Cote d'Ivoire Banking & Financial Services Q4 2018
In terms of size, the nominal gross value added US dollar worth of Côte d'Ivoire's financial services sector still lagssignificantly behind those of its key Sub-Saharan African peers, such as South Africa, Nigeria, Kenya and Ghana. There is significantopportunity for the country to emerge as a francophone West African financial services hub, as the Ivorian banking and financialservices sectors hold substantial potential for growth over the coming decade. Given that we forecast the Ivorian economy to beone of the strongest performers in Sub-Saharan Africa over the coming years this will mean that its consumer base is expected towiden significantly as a result. This is exemplified by the strong individual growth rates forecast for the banking and insurancesectors between 2018 and 2022, and therefore there are increasing opportunities for banks, insurers and asset managers as aresult. We highlight several risks to this positive growth outlook, such as that the political situation in the country is still quiteprecarious as the 2020 presidential elections draw nearer, especially given the significant impact the 2011/2011 political crisis hadon the banking sector. Additionally, we expect that credit growth will decelerate in the coming quarters as cocoa production andprocessing is hit by several headwinds, reducing credit demand in a key part of the Ivorian economy. Larger fiscal deficits andambitious capital spending plans will also see government borrowing grow over the coming years, meaning that bonds will increaseas a share of total banking sector assets.
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