PIERRE ROMAGNY: Opportunity awaits South African banks in a changing African landscape
International banks have for the past few years been divesting from Africa. Though the continent is still brimming with potential for growth, these institutions have chosen to concentrate on their core markets. At least nine international banks have withdrawn from 32 African countries, according to an Oliver Wyman analysis.
Taking a closer look at the market, retail banking has faced a range of challenges, including economic shocks, regulatory uncertainty, currency depreciation, sovereign debt crises, technological disruptions and the rise of dominant local players. The high capital costs required to maintain operations in Africa have compelled some banks to exit the market and reassess their geographical footprint to enhance shareholder value. ..
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