“Global interest in trade partnerships with Africa cannot be overstated”
Aneish Kumar, managing director and country executive at BNY Mellon India, feels that establishing domestic bank partnerships is key to tapping burgeoning trade opportunities in Africa. September 05, 2013 | Aneish KumarThere is no denying that the current percentage of global trade contributed by Africa is tiny, at 2%. That said, Africa has been home to six of the 10 fastest-growing economies in the world – a number that is only expected to grow. According to the International Monetary Fund, trade in the region is on track to rise 5% this year while World Bank noted that Africa could be on the brink of an economic take-off, much like China (30 years ago) and India (20 years ago). Trade between Africa and the rest of the world has tripled in the last decade, with an increase in exports and imports of more than 200% from 2001 to 2011. This has led to positive forecasts about Africa emerging as the new trade corridor linking markets in the Middle East and Asia (AMEA) region. The global interest in forming trade partnerships with Africa right now cannot be overstated. In the short-term, the rapid pace of economic development in emerging nations in AMEA, coupled with slow domestic growth in developed nations, will continue to drive this trend. There is a recognised need to accelerate and deepen engagement across the African continent. It is essential for African countries to increase investment in trade-related infrastructure and other trade facilitation measures to reduce red-tape, transaction costs and expedite the movement of goods, services and people across borders. I believe these will give an edge to banks dealing with African trade. Banks will need to establish local partnerships to promote an “enabling” environment for intra-regional trade, as well as facilitate a better understanding of the businesses and financial communities in Africa. Economic governance and transparency also have to be improved amongst banking partners while promoting regional integration. Another notable initiative that has to be implemented is to standardise the level of communication between banks and corporates for Trade Finance services. The push for evolut... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Cash, Treasury & Trade, Trade Finance, Transaction Bankingcash,Trade Finance,Transaction Banking, Cash, Treasury & Trade,Trade Finance,Transaction Banking, Keywords:Aneish Kumar, BNY Mellon India, Africa, AMEA, Trade Facilitation, BPO, Sibos 2013 Aneish Kumar, BNY Mellon India, Africa, AMEA, Trade Facilitation, BPO, Sibos 2013
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