Audio By Carbonatix
BNP Paribas SA has closed its corporate and investment bank in South Africa, the latest example of a European bank scaling back on the continent.
BNP Paribas, the eurozone’s biggest bank, leaves SA 12 years after launching its local foray.
This comes as the banking giant ramps up its 2025 strategic plan announced in 2022 that made the most of its noncore Africa operation with a focus on consolidating its European and Asian business.
“We can confirm that we have closed BNP Paribas CIB in South Africa,” a spokesperson for the bank said by phone. “From a legal perspective, the approval from the regulator came in April 2024.”
An April 19 notice shows South Africa’s central bank withdrew the French lender’s authorization to “conduct the business of a bank by means of a branch” with effect from March 8.
The French company, which has €415 billion in assets under management, was given permission to conduct business as a bank in South Africa by means of a branch in 2012, allowing it to offer corporate and investment banking services.
However, the group has since started scaling back from its non-core operations across Africa to focus on Europe and Asia instead.
Barclays Plc and Standard Chartered Plc have both scaled back in Africa, while rival Societe Generale is also cutting its footprint on the continent, exiting Ghana after 20 years.
“French banks’ exit from Africa, which is nearing its end, gives emerging pan-African banking groups significant space to grow, either organically or through mergers and acquisitions, Fitch said in an April note. “This should stimulate competition and benefit local banking sectors despite some short-term challenges.
Latest Stories
-
NPP working towards a one-member-one-vote system – Mike Oquaye
50 seconds -
Chief Justice urges judiciary to strengthen foundations of justice
6 minutes -
Armwrestling: The 10-year journey of Ghana Armwrestling from a simple table to global glory
9 minutes -
Unite NPP’s various factions, address youth and women’s concerns – Mike Oquaye
16 minutes -
Make loyalty to NPP a permanent culture, not an election-season tactic – Joseph Cudjoe
29 minutes -
NPP delegates want reform without destroying party’s reputation – Joseph Cudjoe
32 minutes -
Salomey Awiti Baffoe granted GH¢100,000 bail over alleged false news publication
36 minutes -
NPP is for all social classes, not just the middle class – Mike Oquaye
41 minutes -
Freezy Mɑcbones wins WBO Africɑ Light Heɑvyweight title in Lɑgos, Nigeria
44 minutes -
John Boadu is ‘an exceptionally gifted political figure’ – Prof Mike Oquaye
1 hour -
NDC must study NPP congress closely for strategic lessons – Mustapha Gbande
1 hour -
NDC has built strong structures to face any electoral challenge – Mustapha Gbande
1 hour -
John Boadu can appeal across Ghana’s social groups – Prof Mike Oquaye
1 hour -
‘Electing Kojo Bamba is backward politics’ – Mustapha Gbande
2 hours -
Government must order payment of promoted teachers’ salaries – GNAT
2 hours