INTO AFRICA June 2017 Edition: Trade Finance Africa’s Growth Enabler

LAGOS (Capital Markets in Africa) – Welcome to the June edition of INTO AFRICA, the publication with fresh insight into Africa’s Emerging capital markets. This edition focuses on the Insurance sector and is titled: Trade Finance: Africa’s Growth Enabler. Please download by clicking: INTO AFRICA PUBLICATION: JUNE 2017 EDITION.

African economies face challenges in the area of trade, both in terms of trade between African countries and trade with non-African countries. The problems are so significant that Africa’s share of global trade is a miserable 2.4 percent despite having 15 percent of the world’s population and a combined GDP of three trillion US Dollars. One of the major issues facing Africa is the cloak of protectionism that many Western trading partners (such as the EU and the USA) drape over their countries companies, thereby unfairly distorting competition in trade. Another major hindrance to the growth of trade in Africa is poor access to affordable trade finance.

The time has come for African governments, policymakers and private sector leaders to rise to the trade challenge and drastically increase Africa’s share of global trade. This will undoubtedly lead to the creation of greater prosperity for many Africans. Trade volumes need to increase significantly between Africa and the developed economies and emerging economic giants. However, the area that offers by far the greatest scope for growth and development is the intra-African trade. This is a huge untapped potential that can be maximised if Africa develops appropriate sea, rail, and road transportation between African countries as well as establish an enabling cooperative legislative framework (including free movement of capital, goods and people) amongst African nations.

That said, the role that trade financing techniques and solutions must play if this seismic shift in trade is to occur cannot be overemphasised. Simply put, whilst physical and legislative infrastructure may provide the fuse needed for the dramatic lift-off of Africa’s economy, it is trade finance that will provide the light that sparks the fuse.

Please download by clicking: INTO AFRICA PUBLICATION: JUNE 2017 EDITION.