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In the Southern African financial landscape, a new initiative, CYTO, has just emerged, characterized by its digital solution. The mastermind behind this disruptive start-up is Joachim VALOT, a young graduate of IÉSEG’s Grande École Program, who has teamed up with Tamara LERNER and Thiébault HUSSON. Joachim’s commitment to financial innovation and social impact, together with the skills he acquired at IÉSEG, have shaped CYTO, aimed at redefining financial management in Angola and on the continent.

CYTO… what’s behind this name?

To give you a bit of background, during my Master’s degree I did an internship in private banking as an assistant banker in Luxembourg, as well as in an investment fund in the United Arab Emirates. It was this second experience that really triggered something in me: I had gained a lot professionally, but I wanted to have a greater positive impact on society. This was the beginning of the reflection that would later lead to the creation of CYTO.

I’m Franco-Angolan, grew up in Angola and came to France for my studies. Every time I returned to Angola, I realized the opportunities for improvements in terms of financial services, particularly in terms of digitalization. I had personal experience of receiving and sending money to my family in Angola. When I made transactions between European countries, it was very easy and inexpensive, thanks to the SEPA credit transfer. But when it comes to African countries, it’s much more expensive and much slower. I analyzed the situation and realized that one of the main reasons why there wasn’t a simple, effective and inexpensive solution was the lack of digitalization. That’s where the idea of CYTO arose.

So you decided to take advantage of your French and Angolan networks to provide a solution to the digitalization issue…

Yes, having a foothold in both Europe and Africa enables me to develop my banking network on both continents. The aim is to set up the “CYTO” digital platform, and thus offer an easily accessible money transfer service to the African diaspora in Europe, as well as to expatriates in Africa, via an application and a website. Some African countries already have start-ups, or even unicorns (notably Egypt, Kenya and Nigeria) offering such services, but to date, no player is yet present in southern Africa. Yet this market represents 250 million inhabitants, and a rather young population, with a median age of 25. This makes it both a dynamic and fast-growing market, with proven needs in terms of financial education and inclusion, but it also represents a challenge, as there is high unemployment and difficult access to education and digital tools. CYTO’s mission is therefore to “disrupt” the world of financial services in Southern Africa, and bring an as yet non-existent solution to this population. We are a company created by young people for young people. Ultimately, my team and I want to become a major player in education and financial inclusion on the African continent.

Angola is a complex market with barriers to entry, but that’s precisely why I see it as a land of opportunity. Having grown up there, I go back regularly for business, and in the long term, I plan to stay and live there. So, I know the local area, the company, its way of operating, its difficulties, etc… which makes me a rather suitable candidate to bypass or lift these barriers.

You mentioned the disparity in the development of these digitalized financial services on the African continent. Why is this so?

There are a number of reasons, including market dynamism, but it’s also a question of history and culture. Egypt, Kenya and Nigeria are former British colonies that have a different approach to risk-taking and entrepreneurship. Indeed, Anglo-Saxons are much more keen on these subjects, and are more inclined to take risks in terms of entrepreneurship and investment. Very little investment is made in the French-speaking part of Africa, and even less in the Portuguese-speaking part, where Angola is located. CYTO aims to change this trend and boost the dynamism of the continent.

Beyond profit, you’re looking to have a real impact on Angolan society…

Indeed, if the pursuit of quick profit was my only motivation, I could have aimed for a simpler dynamic market, but being just one of many start-ups didn’t make much sense to me. I wanted to offer something innovative for people who really needed it. That was my main motivation. We don’t all have access to the same opportunities, and the one I had to study at IÉSEG gives me a sense of responsibility towards my country of birth, and society as a whole. I’ve always seen myself as contributing to the development of the African continent; the opposite would simply be a waste, in my opinion. On top of that, Angola is one of the countries with the highest potential in terms of natural resources (Africa’s leading oil producer), population (three times the size of France), location (lots of arable land thanks to large water reserves), and in geopolitical terms: Angola currently chairs the SADC (Southern African Development Community). It therefore has great potential for dynamism and growth. We want CYTO’s success to inspire millions of young Africans to take action. Our ambition is to become an emulator of goodwill, providing all the tools – technological, educational and financial – to drive a wave of positive change.

What skills do you think it takes to be an entrepreneur?

Entrepreneurship is an adventure that reveals our own shortcomings. For me, it was my lack of gratitude. It’s become very important to me to know how to be grateful when goals are achieved, because I think it’s good for one’s own mental health and helps to nurture the second requisite quality, which is resilience. Indeed, entrepreneurship means facing a huge amount of obstacles. Knowing how to adapt to those pitfalls while maintaining your focus is crucial. The final essential quality is the ability to get out of your comfort zone. This means adopting a true “Yes Man” mentality to create opportunities that can have a real impact on your life, like the opportunity I had to represent the Angolan entrepreneurial ecosystem during Emanuel Macron’s visit to Angola, or to teach AI courses at IÉSEG.

Did your studies at IÉSEG prepare you for this entrepreneurial challenge?

IÉSEG itself had a major impact on my soft skills and self-confidence. It was particularly during my time at the International Club that I realized the influence and impact I could have on others. It was on a very small scale at the time, but it was a wake-up call for me. On the other hand, the internships I did during my studies helped me to develop my technical skills and a better understanding of the financial system. It was this comprehension that helped me break out of my impostor syndrome, and gave me the tools and mindset to get started. I can therefore say that IÉSEG has had a major impact on the genesis of CYTO.