Mr. Desiré Vencatachellum, Chief Executive of the Financial Services Commission
Dr. Carmine Di Noia, Director of the Directorate for Financial and Enterprise Affairs at the OECD,
Mr. Sukhwinder Singh, Director, Africa Training Institute and AFRITAC South
Distinguished panellists and speakers from different parts of Africa
International and local delegates
Ladies and Gentlemen,
Good morning
I am pleased to welcome you and address this august gathering on the occasion of the roundtable on Banking and Capital Markets in Africa which is being jointly organized by the Regional Center for Excellence (RCE) and the Organisation of Economic Cooperation and Development (OECD).
My remarks today will focus on the role of banking and capital markets to unlock the potential of the African continent.
This theme is of strategic significance for policymakers, financial institutions, investors, and all stakeholders committed to Africa’s long-term development.
Our continent stands at a pivotal point in its economic journey, marked by a unique convergence of demographic, social, and economic factors that offer both remarkable opportunities and complex challenges.
With a population exceeding 1.4 billion, a median age under 20 years, and projected GDP growth rates that consistently outpace global averages, the continent is poised for significant transformation. These demographic trends suggest a youthful, dynamic workforce with the potential to drive innovation, productivity, and sustainable growth for decades to come.
However, to truly harness this demographic dividend, Africa must address structural constraints and ensure that its financial systems are equipped to support inclusive and sustainable development.
Recent data from the African Development Bank, the International Monetary Fund, and the World Bank highlights Africa’s economic resilience in the face of global headwinds, including supply chain disruptions, fluctuating commodity prices, and tightening global financial conditions.
According to these sources, Africa’s GDP is forecasted to expand by 3.9 percent in 2025 and a further 4.0 percent in 2026. Sub-Saharan Africa, in particular, is expected to sustain a growth rate of 4.1 percent this year, with a modest increase anticipated in 2026. This performance reflects not only the continent’s adaptability and ongoing domestic reforms but also underscore the importance of further progress in reducing poverty and meeting the aspirations of a rapidly growing, youthful population.
Ladies and Gentlemen,
Despite these positive macroeconomic indicators, many African economies remain vulnerable to external shocks due to their high dependence on commodity exports. Deficient corporate governance practices, infrastructural deficits, and disparities in access to basic services continue to hamper broad-based development.
The imperative, therefore, is to implement policies and strategies that will enable financial systems to become engines of inclusive growth and social transformation.
Increasingly, banks will be required to serve as partners in national development, supporting not only large-scale infrastructure projects but also the growth of small- and medium-sized enterprises (SMEs), the empowerment of women and youth, and the expansion of financial inclusion initiatives.
Mauritius, with its strategic location between Asia and Africa, provides a reliable bridge between global capital and African opportunities.
It also offers a compelling case study in the evolution of banking and finance within the region. The country’s proactive approach to regulation, including in areas such as digital banking and virtual assets, serves as a model for other African nations seeking to balance innovation with risk management.
Ladies and gentlemen
Financial inclusion remains one of the most pressing challenges facing Africa’s financial sector. Over 350 million African adults remain unbanked, with the majority residing in rural or underserved communities. This exclusion limits access to critical financial services, such as savings, credit, insurance, and payments, and hinders broader economic empowerment. There is an urgent need to scale up digital banking solutions, mobile money platforms, and microfinance initiatives that can reach remote populations and reduce transaction costs.
The rapid adoption of mobile technology across Africa offers a unique opportunity to leapfrog traditional banking infrastructure and deliver innovative financial services directly to consumers. Mobile money platforms, such as M-Pesa in Kenya, have already transformed the way millions of Africans access and use financial services. By expanding these models, banks can help unlock economic opportunities for SMEs, entrepreneurs, and informal sector workers who form the backbone of Africa’s economies but often face significant barriers to financing.
In addition to expanding access, banks can play a proactive role in supporting SMEs and entrepreneurs through targeted credit products, risk-sharing arrangements, and capacitybuilding programmes. Developing specialised financial instruments, such as trade
finance, supply chain finance, and venture capital, can help address the unique needs of enterprises that drive job creation and innovation. Furthermore, partnerships between banks, development finance institutions, and fintech companies can facilitate the design of tailored solutions that meet the diverse requirements of African businesses and communities.
