This African Financial Industry Barometer, the result of collaboration between Deloitte and the Africa Financial Summit (AFIS), provides an in-depth analysis of the current transformative dynamics. Drawing insights from more than 60 key stakeholders across various industries and regions, the study offers a comprehensive overview of ongoing changes, implemented strategies, and future priorities.

Acceleration of digitalisation, integration of sustainable impact into models, promotion of financial inclusion, reinvention of partnership approaches – the transformation projects are numerous. However, to fully unlock its potential, the African financial industry must also undergo a profound rethinking of itself. Optimising operational and financial performance, adapting governance, strengthening risk management, and investing in the skills of the future are some of the key strategic challenges to address.

Diverging yet promising economic prospects
Despite a slight decline in optimism compared to 2023, 72% of financial stakeholders maintain a positive outlook for the next three years, with fintechs leading the way (88%). Financial inclusion and digitalisation emerge as key growth drivers, while banks and insurers adopt a more cautious stance.

Digital transformation: A work in progress
The 2024 edition highlights the acceleration of digital transformation efforts, with 36% of cloud projects reaching maturity and widespread adoption of technological partnerships (84%). However, a gap persists between technological advancement and skills development, with only 2% of digital competencies considered mature. While the industry embraces partnerships, viewing Telcos and fintechs as enablers or useful innovators for finance, GAFA and BigTech players are seen as disruptive and less involved. Although artificial intelligence is a hot topic, only 2% of respondents have deployed AI projects, while 71% are either in the process or considering it.

Regulation: priorities in focus
Regulating digital finance, harmonising pan-African regulations, and preventing sovereign crises have emerged as the top regulatory priorities. While only 55% of respondents consider regulatory requirements clear, stakeholders remain pragmatic, focusing on immediate regulatory and stability challenges while acknowledging the need for deeper transformation of Africa’s financial system (e.g., sustainable finance, new typologies of risks, reforming international institutions). Notably, 50% of respondents rate regulator-industry dialogue as insufficient or poor.

Transformation within reach
To unlock its full potential, the African financial industry must accelerate progress in key areas, including:
• Developing coopetition between banks, insurers, fintechs, and telecoms to fos-ter interoperability;
• Continuing to build organisational agility and operational resilience to with-stand volatility;
• Creating affordable digital solutions and investing in financial education to drive greater inclusion.

Key statistics to note
• 72% of financial stakeholders express confidence in the next three years, with fintechs particularly optimistic (88%);
• 65% of institutions report recent improvements in solvency and profitability,though 28% note asset quality deterioration;
• 84% of institutions prioritise technological partnerships in 2024, compared to only 26% in 2023, marking a strategic shift;
• 36% of cloud projects have reached maturity, but only 2% of digital skills are considered mature, highlighting a critical gap;
• 54% of respondents identify inflation as the primary risk, followed by cyberse- curity and talent shortages;
• 67% of professionals believe the African financial industry is less attractive than in the past, with attractiveness perceived as stagnating or declining;
• Financial integration initiatives (PAPSS, AfCFTA, AELP) support Africa’s trans- formation, but progress remains uneven. PAPSS, seen as a genuine "game-changer," shows 20% operational readiness, compared to 8% for AfCFTA and 7% for AELP.

A barometer to drive action
This study aims to foster a shared understanding of these challenges. The success of this transformation depends on the collective efforts of the entire ecosystem: regulators, banks, financial institutions, insurers, fintechs, and grassroots actors. We invite you to leverage this Barometer, as the ability to collaborate in service of inclusive growth will determine the industry’s impact.

About the Africa Financial Summit – AFIS
Founded by Jeune Afrique Media Group in 2021, with support from the International Finance Corporation (IFC), AFIS supports African finance professionals in building a robust financial industry that serves the real economy and sustainable development. Its Annual Summit brings together 1,200 of Africa’s most influential financial leaders, as well as regulators, to advance financial inclusion and the development of a truly pan-African financial services industry. Website: www.afis.africa

About Deloitte
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In France and Francophone Africa, Deloitte brings together a wide range of expertise to address the challenges of its clients, regardless of their size or industry. With the expertise of its 8,457 partners and professionals and a multidisciplinary offering, Deloitte in France and Francophone Africa is a leading player. Committed to making a positive impact on society, Deloitte has implemented an ambitious action plan focused on sustainable development and civic engagement.
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