The mobile money market in Côte d'Ivoire and Senegal is dominated by Mobile Phone Operators, with Orange remaining the solid leader in the sector. Associated with the former national telephone companies which have been privatized (SONATEL for Senegal and CI TELECOM for Côte d'Ivoire), Orange has enjoyed a significant advantage over other competitors. Thus, in Côte d'Ivoire, in terms of the number of subscribers and mobile money, Orange holds 40.5% and 48.3% of the market share respectively. In Senegal, it holds 55.03% of the subscribers of mobile telephony. Initially confined to money transfer, mobile money has diversified with new service offers (payment of bills and subscriptions, salary transfer, etc.).

Attracted by the dynamism of this sector, the American digital finance start-up "Wave" invested in the Senegalese market in 2016 and more recently set up in Côte d'Ivoire in 2020. In partnership with the UBA Bank and supported globally reputable investors such as Founders Fund, Y Combinator, Partech Africa and Stripe, Wave has successfully raised funds to finance its activities in Africa. Unlike traditional players who taxed all services related to mobile money, Wave specializes in low-cost transactions (only 1% for money transfers) and free for the rest of the services (invoices, deposit and withdrawal of money, purchase of telephone credit, etc.). It works from a mobile application and offers its subscribers "a network of financial services with no account management fees, available instantly and everywhere".

Operations to “conquer hearts and minds”

Wave's choice to attack its competitors on costs through an attractive pricing policy has had, like the arrival of Free in France, a disruptive effect on the mobile money market. But beyond the marketing, this choice immediately enabled it to gain a favorable opinion among the popular and vulnerable strata (poor, informal economic sector, young people). For the latter, the fees charged remained very high until then; which was an obstacle to the development of mobile money.

This image of a socially responsible and ethical company that puts itself at the service of the poor is put forward in the speeches of its leaders. Positioning itself as a defender of disadvantaged populations, Wave affirms on its official page, wanting to "allow everyone to have access to financial services without difficulty and without conditions".

In addition, it presents its low costs and the fact that some of its products are free as contributing to the fight against the high cost of living. As the issue of the cost of living is at the heart of the concerns of African populations, this strategy has had the merit of giving it a very positive image. On Ivorian national television (RTI), the mayor of a popular commune in Abidjan supported Wave by publicly announcing “The current situation in Côte d'Ivoire is the high cost of living. I think that with Wave's tariffs, … it will have a positive impact on the cost of living”.

The company also does not hesitate to involve media men, bloggers and Ivorian influencers in order to relay its messages. The latter were invited to a panel organized on May 25, 2021 in Abidjan on the theme "The role of fintech in financial inclusion".

The effects of these seduction operations are visible with numerous articles and blogs which consider Wave as the favorite of the populations who have become its main promoters.

A war of opinion on social networks

A review of the activity on social networks allows us to observe the activism of Wave, through numerous fan-clubs (Family Wave Côte d'Ivoire, Amis Wave Ci, Team Wave Senegal, etc.) which relay daily messages of support and positive experiences of using its products. For the “Team Wave CI” Facebook group, which claims more than 110,000 subscribers, the objective as mentioned on their page is to “promote WAVE and its advantages and reassure people of its credibility”. As for the group "Family Wave Cote D'ivoire" which has more than 100 thousand subscribers, it maintains that "The high cost of living challenges us all, Wave and its policy of lower tariffs is welcome".

With a more humorous touch, the group "Les Gbê de Wave CI" which claims to be "a parody page, non-lucrative and not linked to Wave Ci ...dedicated to the free promotion of Wave Ci" very often makes fun of Orange and its recent promotional attempts.

Aroused or not, the arrival of Wave on the market was immediately accompanied by a runaway on the discussion forums. And these debates are largely favorable to Wave because for the majority of Internet users, its arrival will have managed to shake and push the giant Orange to its limits.

