African economies may struggle to meet the employment needs of their rapidly growing populations unless domestic savings are significantly increased, Ecobank Group CEO Jeremy Awori has cautioned. Speaking to Bloomberg, Awori highlighted that stronger internal capital formation is essential to fund the infrastructure, industry, and services needed to absorb millions of young jobseekers each year.
Awori explained that limited local savings have become a structural bottleneck. Banks, reliant on small deposit bases, cannot lend at scale to businesses and developers, slowing investment in productive sectors and constraining job creation. He stressed that foreign capital, while useful, is volatile and cannot reliably replace stable domestic savings as a foundation for long-term growth.
“Low savings mean low lending capacity,” Awori observed, urging households and corporations to cultivate a stronger culture of saving. He warned that relying on rapid credit expansion without growing deposits introduces systemic risk, making a larger domestic savings base crucial for sustainable economic development.
The Ecobank chief called for coordinated efforts across banks, governments, and development finance institutions to mobilise savings. Digital banking channels, micro-savings products, simplified onboarding, stable macroeconomic policies, and improved financial literacy are all necessary to encourage citizens to keep money within formal institutions rather than in cash or offshore. Development partners can also design blended-finance tools to transform domestic savings into long-term investment.
Awori’s warning underscores a broader challenge: Africa’s strong growth figures mask underlying vulnerabilities. Without a deeper pool of domestic savings, infrastructure gaps, high borrowing costs, and sluggish job creation are likely to persist, limiting the continent’s ability to deliver on its development potential. Strengthening local savings, he argued, is not just a financial goal — it is a developmental imperative.