In years gone by, Africa’s banks used to dread any signs of tremor in the global financial system. Times have changed. For the first time in history, earlier this year banks in Africa remained largely unperturbed when most emerging markets were on tenterhooks for fear that a crisis boiling up in the advanced world could spread globally. Though not immune to global contagion, alarm bells did not sound in Africa. Having come largely unscathed through the Covid-19 shock and the capping of interest rates in Kenya, there is a strong sense of confidence in the sector across the continent.

 

Africa’s banks have become quite resilient, after years of building robust Tier 1 capital baselines; consciously deciding to be conservative, unlike their Western counterparts; investments in technology and lately digitalization; and conforming to stricter regulatory scrutiny. The fact that today global tremors come secondary to domestic disruptors has made banks in Africa focus keenly on buttressing their guard rails with concrete as they pursue growth. With profits on a phenomenal rise, particularly among Tier 1 and Tier 2 banks, the effort to ensure continuous growth amid stiff competition is the new norm. This is fueling rapid digitalization to enhance the quality of products and services, drive financial inclusion and motivate widespread regional expansion. East Africa's financial sector is undergoing a revolutionary shift driven by technological innovation. Digital advancements and enhanced accessibility are redefining banking and finance, fueling competition and customer-focused solutions.

 

By all indications, Africa’s banks are more bullish than ever. In Kenya, for instance, the nine banks listed on the Nairobi Securities Exchange cumulatively posted $1.3 billion in net profits last year, a 25% increase from $1 billion in 2021.

 

Join us at this exclusive roundtable for you, like-minded industry practitioners, fintech partners and Finastra, to address and tackle challenges encountered by banks and FIs in East Africa.