Societe Generale, one of the largest European financial services groups, has revealed plans to acquire a stake in Mauritius Commercial Bank Mozambique (MCBM), subject to the approval of the Central Bank of Mozambique.

Societe Generale will own the majority of the capital through a capital increase reserved for the Group.

Alexandre Maymat, Head of Africa/Asia/Mediterranean and Overseas regions for International Banking and Financial Services, said this partnership marks a new stage in Societe Generale's development in Africa, particularly in non-French speaking parts of the continent, and demonstrates our ongoing commitment to African economies, going back more than 100 years.

“The partnership strengthens the group's presence in Southern Africa and Indian Ocean, alongside its subsidiaries in Reunion Island and Madagascar,” he said.

"We are very pleased with this new collaboration with Mauritius Commercial Bank, which will further tighten the links we have established since 2003 through our 50/50 interest in Banque Française Commerciale Océan Indien,” he added.

Mozambique has posted one of the strongest growth rates recorded globally over the past decade.

The East African country shows strong growth potential, particularly in infrastructure further to the recent discovery of vast gas reserves.

As Mozambique becomes one of the world’s biggest exporters of liquefied natural gas, the size of its economy is expected to increase tenfold by 2035.

Societe Generale will rely on this new subsidiary in Mozambique, in partnership with Mauritius Commercial Bank, to support growth in the country by developing its universal banking services in the area of financing for local and international companies.

Present in 18 African countries, Societe Generale holds a unique positioning, allowing it to offer clients the benefits of an international bank and the proximity of a local bank.

This new development will allow Societe Generale to consolidate its position as the leading universal banking network in Africa for businesses.

In Africa, the Group accompanies local economies, and serves more than three million clients, including 150,000 businesses.

MCB Group is present in ten countries through the MCB and BFCOI brands as well as representative offices: Mauritius, Seychelles, Madagascar, Maldives, Mozambique, South Africa, Kenya, Réunion, Mayotte and France.

It is the largest bank in East Africa and is firmly focused on securing new business across the continent and engaging in organic growth by increasing cross-border financing and entering into regional ventures, strategic partnerships or alliances.

Pierre Guy Noël, MCB Group CEO, said: “This association with Société Générale, our longstanding partner in BFCOI, will provide important resources to MCB Moçambique. It will enable the bank to boost its operations and widen its network of branches while consolidating MCB Group’s footprint in Africa.”