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<p>At this year&#8217;s WEF meetings, South Africa is determined to establish itself as a thriving technological hub, enabling development through technological advancement and centering innovation at its core of governance and operations.</p>


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DAVOS 2024: Focus On the development and progress of South African banking


<p><em>Despite a string of supply-side shocks to the manufacturing sector, Justin Schmidt, Head of Manufacturing Sector at Absa Retail and Business Bank, found a positive mood and encouraging interactions at the 2022 Manufacturing Indaba.</em></p>



<p>The mood from delegates and exhibitors at the 2022 Manufacturing Indaba was more positive than what the data is indicating. “Overall, the conference had surprisingly strong attendance, with some great engagements across the manufacturing sub-sectors,” says Schmidt.</p>



<p>According to Absa’s Q2 Manufacturing Survey – published just a day before the Manufacturing Indaba opened at the Sandton Convention Centre – confidence levels in the sector dropped by 14 points from the first quarter of the year to 29 in the second, following a string of bad-news events.</p>



<p>“After surviving the past two years, manufacturers continued their recovery despite the headwinds,” says Schmidt. “However, the additional shocks caused by the floods in KwaZulu-Natal (Africa’s second-biggest manufacturing hub), the increased intensity of load shedding and the knock-on effects of the Russia-Ukraine war have weighed heavily on manufacturers. Unsurprisingly, that resulted in this knock to confidence.”&nbsp;</p>



<h2 class="wp-block-heading" id="h-spillover-effects"><strong>Spillover effects</strong></h2>



<p>The quarterly survey covers approximately 700 businesspeople in the manufacturing sector and was conducted by Stellenbosch University’s Bureau for Economic Research in May. The confidence index ranges between zero and 100, with zero reflecting an extreme lack of confidence and 100 extreme confidence, where all participants are satisfied with current business conditions.&nbsp;</p>



<p>The manufacturing sector’s seasonally adjusted output for April 2022, as published by Statistics South Africa, also fell by 5.4% month-on-month. At the same time, Absa’s survey indicated a drop in both domestic and export sales, with manufacturers noting insufficient demand as a more serious constraint to current activities than at the start of the year.&nbsp;</p>



<p>“As consumers feel the pinch of rising food and fuel prices, along with increasing interest rates, the manufacturing sector may experience the spillover effect of reduced disposable income resulting in lower demand,” Schmidt notes.</p>



<p>Load shedding has also taken its toll. For manufacturers, Stage 2 load shedding – while difficult – is manageable because it allows for planning and scheduling, and it tends to happen at night. However, when South Africa moves into Stage 4 (as it did in Q2) or higher, it is a lot more difficult and costly for manufacturers to operate.</p>



<p>“Power is both the biggest enabler of, and the biggest constraint on, South Africa’s manufacturing growth going forward,” says Schmidt. “We must solve the power crisis – and while we are seeing some positive moves there, it needs to happen much quicker.”</p>



<h2 class="wp-block-heading"><strong>Reigniting economic growth through manufacturing</strong></h2>



<p>Manufacturers are fully aware of the constraints on and hindrances to production with shortages of raw material ranked as their second largest constraint to activity. “There remain overarching concerns around supply chain uncertainty and rising prices,” says Schmidt.</p>



<p>The Manufacturing Indaba included breakaway sessions focused on precisely those issues: energy, transport and logistics, localisation – and, of course, value chain integration in the age of the African Continental Free Trade Area. It’s a busy sector, and one that – as the event’s theme underlined – has the potential to “reignite economic growth”.</p>



<p>With that big picture in mind, Schmidt says the short-term sentiment for South Africa’s manufacturing sector remains generally positive. “Looking further ahead, we need to see structural reforms taking place to see long-term growth and recovery,” he says. “But overall, it’s a positive sector. Manufacturing has survived the shocks of the past two years, and the sector was showing an unexpectedly strong recovery into Q1 2022. It’s reasonable to expect that it will survive those Q2 shocks and bounce back in time.”</p>



