Par
Souleymane Loum
| 2 hours ago
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European banks are starting to sell the family jewels in Africa due to their loss of momentum in the face of new local big names who are gaining strength. The French Société Générale, once a giant in Africa, is making a spectacular withdrawal in Benin, Togo, Burkina Faso, Morocco, Ivory Coast, Equatorial Guinea, etc. A boon for African states, which are stepping into the breach to strengthen their financing tools. Benin and Ivory Coast – they have great ambitions in terms of financing levers – have decided to buy the French flagship, the Senegalese state is following in their footsteps…
Société Générale is the second largest banking operator in Senegal and it is for sale, a golden opportunity that the Senegalese government will not let slip away. The authorities revealed their intentions through a buyout offer of 260 million euros ($287.6 million), reports Africa Intelligence. The operation could be led by the National Bank for Economic Development (BNDE) or a national consortium controlled by the latter.
Société Générale has been active in Senegal for several decades, currently holding 63.31% of the capital of its Senegalese subsidiary. 35.13% of the shares belong to Senegalese private individuals and a small portion, 1.56%, is owned by Société Générale de Banques en Côte d’Ivoire (SGBCI), the leading bank in UEMOA (Economic and Economic Union). West African currency).
According to sources familiar with this matter, there are several avenues for shaping the future of French, but Dakar would lean towards a takeover by a local actor. BNDE, 81.8% controlled by the State, is favored by the authorities to carry out this operation. Set up in 2014 to support SMEs and SMIs, the BNDE quickly reached higher levels, with a total balance sheet which started from 76 billion FCFA in 2015 to rise to 555 billion FCFA in 2023…
The capital increase took place in November 2023, going from 11 billion to 52 billion FCFA; the bank is now in great health. It achieved a net banking income (NBI) of 25.8 billion FCFA in 2023, an increase of 47% and consolidated equity of some 70 billion FCFA…
Société Générale Senegal has total assets of 1,391 billion FCFA, or 10.8% of market share in terms of assets on the local market. This makes it the second largest banking company in the country, just behind CBAO (Compagnie Bancaire de l’Afrique Ouest), a subsidiary of Attijariwafa Bank. The Moroccan retains its first place, clearly dominating BNDE which has only 4.26% market share with a total balance sheet of 555 billion FCFA. The takeover of Société Générale will boost the Senegalese.
Remember that in July 2024 Benin unveiled its plan to acquire the local subsidiary of Société Générale. For all these African countries the objective is the same: Increase the role of the State in the financing of economies where SMEs weigh heavily but cruelly lack financing to develop, hire and prosper on the continent…
Last year, Senegalese SMEs received less than 10% of the total outstanding loans granted to businesses, a threshold well below the average of 14% displayed by the UEMOA. At the same time, Senegal’s budget deficit widened to 915 billion FCFA, or nearly 5.5% of GDP. The government had fallen back on borrowing more than 1,063 billion FCFA on regional financial markets to absorb part of this deficit.
With revenues from oil and gas, Senegal will have the means to afford French to boost its economy. Spend more to run the country and earn more in the end, especially through tax revenues and social security contributions. For its part, Société Générale continues its massive disengagement in Africa, with Ghana and Cameroon next…
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National Bank for Economic Development, European banks, Benin, BNDE, Burkina Faso, Ivory Coast, Africa disengagement, economy financing, SME financing, French Société Général, Equatorial Guinea, MOROCCO, buyout, Tunisia rent
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