors such as Private Equity, Trade Finance, and petroleum and gas financing.

In light of this growing presence, Hebraud did not shy away from critiquing what he deems the “hypocrisy of Northern countries” that, he argued, is hindering the socio-economic development of the African continent.

He highlighted that the G7 nations account for a staggering 25% of global CO2 emissions, while African nations contribute a mere 4%.

Yet, it is Africa that bears the brunt of climate change and underdevelopment, with around 600 million people lacking access to electricity.

Hebraud advocated for the continent to unite in defence of its rights to sustainable development through a framework of Just Transition.

On a more global scale, he remarked that it remains too early to gauge the full effects of the Trump administration on Africa.

However, he suggested that we have entered a phase where superpowers will impose their perspectives, prioritising bilateral negotiations over overarching global agreements.

Source: Le Mauricien