Société Générale is strategically shifting its focus in Africa, announcing plans to exit operations in Ghana, Tunisia, and Cameroon. The move follows its recent divestment deals in Morocco and other African nations like Congo, Equatorial Guinea, and Mauritania.
To facilitate this transition, the bank has enlisted Lazard to explore potential buyers for its assets in the mentioned countries, with Absa Bank emerging as a potential acquirer. This decision aligns with Société Générale’s aim to concentrate its resources on markets where it can maintain a leading position, as highlighted in its recent strategic objectives.
This move echoes similar decisions by other European banks like Barclays and Standard Chartered, who have also adjusted their African presence. It reflects a broader trend of European banks reassessing their operations in Africa due to challenges such as high cost-to-income ratios and evolving regulatory standards.
As European banks reevaluate their positions, there’s potential for African banks, particularly those from South Africa and Nigeria, to rise as dominant players in the continent’s banking sector. However, navigating this evolving landscape requires substantial investments in IT infrastructure and compliance to meet increasingly stringent regulatory requirements set by African central banks.
