Financial Focus 2023

Welcome to the 2023 edition of Financial Focus, PwC’s industry publication for the financial services sector in the East Africa region. I’d like to start off by highlighting three topical areas within the region’s financial services sector. First, for the insurance industry, IFRS 17 is a key topic of discussion as this will be the first year of implementation and reporting under the new standard. It is a rush to the finish line for many players in the industry.

Secondly, I’d like to emphasise the importance of robust cybersecurity measures as the financial services space continues digitising and advancing technologically. Increased automation and digitisation brings along with it certain new risks. In July 2023 we witnessed a series of cyber incidents in Kenya, testing the cybersecurity and resilience of public systems and organisations. This was a wake up call for organisations in the region, especially those in the financial services sector.

Thirdly, the financial sector in East Africa has not been spared by the various macroeconomic trends witnessed globally. There has been an economic slowdown characterized by high inflation, rising interest rates and depreciation of most currencies against the US dollar. The global economic growth is projected to slow down to 3% in 2023, with the slowdown affecting most countries. In East Africa, although a slowdown is expected, GDP growth is still expected to be around 5%. The Russia-Ukraine conflict demonstrated how interlinked the world economy is and how a conflict in a small part of the world can cause disruptions globally.

This Financial Focus edition shares insights on topics that are relevant to financial institutions across the East Africa region. Many of our financial services clients operate regionally and the contributors to articles in this edition reflect this regional outlook.