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Rabat – Societe Generale (SG) banking group’s planned departure from Morocco is taking shape, with Saham Group, a leading Moroccan holding company, emerging as the frontrunner to acquire a 57% stake in Societe Generale Maroc (SGM).
This potential acquisition, valued at over MAD 8 billion (approximately $800 million), signifies a significant development in the Moroccan financial sector, potentially bolstering the country’s financial stability and reflecting the growing strength of domestic players.
The move aligns with Societe Generale France’s broader strategy to streamline its operations and reduce costs.
In 2023, the French banking giant announced plans to withdraw from several African markets, including Morocco, as part of a cost-cutting initiative aiming to save 1.7 billion euros (approximately $1.8 billion) by 2026.
This decision likely factored into the negotiations between Saham and Societe Generale, which were facilitated by the investment bank; Lazard.
Moulay Hafid Elalamy, the driving force behind Saham
Leading the charge for Saham is Moulay Hafid Elalamy, a prominent Moroccan businessman and former Minister of Industry, Trade, Investment, and the Digital Economy.
Born into a prominent family in Marrakech, Elalamy’s entrepreneurial ventures, establishing the Saham Group in 1995 and pioneering initiatives in the sector including phone assistance , have significantly shaped Morocco’s economic landscape.
In the mid-2000s, he orchestrated strategic partnerships, such as the one between Bertelsmann and Phone Assistance, while acquiring major stakes in companies like ISAAF Assistance, paving the way for Saham Group’s expansion.
His tenure as President of the General Confederation of Moroccan Enterprises (CGEM), spanning from 2006 to 2009, witnessed significant developments in Morocco’s business landscape, laying the groundwork for his subsequent ministerial appointment.
Appointed by King Mohammed VI in 2013, Elalamy spearheaded key economic portfolios until 2021, shaping Morocco’s industrial, trade, and digital sectors during his ministerial tenure.
Read also: Moulay Hafid Elalamy Donates $1.9 Million to Earthquake Fund
Witnessing significant financial milestones, he masterminded the sale of Saham Finances in 2018, followed by a lucrative payout in 2021 after the Initial Public Offering (IPO) of Majorel shares, ultimately divesting the remaining stake to Teleperformance.
A boost for Moroccan financial sector and stability
The potential acquisition, currently awaiting approval from the Moroccan Central Bank (Bank Al-Maghrib), is expected to bring several benefits to Morocco.
Firstly, it is seen as a vote of confidence in the strength of the Moroccan financial sector, showcasing the growing capacity of domestic institutions to take on major roles.
Additionally, the deal has the potential to enhance financial stability in the country, particularly regarding foreign exchange, as Saham assumes a larger role in the local banking landscape.
This landmark deal, following insurance group Holmarcom’s acquisition of Credit Agricole in December 2022, underscores the growing dynamism of the Moroccan financial sector and its potential to navigate the complexities of the global economic landscape.
