Banks in Africa have recently been operating in challenging environments, owing to economic turmoil. The stress factor has been particularly elevated in big economies. Amid the harsh environment, African banks’ top leadership and management have demonstrated shrewdness and prowess,” the report said.
It said instead of crumbling, banks remain resilient. Some are even posting record-breaking profits and local currency crises in Egypt and Nigeria have caused havoc.
The ripple effects for banks have heightened risks to asset quality. In South Africa, sluggishness in critical sectors like mining, energy, logistics, construction, and trade saw economic growth nosedive to a mere 0.6 percent in 2023, down from 1.9 percent in 2022.”
