Moroccan banks in Africa face French retreat – Discovery of Morocco

Moroccan banks in Africa are benefiting from the gradual withdrawal of French and European banks. This phenomenon marks a major turning point in the banking sector and provides an opportunity for pan-African groups to expand their influence.

Decline of French banks and emerging opportunities

The withdrawal of French and European banks in Africa leaves open a space that local and pan-African players are willing to occupy. Several factors explain this trend, paving the way for increased competition and the expansion of regional institutions.

Also read: Withdrawal of the bank Société Générale from Morocco.

French and European withdrawal in Africa

The main reasons for the withdrawal of French and European banks from the African market are:

• Regulatory pressure : Stricter regulation following the 2008 financial crisis has pushed these banks to refocus on their local markets.
• Low profitability : Some African subsidiaries were not sufficiently profitable.
• Local competition : Local banking groups have shown that they can adapt to African realities.
• Geopolitical issues : Political and social tensions in some regions have prompted European banks to take a more cautious approach.

The rise of pan-African banking groups

Pan-African banking groups, such as Vista Group and Coris Bank, are looking to capitalize on this pullback. However, they face several challenges, including:

• Implementation of an organic growth or merger and acquisition strategy.
• Strengthening their financial capacity to bear risks.
• Setting up a strong regional network.

Expansion and strategy of Moroccan banks in Africa

The three major Moroccan banking groups – Attijariwafa Bank, Banque Popculaire and Bank of Africa – seized this opportunity to expand their presence in Africa. Their expansionist strategy is based on insight into local markets and a solid financial network.

Read also: Financing the future: reforms and innovations in the Moroccan financial sector.

Expansion strategy and market share

Moroccan banks have consolidated their presence in several African regions, especially in UEMOA, where they have, among others:

• 22% of deposits.
• 21% of the credits granted.
• 24.6% of total net income.

According to Bank Al-Maghrib’s report, they also represent 27.3% of branches.

Contribute to financial results

African subsidiaries contribute significantly to the financial results of Moroccan banks:

• Attijariwafa bank : 38.9% of net profit comes from African subsidiaries.
• Banque Centrale Popular : African subsidiaries provide 27% of net profit.
• Bank of Africa : The net profit of African subsidiaries represents 46%.

The withdrawal of French banks opens a new era of growth for Moroccan banks in Africa, strengthening their role in the African banking sector. This development promises challenges, but also opportunities for local actors.

Discover the exceptional rise of Morocco here.