Hakim Ouzzani, the Managing Director of Societe Generale Ghana, has stated that the information that has been made public regarding the bank’s withdrawal from the Ghanaian market does not originate from the Group Head Office located in France.
Mr. Ouzzani described the media claims as rumors and stated that the bank is still dedicated to its group strategy, which aims to increase its capital base starting in 2023.
There are some true rumors floating around about SG Ghana. However, it’s crucial to clarify to all of our investors and stakeholders that neither SG Ghana nor the group issued the news item circulating in the media, he stated.
“We wish to stop here with our comments. However, I firmly believe that the papers are not from SG or SG Ghana,” he continued.
Hakim was delivering a speech in Accra during the 44th Annual General Meeting of Societe Generale Ghana.
Context
According to prior projections by Fitch Ratings, pan-African banks will have substantial room to expand through organic growth or mergers and acquisitions following the departure of Societe Generale (SG), a French bank, from the African market.
“Despite some short-term challenges, this should stimulate competition and benefit local banking sectors,” stated Fitch.
There are already rumors that SG is leaving Ghana because of problems with profitability and strict regulatory requirements from the regulator in the financial sector.
The Moroccan conglomerate Saham Group will acquire Societe Generale Marocaine de Banques (SGMB) and its subsidiaries on April 12th, according to an announcement made by SG. This comes after a number of recent French bank disposals in Africa.
It seems that several French banks, including Societe Generale (SG), have recently divested some of their African subsidiaries and are likely to continue doing so in the next 12-24 months. This move may pose short-term challenges for the divested subsidiaries, such as limited access to the global financial system and correspondent banks, as well as the loss of foreign shareholders. However, it may also create opportunities for local and regional banks, who may eventually gain enough scale to compete with long-established institutions. Vista Group and Coris Bank are emerging as credible competitors for the well-established South African, Nigerian, and Moroccan pan-African banking groups. The French banks’ exit from African retail and commercial banking is slightly credit positive for them, as they can refocus on more mature retail banking markets in Europe and on activities such as insurance, leasing, and corporate and investment banking.
