Africa Finance Brief: Regional banks step in as global lenders retreat

African finance is being reshaped by a shift toward regional capital as global lenders retreat, with Nigerian and South African banks expanding across the continent. While Nigeria’s business activity signals a stronger growth outlook, structural risks remain, underscored by oil-dependent rebounds such as South Sudan’s and the uneven return of global investment attention to Africa.

Nigeria’s largest banks are accelerating their expansion across Africa, deploying fresh capital from the country’s recapitalisation drive to diversify earnings and fill the vacuum left by retreating global lenders.

Why it matters: The shift positions Nigerian banks as the continent’s next dominant regional lenders, reshaping Africa’s banking landscape and redirecting capital flows within the continent.

South Africa’s Nedbank has agreed to acquire a 66 percent stake in Kenya’s NCBA Group in a deal valued at $856 million, giving the lender a strong foothold across East Africa’s fast-growing banking markets.

Why it matters: The deal signals renewed confidence in East Africa’s financial sector and highlights rising intra-African consolidation as regional banks scale up.

The World Economic Forum will resume hosting its Africa summit in South Africa in April 2027, ending a seven-year hiatus triggered by the COVID-19 pandemic.

Why it matters: The summit’s return could help restore Africa’s visibility in global investment and policy circles at a time of tightening capital and heightened geopolitical competition.

Nigeria sustained private-sector expansion throughout 2025, raising prospects for its strongest economic growth since 2022 as inflation eased and foreign exchange conditions stabilised.

Why it matters: Sustained business expansion improves investor confidence and strengthens the case for a durable economic recovery after years of macroeconomic volatility.

South Sudan is projected to post Africa’s highest growth rate in 2026 as oil exports resume, according to the World Bank and IMF.

Why it matters: The rebound underscores how oil remains the country’s economic lifeline, while highlighting the risks of growth driven by a single, fragile revenue source.

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Bunmi holds a degree in Economics from the University of Lagos and has over eight years of experience in content writing and journalism.

Her career spans roles as a financial and business journalist at BusinessDay Media and TechCabal, and as Head of Research at SBM Intelligence, an Africa-focused market intelligence and strategic consulting firm.

She also served as Editor at Finance in Africa, a subsidiary of Businessfront and is currently Assistant Editor, Finance (Africa), at BusinessDay.

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