From potential to performance: A snapshot of African banking

frica’s financial markets, with banking at the helm, are among the most dynamic in the world. Buoyed up by high interest rates and growth in noninterest income, African banks delivered an ROE of 19 percent in 2024 and 17 percent in 2025, well above the global average of 10 percent over the same time period.1 While the sector’s long-term potential for scale is great, persistent challenges—such as gaps in access, infrastructure, and trust, along with macroeconomic headwinds—continue to limit its full potential.

Six common themes that are likely to drive future profits and can help players prepare for what’s next are identified. To lock in gains as tailwinds fade, African banks could pursue a unified strategy that addresses financial stability, disciplined growth, and future capabilities—fortifying cyber, fraud, and operational resilience to protect core assets, while industrializing AI and strengthening data foundations.

The analysis in this report is based on reported data through the end of 2024, estimated data for 2025, and forecasts through 2030. It also draws extensively on data from McKinsey’s Panorama Global Banking Pools (see sidebar, “More about McKinsey Panorama and Banking Pools”).