E-Financial
Growth Potential: MasterCard Index Ranks Lagos 2nd African Large City
Lagos State (West Africa’s commercial hub) follows closely to Maputo, the capital of Mozambique, as the largest African city with the highest potential for inclusive growth, according to the 2015 MasterCard African Cities Growth Index (ACGI).
Now in its third year, the ACGI maps African cities’ economic outlook according to their potential for inclusive urbanisation.
The 74 analysed cities are organised into three categories by population size: large (over one million), medium (between 500,000 and one million) and small (under 500,000).
Twenty five economic and social inclusion indicators rank cities’ level of inclusive urbanisation, forecasting potential for inclusive growth.
Once ranked, the cities fall into one of four bands describing their inclusive growth potential – high, medium-high, medium-low or low.
“The ACGI assesses the potential of Africa’s cities to increase the well-being of their urban populations,” said Professor George Angelopulo of the University of South Africa, author of the 2015 ACGI. “As inclusive urbanisation is a prerequisite for inclusive growth, the study presents a measure of each city’s potential as a place to live, work and do business in the coming years.”
Maputo’s inclusive growth potential falls into the medium-high category, attributed to its share of Mozambique’s foreign direct investment (FDI), which as a percentage of national GDP is among the highest in the world.
The city boasts constantly improving levels of government effectiveness, regulatory quality, and ease of doing business.
Angelopulo notes that Casablanca – ranked second among large cities – is the only North African city with medium-high growth potential, supported by Morocco’s relative stability in a turbulent region.
In Lagos (Nigeria), the third-ranked large city which also has medium-high growth potential, the increase in percentage of middle class households is significant due to the number of citizens that increase represents, and the effect they will have on future consumption in the city.
The 2013 and 2014 top-ranked city, Accra (in Ghana), now ranks seventh due to lower than anticipated revenue from the country’s Jubilee oil fields, exacerbated by the collapse of the oil price.
The cost of wage increases, subsidies and debt repayments further undermines economic expansion projected for Accra.
“Each city assessed by the ACGI has a unique set of socio-economic, cultural and political factors that influences its growth trajectory,” said Angelopulo. “However, a city’s response to the drivers of population growth, urbanisation and an increasing middle class ultimately determines the upward or downward direction of its inclusive growth.”
“Cities with skilled and educated populations, low levels of crime and corruption, higher discretionary income, regulatory stability and predictable commercial environments are beacons for talent, business and investment, and they offer their citizens greater promise than cities without these characteristics,” he said.
The only large cities in Southern Africa are located in South Africa, and all rank lower than in the 2014 ACGI report.
Slow economic growth combined with increasing populations make it likely that South Africa’s cities are likely to experience greater inequality over the next decade.
Pretoria is the South African city with the greatest potential for inclusive growth, followed by Johannesburg, Durban, Cape Town and Port Elizabeth.
Matola, adjacent to Maputo to the west, is the ACGI’s medium-sized city with the highest potential for inclusive growth.
It is also the city with the highest potential for growth throughout Mozambique, suggesting the positive outlook for the inclusive economic growth and development of Mozambique in the future. Matola is followed by Nouakchott (Mauretania) and Libreville (Gabon). All three cities have medium-high inclusive growth potential.
Of the small cities assessed, Windhoek (Namibia) and Victoria (Seychelles) rank first and second respectively with medium-high inclusive growth potential. Gaborone (Botswana) is third, with medium-low inclusive growth potential.
Mark Elliott, Division president for South Africa, MasterCard believes that cities have a leading role to play in economic growth, particularly in the developing world where rapid urbanisation and an expanding middle class characterise the evolution of most of them.
“However, inclusive growth is not possible without appropriate financial services and instruments in place to benefit the under banked and those excluded from the formal banking system.
“The only way to ensure sustained, inclusive economic growth is through the financial inclusion of all individuals, communities and countries – starting with the inclusive development of cities.”
