BNP Paribas divests its South Africa corporate banks

After Shell, BNP Paribas has ditched its corporate banking business in South Africa, amid a spate of divestments by major multinationals.

BNP Paribas, the largest bank in the EU, withdrew from South Africa after 12 years, as it seeks to consolidate its European and Asian business.

BNP Paribas is also part of a series of exits by French banks from the African market, the latest was Societe General which left Morocco and Ghana.

The exit offers a chance to pan-African banks in Morocco and in South Africa in particular to further grow on the continent.

While BNP Paribas’ withdrawal from South Africa can be attributed to the group’s news strategy, Shell’s divestment was rather an indicator of South Africa’s growing energy woes and degradation of its business climate that thwarts global energy investors.

City Press and the Sunday Times have reported on a simmering dispute between Shell and its partner – the Thebe Investment Corporation – an investment vehicle linked to the ruling ANC by virtue of its majority shareholder, the Batho Batho Trust.

Shell has also been targeted by scant criticism by environmental activists in the country protesting its offshore explorations.