The Impact of Higher Interest Rates on African Banks

High inflation and higher interest rates will challenge the profitability of African banks if you think about the net impact. We expect expenses to go up given the higher inflation, particularly in countries like South Africa where there's a large proportion of the workforce that's unionized. But we believe that costs in Nigeria will increase but to a lesser place of inflation in line with historical trend. And then Kenyan banks, which have pretty advanced digital operations will also be able to manage the costs quite well.