Summary:

On 7 February 2025, Tunisian bank Union Internationale de Banques (UIB) announced during its Board of Directors meeting that Société Générale, which holds a 52.34% stake in UIB, will retain its stake following a lengthy review of the business.  

Société Générale announced a strategic review in June 2023, where it considered many options, including selling its majority stake in UIB. This move was part of a broader strategy to reassess its African operations, which included agreements to sell subsidiaries in Congo, Equatorial Guinea, Mauritania, and Chad to pan-African banking groups. 

However, after evaluating market opportunities, Société Générale chose to strengthen its position UIB and maintain a foothold in Tunisia. 

Outlook: 

Ranked the third largest bank in France and the 17th largest in the world, Société Générale’s decision to keep its share within UIB will bolster broader confidence and improve perceptions of Tunisia as a target for investment. It also helps reinforce Tunisia’s connection to international financial markets, creating the connectivity to Europe and the global financial system necessary for investors to operate global businesses.   

While Société Générale’s continued investment in UIB offers a sense of stability and confidence, the overarching fiscal challenges faced by the Tunisian government still present ongoing risks that impact the banking sector and the broader economy, including significant domestic borrowing by the government, inflation, and consumer frustrations with rising prices.  

Our team will continue watching developments of Tunisia’s banking sector and potential future impacts of Société Générale’s decision to stay. 

Explore our services or speak with our team of North Africa-based risk experts.