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According to several media reports, French bank Societe Generale is set to exit the Ghanaian market after approximately 20 years of operation.
The bank first entered Ghana in 2003 through the acquisition of a 51 percent stake in the then Social Security Bank.
Reports from theaccratimes.com suggest that Societe Generale is also considering withdrawing from two other African countries, namely Cameroon and Tunisia.
Sources familiar with the matter, as mentioned in the report, revealed that Societe Generale has enlisted the services of investment bank Lazard to explore potential buyers for its operations in Ghana, Cameroon, and Tunisia.
The report further notes that Societe Generale recently concluded agreements with Saham Group to divest its Moroccan operations. Additionally, in 2023, the bank sold its interests in several African countries, including Congo, Equatorial Guinea, Mauritania, Burkina Faso, and Chad.
According to Societe Generale’s website as of April 12, 2024, the group, with its longstanding presence in Africa, aims to concentrate its resources on markets where it can establish itself as a leading bank, aligning with its overall strategy.
However, Fitch Ratings has suggested that the French bank’s planned departure from certain African countries is expected to present significant opportunities for emerging pan-African banking groups to expand, either organically or through mergers and acquisitions.
“This should encourage competition and benefit local banking sectors despite some short-term challenges,” Fitch stated on its website on April 26, 2024.
The withdrawal of some European banks from Africa is mainly attributed to heightened competition, high cost-to-income ratio, diminished returns on investments, regulatory requirements, among other factors.
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