Banking in Africa: Continent of dreams - Across Africa, banks are expanding. Their returns aren’t

Banks in Africa are expanding with the promise of increased interest rates, but the cost of building branches and investing in growth are keeping interest rates low.  The banking market in Africa is potentially vast, as almost half of the countries in Africa have less than 20% of the population holding an account at a formal financial institution.  Access to banks also varies vastly within countries.  Now there is a chance to reach out to poorer countries with banking opportunities due to technology such as prepaid cards and mobile banking which lower the level of GDP needed to make a profit.  African retail banks may be able to achieve a cost-to-income ratio of 30% whereas rich-country banks are usually happy to get a ratio of 50%.  The global financial crisis also contributed to the expansion of retail banking within Africa as opposed to international expansion.  As domestic and regional banks gain access to capital markets, will international banks like Goldman Sachs and Morgan Stanley who hold very little local presence be able to compete?  Some banks are now attempting to be an international presence while also offering retail- and corporate-banking services.  Do you guys think that this approach will work?

http://www.economist.com/news/finance-and-economics/21572768-across-africa-banks-are-expanding-their-returns-arent-continent-dreams