African banks expand as European lenders retreat from the continent

African banking groups are accelerating their cross-border expansion as European lenders retreat from the continent. A report from Fitch Ratings indicates that Nigerian and South African lenders are increasingly filling the void left by European institutions, particularly in francophone West Africa. Access Bank Plc has been identified as one of the fastest-growing lenders in terms of cross-border activity.

Simultaneously, the African economic landscape faces challenges regarding Small and Medium Enterprises (SMEs). Despite SMEs accounting for over 80 percent of businesses and contributing more than 50 percent to the GDP of many African nations, the sector remains underfunded. Experts note that SMEs require approximately $331 billion in annual credit to drive innovation and employment, yet many struggle to access formal financing due to policy bottlenecks and structural hurdles.