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For 21 of these 40 years, one man has been working, often unseen backstage, overseeing and guiding this operational excellence, resilience, innovation and growth. His name is Professor John Ddumba-Ssentamu, the Group Board Chairman, Centenary Group Board of Directors. Prof, as he is fondly referred to, has spearheaded the company’s growth aspirations and under his astute leadership, the company has experienced unprecedented growth, diversification, and regional expansion, thereby contributing significantly to the socio-economic development of the East African and SADC regions.
A passionate believer in the transformative power of faith and altruism to bring about positive change in the world. In his circles, he is known as a transformative leader, that is compassionate and with a profound commitment to societal welfare. Prof’s values and principles are deeply rooted in his strong faith and active involvement in the Catholic Church. His spiritual convictions have been a guiding force in his leadership style, inspiring him to infuse compassion, integrity, and humility in every aspect of his professional and personal life.
A holder of a PhD in Economics (Makerere University), a Master’s in Economics from the University of Waterloo Ontario – Canada and a Bachelor in Economics degree from Makerere University, John Ddumba-Ssentamu, has amongst other roles served as the Makerere University Vice-Chancellor.
In this exclusive interview with the CEO East Africa Magazine, Prof. Ddumba-Ssentamu speaks about his 21-year story with the Centenary Group, lessons learnt and most importantly, the Group’s desire to bring fully alive its purpose of transforming lives, beyond just banking services and beyond Uganda.
For starters, we do know that sometime back, the Centenary brand evolved into a Group structure, creating some subsidiaries beyond just the bank. Tell us more about this and what motivated this change?
Centenary Rural Development Group Limited was incorporated on 25th October 2019 and became operational on 1 July 2020.
In 1979, the Group’s flagship subsidiary company, Centenary Rural Development Bank Limited was born out of the resolve of the lay people, who conceived the idea of forming a financial institution to commemorate the 100th anniversary of the Roman Catholic faith in Uganda. The Bank started operations in 1983, as Centenary Rural Development Trust under the Uganda National Catholic Lay Association. In 1993, the Trust transformed into a fully-fledged commercial bank and changed its name to Centenary Rural Development Bank Limited.
The Centenary Group is comprised of four operational subsidiaries: Centenary Bank Uganda, Centenary Technology Services, Centenary Foundation and Centenary Bank Malawi. The Group is desirous of venturing into the insurance business, fund management and investment, property development and establishing more banking subsidiaries in the region.
Our evolution is born out of our search for new avenues for social transformation and therefore, new business ventures that support our vision and mission i.e. transforming lives. In expanding our reach beyond just providing banking services, the Group is focused on transforming lives by harnessing the power of our business to deliver on our purpose and create a more sustainable world.
The Group’s vision is to become “the preferred Group in innovative business and financial inclusion solutions.” To what extent would you say this has been achieved? What are the key facts and figures that define this?
2022 was yet another key year for the group. Our total assets went up 20.5% from UGX4.781 trillion to UGX5.760 trillion. This was led by our flagship subsidiary, the bank, whose assets reached UGX5.72 trillion and a net profit of UGX 249.6 billion reflecting 18% growth compared to the previous year.
Deposits went up 22.8% from UGX3.178 trillion to UGX3.903 trillion and net lending went up 25.4% from UGX2.246 trillion to UGX2.815 trillion. This drove an 11.9% in revenue, from UGX865 billion to UGX968 billion. We prudently managed our credit loss ratio, reducing it from 2.1% to 0.8% and our cost-to-income ratio remained at 66.4%, allowing us to grow net profit by 21.7% from UGX208 billion to UGX253 billion.
We are a financially solid group with a sound capital base and healthy returns for our shareholders⏤ we have recommended UGX62.4 billion in dividends to shareholders, up from UGX52.8 billion last year, translating into a 22% return on investment.
PARADOX OF PLENTY: Uganda’s Tourism Mathematics Does Not Add UpIn 2022, we employed over 3,000 people (47% female and 53% male) and paid UGX211.7 billion in employee salary and other benefits and also paid UGX71.8 billion in taxes.
On the non-financial front, our bank was voted the Best Retail Bank in Uganda, 2022 [Global Banking and Finance Awards] and the Digital Brand of the Year, Digital Impact Awards Africa. I am glad to also let you know that Centenary Technology Services our young subsidiary, was the UNDP-appointed technical consultant who curated Uganda’s first Digital Transformation Roadmap launched earlier this year.
What would you say are the key milestones in the three years since you became operational?
The bank continues to exhibit steadfast and progressive growth in Uganda, retaining its prestigious status as the largest micro-finance bank in Africa, and securing its rank as the second-largest commercial bank in Uganda. This remarkable trajectory not only highlights the bank’s robust operational strategies but also its commitment to setting benchmarks in the financial sector and contributing to the economic landscape of Uganda.
- Operationalization of the Foundation Company, Centenary Foundation: The inception of the foundation company was a strategic move to emphasise the Environmental, Social, and Governance (ESG) components of the business. This shift underscores the Centenary Group’s commitment to responsible and sustainable business practices, fostering environmental stewardship, social responsibility, and strong governance structures. This commitment to ESG has enhanced the company’s reputation and contributed to its sustainable growth trajectory.
