Banking in Africa: delivering on financial inclusion, supporting financial stability

Sub‐Saharan Africa (SSA) is recovering from the most severe growth slowdown in two decades. Yet, the recovery is expected to remain uneven across countries, and while the region’s growth in per capita gross domestic product (GDP) has been positive since 2017, it will remain insufficient to significantly reduce poverty. The recovery remains vulnerable.
Rising public debt burdens are fuelling debt sustainability risks, while tighter global financing conditions and weaker than expected commodity prices pose additional downside risks. In some countries, sovereign debt holdings by local banks are crowding out private credit, which could hold back growth, while the declining number of correspondent bank relationships is becoming a cause for concern as it could complicate international transactions required in cross‐border trade.