In recent years, the European banking sector has gradually reduced its presence in Africa, faced with significant financial losses. The 2010 crisis and the tightening of prudential rules have exacerbated this trend.
International competition for African resources is intensifying, particularly in the energy, maritime transport, port infrastructure and telecommunications sectors. China, in particular, is taking advantage of the modest purchasing power of African populations to establish itself as a major player in these markets.
In the wake of the 2008 financial crisis, Crédit Agricole began to sell its subsidiaries in West Africa, judging the African banking market to be too risky in the light of the new prudential requirements, particularly those imposed by Basel III, which favour quality capital and low-risk activities. The same applies to BNP PARIBAS.
The COVID-19 pandemic and the Ukrainian crisis have disrupted the world order, with direct repercussions on African economies, such as rising interest rates and inflation. Geopolitical and compliance risks, as well as recurring politico-military crises, have weakened economic and social structures, representing significant costs for parent companies under the supervision of the European Central Bank.
The COVID-19 pandemic and the Ukrainian crisis have disrupted the world order, with direct repercussions on African economies, such as rising interest rates and inflation. Geopolitical and compliance risks, as well as recurring politico-military crises, have weakened economic and social structures, representing significant costs for parent companies under the supervision of the European Central Bank.
European companies, for their part, are losing major contracts to new competitors such as China, Turkey and Russia, which benefit from autonomous financing mechanisms and invest in local banks, thus limiting European companies’ access to the financial information essential for strategic anticipation on local markets.
European companies, for their part, are losing major contracts to new competitors such as China, Turkey and Russia, which benefit from autonomous financing mechanisms and invest in local banks, thus limiting European companies’ access to the financial information essential for strategic anticipation on local markets.