USA Africa Dialogue Series - Moroccan Bank Shuts Its Doors In Cote d'Ivoire

Attijariwafa Bank Closes Its Ivory Coast Unit Amid Crisis

By Pauline Bax - Feb 21, 2011 7:14 AM ET

 

Morocco's Attijariwafa Bank said it has closed its unit in Ivory Coast, becoming at least the 10th lender to halt operations as the West African nation's financial system collapses and concern mounts of renewed violence.

The unit, Societe Ivoirienne de Banque, closed because of the "deterioration of the situation in the financial sector," according to a statement published late yesterday. The head offices of other major banks were still closed this morning in the commercial capital, Abidjan, including the units of BNP Paribas SA, Societe Generale SA and Ecobank Transnational Inc.

The banks closed last week citing security concerns following a disputed Nov. 28 presidential election that left the country with two rival administrations. Alassane Ouattara is the internationally recognized winner of the vote, while Laurent Gbagbo refuses to cede power, alleging fraud in parts of the north.

"The absence of a properly functioning banking system will rapidly bring the entire economy to its knees," said Samir Gadio, emerging-markets analyst at Standard Bank Plc, in an e- mailed note Feb. 18.

Some shops in the Abidjan neighborhood of Adjame, a main commercial hub, were closed today. "Everybody here is worried about safety, we have been told it's better to stay at home today," said Malick Konate, a shop owner, by phone.

Ivorian security forces used teargas and live ammunition to prevent supporters of Ouattara from attending rallies in the city on Feb. 19. Police trucks blocked protesters from marching on Inch'Allah Square in the Koumassi neighborhood of Abidjan. Witnesses reported fresh gunfire in the area this morning.

To contact the reporter on this story: Pauline Bax in Abidjan via Accra at ebowers1@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.