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Explainer-Who are the lenders stepping up as SocGen scales back in Africa

Published 08/06/2023, 12:32
Updated 08/06/2023, 12:41
© Reuters. FILE PHOTO: The logo of Societe Generale is seen on the headquarters at the financial and business district of La Defense near Paris, France, February 4, 2020. REUTERS/Benoit Tessier/File Photo
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DAKAR (Reuters) - Societe Generale (EPA:SOGN) on Thursday agreed to sell some of its businesses in Africa to pan-African banking groups Coris International and privately-held Vista.

The two are part of a new generation of emerging lenders that are picking up assets as banking majors such SocGen, BNP Paribas (EPA:BNPP), Standard Chartered (LON:STAN) and Barclays (LON:BARC) reduce their footprint on the continent.

CORIS BANK INTERNATIONAL

Burkina Faso lender Coris Bank International is listed on West Africa's BRVM regional bourse and a part of Coris Holding, founded by Burkinabe entrepreneur Idrissa Nassa, who is also the chairman.

The bank has expanded since 2008 to the eight countries of the West African Monetary Union, and Guinea which has a separate currency.

Taking over SocGen's operations in Mauritania and Chad would be the group's first foray into both countries. The bank is competing for market share in the region with other lenders including Ecobank and Bank of Africa.

VISTA GROUP

Vista Bank is controlled by U.S.-based investment company Lilium Capital, which was founded by another Burkinabe banker Simon Tiemtore.

Tiemtore, who has worked at Morgan Stanley (NYSE:MS) in New York and previously headed corporate finance and advisory services at the African Export Import Bank, is chairman of both Vista and Lilium Captial and also Lilium's CEO.

© Reuters. FILE PHOTO: The logo of Societe Generale is seen on the headquarters at the financial and business district of La Defense near Paris, France, February 4, 2020. REUTERS/Benoit Tessier/File Photo

Vista has a retail banking presence in West Africa including in Gambia, Guinea, Burkina Faso and Sierra Leone. Taking over SocGen's subsidiaries in Congo and Equatorial Guinea will enable it to expand into the Central African regional market.

It also took over BNP Paribas' majority stakes in subsidiaries in Burkina Faso and Guinea in June and July 2021, respectively.

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