Moroccan Banks Dominated West Africa’s Banking Market in 2021

Rabat – Led by Attijariwafa Bank, Banque Centrale Populaire, and Bank of Africa, Moroccan banks controlled more than one-fifth of the banking market in West Africa in 2021.

According to a report from Ecofin news agency, Moroccan banks managed almost 28% of the banking market in the group of West African countries that includes Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, and Togo.

While their combined share of the market is borderlining one-third of the market, individually, they trail behind Ecobank Transnational Incorporated’s market share of 10.1%.

Operating 26 subsidiaries in West Africa, Moroccan banks manage 28.1% of the 17.4 million bank accounts in the region.

In addition, Moroccan banks own 20% of the bank offices and 22% of the ATMs in service in the region.

At the end of 2021, operating expenses for Moroccan banks dropped significantly, increasing their profit margins, according to data quotes in the Ecofin report.

The COVID-induced deterioration in clients’ credits was minimal, the default rate was low, and it was offset by the rise in government loans.

For over a decade, Moroccan banks have enacted an Africa expansion strategy and some of them are already seeing increased profits from their extended network of subsidiaries.

In 2021, Attijariwafa Bank and Credit Populaire du Maroc featured among the 10 largest banks in Africa.

As of 2021, the two banks had respective total assets of $40.026 billion, and $27.662 billion.

By acquiring local banks across Africa, major Moroccan banks have established and still seek to strengthen their market position on the continent, especially in French-speaking African countries on the west coast.

In 2021, BCP said that they are still open to acquisitions on the continent and that their African expansion strategy is just starting.