South African banks lead in Africa in terms of giving credit to the private sector.

The World Bank defines Domestic credit to the private sector by banks as financial resources provided to the private sector by other depository corporations (deposit-taking corporations except central banks), such as loans, purchases of nonequity securities, trade credits, and other accounts receivable, that establish a claim for repayment. For some countries, these claims include credit to public enterprises.

In 2023, South Africa led in the above metric, domestic credit by banks to its private sector stood at 58% of its GDP. This may be attributed to the fact that:

1. South Africa's economy is more developed than that of other African nations. Therefore, more economic activities need funding.

2. The banking sector in South Africa is more developed compared to other African countries.

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