The Africa Financial Industry Summit (AFIS) 2024, held last week in Casablanca, Morocco, brought together over 1,000 leaders from across the financial sector, including policymakers, regulators, and senior executives from banks, insurance companies, and fintech firms. Organised by the International Finance Corporation (IFC) in collaboration with the Jeune Afrique Media Group, the event revolved around the theme A New Era: Time to Mobilise Africa’s Financial Power. This year’s discussions focused on the structural reforms necessary to enhance the resilience of Africa's financial systems and remove barriers to financing the continent’s economic transformation. Amir Ben Yahmed, CEO of Jeune Afrique Media Group and President of AFIS, emphasised that Africa’s financial sector stands at a critical juncture. With many international players withdrawing from the region, the responsibility of meeting Africa’s financial needs now lies squarely on the continent’s institutions. He described the summit as more than just a platform for dialogue, calling it a laboratory for bold decision-making aimed at building a world-class financial ecosystem that can address Africa’s unique challenges and opportunities. The summit tackled key issues that are central to transforming Africa's financial landscape. Central to these discussions was the need to channel local savings into productive investments. Banking products and capital market solutions that align with Africa’s development goals must be developed to effectively direct domestic savings toward initiatives that stimulate growth and create jobs. Additionally, participants underscored the importance of improving payment systems to reduce the cost and duration of cross-border transactions, thereby enhancing intra-African trade. This aligns closely with the objectives of the African Continental Free Trade Area (AfCFTA), which seeks to create a seamless economic bloc across the continent. Another area of focus was strengthening the capital requirements of Africa’s financial institutions. Building robust capital bases is critical for fostering partnerships with global financial centers and ensuring that African institutions can scale up to meet growing demand. The summit also shed light on integrating Africa’s vast informal economy, which constitutes 83% of its workforce, into formal financial systems. By leveraging digital channels, financial institutions can offer accessible banking and insurance services to underserved communities, helping to bridge the financial inclusion gap. Participants emphasised that tapping into this largely untapped economic sector could be transformative, injecting liquidity into formal markets while enabling millions of Africans to access financial services for the first time. Morocco’s hosting of AFIS 2024 underscores its strategic role in reshaping Africa’s financial sector. Nadia Fettah Alaoui, Morocco's Minister of Economy and Finance, emphasised the country’s unique position as a bridge between Europe and Africa, supported by its advanced financial institutions and strong commitment to pan-African partnerships. Morocco’s proactive role in fostering financial inclusion and promoting regional cooperation is emblematic of the collaborative approach needed to build a resilient financial ecosystem across the continent. The summit also highlighted the importance of regional integration and collaboration. Aligning policies and pooling resources are essential for overcoming fragmentation in Africa’s financial markets. For example, the creation of a pan-African stock market could address inefficiencies and foster greater investment within the continent. Such initiatives require not only strong political will but also significant investments in infrastructure, technology, and human capital. Domestic resource mobilisation was a recurring theme throughout the discussions. Sérgio Pimenta, IFC Vice President for Africa, underscored the importance of harnessing Africa’s financial sector to accelerate development in areas like job creation, micro, small, and medium-sized enterprise (MSME) financing, energy transition, and agriculture. Mobilising domestic resources is critical for reducing dependency on external funding, which often comes with high costs and stringent conditions. Strengthening tax systems, curbing illicit financial flows, and leveraging underutilised resources like remittances and pension funds are key steps toward achieving this goal. Speakers also emphasised that creating effective financial products for smallholder farmers and informal traders could drive inclusivity and generate impactful returns for local economies. The summit served as a call to action for all stakeholders to rethink their approach to financing Africa’s future. By fostering collaboration among regional champions, pan-African institutions, and global investors, AFIS 2024 laid the groundwork for a more inclusive and resilient financial industry capable of driving sustainable economic growth. As the event concluded, it was clear that the solutions to Africa’s financial challenges lie in mobilising its own resources, integrating its markets, and leveraging innovative financial tools to unlock its full potential. With deliberate actions, Africa’s financial sector can rise to the challenge and play a central role in shaping a brighter economic future for the continent.
