Trade is at the very heart of the African economy. In 2019, 53% of African markets’ GDP was determined by exports and imports. Recently, the continent has worked together to establish the African Continental Free Trade Area – the largest in the world by area – to ease the cross-border flow of goods. What’s more, African markets are increasing their presence in emerging sectors, such as in sustainable energy, reaffirming its relevance in the modern age. Furthermore, according to the International Chamber of Commerce (ICC) Trade Register, African trade finance has an incredibly low product default rate – often better than that found in developed markets. Yet trade in African markets is still often perceived as high-risk despite these developments.
Of course, there are issues that require risk mitigation, and this is where the market expertise, product knowledge and longstanding relationships of a specialist trade finance bank can help, writes our Chief Banking Officer Damian Austin in African Business.
Read the full article here.
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