2020 has been a tough year for large US banks active in the investment segment in sub-Saharan Africa, Refinitiv reported.
Over the period reviewed, Morgan Stanley posted $18.1 million in revenue, down 21.5% YoY despite a 100% increase in the number of transactions the company arranged, while Citigroup’s profit dropped by 44.4% YoY and the number of transactions it arranged fell by 41%.
The bad period for US investment banks happened to be a blessing for Japanese Sumitomo Mitsui Financial Group, which for the first time became the leading investment bank in sub-Saharan Africa, generating $57.3 million in revenues, up 557.2% YoY. The Japanese’s performance over the period was supported by its 6 operations in the banking loan segment. Standard Chartered Bank, Bank of America Securities, and Absa Group (ex-subsidiary of Barclays) also experienced a positive year with a 55% increase in revenues for each of them, despite a decline in the number of their transactions (except for Absa).
Overall, investment banks active in SSA generated a total revenue estimated at $524 million, down 19% when compared with 2019. The figure is also the worst performance over the past six years. The situation is justified by the decline in segments such as the capital market, merger, and acquisition market, and that of syndicated loans.
Although sub-Saharan Africa was relatively less affected by the pandemic, some of its hard-hit economies, such as South Africa, are also its most dynamic financial and capital marketplaces. Strict quarantine measures in several countries in the region have also prompted caution among investors who have faced significant trade-offs.
Performance in the first quarter of 2021 should be monitored. Many credible institutions are predicting an economic recovery in the region in 2021. But in a market where it is difficult to spot all the transactions between economic players, it is difficult to predict how strong the recovery will be. Also, in many partner countries, especially in the West, the situation remains quite volatile.
Idriss Linge
• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....
Flutterwave gained a BCEAO license to operate in Senegal, expanding to 35 African countries. ...
In Africa, the private sector is widely seen as the main engine of industrialization and plays a cen...
President Paul Biya, 92, to seek eighth term in October 2025 election In power since 19...
• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its mai...
Highlights: • Kobold Metals signed an agreement in principle with the DRC government on July 17, 2025.• The deal includes the Manono lithium project,...
Highlights: • Global cocoa processing down across all major regions in Q2 2025• ECA: Europe’s grindings at lowest since 2020, Asia at lowest since...
Highlights: • Egypt targets 42% renewable energy share by 2030.• POWERCHINA to build 130-km high-voltage line signed on June 25.• National grid expansion...
Highlights: • EXIM Bank issues letter of intent for $150M to support Botswana's NexMetals• US eyes battery-grade nickel sulphates and cobalt from...
Ashenda is a vibrant traditional festival celebrated primarily in northern Ethiopia, particularly among the Tigray and Amhara communities, as well as in...
The Emerald Sea is a vast turquoise lagoon located in the northern part of Madagascar, just a few kilometers from the town of Antsiranana (formerly Diego...