The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has confirmed that the sale of shares in Société Générale Ghana is currently in progress, with prospective buyers engaging with the central bank.
Dr. Asiama provided this update during the 123rd Monetary Policy Committee (MPC) press conference in Accra, emphasizing the central bank’s commitment to ensuring a transparent and compliant transaction process.
According to Dr. Asiama, the BoG’s primary role in this transaction is to ensure that any potential investor meets the necessary fit and proper requirements, a fundamental step to maintaining the stability and integrity of the country’s financial sector.
“The sale of shares in Société Générale is ongoing. A number of prospective buyers have touched base with us. But as you know, we are central bank regulators; our role is to issue a no objection and ensure that the prospective buyer meets the fit and proper requirements.”
Dr. Johnson Asiama
He further elaborated that the BoG is awaiting negotiations between the involved parties and will intervene when necessary to assess compliance with policy guidelines regarding mergers and acquisitions. “We will have to make sure that they meet the policy guidelines when it comes to mergers and acquisitions and ensure that everything is fit and proper,” Dr. Asiama explained. He added that the central bank will only step in once the shareholders and potential buyers finalize agreements, after which the sale can progress to the next stage.
BoG’s Oversight in Financial Transactions
The Bank of Ghana plays a crucial role in regulating mergers, acquisitions, and share sales in the financial sector to ensure that all transactions adhere to regulatory guidelines. This oversight is critical in preventing instability within the banking industry, which has witnessed significant reforms in recent years.
The emphasis on the fit and proper requirements ensures that any investor acquiring a stake in a financial institution has the credibility, financial strength, and technical expertise to sustain and grow the business.
Société Générale Ghana’s share sale aligns with the broader trend of restructuring within Ghana’s financial sector, which has seen several banks undergo mergers and acquisitions in compliance with BoG’s regulatory framework. The central bank has repeatedly stressed that such transactions must prioritize stability, transparency, and the protection of depositor funds.
Société Générale Ghana Addresses Exit Rumors
Amidst the ongoing share sale process, Société Générale Ghana’s Managing Director, Hakim Ouzzani, has refuted claims that the bank is planning to exit Ghana. Speaking at the bank’s 44th Annual General Meeting in Accra, Mr. Ouzzani clarified that reports circulating in the media suggesting Société Générale Ghana’s withdrawal were unfounded and did not originate from the bank or its parent company.
“Some rumours have indeed taken root regarding SG Ghana. But it’s important to mention to all our stakeholders and our shareholders that the news item being circulated in the media was not issued by the group nor by SG Ghana,”
Hakim Ouzzani
Mr. Ouzzani’s remarks were aimed at reassuring customers, investors, and other stakeholders that the bank remains committed to the Ghanaian market despite the ongoing share sale.
Implications for the Ghanaian Banking Sector
The sale of Société Générale Ghana shares comes at a time when Ghana’s banking sector is gradually stabilizing after undergoing a major cleanup exercise by the central bank in recent years. The exercise, which led to the consolidation of some financial institutions and the revocation of licenses for non-compliant entities, was aimed at strengthening the sector.
As a result, any major transaction, such as the sale of shares in Société Générale Ghana, will be closely monitored to ensure that it does not disrupt the sector’s progress. Analysts believe that the entry of a new investor could introduce fresh capital and strategic direction to the bank, which could enhance its competitiveness in the Ghanaian market.
Moreover, the BoG’s rigorous oversight of the transaction is a positive sign for investor confidence. By ensuring that only qualified investors participate in such deals, the central bank is safeguarding the interests of depositors and reinforcing trust in the financial system.
For now, the sale process remains in its early stages, with negotiations between shareholders and potential investors still ongoing. Once agreements are reached, the BoG will conduct its due diligence before granting final approval.
READ ALSO: GETFund Allocation for MPs Sparks Accountability Concerns
