Africa’s banking sector has reached a major milestone, with total revenues exceeding $100 billion for the first time, highlighting its growing strength and global competitiveness. According to McKinsey & Company, revenues rose to about $107 billion in 2025, up from roughly $99 billion in 2024.
Profitability across the continent has also outpaced global benchmarks, with returns on equity hitting 19% in 2024 and projected at 17% in 2025, compared with a global average of around 10%. This strong performance has been driven by high interest rates, improved loan pricing, and gains from foreign exchange and trading activities, as highlighted in Reuters report.
However, the growth remains highly concentrated, with South Africa, Nigeria, Egypt, Kenya, and Morocco accounting for about 70% of total banking revenues, underscoring uneven development across markets. South Africa alone generated approximately $26.4 billion in customer-driven revenues.
The sector’s expansion has been supported by rising financial inclusion, rapid adoption of digital banking, and a fast-growing, urbanising population, with revenues growing at an average of 17% annually between 2020 and 2024 in constant currency terms.
Looking ahead, analysts say Africa’s banking story has shifted from potential to performance, with future competition expected to centre on digital innovation, SME financing, and diversification beyond traditional lending, positioning the sector as a key driver of economic growth across the continent.
