Unlocking Investment in Africa: The Crucial Role of Development Banks

According to the report "Finance in Africa: Unlocking Investment in the Era of Digital Transformation and Climate Transition," Africa needs to increase financing, both nationally and internationally, to achieve sustainable development and climate goals.

An additional $194 billion per year is required by 2030, representing 7% of the continent's GDP. However, with a decline in global financing and underdeveloped African credit markets, the role of development banks becomes crucial. These institutions stimulate local financial markets and encourage private sector growth. Despite persistent challenges, including high inflation in some countries, 2024 could mark an economic turning point for Africa, with accelerated growth prospects until 2028, the fastest in over a decade.

To better understand financing dynamics, a financial conditions index has been introduced in Africa, measuring access to financing for the private sector. Initially limited to the "big 4" (Egypt, Nigeria, Kenya, and South Africa), the index now covers ten countries, including Tunisia, representing nearly 60% of Africa's GDP. It is based on seven variables, including credit growth, exchange rates, and inflation, providing an overview of financing trends on the continent.

In North Africa, despite a relatively high number of banks, banking concentration remains high. In Tunisia, the banking sector had 45 licensed establishments in 2022, marking a slight increase from the previous year. The sector remains dominated by national banks, which hold 93% of total assets.