Exploring Africa’s prospects in global supply chain shifts

Africa presents a unique opportunity for global supply chain diversification, according to Srinath Keshavan, the Chief Executive Officer of Trade Risk Consulting. In an interview with CNBC Africa at the Afreximbank Trade Finance Seminar, Keshavan emphasized the importance of harmonizing legal and regulatory frameworks to incentivize banks to finance supply chains. He discussed the concept of 'French shoring' as a strategy for businesses to connect with countries sharing similar interests and highlighted the significance of trade in driving Africa's prosperity. Keshavan also focused on enhancing domestic supply chains to improve market efficiency and transparency to attract more investments. Moreover, he examined the role of banks in supporting Africa's integration into global supply chains and the need for tailored solutions to leverage opportunities effectively. As Africa gears up for accelerated growth under the African continental free trade area agreements, Keshavan emphasized the importance of regulatory environments supporting supply chain finance. He underlined the necessity for legal frameworks that encourage banks to invest in supply chain finance and facilitate collateral registration and recovery processes. Looking ahead, Keshavan projected significant growth potential for Africa's supply chain finance market, highlighting the need for banks to invest in knowledge gathering to support supply chain development initiatives. He emphasized the role of the commercial sector in driving supply chain development and advocated for increased value addition within African supply chains to boost economic benefits, employment, technology adoption, and overall standards of living.