New study foresees bright future for Sub-Saharan Africa's insurance and banking sector
Banks and insurance companies can expect a 15 to 20 per cent revenue growth in sub-Saharan Africa, according to a new study from consulting firm Bain & Company.Banks and insurance companies can expect a 15 to 20 per cent revenue growth in sub-Saharan Africa, according to a new study from consulting firm Bain & Company.
It believes that countries like South Africa, Nigeria, Angola, Kenya and Ghana are fast becoming a new "El Dorado".
The region has a growth rate of eight per cent and only between 20 and 40 per cent of the population has access to banking services depending on the country. This shows there is a wide margin of progression, the study states.
In Nigeria for example, "out of the 70 million of unbanked individuals, 25 to 30 per cent have the same profile as bank clients - they graduated, work and have a cell phone," said financial services specialist at Bain & Company, Fabrice Franzen, quoted by Les Dépêches de Brazzaville.
Although the rate of insurance penetration is less than two per cent, populations in the region are set to benefit from an additional purchasing power that could reach $495 billion by 2020. This should develop the use of insurance, according to the study.