Africa Banking Sector Report 2024-2025

In 2022 and 2023, African countries continued to face extreme headwinds, particularly coming from a combination of factors, including the lingering effects of the COVID-19 pandemic, the slowing global economy, and tighter global financial conditions following the shocks caused by the pandemic and the invasion of Ukraine. The global economy was characterised by elevated inflationary pressures in advanced countries triggering strong monetary policy responses. This came on the backdrop of a reversal from a long period of very low interest rates necessitated by government interventions during the pandemic. The emergence of inflationary risks in advanced economies triggered monetary policy tightening, which increased interest rates across the board. In Africa, central banks in major economies such as Egypt, Nigeria, and South Africa adopted aggressive monetary policies, increasing interest rates quite sharply to curb inflation. This impacted financial institutions, especially banks that have large bond exposures and rely on debt and the money market for liquidity. However, Africa's financial sector proved resilient to the multiple shocks in 2022. The banking sector was sound and stable supported by strong capital and liquidity buffers. The key banking sector metrics, such as capital ratios, profitability and non-performing loans, have not deteriorated despite the challenges. There are, however, elevated credit, interest rate, and operational risks as banks adopt diverse measures to address the challenges.

This report provides a complete and detailed analysis of the "Banking" sector for PROD. EMIS Insights presents in-depth business intelligence in a standard format across countries and regions, providing a balanced mix between analysis and data.

What this report allows you to do:

• Understand the key elements at play in the "Banking" sector in PROD
• Crystallise the forces both driving and restraining this sector in PROD
• Ascertain PROD’s position in the global sector
• Build a complete perspective on sector trade, investment and employment
• Understand the competitive landscape and who the major players are
• View M&A activity and major deals
• Gain an understanding of the regulatory environment for the sector in PROD.
• Build a clear picture of trends, output and consumption for specific sub-sectors