BNP Paribas: International bank quits SA joining list of European banks exiting Africa

BNP Paribas SA, the sixth-largest bank in the world, has closed its corporate and investment bank in South Africa, the latest example of a European bank scaling back on the continent.

“We can confirm that we have closed BNP Paribas CIB in South Africa,” a spokesperson for the bank said by phone in an interview with Bloomberg. “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.