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DRC’s Banking Sector An ‘End User’ For Large Businesses

DRC’s Banking Sector An ‘End User’ For Large Businesses

http://youtu.be/oqv78VpgZVc

According to Bloomberg TV Africa, infrastructural operation costs can sometimes create a bump in the road for DRC banks. Large public investments take a while to expend —  and when they are used, it’s for big city projects. While the banking sector has expanded, the country’s SMEs sometimes get the short hand of the investment stick as interest rates and defaults are high.

“The banking sector grew like five or six times the GDP growth over the last decade, so it’s very impressive,” Michel Losembe, president of the Congolese Banking Association told Bloomberg TV Africa. “Local banks today are more [so] acting like an end user at the end of the chain for the large businesses and have more of a role in the cash management side, rather than really financing the growth of the economy.”