Africa’s economic growth is exploding. But despite projections of substantial economic expansion, banking infrastructure on the continent remains limited and largely overlooked by the international banking community. This presents opportunities for future investment by international banks to avoid being left out of the next great growth market. Emerging markets also, of course, present uncertainty and risks, which must be weighed against the potential opportunity. In this article, we examine both the potential upsides and downsides for a foreign bank considering dipping a toe into the African banking markets.
Building Business and Infrastructure -
Anticipated economic growth rates in sub-Saharan Africa will average 6 percent in 2014 based on strong macroeconomic policy, domestic demand, commodity export projections and foreign direct investment. Six of the ten fastest growing global economies from 2000- 2010 were in sub-Saharan Africa. This growth expansion provides increased opportunities for energizing the international banking presence on the continent by accessing a rising middle class of consumers, utilizing new technologies for banking and money transmission and entering an expanding home and commercial property market.
Originally Published in BNA's Banking Report - July 22, 2014.
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