By Eratus Ndueh
The French Bank, Société Général a financial giant in Europe and the world, has reportedly decided to permanently leave Africa and Cameroon in particular, after operating for two decades.
This decision by the French bank to leave Africa is fueled by the desire to restore its profitability. According to reports, the group has already instructed the investment bank Lazard to find a buyer for the purchase of its three African subsidiaries.
Despite its performance in the Cameroonian market, the French bank decided that it was in its interest to sell its activities in the Central African country.
The establishment headed by Slawomir Krupa has decided to also leave Tunisia, Ghana, and Burkina Faso.
However, the exiting of the Group Société Générale from Africa will on one hand have a resounding impact on the banking sector of countries in the region, experts say.
‘The banking sector is going to lose out in terms of innovation because foreign banks turn out to be much more innovative, they have
nouvelles applications, they have access to different financial instruments, etc… This will be an opportunity for local banks to thrive and play a much more important role by giving credits to businesses.’ Henri Kouam, an expert and the CEO of the Cameroon Economic Policy Institute said.
Being one of the largest and most influential financial institutions on the continent, the absence of such a key player could create a substantial gap that smaller or less established banks may struggle to fill.
Reports from Fitch Solution, an international rating agency, indicate that the pulling out of the French banks from Africa, will create more opportunities, and spur growth and competition among local banks.
The rating agency also confirmed that the challenges that had occasioned the exit of French-owned banks in the African banking market included their inability to target certain segments of the economy due to their parent bank’s conservative risk appetite.
Source: Cameroon News Agency