Africa’s banking sector crossed the $100 billion revenue threshold for the first time in 2025, delivering returns that significantly outpace global peers, even as the industry’s gains remain concentrated in a small group of markets, according to a new report by consulting firm McKinsey and Company.
Banking revenues across the continent reached about $99 billion in 2024 and are estimated to have increased to $107 billion in 2025. Returns on equity stood at 19 percent in 2024 and are expected to ease to 17 percent in 2025, compared with a global banking average of about 10 percent.
Despite the growth, revenues remain heavily concentrated. Egypt, Kenya, Morocco, Nigeria and South Africa account for around 70 percent of Africa’s total banking revenues, with South Africa the largest market, generating about $26.4 billion in customer-driven revenues in 2024.
African banks’ cost-to-assets ratio stands at 2.6 percent, double the global average of 1.3 percent, meaning that performance has been achieved despite structural cost pressures rather than because of improved cost control.
The concentration at the top, however, masks a more dynamic picture below. Smaller economies are expanding at a faster pace, driven by rising digital adoption and millions of customers still outside the formal banking system. Analysts and industry executives say the next growth opportunity lies not in replicating the models of dominant markets, but in serving populations that traditional banking has historically overlooked.
The retail and corporate segments in Africa accounted for around 88 percent of total revenue at $48.9 billion and $38.1 billion respectively in 2024. The small and medium enterprise segment is projected to grow at the fastest pace, at an 8 percent compound annual growth rate through 2030.
Africa’s population grew by more than 2 percent a year between 2020 and 2025, while the working-age population expanded by nearly 3 percent annually, creating a large and growing base of potential banking customers. McKinsey noted that on a constant-currency basis, banking revenues grew at roughly 17 percent annually between 2020 and 2024, well above the global average, though currency depreciation reduced that performance significantly when measured in US dollar terms.
McKinsey projects that income from lending activities will reach $52 billion by 2030, with small and medium-sized enterprises representing the fastest-growing segment. Yet much of this potential remains untapped, as most African small businesses still lack access to formal credit due to limited banking histories.
For Ghana, the West African country sits outside the five dominant markets identified by McKinsey but stands to benefit from the broader structural trends the report highlights, including rising digital adoption, fintech-bank partnerships, and growing demand for trade finance and cross-border payment services.
McKinsey partner Mayowa Kuyoro, who heads the firm’s financial services practice in Africa, said the sector has moved from a story of potential to one of performance, while cautioning that sustaining the gains will require banks to address persistent structural challenges around cost efficiency, currency risk, and financial inclusion.