<p></p>



<p>Justin Schmidt<br>Head of Manufacturing Sector at Absa Retail and Business Bank</p>



<p><em>“Power is both the biggest enabler of, and the biggest constraint on, South Africa’s manufacturing growth.” – Justin Schmidt | Head of Manufacturing Sector at Absa Retail and Business Bank</em></p>



<p></p>


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Mixed mood sets the tone at Manufacturing Indaba

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<p>Tanzania is currently occupied by many banks with a bunch of them running tiny operations. The latest report by Ernst &amp; Young Tanzania indicates that at least eight banks are in the process of merging as a result. Stanley Bijura, EY Tanzania’s Senior Manager for Strategy and Transaction spoke to CNBC Africa for more.</p>


Ernest & Young: Why Tanzania’s banking sector is ripe for consolidation

Ernst & Young: Why Tanzania’s banking sector is ripe for consolidation

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<p>Renaissance Capital says Nigeria’s agency banking space will follow a unique path quite unlike what has played out elsewhere. With a population of over 200 million people, how will the interplay between Nigeria’s key stakeholders in the financial services space cater to the needs of this growing population? Adesoji Solanke, Director for Frontier, SSA bank and Fintech Research at Renaissance Capital joins CNBC Africa for more.</p>


Renaissance Capital’s Adesoji Solanke on how Nigeria’s agency banking space is evolving

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<p>Joining CNBC Africa to paint the picture is Reana Steyn, Ombudsman for Banking Services.</p>


How the closure of bank branches is impacting SA consumers

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<p>Nigeria&#8217;s Access Bank Group formally launches operations in South Africa next week, seeking a share of growing trade flows between Africa&#8217;s regions after the launch of the African Continental Free Trade Area. CNBC Africa&#8217;s Godfrey Mutizwa spoke to the Group Managing Director, Herbert Wigwe about the opportunities the bank sees.</p>


Access Bank CEO sees growth opportunities in SA’s underserved banking market

Access Bank MD sees growth opportunities in SA’s underserved banking market

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<p>Tanzania’s banking sector remained resilient in 2020 according to the Bank of Tanzania. Profits grew for the top 10 banks that control the majority of the banking market, and banks sustained strong asset growth. Ivan Tarimo, Partner at Bankable Tanzania spoke to CNBC Africa for more.</p>


Tanzania’s banking sector remain resilient amid COVID-19 crisis

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<p>Ratings agency, Fitch says the outlook for Nigerian banks&#8217; credit fundamentals has stabilised since the initial economic shock from the pandemic but noted that asset quality deterioration remains lingering risks to banks&#8217; credit. Joining CNBC Africa for more on the state of Nigeria’s banking sector is Mahin Dissanayake, Senior Director at Fitch Ratings.</p>


Fitch: Asset quality deterioration lingering risk to Nigerian banks’ credit

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<p>The banking sector was the most active at the Nairobi Securities Exchange when trading closed last week, with shares valued at Ksh 1.8 billion transacted which accounted for 60.96 per cent of the week’s traded value. KCB was the top mover in this sector with 21 million shares and Equity Group Holdings trading a total of 20 million shares during the week. Safaricom Plc dropped its position as the top mover as investors reacted to a decline in the firm&#8217;s net earnings for the 2020/21 financial year. Solomon Kariuki, Investment Analyst at Cytonn joins CNBC Africa for more.</p>


Tracking movements shaping Kenya’s market space

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<p>The Bank of Ghana expects growth in the banking sector to remain strong as the economic recovery process continues this year. Ghana&#8217;s Apex Bank had earlier stated that total banking sector assets rose by 18.5 per cent year-on-year to 152 billion cedis as at the end of February this year. Suleman Mohammed, Founder of Doobia joins CNBC Africa for more.</p>


Strong growth expected for Ghana’s banking sector in 2021

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<p>The exit of Daniel Mminele from his post as Absa CEO has sparked conversation on transformation in banking.</p>


