US-Africa Leaders Summit: Standard Bank Group CEO on reducing trade barriers in Africa

Standard Bank Group, the largest bank on the African continent by assets under management, is taking a lead in driving sustainable growth through enhanced trade and investment opportunities in Africa. As a diamond sponsor of the 2023 US-Africa Business Summit, the bank is at the forefront of reducing trade barriers and facilitating the movement of goods, people, ideas, and capital between the United States and Africa. With a thousand American companies present at the summit, including leaders, ministers, and officials from the US, the platform is ideal for fostering conversations around trade and investment. Sim Tshabalala, Chief Executive Officer at the Standard Bank Group, highlighted the significant disparities in trade volume between Africa and various global partners. While trade between Africa and the EU stands at $316 billion and with China at $250 billion, the trade volume between the US and Africa is relatively low at $50 billion. The long-standing historical relationship between Africa and the US creates immense untapped opportunities for both African and American corporates and governments to engage in mutually beneficial partnerships. As a proactive participant in these discussions, Standard Bank plays a pivotal role in connecting various stakeholders, including governments, corporates, financial institutions, and investors. With operations in 20 African countries, the bank is actively involved in real economic activities such as facilitating cross-border trade, providing infrastructure financing, and supporting consumer finance. By bridging the gap between entities in need of funding and those seeking investment opportunities, Standard Bank is instrumental in driving trade and investment across the continent. One of the key challenges discussed at the summit is the need to address trade barriers such as tariffs, non-tariff barriers, corruption, and inefficiencies in cross-border transactions. Tshabalala emphasized the importance of creating an enabling environment for businesses to thrive by streamlining processes, reducing costs, and promoting ease of doing business. By advocating for policy reforms and collaborative efforts to enhance trade facilitation, Standard Bank aims to unlock the vast potential of the African market for investors and corporates. Despite the long-standing challenges, Tshabalala expressed optimism about the receptiveness of African leaders towards addressing these issues. He cited the example of the East Africa community where efforts to reduce trade barriers have resulted in a more integrated and thriving regional market. By fostering strong political leadership and making strategic policy decisions, African countries can replicate this success and drive economic growth across the continent. In the context of the African Continental Free Trade Area (AfCFTA), Standard Bank is actively engaged in initiatives such as the Pan-African Payment and Settlement System to facilitate seamless money movements between African countries. By collaborating with institutions like the AfriAxion Bank, the bank aims to reduce transaction costs and promote cross-border trade within its network of subsidiaries. Beyond trade and investment, Tshabalala's recent appointment to a select group of CEOs working with the World Bank underscores the bank's commitment to addressing pressing global issues such as climate change, poverty, and inequality. By leveraging the collective expertise of industry leaders, the group aims to mobilize financial resources and drive policy reforms to support sustainable development initiatives in emerging markets. As Standard Bank Group continues to spearhead efforts to reduce trade barriers, promote sustainable growth, and foster economic development in Africa, the bank remains a key player in driving positive change and creating opportunities for businesses and communities across the continent.