Banking on Africa: Can Emerging Pan-African Banks Outcompete Their Global Rivals?

With the increasing liberalization and globalization of the financial services sector, there has been a rise in the foreign ownership of banking assets around the world. Interestingly, in Africa, there has been a remarkable rise of domestic and regional banks in the last decade or so, as challenger firms position themselves to lead a sector that has historically been dominated by Western players since the colonial era. This trend runs counter to the current dominance of foreign multinationals in many sectors across Africa, and raises a pertinent question: Can African-owned banks outcompete their global counterparts in the region? In this chapter, we provide a brief overview of the evolution of competition in banking, and analyse the state of cross-border banking in the region. In addition to providing insights on the internationalization strategies and outcomes of leading foreign and pan-African banks, we offer perspectives on the future competitive landscape.