A four-step programme to get Africa out of its rut
The continent should focus on these basic priorities to attract investment and narrow its trade finance deficit, two Absa executives write
For Africa to narrow a trade finance gap that is nearing $120bn (about R2.2-trillion) a year, we need stakeholders to take a more nuanced approach to risk and partnerships in 2024.
Prior to the pandemic and associated lockdowns, Africa was making progress in reducing the trade finance gap as emerging markets attracted capital. A combination of geopolitical risk factors, a liquidity challenge as a result of a stronger dollar and weaker local currencies, as well as the cost-of-living crisis and higher interest rates, have combined to create an environment where banks are more risk-averse — limiting emerging market investments by sovereigns in transformative projects...
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