FREE TO READ | Overcoming global challenges of imports and exports
Trade finance products put forward as a solution, while supply chains must try to normalise after the pandemic
Businesses are faced with global economic headwinds, supply chain disruptions and increased requirements to align with environmental, social and governance (ESG) considerations.
Financial institutions can help businesses better manage these challenges with specifically designed trade finance products, according to Justin Milo, executive, head of Trade SA for Standard Bank Group.
“These solutions are not a means to an end in themselves, but are part of a broader solution to promote economic growth and sustainable development in emerging market economies and especially closer to home in Africa.”
In addition the World Trade Organisation has noted supply chain challenges arising from the pandemic are likely to last longer than originally expected, possibly into 2023, and that developing economies would be persistently marginalised by weak links in supply chains.
In SA, the Transnet strike further affected already weakened supply chains, with about 7,800 containers of citrus fruit alone, destined for export from the Western Cape and Eastern Cape, affected.
Rising interest rates and higher inflation have resulted in softer consumer demand, leaving retailers in an overstocked position with a significant amount of their working capital tied up in inventory.
Read these stories and how businesses are working to overcome this changed trading environment.