Société Générale exits Mauritania as French banks retreat from Africa

Tuesday 12 August 2025 - 11:50

By: Dakir Madiha

Société Générale exits Mauritania as French banks retreat from Africa

Société Générale’s latest divestment in Africa

A consortium of investors, including Enko Capital and Oronte, has finalized the acquisition of Société Générale’s Mauritanian retail banking subsidiary. Announced on Monday, this move marks the French banking giant's continuing withdrawal from Africa, following its exit from Morocco last year.

The new owners aim to position the bank as a key player in Mauritania’s economy, prioritizing sectors such as mining, gas, agriculture, and small and medium enterprises (SMEs). While financial details of the deal remain undisclosed, the acquisition reflects a broader strategy among French banks to scale back African operations.

Société Générale Mauritanie: A snapshot

Since 2007, Société Générale has been the reference shareholder of Société Générale Mauritanie (SGM), which operates 11 branches serving nearly 40,000 customers. The subsidiary generates €35 million in net banking income and €9.9 million in net profit annually.

This divestment follows a series of similar transactions by Société Générale. In July, the bank announced the sale of its Cameroonian subsidiary to the government, transferring its 58.08% stake and giving the state an 83.68% ownership of the entity.

A strategic shift for Société Générale

Under CEO Slawomir Krupa, who took the helm in May 2023, Société Générale has prioritized profitability by divesting from African markets that offer limited synergies with its European operations. Since 2023, the bank has exited Congo, Chad, Mozambique, Morocco, and Madagascar, with ongoing sales in Benin, Burkina Faso, Guinea, Equatorial Guinea, and Togo.

Once these transactions are complete, Société Générale's African footprint will be reduced to just five countries: Algeria, Tunisia, Ivory Coast, Senegal, and Ghana.

Challenges for French banks in Africa

Société Générale’s retreat mirrors a broader trend among French financial institutions, including BNP Paribas and Crédit Agricole, as they recalibrate their focus on European markets. The declining political and economic influence of France in Africa has contributed to reduced business volumes for these banks.

Additionally, the rise of intra-African banking powerhouses like Morocco’s Attijariwafa Bank, Bank of Africa, and Banque Populaire, alongside competitors from South Africa and Nigeria, has intensified competition. Coupled with growing influence from China, Russia, India, and Turkey, European banks have faced increasing challenges in maintaining their foothold on the continent.

For Société Générale, integrating retail and commercial banking activities in Africa has proven difficult due to differences in market structures, competitive landscapes, and product demands compared to Europe.

Morocco as a turning point

Société Générale’s withdrawal from Morocco was particularly significant. In December 2024, the Saham Group acquired Société Générale’s Moroccan subsidiaries for €745 million, including Société Générale Marocaine des Banques (SGMB) and La Marocaine Vie.

In June 2025, SGMB officially rebranded as Saham Bank, with a leadership team led by Moulay Hafid Elalamy, founder of the Saham Group. The transition signaled a shift in Morocco’s banking landscape, as local institutions continue to expand their influence regionally.

A retreat amid shifting dynamics

Société Générale’s African retreat highlights the shifting dynamics of the continent’s banking sector. With the rise of African financial champions and increasing geopolitical competition, European banks face diminishing opportunities. Société Générale’s exit reflects a broader recalibration of strategies, as French institutions adapt to the realities of a rapidly changing African market.