African banking revenues have exceeded $100 billion for the first time, with profitability well above the global average, highlighting the sector’s rising economic significance despite being concentrated in a few markets, according to McKinsey.
Banking revenues across the continent reached about $99 billion in 2024 and are estimated to rise to $107 billion in 2025, the consulting firm reported on Monday, as seen on Reuters.
Returns on equity were 19% in 2024 and are projected to ease slightly to 17% this year, compared with a global banking average of roughly 10%.
Despite this growth, revenue remains highly concentrated. Egypt, Kenya, Morocco, Nigeria, and South Africa account for around 70% of Africa’s total banking revenues, with South Africa being the largest market, generating about $26.4 billion in customer-driven revenues in 2024.
The sector’s strong performance reflects four years of favorable conditions driven by high interest rates, loan repricing, and gains from foreign-exchange and trading activity, even as banks continue to face currency volatility and uneven macroeconomic conditions.
“African banking has moved decisively from a story of potential to one of performance,” said Mayowa Kuyoro, a partner and head of McKinsey’s financial services practice in Africa.
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On a constant-currency basis, banking revenues grew about 17% annually between 2020 and 2024, far outpacing the global average. In U.S. dollar terms, growth was more modest at around 5.2% per year, reflecting sharp exchange-rate swings in several markets.
The expansion has been supported by rising financial inclusion, rapid adoption of digital banking services, and demand from a young and increasingly urban population.
Africa’s population grew over 2% per year between 2020 and 2025, while the working-age population increased nearly 3% annually.
Lending remains the largest revenue source and is projected to reach about $52 billion by 2030, while small and medium-sized enterprises are expected to become the fastest-growing customer segment.
“The next phase of competition will be defined by how banks scale digital capabilities and build revenue streams beyond traditional lending,” Kuyoro said.
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