French bank Société Générale has opted to exit the Ghanaian market, ending its 20-year involvement in the country. In addition to Ghana, the bank has decided to stop operations in Tunisia and Cameroon.
According to sources close to the French bank, the company has hired investment firm Lazard to look for potential purchasers for its subsidiaries in three countries. Absa Bank is rumoured to be a strong contender for the bank’s assets.
Recently, Société Générale reached an agreement with Saham Group to unload its Moroccan business. Congo, Equatorial Guinea, Mauritania, Burkina Faso, and Chad were among the African countries withdrawn from in 2023.
Citing its long-standing presence in Africa, Société Générale intends to focus its resources on markets where it can establish itself as a major bank, in line with its overarching plan announced on its website on April 12, 2024.
Société Générale’s decision to depart Ghana and other African markets matches similar steps taken by its European competitors. Barclays and Standard Chartered are significant examples, with the latter reducing operations in some countries but keeping a presence in Ghana and other African countries.
Furthermore, emerging businesses such as Atlas Mara have abandoned the region, while Credit Suisse has concentrated its operations in South Africa.
As European and other non-African banks withdraw, there is speculation that African banks, notably those from South Africa and Nigeria, would emerge as significant players in the continent’s banking system.
