Financing Africa: Through the crisis and beyond

The environment in which African financial systems operate has changed dramatically over the past years. The global financial system has undergone a major transformation after the recent financial crisis, with the center of economic and financial power shifting from developed to several emerging countries, including China, India, and Brazil. Additionally, the crisis has led to regulatory reform discussions among developed and emerging countries, with repercussions on financial sector regulation in Africa. Finally, technology has changed the economics of retail banking, revealing its potential to increase access to financial services dramatically, but also posing new regulatory challenges. Financing Africa: Through the Crisis and Beyond takes a fresh look at Africa’s financial systems in light of these recent changes. Benefiting from better data and a wide array of experiences across the continent, the book looks at the challenges of expanding the outreach of financial systems, lengthening financial contracts, and safeguarding financial systems. The authors identify three priority areas for policy action: the positive role of innovation and competition; a stronger focus on nontraditional financial service providers; and more emphasis on addressing demand-side constraints. Recognizing that all financial sector policy is local, the authors carefully distinguish between different country groupings, differentiating between low- and middle-income and small and larger economies among others, with a special focus on resource-based economies and post-conflict countries. And unlike other publications on this topic, this book includes analysis of the North African countries. A joint collaboration between the African Development Bank, BMZ (Federal Ministry for Economic Cooperation and Development), and the World Bank, this book is a valuable asset to practitioners, development partners, and policy makers concerned about a more inclusive and effective financial system