Deloitte and the Africa Financial Industry Summit – AFIS have published the second edition of the African Financial Industry Barometer, an in-depth analysis of the challenges and opportunities facing African financial institutions in an ever-changing global economy.
Methodology – Thirty questions raised to leaders of financial institutions in a survey conducted in September 2022.
Confidence in the future, but heightened vigilance in the short term
With only 15% of respondents predicting unfavourable macroeconomic conditions in the next three years, the financial industry is optimistic about the future.
Many believe the African financial sector is becoming more attractive, particularly due to recent achievements, such as the Pan-African Payment and Settlement System (PAPSS) pilot and launch of the African Exchanges Linkage Project (AELP), an interconnection platform allowing trading of listed securities on the seven participating stock exchanges.
But the financial industry recognises short-term challenges, including inflationary pressures whichcould force financial institutions to adapt commercial approaches (for more than 40% of respondents) or pricing (50% of respondents).
> For more… Discover the 2023 African Financial Industry Barometer
https://www.afis.africa/en/insight/barometre-de-lindustrie-financiere-africaine/
· What’s the biggest risk for financial institutions this year?
Cybercrime a high or medium threat for 97%, outweighing other risks
· Are crypto assets seen as a threat or opportunity?
63% of institutions see cryptoassets as an opportunity
· How many financial players have achieved a complete digital transformation?
Less than 10% have reached the desired level
· Where do regulatory weaknesses lie for the industry?
41% say regulation on digital financial services needs significant improvement
· Which energy categories are the most attractive for investment?
Solar seen as priority energy investment for ~30%, ahead of natural gas (~10%)
· Are open finance partnerships stalling or gathering pace?
41% plan to set up one or more fintech, insurtech or regtech partnerships in the short-term
“This year’s Barometer calls critical attention to shortcomings in capital markets infrastructure, risk management and regulation that keeps pace with the African financial industry’s rapid digital transformation. But the research also shows uplifting optimism in a sector that is becoming increasingly pan-African,” Ramatoulaye Goudiaby, Director, AFIS
“The 2023 African Financial Industry Barometer highlights the ability of African financial institutions to adapt to an ever-changing environment and their appetite for innovation,” said Aristide Ouattara, Partner, Financial Industry Leader, Deloitte Francophone Africa.