- Launch of the Technology Company, Centenary Technology Services: Recognising the transformative power of technology, Centenary Group established a technology company, aiming to drive innovation and optimising operational efficiency. This venture has allowed the Centenary Group and its subsidiaries to stay ahead of the curve in the ever-evolving technological landscape, leveraging cutting-edge solutions to enhance service delivery, customer experience, and organisational productivity.
- Expansion to Southern Africa: The strategic expansion to Malawi, in Southern Africa has marked a significant milestone in the Centenary Group’s growth journey. This regional subsidiary has enabled the organisation to tap into new markets, diversify its portfolio, and strengthen its presence in the region. It has facilitated cross-border synergies and collaborations, allowing the organisation to offer a broader range of services and solutions to a more diverse clientele.
- Investment in Human Capital: Aligned with its growth, Centenary Group and its subsidiaries have invested substantially in human capital, fostering a conducive environment for talent development, knowledge sharing, and innovation. This investment has empowered the workforce, driving high performance, and ensuring the organisation’s vision and goals are realised effectively.
- Customer-Centricity: Centenary Group and its subsidiaries have maintained a strong focus on customer satisfaction, adopting a customer-centric approach to service delivery. By understanding and anticipating customer needs, we have been able to develop tailored solutions, build strong relationships, and enhance customer loyalty, thus driving sustained growth and value creation.
- Financial Performance: The operational and strategic enhancements over the past three years have had a positive impact on Centenary Group’s financial performance, translating into improved profitability, enhanced shareholder value, and increased return on investment. This financial robustness has provided the Centenary Group with the flexibility to explore new opportunities and navigate challenges effectively.
What are some of the key lessons learnt in the last three years of the Group?
There are several lessons, but I can generally group them into the following strands:
- Strategic Diversification is Crucial: Diversifying business operations across various sectors and regions is pivotal for organisational resilience and sustainability. It reduces dependency on a single revenue stream, mitigates risks, and provides multiple avenues for growth and development.
- Emphasis on ESG is Non-Negotiable: Incorporating Environmental, Social, and Governance (ESG) principles in every business is essential. It not only fulfils ethical obligations but also enhances organisational reputation, attracts conscious investors and customers, and mitigates long-term risks, contributing to sustained organisational success.
- Innovation Drives Competitive Advantage: Constant innovation and adaptation to technological advancements are imperative to stay relevant and competitive. Embracing technology ensures operational efficiency, improved customer experiences, and the development of novel solutions to meet evolving market demands.
- Human Capital is a Valuable Asset: Investing in human capital through training, development, and a conducive work environment is essential for organisational success. A motivated and skilled workforce is more productive and can drive the organisation towards its goals more effectively.
- Customer-Centricity Enhances Brand Loyalty: A customer-centric approach is integral to building strong, enduring relationships with customers. Understanding and addressing customer needs leads to increased customer satisfaction, loyalty, and positive word-of-mouth, driving long-term success.
- Financial Health is Fundamental: Maintaining robust financial health is fundamental for exploring new opportunities and navigating through challenges. Efficient financial management ensures sustained profitability, optimal resource allocation, and enhanced shareholder value.
- Agility and Flexibility are Key: The ability to quickly adapt to changes in the business environment, be it market trends, customer preferences, or external shocks, is crucial. Organisations that are agile and flexible can better navigate uncertainties and capitalise on new opportunities as they arise.
Looking ahead, what can we expect in Uganda and the region? Is the bank eyeing more opportunities?
Moving forward, our strategic emphasis will be concentrated on the seamless integration of sophisticated technology into our service delivery mechanisms, to significantly elevate operational efficiency and efficacy. This ambitious initiative will be spearheaded by our dedicated technology arm, Centenary Technology Services, with a commitment to achieving comprehensive digitisation across all our subsidiaries.
We hold a firm conviction that the technological advancements we are fostering presently, will resonate with overarching benefits, not solely within the confines of our Group but extending to contribute substantively to the national developmental agenda. We are in the advanced stages of implementing a world-class Data Centre, poised to emerge as a cornerstone for secure and reliable data storage and backup solutions, catering to the diverse needs of our corporations and the wider community, thus setting unprecedented standards in data management and security.
Our investment strategies will be carefully crafted and refined, shaped by the plethora of opportunities emerging across the diverse African economic terrain. In alignment with this, we are formulating plans to explore the sectors of insurance and investment banking, identifying opportunities that present mutual synergies and align seamlessly with our overarching strategic goals and value-creation philosophies. Our approach is geared towards leveraging innovative solutions and insights to navigate and capitalise on the dynamic market prospects prevalent within the continent, ensuring a harmonious balance between risk and reward, and fostering sustainable value addition to our diversified portfolio.
Our strategic outlook remains anchored in exploring and capitalising on expansion possibilities outside Uganda, to catapult the Centenary brand to global prominence. The progressive expansion of our Group is projected to accelerate with the infusion of additional subsidiaries, each reflecting our unwavering commitment to quality, innovation, and distinctive value propositions.
We are resolute in our commitment to intensifying our environmental and societal initiatives, embodying the ethos of sustainable and responsible growth. By intertwining ecological stewardship and social impact with our strategic aspirations, we endeavour to forge a legacy characterised by responsibility, forward-thinking, and unparalleled excellence.