BANKING IN AFRICA: Opportunities and Challenges in Volatile Times

This chapter takes stock of the current state of banking systems across Sub-Saharan Africa. It documents different dimensions of the development of the banking systems in the region and compares Africa’s banking systems to those of comparable low- and lower-middle income countries outside the region. The chapter also discusses the progress in policies and institutions underpinning financial deepening and the results of specific innovations, such as innovative branch expansion programs, mobile banking, and new financial products to reach out to traditionally unbanked segments of the population. In view of the COVID-19 pandemic, the chapter discusses government support for financial systems and banking sector performance during crises. Overall, the chapter shows a picture of achievements and challenges, with progress along some fronts but other challenges persisting even as new ones arise, including the turning of the global financial cycle in 2022/23 and increasing geopolitical tensions.