Citibank consolidates in North Africa

04 September 1998
FINANCE

Citibank has appointed a new head for its fast-growing Moroccan subsidiary Citibank Maghreb and is upgrading its Algerian operation as it seeks to consolidate its leading position in the Maghreb. Eric Stoclet has moved to Citibank Maghreb from heading Citibank's smaller Tunis operation - where it is the only foreign onshore bank and runs one of the few offshore operations.

He replaces Reza Ghaffari, who launched plans to double Citibank Maghreb's capital for the second time, to MD 400 million ($41 million), and an expansion of Citibank's branch and information technology networks to draw in more corporate clientele.

Morocco is seen by Citibank as the 'most important country in Africa for the bank after South Africa and Egypt', Ghaffari said prior to leaving to take up a post developing new subsidiaries in central and eastern Europe. The capital increase will be sufficient to give Citibank 'a respectable presence in Morocco'.

Stoclet has made a big impression in Tunis, where the Citibank head is seen as the doyen of international bankers, analysts say. He will head Citibank Maghreb and also have responsibility for operations in Algeria and Tunisia.

In Algiers, Citibank is opening a branch - Citibank NA Algeria - to promote corporate banking, trade finance, foreign exchange, cash management and lending to local and foreign companies.

The branch is headed by a Citibank veteran, Kamal Driss, who had previously been Citibank representative in Algiers and was a keen advocate of upgrading the Algerian arm. The branch, capitalised at AD 500 million ($8.4 million), gained its licence in May and has since opened with 14 employees.

Citibank will compete with a few other foreign banks including Arab Banking Corporation, Societe Generale and Banque Nationale de Paris. Planning to join its French rivals is the former Banque Francaise du Commerce Exterieur, which has been authorised to set up an Algerian arm - Banque Natexis d'Algerie (see Algeria).

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