The EIB, in partnership with Making Finance Work for Africa, surveyed 78 banks in sub-Saharan Africa in early 2021 to see how they are coping during the COVID-19 pandemic and to learn their views on climate risk, green finance and digital financial services. This work formed the basis of our new Finance in Africa report. The report also provides an in-depth analysis of the state of play in the microfinance, private equity and venture capital sectors in Africa.
African financial institutions have remained relatively resilient during the COVID-19 crisis. But lingering problems could set back financing during the recovery. For instance, almost half of the banks reported that their biggest worry was a deterioration of their loan portfolios. Another 21% were most worried about the increased risk of new lending. Meanwhile, small firms and micro-entrepreneurs remain underserved and could lose access to finance if lending recovers slowly.
African financiers are beginning to take advantage of opportunities in digital and green finance. The pandemic has provided an impetus to accelerate digitalization of many sectors. More work needs to be done to help banks expand green and digital finance, and to deal with the risks. International financial institutions like the EIB will continue supporting the public and private sectors to accelerate the development of a greener, digital and more inclusive financial sector.
Learn more and read the entire report here>