French banking groups continue to withdraw from the African continent, citing low profit margins.
In Morocco, Saham Finances recently received the necessary regulatory approval to complete the acquisition of Société Générale Marocaine de Banques, marking a significant milestone in the local financial landscape. This transaction, approved by the Moroccan Competition Council during a recent session chaired by Ahmed Rahhou, sees Saham Finances acquire a 57% majority stake in the banking institution’s capital and voting rights.
At the same time, Saham Horizon, another entity of the group, also obtained the green light to acquire a 50.98% stake in La Marocaine Vie, a major insurer in the country. These operations represent a value exceeding 8 billion dirhams (approximately 800 million dollars), thus consolidating the presence and growing influence of Saham Finances on the Moroccan financial market.
This acquisition also marks Societe Generale France’s strategic withdrawal from the banking sector in Morocco. The French group has been gradually divesting its assets in Africa since 2023, under the leadership of its new CEO, Slawomir Krupa, focusing on the sale of subsidiaries that it considers “unprofitable”. Since June 2023, Societe Generale has announced the sale of its subsidiaries in several African countries, including Congo, Equatorial Guinea, Mauritania and Chad.
At the end of 2023, the subsidiaries in Congo and Chad were sold, followed in April 2024 by the sale of the banking and insurance activities in Morocco to Saham for €745 million. Despite these divestments, Societe Generale maintains its operations in 13 other African countries, including Côte d’Ivoire, Cameroon and Senegal.
In parallel with these sales, Société Générale also announced in April 2024 the sale of its subsidiary Société Générale Equipment Finance (SGEF), specializing in the leasing of industrial equipment, to BPCE for 1.1 billion euros.
Societe Generale’s strategic exodus from several African markets was analyzed by the American rating agency Fitch in a report published in April this year. According to Fitch, this retreat of French banks creates significant space for emerging pan-African financial institutions to grow, whether through organic means or through mergers and acquisitions. Although this process may present short-term challenges, Fitch believes it will boost competition and benefit local banking sectors in the long term.
The acquisition by Saham Finances of Société Générale Marocaine de Banques not only marks an important turning point for the Saham group, but also reflects the strategic adjustments underway in the African financial landscape, where the movements of large institutions like Société Générale France are opening up new opportunities. new perspectives and challenges for regional and international actors.
MN/ac/APA
