The Social Security and National Insurance Trust (SSNIT) has increased its stake in Société Générale Ghana to 24.36%. This development follows an agreement between Société Générale Group and pan-African banking group, Attijariwafa Bank, for the sale of the French group’s 60.22% stake in its Ghanaian subsidiary. As a result, SSNIT acquired an additional 5% stake, raising its shareholding from 19.36%.
Under the agreement, Attijariwafa Bank will acquire a 55.22% stake, while SSNIT's increased shareholding aims to strengthen domestic ownership of a major financial institution. Société Générale Ghana, which began operations in 1975 as Security Guarantee Trust Limited, has undergone several transformations, including a merger in 1994 and rebranding in 2004 and 2013.
The transaction is expected to increase Ghanaian participation in the banking sector and strengthen domestic ownership. SSNIT stated that the development reflects the importance of ensuring that Ghanaian workers, pensioners, and institutions benefit more directly from the growth and performance of the country’s financial sector.
The increased shareholding represents a significant strengthening of SSNIT's investment portfolio on behalf of Ghanaian workers and pensioners. The Trust aims to secure long-term value, sustainability, and improved retirement benefits. This move also enhances SSNIT's position to safeguard and grow contributors’ retirement assets while supporting the bank's long-term development and stability.
Société Générale Group announced reforms to its global business offerings in 2024, aimed at improving efficiency. Despite economic challenges, Société Générale Ghana recorded 290% growth over 2022, with GHS424.8 million profit after tax in 2023. However, the bank's Managing Director, Mr. Hakim Ouzzani, noted that the Domestic Debt Exchange Programme (DDEP) posed an indirect third-party risk.
SSNIT expressed appreciation to the government, particularly the Minister of Finance, for its support in securing the additional stake and completing the transaction. The Trust also acknowledged Attijariwafa Bank for its cooperation and the Bank of Ghana and the Securities and Exchange Commission for their regulatory oversight.
The acquisition marks a significant milestone in the banking sector, with implications for Ghanaian workers, pensioners, and the broader economy. As Société Générale exits the Ghanaian market, SSNIT's increased stake is expected to contribute to the country's financial stability and growth.
Key points
- SSNIT acquires an additional 5% stake in Société Générale Ghana, raising its shareholding to 24.36%.
- The transaction aims to increase Ghanaian participation in the banking sector and strengthen domestic ownership.
- Société Générale Ghana recorded 290% growth over 2022, with GHS424.8 million profit after tax in 2023.