By supporting and investing in academic research like the ACGI, which provides insights into the opportunities for investment, commerce and higher standards of living in Africa, MasterCard provides valuable business intelligence to its customers, local governments and the investment community at large.
MasterCard is a technology company in the global payments industry that operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories.
MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone.
Central Bank of Nigeria (CBN) has warned non-interest financial institutions against governance and compliance risks capable of undermining public confidence and financial stability in the country’s growing Islamic finance sector.
Interest-free banks, often known as non-interest or Islamic banks, operate without charging or paying traditional interest (Riba).
The warning was contained in a press statement issued by the apex bank following the 2nd Annual Interactive Session between the CBN Financial Regulation Advisory Council of Experts and the Advisory Committees of Experts of Non-Interest Financial Institutions held at the CBN Auditorium in Abuja.
Speaking through Dr Rita Sike, director of the Financial Policy and Regulation Department, Philip Ikeazor, deputy governor, Financial System Stability, said the rapid expansion of the industry had increased exposure to operational and regulatory vulnerabilities.
The statement read, “The Deputy Governor, however, observed that as the industry grows in size, sophistication, and interconnectedness, it faces unique risks, particularly non-compliance risk, governance challenges, operational vulnerabilities, and emerging technological risks.
“He warned that such risks, if not properly managed, could undermine public confidence, financial stability, and the overall credibility of the non-interest finance ecosystem.”
According to the CBN, the engagement was part of ongoing efforts to strengthen Shariah governance, improve regulatory clarity, and reinforce risk management standards within the non-interest financial services industry.
The apex bank noted that non-interest financial institutions continued to play an increasingly important role in Nigeria’s financial system by providing ethical and Shariah-compliant alternatives to conventional banking.
It stated that the institutions were also contributing to financial inclusion, real sector financing, micro, small, and medium enterprises development, and shared prosperity.
The CBN further explained that the establishment of FRACE and the mandatory constitution of ACEs across all non-interest financial institutions were designed to institutionalise a harmonised governance framework for the sector.
According to the statement, sustained interaction between FRACE and ACEs remained critical to ensuring that regulatory expectations were properly understood and consistently implemented across the industry.
“The objectives of today’s session include fostering the institutionalisation and effective operation of a robust Shariah governance system within Non-Interest Financial Institutions, and providing a structured platform for dialogue, knowledge-sharing, and collaboration,” Ikeazor was quoted in the statement.
In his remarks, Prof Bashir Umar, deputy chairman of FRACE, said the interactive session was aimed at strengthening governance within the non-interest finance sub-sector and promoting constructive engagement between regulators and industry advisory committees.
He also commended the management of the CBN for reviving the session, which was first introduced in 2014.
Earlier in her welcome remarks, Sike reaffirmed the apex bank’s commitment to building a strong and well-governed non-interest financial services industry.
She noted that the growing diversity of products and delivery channels, particularly the emergence of Islamic fintech, had increased the need for stronger regulatory oversight and continuous engagement among industry stakeholders.
“The growing diversity of products, institutions, and delivery channels, particularly with the emergence of Islamic fintech, underscores the need for continuous dialogue, sound regulatory oversight, and robust advisory input from scholars and practitioners,” she said.
The session featured technical presentations on Shariah non-compliance risks in non-interest banks and the role of Islamic fintech in driving financial inclusion.
Participants at the event included members of FRACE, chairmen and members of various ACEs, managing directors of non-interest banks, senior CBN officials, and representatives of the Bank of Industry and the Securities and Exchange Commission.
Federal government is in discussions with the World Bank over a proposed $1.25 billion loan facility aimed at supporting economic reforms, job creation, and competitiveness programmes across Nigeria.
A World Bank document titled Nigeria Actions for Investment and Jobs Acceleration showed the facility has moved beyond the concept and appraisal stages and is now scheduled for a decision meeting ahead of a planned Board presentation on June 26, 2026.
