Société Générale du Maroc Disengagement News: What it Means for the African Continent

2024-03-09 19:08:18

This week, the news of the disengagement of Société Générale du Maroc was revealed and strongly commented on, even if it has not yet been officially confirmed.

Published on: 09/03/2024 – 20:08

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According to various media, including Young Africathe former Moroccan Minister of Industry and Commerce, Moulay Hafid Elalamy would be ready to buy back 60% of the bank’s shares for the sum of 730 million euros.

In 2023, Société Générale announced its departure from six countries on the continent (Congo-Brazzaville, Equatorial Guinea, Mauritania, Chad, Burkina Faso and Mozambique), and strategic reflection is underway in Tunisia. If Morocco’s disengagement is confirmed, this decision would therefore be a continuation of that of Société Générale on the African continent.

Slawomir Krupa, who took over as head of the French bank last spring, changed the group’s policy. “ 2023 was a year of transition and transformation », He also highlighted on the occasion of the announcement of the 2023 financial results.

In its financial report, Société Générale highlights its desire to capitalize on its “ positions de leader “. Specifying his priorities on the continent: “ Supporting the development of African SMEs, infrastructure financing, financial inclusion and innovative financing in renewable energies and agribusiness ».

Sale of the least profitable franchises

There are ambitions, but also difficulties for the bank. It put an end to its mobile money tool, for example. Fight once morest money laundering, compliance with sanctions, etc. A person close to the matter also confided to RFI the challenge represented by “ duty of care “. Placing a significant weight – notably legal – on the shoulders of those responsible.

Some analyze in this policy, the sale of the least profitable franchises to reduce costs. However, notes the specialized media Sikafinance, the Moroccan sale “ creates uncertainty ». « It is imperative to reflect on the possibility of the disintegration of the most influential banking group in Côte d’Ivoire », he warns.

Société Générale claims to be the leading international bank in West Africa, with a strong presence in Ivory Coast, Senegal and Cameroon. In 2023, African subsidiaries accounted for 8% of the group’s net banking income.

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