French Banking Giants Exit Morocco, Reshaping Financial Landscape

The French banks Crédit Agricole and Société Générale no longer have a subsidiary in Morocco. They have sold their Moroccan subsidiaries to local players. Businessman Moulay Hafid Elalamy, who is also a former minister and founder of the Saham group, has acquired Société générale Maroc and La Marocaine Vie for 745 million euros. Crédit du Maroc has come under the control of Holmarcom. According to the French banks, reasons of prudential constraints, rationalization of their activities and strategic readjustments are behind these divestitures. Unconvincing reasons, as these French banks have recently had difficulty facing Moroccan competition.

According to the latest data from Bank Al-Maghrib (BAM), Moroccan private capital banks in 2023 strengthened their market shares in various key areas: total assets, deposits and loans, while banks with majority foreign capital, particularly French ones, recorded significant declines in market share in several sectors, reports Finances News Hebdo. A series of acquisitions, innovations and continental expansion strategies have allowed Moroccan banks such as Attijariwafa bank, Banque Populaire and Bank of Africa to consolidate their dominant position. The diversification of the Moroccan economy and the opening of new markets have required an adjustment of their model. Meanwhile, French banks were mainly oriented towards supporting French investors, and their governance structure was centered on Paris.

As a result, French banks were unable to quickly adapt to local dynamics, especially during crisis periods, "where directives from their parent company were sometimes disconnected from Moroccan realities."

These banks have also seen their ability to invest locally limited by cash pooling policies. These redirect liquidity to group entities internationally.