The banking industry has put
its money where its mouth is in
terms of investment in Africa
– and that’s good news for
economic expansion.
“Both local and international
banks are increasingly focused
on the opportunities African
growth can give them,” said
Janine Myburgh, president
of the Cape Chamber of
Commerce and Industry.
“Bankers and government
officials believe that as ordinary
workers gain access to basic
banking facilities, and the
emerging middle classes
access more sophisticated
financial services, there should
be a feedback loop to greater
spending and consumption,
and hence further economic
expansion,” she said.
Speaking at the third Doing
Business in Africa seminar
organised by the Cape Chamber
and aimed at growing Western
Cape exporting into Africa,
Myburgh said financial
institutions seemed to be far
more committed to the region
and its success than many other
sectors. “Cross-border banking
will have significant benefits for
companies looking to expand
their African operations,” she
said.
And she believes now is
the time, with Nigeria having
rebased its figures for gross
domestic product in April
this year and overtaken South
Africa as the biggest economy
on the continent – coupled
with the downgrading of South
Africa by several international
organisations.
“Bloomberg economist,
Jim O’Neill, recently pointed
out that the whole of Africa
had an annual output of only
perhaps $2 trillion, which was
comparable to India or Russia.
“And yet, despite this, the
region is viewed as the global
investment darling,” Myburgh
said. “Despite the slightly gloomy
South African picture, we must
take the opportunities north of
our borders more seriously.”
INSERT & CAPTION
Financial institutions
seem to be far more
committed to the
region and its success
than many other
sectors.
– Janine Myburgh
