The National Bank for Economic Development (BNDE), a Senegalese financial institution majority owned by the State, could soon acquire the local subsidiary of Société Générale. This takeover project, valued at 176 billion CFA francs (around 268 million euros), is part of the French banking group’s disengagement strategy from the African continent. With this acquisition, BNDE would aim to dethrone the dominant position of CBAO, a subsidiary of Attijariwafa bank. This operation is directly followed by President Bassirou Diomaye Faye and his Prime Minister, Ousmane Sonko.
While Société Générale continues its gradual disengagement plan in Africa, the Senegalese state plans to acquire its local subsidiary. A transaction estimated at around 260 million euros, according to Africa Intelligencecould be led by the National Bank for Economic Development (BNDE), or by a national consortium led by the latter. Currently, Société Générale holds 63.31% of the capital of its Senegalese subsidiary, while 35.13% of the shares belong to Senegalese private investors, and 1.56% to Société Générale de Banques en Côte d’Ivoire (SGBCI) .
Context of the disengagement from the African continent of Société Générale
The French banking group continues to withdraw from several African markets, including Benignthe Togothe Burkina Fasothe Mozambiquethe Congo Equatorial Guinea and the Morocco. This withdrawal is part of a desire for rationalization to concentrate its resources on areas deemed more strategic. This trend extends to Senegal, where SoGé has been present for several decades and ranks as the second banking player in the country, with a market share of 10.8% in terms of assets.
BNDE aims to dethrone CBAO
The National Bank for Economic Development (BNDE), created in 2014 to support Senegalese SMEs and SMIs, is well positioned to take over the activities of Société Générale. With a total balance sheet of approximately 846 million euros in 2023, BNDE will show solid growth. It recently increased its share capital to approximately 79 million eurosand recorded a net banking income (NBI) of almost 39.3 million euros in 2023, up 47%. The acquisition of the Société Générale subsidiary would allow it to considerably strengthen its position on the Senegalese banking market, currently dominated by CBAO (subsidiary of Attijariwafa Bank).
Opportunity to strengthen financing for SMEs
This acquisition is part of a broader strategy to strengthen state control over financing levers. Inspired by the example of Benignwhich announced in July 2024 the acquisition of its own subsidiary of Société Générale, Senegal is seeking to better support SMEs, which currently only capture less than 10% of loans granted to businesses. This operation would provide the State with more powerful financial leverage, in a context where the country’s budget deficit has reached 915 billion FCFA in 2023.
With the prospects of oil and gas revenues on the horizon, Senegal will soon have the means to accelerate its economic development. The State will not only be able to invest more to keep the economy running, but also reap the benefits through increased tax revenues and social security contributions. This dynamic should provide the country with sufficient financial capacity to consider strategic acquisitions, such as that of the subsidiary of Société Généralethus strengthening its internal financing levers.
From the Attijariwafa bank
The sale of Societe Generale’s African activities is part of a trend observed among several large European banking groups. BNP Paribas et Credit Agricole have already made similar disengagements following the 2008 financial crisis, also favoring a strategy of refocusing on their activities in Europe.
More than fifteen years after the offensive of Attijariwafa Bank on the African banking market, followed by that of Bank of Africa, new African players now have the same ambition, notably Lily CapitalBurkina Faso’s US-based investment company Simon Tiemtoré. Through its financial arm, Vista Grouphe successively acquired Oragroupa banking group present in several countries in West and Central Africa, as well as the subsidiaries of Société Générale in Congoin Equatorial Guineaau Burkina Faso and at Mozambique.
These transactions reflect a growing trend where African banks are looking to expand, while large international banks, like Standard Chartered et Société Généraleare gradually withdrawing from the African continent.
Standard Chartered has in fact sold five of its subsidiaries to the Nigerian bank Access Bankwhile groups like Coris Bank et Vista Group took advantage of these disengagements to expand their regional presence.
Subsidiaries of Société Générale subject to sale operation:
- Congo, Equatorial Guinea, Burkina Faso and Mozambique : These subsidiaries were acquired by the Vista groupaffiliated with Lily Capital.
- Mauritania and Chad : These subsidiaries were bought by Coris Banka private banking player based in West Africa.
- Benign : The transfer of Société Générale Benin to the Beninese State is underway, with completion scheduled for early 2025. This transaction reflects the trend of African States to regain control of their financial sector.
- Morocco : The banking and insurance activities of Société Générale in Morocco were acquired by Finance sharescleanliness of the Moroccan Tycoon Moulay Hafid Elalamy.
- Ivory Coast : The situation is more complex for the Ivorian subsidiary, Société Générale Côte d’Ivoire (SGCI)which is one of the most successful in West Africa. Valued at around 637 billion FCFA (1.02 billion euros) with growth of 30% in 2023, SGCI remains a strategic asset for the group, although potential buyers, such as Ecobankshowed interest.
- Ghana : Société Générale Ghana has just submitted to the Bank of Ghana (BoG) a complete list of candidates interested in acquiring its shares. BoG Governor Dr Ernest Addison confirmed that the bidding process is still ongoing and the central bank will be informed once the preferred bidder has been selected by Société Générale. Société Générale, holding 60.22% of the shares of its subsidiary in Ghana, has mandated the investment bank Lazard to explore potential buyers for its subsidiaries in Ghana, Cameroon and Tunisia, Absa Bank is at the top of the list of these acquisitions.
- Tunisia : Although no sale has yet been made, strategic reflection is underway concerning the subsidiary International Union of Banks (UIB).
