South Africa is preparing to give regulated non-banks a more direct route into its payments system, reducing their reliance on bank sponsorship. The South African Reserve Bank plans to publish its authorisation framework by the end of November, alongside work on instant payments and interoperable QR codes. The reforms would expand opportunities for fintechs, retailers and telecommunications companies to compete in payment services.

Bank ownership is also changing elsewhere. Egypt opened subscriptions for Banque du Caire’s initial public offering, while Nedbank’s offer for a controlling stake in Kenya’s NCBA became unconditional. Financing agreements in Nigeria and Tanzania add capacity for contractor lending, small businesses and housing, against an IMF outlook of stronger regional growth but continuing sovereign financing pressures.

Read more on the week's key developments:

1. South Africa sets out framework for non-bank payments access

South African Reserve Bank (SARB) Governor Lesetja Kganyago said on 20 October that the central bank intends to publish its new payments Authorisation Framework by the end of November. The framework would create a route for appropriately regulated non-banks, including fintechs, retailers and telecommunications companies, to undertake specified payment activities without automatically requiring a banking licence. Implementation is planned for 2027, with providers subject to requirements for safeguarding customer funds, governance and operational resilience.

The changes would reduce reliance on bank sponsorship and expand competition in services such as merchant acquiring and electronic-money issuance. Opening access forms part of a wider effort to increase everyday digital payment use. Kganyago identified inconsistent functionality and pricing as constraints on PayShap adoption, with work to tackle these constraints expected to begin by the end of March 2027. An interoperable QR+ pilot is scheduled for the first quarter of 2027. Separately, SARB has proposed a central bank-owned cash utility and shared white-label ATMs to lower cash-handling costs and preserve access to cash.

2. Banque du Caire opens IPO subscriptions with scope to sell 45%

State-owned Banque du Caire opened IPO subscriptions on the Egyptian Exchange on 19 October, following Financial Regulatory Authority approval. Its parent bank, Banque Misr, which owns 99.99%, is selling 4.575 billion existing shares, representing 30% of the bank, at an indicative EGP 4.82–5.30 per share. The sale could raise EGP 22.1–24.25 billion ($413–452 million), rising to EGP 36.4 billion ($680 million) if increased to 45%. Qualified investors are allocated 95% of the offering and Egyptian retail investors 5%.

The flotation would expand investors’ access to Egypt’s state-owned banking sector, following United Bank’s 30% listing in December 2024. Banque Misr would receive the proceeds and retain approximately 70%, or 55% if the enlarged offering is fully sold. The transaction therefore increases private ownership without transferring control or raising fresh capital for Banque du Caire. Institutional subscriptions close on 23 October and retail subscriptions on 28 October, with final pricing expected on 26 October.

3. Nedbank’s offer for 66% of NCBA becomes unconditional ahead of settlement

NCBA Group announced on 19 October that Nedbank’s offer to acquire approximately 66% of its shares had become unconditional following regulatory approvals. The transaction was valued at ZAR 13.9 billion ($842 million at the exchange rate reported in August). Shareholders tendered 79.9% of NCBA’s issued capital, requiring proportional scaling to the targeted holding. Although NCBA described the investment as completed, share transfer and consideration payments were scheduled to begin on 3 November. Trading was scheduled to be suspended from the close of business on 21 October through 2 November for reconciliation of the share register.

The acquisition gives Nedbank an established platform for expanding corporate and investment banking, infrastructure finance and wealth management in East Africa. NCBA’s corporate banking, asset finance and digital lending businesses provide distribution and customer relationships across the region. NCBA will retain its Nairobi Securities Exchange listing, brand, local leadership and headquarters, with approximately 34% of its shares remaining publicly held.

4. Nigerian banks subscribe to $4.43 billion contractor-financing programme

Renaissance Africa Energy Company announced on 15 October that 13 financial institutions had subscribed $4.1 billion and NGN 435 billion (approximately $327 million) to its relaunched Vendors Financing Scheme. Combined capacity reached approximately $4.43 billion, exceeding initial targets of $1 billion and NGN 100 billion ($75 million). The agreement, formalised in Lagos on 14 October, supports indigenous contractors executing Renaissance oil and gas projects. Participants include Nigerian commercial banks, Standard Chartered and Afreximbank.

Linking financing to awarded contracts gives lenders greater visibility over contractors’ expected revenues. Renaissance said participating banks offered more competitive rates than contractors could obtain independently. Petroleum Technology Association of Nigeria chairman Wole Ogunsanya said borrowing rates could fall to 8%–9%, compared with the 10%–12% he cited for bank borrowing. The subscribed amounts represent financing capacity, with utilisation tied to contractors’ requirements, including equipment purchases for the company’s production expansion.

5. IMF lifts sub-Saharan Africa growth forecast to 4.5% but commodity gains mask uneven recovery

The International Monetary Fund’s October outlook for sub-Saharan Africa projects growth of 4.5% in both 2026 and 2027, raising this year’s forecast from 4.3% in April. Reforms and adjustments to global supply chains have helped cushion the Middle East war’s effects. The IMF cited subsidy and exchange-rate reforms in Ethiopia and Nigeria, alongside structural reforms in South Africa, as supporting macroeconomic stability.

