Summary:

In early May 2024, reports indicated that French bank Société Générale planned to sell three African subsidiaries, including Union Internationale de Banques (UIB) in Tunisia. 

Reports indicated that Société Générale retained Lazard to identify a buyer. 

The decision comes after a lengthy review process that began in mid-2023 and which includes plans to sell other African subsidiaries in Ghana and Cameroon.  

The sale of Société Générale businesses in Morocco and Ivory Coast are also being considered, with businesses in Chad and Congo having already been sold. 

Outlook: 

With UIB serving as a stable, international presence in the Tunisian banking market, the exit will likely deal a blow to perceptions of stability in the Tunisian financial system. 

A large, French exit from Tunisia communicates waning confidence in the profitability and competitiveness of the banking environment. 

While Tunisian banks have seen high profits in recent years, much of those profits can be tied to loans issued to the Tunisian government which has had to look to domestic lenders for credit. While profitable, these loans carry risk should the Tunisian government default on its debts. 

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