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The World Economic Forum on Africa wrapped up in Cape Town yesterday, and I just wanted to share a key panel discussion that was held on innovative financing for African consumers and businesses. One fascinating statistic comes from Kenya:

Despite challenges in the wake of the crisis – foreign direct investment (FDI) and remittances have taken a beating – there are “huge innovations” in mobilizing domestic resources, commented James Mwangi, Chief Executive Officer and Managing Director, Equity Bank, Kenya. Mobile banking is unleashing a revolution. “Kenya is taking a huge leap with more than 7 million subscribers and the volume of transactions gives you hope,” he said. In East Africa, the push for microfinance is gaining tremendous momentum and, in Kenya alone, savings and credit organizations report 4.5 million account holders, and there are potential sources of liquidity.

That's incredible stuff right there, especially in rural areas where electricity might be less than reliable and where it would be difficult to set up local branches. The report also talks quite a bit about the potential for microfinance (then again, what report doesn't?), but during my time in Ghana last summer, I was quite surprised with the number of multinational retail banks that were opening up throughout Ghana, in particular places like Togo's Ecobank and a bunch from South Africa. I remember a branch of South African bank UBA opening up on Takoradi's Market Circle (right in the center of the city): basically I stepped into a crazy block party complete with blasting speakers of high-life music (probably borrowed from a nearby church or two) and dancing in the street along with free stuff for signing your family up to their checking accounts. So if you get a UBA shirt from me for your birthday you'll know why.

The WEF panel did mention a few challenges to financing in Africa. In particular, women remain an untapped resource for economic growth, namely because many cannot access finance due to a lack of collateral. Furthermore, venture-capital markets are few, which severely hampers potential entrepreneurs. Initiatives such as Kiva may help with that, but the WEF also argues that Africa needs some more positive media exposure--something to get foreign observers to think positive things when Africa is mentioned.