Standard Bank’s Goolam Ballim on unlocking Africa’s growth

The Standard Bank inaugural conference under the theme ‘Unlocking Africa’ kick started in Cape Town, bringing together close to 200 participants from across the continent. The event aims to delve into Africa’s vast potential and the dynamic trends shaping its future. During a conversation with CNBC Africa’s Godfrey Mutizwa, Goolam Ballim, Chief Economist at Standard Bank, highlighted key insights into Africa's economic landscape and the opportunities that lie ahead. Ballim outlined that small and medium enterprises (SMEs) play a crucial role in Africa's GDP activity and employment creation. However, these entities often struggle to access capital and establish partnerships. Banks like Standard Bank can bridge this gap by providing capital and facilitating connections between clients, thereby fostering economic activity and unleashing growth potential. Discussing the factors fueling Africa's growth, Ballim highlighted sweeping trends such as demography, urbanization, and technology. He also pointed out the global reconfiguration of supply chains post-COVID, presenting opportunities for Africa to attract multinational firms and increase tourism. Intriguingly, amidst global geopolitical tensions, Africa emerges as a desirable destination for trade and investment. Ballim mentioned the increasing interest of Middle Eastern countries in securing agricultural supplies from certain African nations, showcasing the continent's potential as an economic hub. Furthermore, Ballim expressed optimism regarding Africa's growth prospects, projecting average growth rates between 3.5% to 4.5%. Countries like Nigeria and Angola are showing signs of improvement, with expected growth rates in the coming years. East Africa stands out as a growth engine, with nations like Kenya and Rwanda projected to achieve steady growth rates. Notably, Ballim discussed South Africa's potential to drive regional growth, emphasizing the importance of political reforms and enhanced industrialization efforts. He highlighted the benefits of increased trade within the region, particularly in East Africa where intra-regional trade accounts for a significant portion of international trade. Addressing the challenges of trade integration, Ballim emphasized the need for Southern Africa, particularly South Africa, to expand its trade networks with bigger economies on the continent. By leveraging existing customs unions and improving trade infrastructure, South Africa can enhance its position as a conduit for regional trade. In conclusion, Ballim touched on the evolving global landscape and its implications for African economies. He emphasized the need for business leaders to adapt to structural changes and geopolitical shifts, underscoring the importance of being more than just financial experts. With Africa gaining prominence on the global stage, partnerships and collaborations with international players present new avenues for growth and development. As the conference continues to unfold, Standard Bank's initiative to unlock Africa's potential serves as a catalyst for meaningful discussions and collaborations, fostering a brighter economic future for the continent.