French Bank Société Générale has decided to exit the Ghanaian market, marking the end of its 20-year presence in the country.
In addition to Ghana, the bank has opted to cease operations in other African nations, namely Tunisia and Cameroon.
Sources close to the French bank disclosed that it has engaged investment bank Lazard to explore potential buyers for its subsidiaries in the three countries. Absa Bank is rumoured to have emerged as a strong contender for acquiring the bank’s assets.
Recently, Société Générale finalized deals with Saham Group to offload its Moroccan operations. In 2023, it was divested from several African countries, including Congo, Equatorial Guinea, Mauritania, Burkina Faso, and Chad.
Citing its long-standing presence in Africa, Société Générale aims to focus its resources on markets where it can assert itself as a leading bank, aligning with its overarching strategy outlined on its website on April 12, 2024.
The move by Société Générale to exit Ghana and other African markets mirrors similar actions taken by its European counterparts. Barclays and Standard Chartered are notable examples, with the latter scaling back operations in some countries while maintaining a presence in Ghana and select African nations.
Additionally, newer players like Atlas Mara have exited the continent, while Credit Suisse has retained its operations solely in South Africa.
As European and other non-African banks exit, there is speculation that African banks, particularly those from South Africa and Nigeria, may emerge as dominant forces in the continent’s banking sector.
Explore the world of impactful news with CitiNewsroom on WhatsApp!
Click on the link to join the Citi Newsroom channel for curated, meaningful stories tailored just for YOU: https://whatsapp.com/channel/0029VaCYzPRAYlUPudDDe53x
No spams, just the stories that truly matter! #StayInformed #CitiNewsroom #CNRDigital
