French multinational investment bank Societe Generale Group (SocGen) has confirmed the solid growth of its African operations
The group offers its customers the expertise and knowledge of an international bank in conjunction with the proximity of its local banking networks with operations in 19 African countries, the bank said in a statement.
The bank is present in Algeria, Benin, Burkina Faso, Cameroon, Chad, Congo, Côte d’Ivoire, Equatorial Guinea, Ghana, Guinea, Kenya, Madagascar, Morocco, Mauritania, Mozambique, Senegal, South Africa, Togo and Tunisia.
SocGen aims for its African operations to achieve a compound annual revenue growth rate of eight per cent and a profitability of more than 15 per cent by 2020.
It stated that the business unit of Africa, the Mediterranean Basin and the Overseas Region generated revenue of US$1.72bn in 2017, an increase of 11 per cent. In the first nine months of 2018, this trend continued, as the bank continued to implement its strategy, building on its strengths to capture local growth.
Business customers account for more than 60 per cent of NBI and outstanding loans.
The bank noted that it supports this increasingly sophisticated client base, especially through regional expertise hubs that have proven their ability in more mature markets such as structured finance or currency hedging solutions.
In the next five years, Societe Generale has also decided to increase its outstanding loans to African SMEs by 60 per cent (+ US$4.5bn).
With the implementation of YUP, an e-wallet solution launched in August 2017, the bank will move forward with its innovation strategy. YUP adds around 1,500 new customers per day and is aiming for one million customers and 8,000 agents by 2020.
The bank also intends to expand its innovation initiatives with innovation laboratories in Dakar, Tunis and Casablanca, where new banking and non-banking solutions are developed with start-ups and customers.
The group strengthens its African teams. With a strong management structure renovation, many African employees who are well connected to local economies are promoted to top management posts. Several initiatives on training, equality such as the “Women in Africa" partnership will play an important role in the group’s inclusive growth strategy.
Frédéric Oudéa, CEO of Societe Generale, commented, “Our long-standing presence in Africa makes Societe Generale an essential, well-placed player on the continent to serve as a unifying force around the challenge of responsibility and sustainably contributing to African growth.”
“This ambition is a key part of our strategic plan. This is why we are launching “Grow with Africa” an initiative that involves all stakeholders seeking to provide solutions to the specific environment in which sustainable development in Africa is expanding, and who are convinced that the futures of Europe and Africa are more closely linked than ever,” he added.
