Some participants at the Mazars breakfast meeting
African governments are likely to deepen the regulation of banks to avert a financial crisis on the continent, a banking expert has indicated.
Rudi Lang, United Kingdom Head of Banking of Mazars, who made disclosure, was speaking at a breakfast meeting for players in Ghana’s financial sector organized by the U.K Trade & Investment Section on behalf of Mazars recently.
It was themed: “The Future of Banking- Africa on the rise, Europe in decline yet increasing regulation, the challenges and opportunities for your business.”
“The eurozone crisis has consequences in Africa, particularly countries that export commodities. It will also affect the trade infrastructure and reduce foreign aid,” Mr Lang said.
Mr Laing, who has extensive experience in international banking, noted that European banks in Africa were withdrawing from certain markets on the continent.
Conversely, he pointed out that such a development presents opportunities for African banks “as it did for European banks when Japanese banks reduced their Asian operations in 1990s and 2000s.”
The effect of the Eurozone crisis, which he forecast would continue for the next five to 10 years “would also be felt through low remittances by African immigrants.
This is due to a contracting job market and low number of tourists visiting Africa as high income earners would be faced with new taxes.
Mr. Lang said African countries would “get more and more finances from bilateral development partners to borrow and invest in infrastructure to reduce their dependency on Eurozone countries and place more importance on regional integration.”
In the short term, he stated that “there is more to be done by African banks and regulators.”
“Be innovative in the technology and mobile banking,” he said while urging them also to create new products for targeting specific communities and groups “for example Muslims with Sharia-complaint banking.”
He also called on banks to invest in their workers while they increase technical skills.
The breakfast meeting was designed to examine how the banking and insurance industries were being transformed.
Ernest Toah Akonor, Managing Partner of Mazars Ghana, said his outfit would focus on the provision of credible alternatives.
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