Is Africa on the Verge of a Banking Boom?
Expectations for growth particularly in Africa’s banking and financial sector appear to be high according to some of the announcements and statements to come out of the 2011 Reuters African Investment Summit, which took place this week (March 7 – March 10). The conference, held in Johannesburg South Africa, has certainly highlighted the continent’s market potential and has attracted some of the world’s top financial institutions. A recent study released by Bain & Company indicates that Africa’s $107 billion financial services sector could grow by 15% year after year until 2020. Below are a few headlines from the summit, which I thought were interest.
“We have a very good business in Nigeria but it needs to be deepened in terms of customer reach and broadened in terms of our product offering” says John Coulter, SCO, JP Morgan Chase Sub-Saharan Africa
“We are looking at expanding our geographic footprint. We are looking at potentially three markets over the next 12 to 18 months in terms of having a new presence over there,” – Naveed Riaz, CEO, Citigroup Africa
“We have seen in the last two years a lot of diaspora coming back and picking up jobs or setting up in the financial services area,” – Martin Oduor-Otieno, CEO, Kenya Commercial Bank
“We need the money now to continue developing our infrastructure. Our economy is growing and is going to need good roads…We are going to need to fix electricity.” – Rupiah Banda, President of Zambia
“It’s a story about economic and political change. It’s a story about opening up markets and attracting capital. And it’s a story about a growing consumer class that is seeing the effects of globalization, changing its spending habits and asking for a wider range of goods and services …Commodity prices have just been the icing on the cake.” – Kofi Buknor, Managing Partner, Kingdom Zephyr
Be sure to check out more headlines from the summit here. Enjoy!