Following the adoption of higher minimum capital thresholds by supervisory authorities, undercapitalized banks are being forced to merge or sell assets at an accelerated pace. Within the CEMAC zone, the the Central African Banking Commission (COBAC) maintains the minimum capital requirement at CFA 25 billion, prompting several mid-sized banks to seek strategic partners. In Kenya, the Central Bank of Kenya has set the threshold at approximately USD 38 million, further accelerating restructuring within the local banking ecosystem. In this environment, Access Bank valued at around USD 15 billion continues its aggressive expansion strategy. After completing multiple acquisitions in Angola, Sierra Leone and Mozambique in 2025, the group is now consolidating its East African footprint in a bid to strengthen its regional influence.
Meanwhile, Equity Group Holdings, listed on the Nairobi Securities Exchange, is intensifying its external growth strategy. The absorption of specialized players, including institutions focused on Islamic finance and microfinance, supports its ambition to reach 160 million customers by 2028.
In North Africa, Morocco’s Holmarcom Group is also pursuing banking integration to create a leading regional player, illustrating the continental scope of this consolidation wave.
Strong geographic concentration
South Africa, Egypt and Kenya currently account for the bulk of the value of Africa’s banking transactions. These markets are characterized by: more mature financial systems; significantly larger banking asset bases; deeper capital markets; stronger appeal to international institutional investors.
This concentration also reflects the search for macroeconomic stability and yield in structured economies capable of absorbing large capital inflows.
SMEs: historicopportunity or risk of exclusion?
Small and medium-sized enterprises, which generate nearly 80% of non-agricultural employment in Africa, stand at the center of this transformation. On the opportunity side, consolidation allows newly merged entities to unlock between USD 5 and 10 billion in excess capital for targeted lending. Access Bank has launched a USD 500 million SME fund in Nigeria, focusing on agriculture and retail. Equity Group is expanding its microcredit portfolio in Kenya, with interest rates ranging between 12% and 15%. In South Africa, major banks emerging from recent consolidations are investing approximately USD 2 billion in green SMEs, supporting energy transition and climate-aligned projects.
However, risks remain significant. The gradual disappearance of smaller local banks still representing about 30% of the East African banking landscape could reduce credit access in rural and underserved areas. Market concentration may also push banking fees up by 2–3%, potentially constraining informal micro enterprises, which account for nearly 70% of Africa’s economy.
Financial inclusion: the structural challenges
Despite rapid sector modernization, Africa’s financial inclusion rate remains around 45%. Large scale mergers enhance systemic stability and improve access to international funding, but they do not automatically guarantee broader access to financial services for vulnerable populations. Regional guarantee mechanisms supported by central banks and sub-regional development institutions play a mitigating role. Nevertheless, the core challenge remains striking a balance between profitability, financial stability and inclusion.
The current momentum signals a strategic turning point. Africa is shifting from a fragmented banking environment to one dominated by large pan-African groups capable of raising international capital, investing in digital transformation and financing large-scale development projects. For investors, this consolidation provides greater visibility and stronger balance sheets. For SMEs and rural populations, it represents both expanded financing opportunities and a potential risk of exclusion if accompanying policies fail to ensure inclusivity.
