Deloitte and AFIS Release 4th Edition of "African Financial Industry Barometer"
Deloitte and the Africa Financial Summit (AFIS) have published the 4th edition of the "African Financial Industry Barometer", a report that provides an overview of the sector and highlights the challenges and opportunities to come. This edition is based on interviews with a wide range of stakeholders: banks, insurance companies, microfinance institutions, fintechs, regulators, and capital market operators (stock exchanges, asset management companies, brokers).
Contrasting Perspectives among Actors
Optimism about the evolution of the African financial industry over the next three years varies greatly depending on the segment. Fintechs display the highest level of confidence with a score of 9.25/10, while capital markets adopt a more cautious stance.
Overall, optimism remains positive but slightly lower than in previous editions, particularly among traditional actors (banks and insurance companies).
However, a concerning finding emerges: 67% of professionals believe that the attractiveness of the African financial sector is stagnating or declining. This perception reflects a changing environment marked by regulatory, technological, and macroeconomic challenges.
Governance: Notable Progress but Still Insufficient
Developments in governance are encouraging, with an increase in the number of independent directors. However, parity remains a challenge: currently, only 23% of boards of directors have more than 25% women.
This proportion is expected to more than double in the medium term, reflecting a growing willingness to improve diversity and governance in financial institutions.
Risks Under Surveillance: Compliance and Cybersecurity Top the List
In terms of risk management, financial institutions perceive compliance risks as the most concerning, followed by cyber risks and operational risks. In contrast, ESG (environmental, social, and governance) risks are considered moderate or low by the majority of respondents.
No Extremely Negative Outlook
None of the actors surveyed foresee extremely negative prospects for their organization. This absence reflects a fundamental confidence in the future development of the African financial sector, despite an uncertain climate.
