By The French Bank Société Générale has announced its decision to withdraw from the Ghanaian market, concluding its 20-year tenure in the country.
Alongside Ghana, the bank has chosen to discontinue its operations in other African nations, including Tunisia and Cameroon.
Sources familiar with the matter revealed that Société Générale has enlisted investment bank Lazard to explore potential buyers for its subsidiaries in these three countries. Absa Bank has been rumored to emerge as a leading candidate for acquiring the bank’s assets.
Notably, Société Générale recently finalized deals with Saham Group to divest its Moroccan operations. In 2023, it also divested from several African countries, including Congo, Equatorial Guinea, Mauritania, Burkina Faso, and Chad.
Citing its extensive presence in Africa, Société Générale aims to concentrate its resources on markets where it can establish itself as a leading bank, in line with its overarching strategy outlined on its website on April 12, 2024.
The decision by Société Générale to withdraw from Ghana and other African markets reflects similar moves made by its European counterparts. Notable examples include Barclays and Standard Chartered, with the latter reducing operations in some countries while maintaining a presence in Ghana and select African nations.
Furthermore, newer entrants such as Atlas Mara have exited the continent, while Credit Suisse has maintained operations solely in South Africa.
With European and other non-African banks departing, speculation arises that African banks, particularly those from South Africa and Nigeria, may emerge as dominant players in the continent’s banking sector.