The regional improvement masks divergent conditions. Higher oil, copper and gold prices are cushioning some exporters, while growth is slowing and external deficits are widening in non-resource-intensive economies. Bilateral aid is projected to fall another 12% this year, adding to pressures from high interest burdens and limited reserves. For banks, the distinction matters for government financing needs, foreign-currency availability and customers’ cash flows. The IMF urged commodity exporters to save windfalls, including by repaying costly debt, while protecting essential services and productive investment elsewhere.

6. CRDB secures $111 million for capital and housing finance

CRDB Bank reported on 19 October that its second Africa Investment Forum in Bangkok had secured $111 million in financing agreements. These comprise a $75 million facility from Dutch development bank FMO and $36 million from Shelter Afrique Development Bank, including $10 million for CRDB Bank DRC. FMO’s project disclosure identifies its facility as ten-year subordinated debt with a five-year non-call period, intended to strengthen CRDB’s capital base and support lending to micro, small and medium-sized enterprises.

The facilities address two different constraints on lending. FMO’s subordinated debt can support additional lending by strengthening CRDB’s regulatory capital, subject to Tier 2 eligibility, with the ten-year maturity providing a durable capital base. Shelter Afrique’s funding targets housing and construction in Tanzania and the Democratic Republic of the Congo. Together, the agreements combine support for CRDB’s balance-sheet capacity with financing for specific sectors across its regional operations.

7. Ethiopia joins PAPSS as domestic and international payment connections expand

The National Bank of Ethiopia’s accession to the Pan-African Payment and Settlement System (PAPSS) was announced on 15 October. PAPSS supports eligible cross-border payments in African currencies, providing an alternative to routes involving third-country currencies and overseas correspondent banks. The accession comes alongside Ethiopia’s foreign-exchange market liberalisation and opening of its banking industry to foreign investment.

Ethiopia already has domestic interbank settlement through the Ethiopian Automated Transfer System, upgraded to the ISO 20022 messaging standard in March 2025. National switch EthSwitch’s EthioPay instant payment system supports transfers between bank accounts and wallets and interoperable QR payments. EthSwitch also signed a Mastercard agreement in November 2025 to expand international payment acceptance and enable globally accepted prepaid cards. PAPSS adds a regional local-currency settlement option alongside these connections, with commercial-bank onboarding and settlement arrangements required to make the network available to customers.

8. IFC and Attijariwafa arrange $250 million for Moroccan hotels

The International Finance Corporation (IFC) announced on 15 October a $250 million financing package with Attijariwafa bank for Pickalbatros Hotels & Resorts Group’s Moroccan subsidiaries. It comprises a $165 million IFC loan and $85 million mobilised from Attijariwafa, with up to $80 million of IFC’s loan covered by credit insurance. The financing supports the acquisition of three hotels in Casablanca and refurbishment of selected properties.

IFC describes the package as its largest investment in Africa’s hospitality sector to date. Long-term financing supports expansion in Morocco’s tourism market ahead of the country’s co-hosting of the 2030 FIFA World Cup. Sustainability targets include obtaining IFC’s EDGE building certification for selected hotels, with expected reductions of at least 20% in energy and water use.

9. West African electronic-money transactions rise 37%

The Central Bank of West African States published its 2025 financial inclusion dashboard on 20 October. Electronic-money transaction volumes across the eight-member West African Economic and Monetary Union rose from 11.92 billion in 2024 to 16.37 billion in 2025, an increase of 37.3%. Transaction values grew 39.7% to XOF 219.2 trillion (approximately $374 billion). Active electronic-money accounts increased from 76.9 million to 92.7 million, while the account activity rate rose from 30.9% to 32.6%. Accounts are classified as inactive after three months without use.

Transaction volumes grew faster than the number of active accounts, indicating increased activity alongside wider adoption. The figures give banks a clearer view of the scale of electronic-money services and the relevance of partnerships with issuers and interoperable payment networks. However, fewer than one-third of registered accounts were active, showing that account acquisition and sustained usage remain distinct measures of market development.

10. AfDB raises EUR 1 billion through social bond

The African Development Bank announced on 15 October that it had priced a EUR 1 billion ($1.12 billion) five-year social bond the previous day. The issue carries a 3.5% coupon and a 3.562% reoffer yield, priced at 10 basis points over midswaps. Orders exceeded EUR 1.75 billion ($1.96 billion), including joint lead manager interest.

The transaction brought AfDB’s 2026 funding to approximately $11.5 billion, or 96% of its annual borrowing programme. Banks, central banks and official institutions accounted for 78% of allocations, with asset managers taking the remainder. Proceeds will support eligible social projects under its sustainable bond framework.

What to watch

Banque du Caire’s institutional subscription deadline on 23 October and final pricing on 26 October, followed by the Bank of Botswana’s monetary policy meeting on 29 October. The Bank of Ghana’s next Monetary Policy Committee meeting is scheduled for 16–18 November.