Rise of pan-African banking could raise between $490-$950bn in additional credit for sub-Saharan Africa
Estimates from PwC analysis show the financial development opportunity in Sub-Saharan Africa could range between $490 and $950 billion of additional credit for the region with the right regulatory, banking and technology support.
The findings, from PwC’s latest Global Economy Watch outlook, examine the development of the sub-saharan African banking system.
To date, Sub-Saharan Africa (SSA)’s financial sector remains relatively small and underdeveloped. However, African banks have started to expand their footprint across Sub- Saharan Africa. The number of cross border subsidiaries of African banks has almost tripled since 2002 and there are now ten pan-African banks (PABs) with a presence in at least ten SSA countries, and one with a presence in over 30 SSA countries.
The majority of SSA countries have relatively shallow financial systems at present. However, this varies greatly across the region, with total credit ranging from 114% of GDP in Mauritius to 10% in Lesotho. This represents an opportunity for PABs to capitalise on.
Photo courtesy of A’Melody Lee.