Rabat – Moroccan banks’ strategy of expanding in Africa is a testimony to the continent’s positive prospect of growth and some are already reaping the benefits of their continental ambitions, according to data from converging reports on the current business and financial investment trends in Africa.
On December 17, the Financial Times, a benchmark economic news outlet, reported that Moroccan banks are reaping the benefits of their expansion in Africa.
Two Moroccan banks are on the list of the top 10 largest banks in Africa for 2021. The two banks in question are Attijariwafa Bank, with total assets of $40.026 billion, and Credit Populair du Maroc (BCP), with total assets of $27.662 billion, according to Banks Around the World, an online platform.
Morocco’s Banque Marocaine du Commerce (BMCE) is trailing behind as the 11th largest bank with total assets of $24.239 billion.
Expanding across the African continent seems to be the future of doing business for Moroccan companies. BCP banking group, Morocco’s second-largest banking group, announced that they are open for acquisitions on the continent.
Morocco’s second-largest banking group already controls multiple subsidiaries in 18 African countries, contributing by a quarter to the 3.6% growth in the third quarter of 2021.
Read also: BBC: Morocco Has Potential to Become Key Player in Africa
Attijariwafa bank has been cultivating a strong presence on the continent for over a decade. With their recent acquisition in Egypt, Morocco’s largest banking group is now operating in 15 African countries through multiple subsidiaries.
Unhindered by the pandemic, Moroccan banking groups have displayed strong resilience and emerged stronger post-pandemic. Morocco’s Attijariwafa Bank was voted the best investment bank in Africa in 2021 by EMEA Finance Magazine, a business-oriented magazine.
By acquiring local banks across Africa, major Moroccan banks are establishing a strong foothold on the continent, especially in French-speaking African countries on the west coast.
Thanks to linguistic ties and single-currency (the West African CFA franc), the acquisitions are driving growth for Moroccan banks.
The significant revenues in Africa dwarfed the negative domestic return on assets for Attijariwafa bank in the first half of 2020, according to FitchRatings.
