In Africa there is many places that cannot see banks or even have access to banks, resorting to hiding it in mattresses and other unsafe areas. The populations as a whole only has about 3% of people using credit cards and very few banks are opening. due to the fact that GDP has not reached the 10000 dollar magic number. this is causing the banking sector to want to expand but not have the resources to make new branches.
They have tried, with several attempts, to rectify or at least improve this issue and it has worked to a certain extent. For example, Standard Chartered offers official retail there. Then there is a local and international bank, the ABSA. So, it's improving but still, a long way to go! The idea of receiving high returns is offset by large amounts of uncertainty.
ReplyDeleteI like the idea that the expansion of banking sector in Africa is being predominately pushed by African Banks. Nobody understands the people's wants and needs better than these banks. Huge returns will only come to those who are wiling to invest for the very long run!
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