Bank News - December 2013
In a global climate of near-recession, the African continent has seen rapid economic development in recent years and has succeeded in maintaining average growth rates of around 5% since 2000. This momentum, and sound and promising long-term prospects, have led to an increasing flow of investment from players worldwide, but have also brought about a rise in African businesses and the birth of major pan-African entities.
Africa today is a fast-expanding market, characterised by demographic growth, substantialdemand for infrastructure, a growing middle class, better economic management and an improving business climate.Against this background, the African banking sector has undergone record growth rates in the last decade, with high profit levels, despite a still-low rate of bank use. Today, regional and pan-African banking groups are emerging alongside the traditional western players, and are receiving substantial support from Development Finance Institutions (DFIs).
Despite the strengthening of the regulatory environment and financial restructuring,this rapidly-changing sector continues to face many challenges if it is to play its full part and ensure the financing of the economy in a sound and sustainable manner.
The gradual adoption of best international regulatory and supervisory practices will be a crucial step in ensuring the stability and performance of the African banking sector. The central banks will play a key part in conducting these reforms.
A recent International Monetary Fund report suggests that, for the first time in its history, Africa may drive world growth in 2013 and could outstrip Asia. Africa is also a promising land of economic opportunity!
Special issue : Banking in Africa
- Benchmark : the banking sector in the WAEMU area
- Microfinance : the “good bank” model already exists, doesn’t it?
- Interview : study on competition in the moroccan banking sector
- Interview with Mustapha Kamel Nabli, former Governor of the Tunisian central bank