Evaluating transformation in SA’s banking sector

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<p>The Covid-19 pandemic has had knock-on effects on the banking sector in Kenya, causing a shift in the old-fashioned system of banking. What then is the future of this sector? Head of Consumer Banking at Standard Chartered Bank, Edith Chumba joins CNBC Africa for more.</p>


How the banking sector is reinventing African finance post-COVID-19

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<p>The Grobank deal with Nigeria&#8217;s Access Bank has been the talk of the week. Access Bank bought a controlling stake in Grobank for about $60million.</p>


What the Access Bank

What the Access Bank, Grobank deal means for banking in Africa

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<p>Agency banking had a more than a 15 per cent growth in some of the markets in East Africa but has taken a slow down over recent years, so could a module previously seen as the future of the sector in the region be on its way out? Craig Albertson, Business Development Manager for Software Group joins CNBC Africa for more.</p>


Software Group sees upside in agency banking despite COVID-19 shocks

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<p>Moody&#8217;s has a negative outlook for the South African banking sector. The ratings agency says operating conditions remain challenging, with economic growth stubbornly low. Constantinos Kypreos, Senior Vice President at Moody’s joins CNBC Africa for more.</p>


Moody’s: Negative outlook for SA banks

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<p>How are Nigeria&#8217;s tier-one lenders holding up in the face of the global pandemic? Joshua Odebisi, Senior Banking Analyst at Vetiva Capital joins CNBC Africa’s Esther Awoniyi for more on the state of Nigeria’s banking sector.</p>


COVID-19: How the pandemic has impacted Nigeria’s top lenders

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<p>How are Nigeria&#8217;s tier-one lenders holding up in the face of the global pandemic? Joshua Odebisi, Senior Banking Analyst at Vetiva Capital joins CNBC Africa’s Esther Awoniyi for more on the state of Nigeria’s banking sector.</p>


Banking Sector

DAVOS 2024: Focus On the development and progress of South African banking

Mixed mood sets the tone at Manufacturing Indaba

Ernst & Young: Why Tanzania’s banking sector is ripe for consolidation

Renaissance Capital’s Adesoji Solanke on how Nigeria’s agency banking space is evolving

How the closure of bank branches is impacting SA consumers

Access Bank MD sees growth opportunities in SA’s underserved banking market

Tanzania’s banking sector remain resilient amid COVID-19 crisis

Fitch: Asset quality deterioration lingering risk to Nigerian banks’ credit

Tracking movements shaping Kenya’s market space

Strong growth expected for Ghana’s banking sector in 2021

Evaluating transformation in SA’s banking sector

How the banking sector is reinventing African finance post-COVID-19

What the Access Bank, Grobank deal means for banking in Africa

Software Group sees upside in agency banking despite COVID-19 shocks

Moody’s: Negative outlook for SA banks

COVID-19: How the pandemic has impacted Nigeria’s top lenders

Ghana’s MPC leaves key rate unchanged at 14.5%

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Banking Sector

DAVOS 2024: Focus On the development and progress of South African banking

Mixed mood sets the tone at Manufacturing Indaba

Ernst & Young: Why Tanzania’s banking sector is ripe for consolidation

Renaissance Capital’s Adesoji Solanke on how Nigeria’s agency banking space is evolving

How the closure of bank branches is impacting SA consumers

Access Bank MD sees growth opportunities in SA’s underserved banking market

Tanzania’s banking sector remain resilient amid COVID-19 crisis

Fitch: Asset quality deterioration lingering risk to Nigerian banks’ credit

Tracking movements shaping Kenya’s market space

Strong growth expected for Ghana’s banking sector in 2021

Evaluating transformation in SA’s banking sector

How the banking sector is reinventing African finance post-COVID-19

What the Access Bank, Grobank deal means for banking in Africa

Software Group sees upside in agency banking despite COVID-19 shocks

Moody’s: Negative outlook for SA banks

COVID-19: How the pandemic has impacted Nigeria’s top lenders

Ghana’s MPC leaves key rate unchanged at 14.5%

News Tips

Advertise With Us

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