INTO AFRICA July 2019 Edition – Trading Africa’s Prosperity

Welcome to the July 2019 edition of INTO AFRICA, a publication written by the professionals, for professionals, investors, policymakers … Advancing and providing fresh insight into Africa’s emerging markets through renowned thought leadership and peer-to-peer knowledge-sharing. The edition is titled: Trading Africa’s Prosperity.

Africa is fundamentally a trading continent. The socio-economic structure of most African countries hinges on trade; however, trade still accounts for 51 percent of Africa’s GDP according to World Bank data. The last few years have proved difficult economically for much of Africa. This, together with political issues and constraints on access to finance, has resulted across much of the continent in a drop off in inward investment levels. In addition, economic growth has not lived up to hope or expectation amidst resurgent nationalist movements in the US-China trade war, as well as polarisation and geopolitical turmoil around Brexit.

Integration has re-emerged as a key factor in securing Africa’s prosperity. Africa has over the years, especially since the 1960s, established continental and regional integration bodies and frameworks, that have provided auspices for political and economic milestones. Amidst the independence movements, Kwame Nkrumah, Ghana’s first President, pronounced that “Africa must unite or perish”. The African Continental Free Trade Area (AfCFTA) has accelerated integration efforts with 52 African countries signed up to date, making it the largest free trade area since the creation of the WTO. At the market of over 1.2 billion people, and consumer and business spending already over US$4 trillion annually and estimated to hit US$5.6 trillion annually by 2025, has opened for economic operators to pursue.

SIMON COOK (Trade & Export Finance Partner at International Law Firm Sullivan in London) opens this edition by looking at some of the issues and how certain types of financiers may be able to help to reduce the trade finance gap in Africa. Whilst SRINATH KESHAVAN (Chief Executive, Trade Risk Consulting Pte. Ltd. Singapore) provides us with an overview of the trade finance transactions. In parallel, JOHN LENTAIGNE (Acting Chief Executive Officer, African Trade Insurance Agency) looks at the challenges and opportunities as well as risk management in reducing African trade finance gap.

And,  we bring you exclusive interviews with executives. COBUS VISAGIE (CHIEF EXECUTIVE OFFICER, AFRICA MERCHANT CAPITAL LIMITED) views that the yield on well packaged Africa credit is attractive. GEORGE WILSON (HEAD OF TRADE: FINANCIAL INSTITUTIONS, ABSA, AFRICA) opines that Africa’s trade finance gap is a systemic failure of African SMEs to obtain needed credit. The BPL GLOBAL directors, GEORGE BELLORD and SAM EVANS hint that the general perception is that we are living in increasingly uncertain times. As well, MOHAMMED KATEEB (GROUP CHAIRMAN & CEO OF PATH SOLUTIONS) talks about Path Solutions’ vision. ALEXANDRE MAYMAT (HEAD OF AFRICA, MEDITERRANEAN BASIN & OVERSEAS, SOCIÉTÉ GÉNÉRALE) states that Societe Generale’s roots in the financing of the real economy in Africa.

PLEASE CLICK TO DOWNLOAD – INTO AFRICA PUBLICATION: JULY 2019 EDITION.