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Admittedly, Orange is recognized for the quality of its network, but it has always been perceived as a company that charges high prices and behaves with the arrogance of those who have a monopoly. In the article "Orange Senegal: why so much hatred?" published by Jeune Afrique on August 08, 2020, it is revealed that Orange is facing recurring controversies. In 2010, following a controversial increase in its prices, "Calls for a boycott and the destruction of SIM cards live on social networks multiplied" and prompted the company to reconsider its decision. Still according to this same article, in a general context of information warfare against France in Africa and the rise of sovereignism in Africa, “Orange embodies this imperialism which keeps Senegal under the economic yoke of France”.

Wave's legal maneuvers and rumors of intimidation

This battle is also played out through legal maneuvers and rumors distilled in the press where Orange is accused of taking advantage of its dominant position to hinder its competitor's activities.

In Senegal, following a misunderstanding on the conditions of remuneration, the Orange phone credit purchase service was blocked on the Wave platform. In response, the latter chose to attack Orange on the legal level, without forgetting to take public opinion to witness on the actions of Orange through a press release. Thus a complaint was lodged with the Regulatory Authority for Telecommunications and Posts (ARTP) for arbitration. Pending the outcome of this case, the ARTP, as a precaution, has asked SONATEL (group to which Orange is a member) to apply "without reservation, the principles of treatment and access, transparency and non-discrimination , by granting Wave mobile money Sa the same conditions as those applied to its subsidiaries or its partners, in particular Orange finances mobiles…”. This decision can be considered as a first victory for Wave because in this matter, the laws are not precise.

In Côte d'Ivoire, it is rather authorized distributors of mobile money associating their usual offers with the Wave service, who reportedly complained of threats from Orange supervisors. This true or false information is revealed by the 7info media in its article "mobile money in Côte d'Ivoire: has war finally been declared between Orange and Wave?" ". Based on the same source, several articles relayed these rumours, helping to spread this information to the public. Among other articles, we can cite: "orange accused of putting a spoke in the wheels of Wave-Côte d'Ivoire" (afriqueitnews of June 28, 2021); “Mobile Money: Ivorians migrate to Wave, Orange threatens, the “penguin” prepares the warning shot!” (Inproofafrica of June 28, 2021), "CÔTE D'IVOIRE / MOBILE MONEY: Orange Vs Wave, will the penguin eat orange?" (civnewsafrik of August 10, 2021),...

Orange, between defensive and attempt to minimize

In Senegal, faced with ultra-competitive offers from Wave, Orange had no choice but to drastically lower costs (nearly 80%). have been significantly reduced. For a withdrawal of 5000 francs, the fees are now 25 francs against 350 previously. ".

Regarding the accusations brought against it of alleged abuse and threats, Orange through press releases tries to defend itself while proclaiming its attachment to competition. Thus in the case opposing it to Wave on the purchases of Credit, it rejects the fault on Wave, accusing the latter of asking "a remuneration higher than that proposed by Sonatel" and, at the same time, claims to attach "a price compliance with laws and regulations”. As for the rumors of intimidation, joined by the same media 7info, Orange reaffirmed to be “a responsible company which remains committed to the principles of competition…” and “will not take any action that could harm” its distribution network.

Overall, Orange tries to minimize the impact of Wave on its activities. It also denies reports that its recent rate-cutting initiatives and other promotions were made under duress. To this end, it does not miss an opportunity to recall its leading position and affirms that it has always known how to “welcome the arrival of other operators as opportunities to do more for customers”.

An informational confrontation that turns in favor of Wave

The arrival of Wave on the mobile money market was accompanied by an informational confrontation with the mobile telephone operators, mainly Orange. The approach adopted by this company has enabled it to build a relational capital that can be measured by the enthusiasm it arouses among populations (especially vulnerable ones). For the moment, its establishment in the two countries is welcomed with great of satisfaction by consumers who believe that Orange will have taken advantage of its quasi-monopoly for too long to "impose abusive fees on them" (Senegal, Côte d'Ivoire: who is Wave, the fintech that is shaking up mobile money? - Young Africa of June 10, 2021).

Kitchafolwori SekongoAuditor of the 37th MSIE promotion