This provides an opportunity for African economies to consolidate financial sector reforms policies aimed at avoiding financial repression, which remains a key factor in increasing efficiency in savings mobilization and investment allocation. Credit risks Although international commodity and oil prices have receded from the record levels reached in 2007/08, many economies are still reeling from the high food and fuel prices.
For all of the reasons I have discussed, it seems reasonable to expect a continued high level of merger activity for the foreseeable future. Very large mergers will not be uncommon. Studies based on historical experience suggest that in around a decade there will likely be about 3,000 to 4,000 banking organizations, down from about 7,000 today.