If approved, the loan would become Nigeria’s second-largest World Bank financing package after the $1.5 billion Reforms for Economic Stabilisation to Enable Transformation Development Policy Financing approved in June 2024.
The document listed the Federal Republic of Nigeria as the borrower, while the Federal Ministry of Finance will serve as the implementing agency.
It explained that the project is currently at the decision-meeting stage of the World Bank’s project cycle, where final appraisal documents undergo internal review before submission to the Board of Executive Directors for approval.
At this stage, the institution confirms policy actions, financing terms, and reform commitments already agreed in principle between Nigeria and World Bank teams.
It also said the proposed facility will support government efforts to expand access to finance, digital services, and electricity, while strengthening competitiveness through reforms in taxation, trade, and agriculture.
World Bank says loan will support finance, digital access, and electricity reforms
Between June 2023 and May 2026, the World Bank approved about $9.35 billion in loans and credits for Nigeria across key sectors including power, education, healthcare, agriculture, renewable energy, social protection, and MSME financing.
Major approvals during the period include the $2.25 billion RESET and ARMOR reform financing in June 2024, $1.57 billion for HOPE and SPIN programmes in September 2024, and $1.08 billion for education and resilience projects approved in March 2025.
Ecobank Group, a pan-African banking group yesterday announced a landmark $3 billion trade finance commitment over the next 3 years to accelerate intra-African global trade.
The announcement was made during the Africa-Forward Summit in Nairobi, within the framework of the bank’s active engagement in the Africa-France Impact Coalition (AFIC) led under the patronage of H.E. President Macron of France and H.E. President Ruto of Kenya.
This ambitious commitment, specifically designed to build integrated value chains and foster shared economic sovereignty reinforces the group’s unique position as the premier financial gateway connecting Africa and the world.
Building on a proven track record across 34 African markets, Ecobank Group will partner with Development Finance Institutions (DFIs), including Proparco, to deploy this $3 billion commitment.
By expanding access to competitive trade finance, the funds will directly fuel the core engines of Africa’s real economy: agribusiness, manufacturing, and general commerce.
This strategic deployment is designed to accelerate the structural transformation of the continent, anchoring future growth in sustainable industrialization, resilient infrastructure, and human capital.
By strengthening liquidity, providing guarantees, and deploying specialized trade instruments, Ecobank will help African businesses secure essential inputs, access new markets, and build resilience within increasingly complex global supply chains.
Chief Executive Officer 9f Ecobank Group, Jeremy Awori said: “The Africa-France Impact Coalition marks a fundamental shift toward shared sovereignty and integrated supply chains, and we are proud to drive this vision.
“Africa is rising and trading. By leveraging our Paris banking hub and partnerships with DFIs like Proparco, we are connecting African opportunities with global capital. This initiative is more than a financial commitment, it is a catalyst for trade, investment and talent – the pillars of Africa’s next decade”.
This $3 billion commitment signals strong confidence in Africa’s capacity to industrialize, scale production, and participate as a highly competitive partner in global trade, strongly aligning with the moment of intra-Africa trade acceleration.
Strategy gateway through Paris & expected outcomes
Central to this pledge is EBISA, Ecobank’s Paris-based hub, which serves as the critical gateway connecting African enterprises with international markets. EBISA will anchor the cross-border flows that drive both investment and trade, facilitating the “Made in Africa” and “Co-Made in Africa and France” ecosystems.
By focusing not just on capital, but on the entrepreneurs, small business owners, youth innovators, and women-led enterprises that drive the continent forward, Ecobank will deliver measurable impact across five priority dimensions:
Support sustainable development across Ecobank’s expansive footprint; Enhance market access for SMEs and large corporate entities;Deepen integration into regional and global value chains; Empower women and youth-led businesses; Strengthen economic resilience and long-term value creation.
Through strategic collaborations spanning trade, investment and talent, Ecobank Group and its partners in the AFIC are moving the continent forward with confidence, purpose, and impact.
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