Financial Services an enabler in African investment

BUSINESS

|
Image: By BiztechAfrica
Financial Services an enabler in African investment

The financial services sector in Africa is playing a critical supportive role in the continent’s development, participants in the KPMG Africa Conversation webcast heard last week.

The financial services sector in Africa is playing a critical supportive role in the continent’s development as a result of increased consumer spend, public and private sector investment in infrastructure, advances in technology leading to greater connectivity and increasing demand for natural resources by the developing BRIC bloc of countries.

 These factors were identified as key drivers of growth at the seventh KPMG Africa Conversation convened last week, reports APO.

Other factors playing a role include increasing urbanisation across the continent, a greater number of enabling frameworks such as the continued increasing acceptance of the rule of law and the harmonisation of regulatory requirements at national and regional levels.

 “In Nigeria, for example, regulatory reform led by the Central Bank has led to consolidation in the banking sector,” said Bisi Lamikanra, Head of Management Consulting at KPMG Nigeria. “This has led to more focus on retail banking. Further developments have substantially ‘de-risked’ several factors for local and foreign investors entering African markets,” she added.

Different models are also being developed for different financial services being offered in different regions. Globally, there has been a move from de-regulation to greater regulation. Junior Ngulube, CEO of Munich Re Africa, added that “The South African banking and insurance sectors have been very well-regulated and we didn’t see any of the turmoil that is still playing out globally. The rest of the continent is also very similar to South Africa in that respect. In Francophone countries, for example, there is just one [insurance] code and one currency. That makes it easy to transact business.”

Although investors should guard against assuming that all markets on the continent are the same, further risk for investors can be reduced through combined expertise. Nicholas Young, Africa COO at Citibank, suggested that “Because Africa is an enigma for many investors, a tailored approach should be developed for each market. Combined global and local partnerships work well to unpack different markets.” Such an approach can act as a key differentiator for investors entering Africa.

Increased connectivity, in Citibank’s experience, has illustrated that national Central Bank debates around policy issues have started to converge around common policy concerns across the continent, said Young.

 “Foreign investors should invest now in learning how to operate in Africa,” urged Lamikanra. “They also need to recognise the importance of continuing to refine their understanding of how to operate in African markets and the role of financial services in the development of Africa.”



Share the News

Get Daily Newsletter

Search News

comments powered by Disqus

MORE BUSINESS NEWS

Kris Senanu to lead Telkom Kenya Enterprise Division

Telkom Kenya has announced the appointment of Mr. Kris Senanu as the MD of its Enterprise Division. Read More

Liquid Telecom, RBH to acquire Neotel

 Nic Rudnick of Liquid Telecom, Troy Reynolds of Tata Communications and Strive Masiyiwa of Econet Wireless Global  Liquid Telecom, a privately owned pan-African telecoms group majority owned by Econet Global, has entered into an agreement to acquire South African communications network operator Neotel.  Read More

MTN Nigeria gets indigenous Chief Financial Officer

MTN Nigeria has announced the appointment of Adekunle Awobodu as its new Chief Financial Officer (CFO).  Read More

Networks Unlimited partners with Rubrik

Anton Jacobsz, MD at Networks Unlimited Networks Unlimited has been named as sole distributor of Rubrik converged data management solutions in Africa.  Read More

Payroll fraud: a serious threat to your business’s sustainability

Payroll is one of the largest expenses for Small & Medium Businesses and larger enterprises in West Africa, yet many organisations are neglecting the importance of managing the risk of fraud in this area of the business. Read More

Nigeria goes live with Bsystems Collateral Registry System

Nigeria has become the fourth country to roll onto the Collateral Registry System developed by Ghanaian technology solution firm Bsystems. Read More

Arbitration to support justice, says Globacom

Globacom Nigeria says its support of the International Chamber of Commerce, (ICC) Africa Regional Arbitration Conference in Lagos is a demonstration of its belief that arbitration would further enhance the cause of justice in the country. Read More

Dimension Data names new group CEO

Dimension Data has announced the appointment of Jason Goodall as Group Chief Executive Officer, as Brett Dawson, current CEO, steps down after 12 years. Read More

Solar developer Phanes Group opens African head office in SA

International solar energy developer, investment manager and asset manager Phanes Group has launched an office in Johannesburg, South Africa – its first African office.  Read More

We’re insulated from Nigeria’s forex problem, says IHS

IHS Towers says it has not been hard hit by ongoing foreign exchange (forex) squeeze in Nigeria because it is a foreign direct investment (FDI) vehicle into the country. Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks UnlimitedArbor NetworksEricssonTigo Ghana

FEATURED STORY

Government should encourage youths in ICT earlyGovernment should encourage youths in ICT early

Youths should be given more encouragement to develop their ICT skills, an 11-year-old app developer told Kokumo Goodie.

Advertisement

IN DEPTH

IBM Opens First Cloud Data Centre in South AfricaIBM Opens First Cloud Data Centre in South Africa

IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.  

COMPANY NEWS

Tigo, JI and GES equip teachers on child online protection initiative

Tigo, in partnership with J Initiative (JI), a youth focused non-governmental organisation in Ghana, have committed to protecting children online through policy advocacy, awareness creation, public education ...