In a major move that signals increased government involvement in the financial sector, French banking giant Societe Generale has agreed to sell the majority of its shares in its Cameroon operations to the State of Cameroon. The international banking group made this known on Tuesday, confirming that over 58 percent of its stake in Societe Generale Cameroun will be transferred to the Cameroonian government.
With this deal, Cameroon’s total shareholding in the bank will rise to about 83.7 percent, giving the government near-total control of the financial institution. Although the actual financial value of the transaction was not disclosed, analysts believe it is a significant step in the government’s effort to strengthen its hold on the local banking industry.
The transaction is expected to be completed before the end of 2025, pending regulatory approvals and other legal processes. Societe Generale, in its statement, said the deal will bring a positive financial impact on its operations, particularly in relation to its Common Equity Tier 1 (CET1) ratio. According to the bank, the sale would improve its CET1 ratio by about six basis points. As of the end of the first quarter of 2025, the bank’s CET1 ratio stood at 13.4 percent.
The CET1 ratio is a key measure used to determine a bank’s financial strength and ability to handle risk. It is closely watched by regulators and investors to ensure that banks can withstand financial shocks without threatening customers’ deposits.
Societe Generale’s decision to sell its Cameroon subsidiary is part of its broader strategy to streamline its global operations and reduce its presence in certain regions. Over the last few years, the French bank has been gradually pulling out of markets in Africa and Eastern Europe, as it seeks to concentrate more on its core markets in Western Europe and other priority regions.
The sale comes amid growing concerns across African countries about foreign control of key sectors, including banking. Many governments have been exploring ways to increase local ownership and participation in these sectors to ensure more economic control and stability. Cameroon’s government, under President Paul Biya, has been gradually increasing its involvement in financial institutions and public-private partnerships.
The Cameroonian Ministry of Finance has not yet issued an official statement on the matter, but government sources say the move aligns with Cameroon’s long-term economic goals to boost local participation in banking services and financial policy-making. Sources say the government hopes the acquisition will help it provide more financial access to rural communities and small businesses that are often neglected by large foreign-owned banks.
Banking experts in Douala and Yaoundé are watching the development closely. Some see it as a step forward for Cameroon’s economic independence, while others are concerned about how the government will manage such a large stake in the banking sector. Some critics argue that state involvement in commercial banking could lead to inefficiencies or political interference in lending and investment decisions.
However, defenders of the move say that state ownership in the banking sector is not new and exists in many countries, including China, India, and Brazil. They believe that with the right leadership and policies, the government can ensure good governance and profitability while maintaining service to the people.
Societe Generale Cameroun is one of the major banks operating in the country. It provides banking services to individuals, businesses, and government institutions. The bank is particularly strong in corporate banking and trade finance, playing a key role in facilitating import and export activities for Cameroonian companies.
This transaction also sends a message to other foreign investors in Cameroon and across Africa. It signals that African governments are becoming more active in reclaiming control over sectors considered critical to national development.
