This report, Unlocking the AfCFTA growth opportunities for SA banks, takes readers on a compelling journey into the potential and challenges that South African financial institutions face as the African Continental Free Trade Area (AfCFTA) moves from concept to reality. It begins by mapping the immense scale of this continental market of over 1.5 billion people, with a combined GDP exceeding US$3.4 trillion, and positions banks not just as beneficiaries but as vital enablers of Africa’s next growth chapter. The report highlights the crucial role of banks in driving intra-African trade, facilitating capital flows, and deepening economic integration across the continent.
Yet, the path forward is complex. The study unpacks systemic and banking-specific challenges such as regulatory fragmentation, currency volatility, limited correspondent banking networks, infrastructure deficits, and stringent compliance requirements. These barriers increase the cost and risk of cross-border operations. However, within these challenges lie significant opportunities for banks that move early and strategically, particularly in trade finance, structured lending, digital payments, and SME-focused financial solutions.
The recommendations are both practical and forward-looking. South African banks are encouraged to adopt phased market entry strategies, leverage partnerships with development finance institutions and fintechs, and participate actively in regulatory harmonisation efforts across regional economic communities. The report calls for innovation in digital infrastructure, green finance, and cross-border payment systems as key enablers of growth.
Click here to view the full report.