AFIS 2026: African banks post record profits but starve real economy of credit

At the Africa Financial Summit (AFIS 2026) in Luanda, leaders from the IFC, Jeune Afrique, and the Angolan government laid bare a central paradox: continental banking revenues hit $100 billion in 2024 with returns rivalling top emerging markets, yet 85% of Africa's workforce remains locked in the informal economy, starved of formal credit. "African finance is stronger but still underfunds the real economy," said Jeune Afrique CEO Amir Ben Yahmed. Angola's Economic Minister José de Lima Massano confirmed the dislocation — agriculture, manufacturing, and MSMEs remain insufficiently financed despite banking liquidity.

IFC Managing Director Makhtar Diop outlined the structural fix: African firms choke on short-term, dollar-denominated debt while earning in volatile local currencies. The IFC now executes 75% of its continental lending in local currency, targets $100 billion in annual commitments (up from $32 billion mobilised), and is shifting from land-title underwriting to cash-flow and transaction-data lending via fintech rails. Diop stressed the goal: "We need to focus totally and utterly on job creation for African youth."

Angola serves as the live case study. Non-oil GDP hit 81% in 2025, public debt collapsed from 116% to 51% of GDP since 2020, and inflation dropped from 31% to 8.4%. Banking assets grew 11.5% to $28.2 billion with profits up 23% to $1.08 billion. The Luanda stock exchange (BODIVA) surged 202% to $4.3 billion market cap after BFA and Unitel IPOs raised $561 million combined. IFC's Angola portfolio jumped from $150 million to over $1 billion in two years.

The summit pushes for operationalising PAPSS for cross-border settlement, integrating continental stock exchanges, and building a New African Financial Architecture. With AfCFTA as the frame, the mandate is clear: balance-sheet health without real-economy impact is no longer acceptable. Can local-currency financing, digital underwriting, and continental payment rails finally unlock credit for the millions of MSMEs waiting at the gate?

SOURCE: https://techcabal.com/2026/11/03/afis-2026-making-capital-count/