African banks defy expectations

Once overlooked by global investors, Africa’s banking sector is demonstrating unexpected resilience and innovation — with implications for both local development and international finance.

Copyright Africa Partners GmbH

By Christian Hiller von Gaertringen

In an era marked by monetary tightening, geopolitical uncertainty and sluggish global growth, one of the more quietly compelling stories in emerging markets is unfolding across Africa’s banking sector. Often characterised by their perceived fragility, limited capital buffers and governance challenges, African banks are confounding expectations — not just surviving, but in many cases outperforming their counterparts in more developed markets.

From Lagos to Nairobi, from Cairo to Abidjan, financial institutions are reporting robust earnings, expanding loan books, and increasingly turning to digital innovation to reach underbanked populations. The continent’s top-tier banks — including South Africa’s Standard Bank, Nigeria’s Access Bank, and Morocco’s Attijariwafa Bank — are asserting themselves as regional champions with pan-African ambitions.