Ladies and gentlemen
Environmental, Social, and Governance frameworks are increasingly shaping the priorities of financial institutions and investors across Africa. There is heightened attention on the need to finance green infrastructure, sustainable agriculture, and climate adaptation initiatives, particularly as the continent faces mounting risks from climate change.
Mauritius has taken a leadership role by introducing comprehensive guidelines on digital banking and virtual asset activities, seeking to balance the twin goals of promoting innovation and ensuring financial stability. We look forward to having other countries from the continent adopt similar frameworks that foster responsible innovation and align with international best practices.
Ladies and Gentlemen,
While banks are well-positioned to provide short- and medium-term funding, capital markets are essential for mobilising long-term finance required for infrastructure, housing, healthcare, and education. Unfortunately, many African capital markets remain fragmented, shallow, and underutilised, resulting in a substantial infrastructure funding gap estimated by the African Development Bank (AfDB) to be between USD 68 and 108 billion annually.
The AfDB has also indicated that institutional investors in Africa collectively manage over USD 2.1 trillion in assets. Much of this could potentially be allocated to address these critical funding needs if appropriate investment vehicles and enabling environments are developed.
Efforts to strengthen domestic capital markets are underway across the continent. These include expanding bond markets, enhancing market liquidity, improving credit rating systems, and fostering greater transparency. Regional integration is being pursued through harmonised regulations, interoperable trading platforms, and cross-border investment frameworks.
Such measures can help create deeper, more efficient markets that attract both local and international investors.
Additionally, the adoption of emerging technologies, such as blockchain and smart contracts, is being explored for their potential to reduce transaction costs, enhance market transparency, and streamline regulatory compliance.
Mauritius is actively fostering a culture of financial technology innovation through supportive policy frameworks, robust regulation, and the development of a dynamic ecosystem of entrepreneurs and investors.
The country’s emphasis on maintaining integrity and trust within its financial system underscores the importance of balancing technological advancement with effective risk management and consumer protection.
Ladies and Gentlemen,
Central banks across Africa play an important role in strengthening regulatory frameworks by adopting international standards, building supervisory capacity, and promoting financial stability. They are also at the forefront of financial literacy initiatives, public education campaigns, and consumer protection measures, all of which are essential for building public trust and fostering a culture of savings and responsible finance. Regional cooperation is actively promoted through organisations such as the Association of African Central Banks, which facilitates the sharing of best practices and the coordination of monetary policies across the continent.
Developing human capital remains a top priority for unlocking Africa’s economic potential. This involves not only training finance professionals but also promoting diversity and gender equity within the sector. Encouraging the participation of women and young people in banking and capital markets is vital for fostering innovation and ensuring that the benefits of growth are widely shared. Effective retention strategies for skilled talent— such as competitive compensation, opportunities for career development, and initiatives to foster national pride—are necessary to build and sustain a world-class financial sector.
According to the 2025 World Bank’s Africa Pulse report, employment in Africa remains heavily concentrated in informal, low-productivity sectors, with wage-paying jobs continuing to represent only a minority share of the labour market.
Addressing this challenge will require focused efforts to develop medium- and large-sized enterprises capable of driving productivity, formal job creation, and sustainable income growth.
Investment in education, skills development, and entrepreneurship is crucial for equipping Africa’s young population with the capabilities needed to thrive in a rapidly changing global economy.
Ladies and Gentlemen,
Unlocking Africa’s immense economic potential will require coordinated, sustained action on multiple fronts.
Key priorities include mobilising both domestic and international capital, building resilient and inclusive banking systems, deepening and integrating capital markets, adopting innovative technologies, and investing in strong institutions and human capital.
I am sure that the roundtable will provide you with practical knowledge and also with networking opportunities that are now essential in an interconnected world. Through shared commitment and strategic action, it is possible to build a prosperous, sustainable, and inclusive future for all Africans.
I thank you for your attention.
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