Standard Bank unveils trade barometer for Africa

Standard Bank has recently released a groundbreaking report, the Standard Bank Africa Trade Barometer, shedding light on the current state of trade across 10 key African markets. The report offers a comprehensive view of the enablers and challenges facing trade in Africa, encompassing both micro and macroeconomic overviews of each market. CNBC Africa recently interviewed Philip Myburgh, Head of Trade for Business & Commercial Banking at Standard Bank, to delve into the key findings of the report. The report covers 10 markets across East, West, and Southern Africa, representing a significant portion of Africa's GDP and population. Through interviews with over 2,200 SMEs, data from institutions like the World Bank and IMF, as well as insights from 30 experts, the report provides a wealth of information on trade trends in the region. Despite the challenging economic conditions in many African countries, some have shown notable improvement. Tanzania, for instance, has climbed several places in the barometer due to positive policy movements, increased regional trade, and significant infrastructure projects. The country's expansion of road networks has had a positive impact on trade, highlighting the importance of infrastructure development. While GDP growth and high inflation remain challenges across many markets, there is a sense of Afro-optimism prevailing. Business confidence levels have remained stable, with some countries, like Ghana, showing signs of improvement. Over 70% of SME respondents expect an increase in turnover and trade volumes in the coming year, reflecting a positive outlook. Government policies play a crucial role in enabling trade, and the report highlights the impact of policy changes on SMEs. While some countries struggle with unpredictable taxes and access to credit, others, like Mozambique, have implemented pro-SME policies that are positively impacting trade sentiment. The African Continental Free Trade Area (AfCFTA) also plays a significant role in promoting regional trade and enhancing Africa's global trade partnerships. Financial behavior, including access to credit and cross-border payments, is a key theme in the report. While access to credit has improved in certain stable economies, digital financial services are becoming increasingly prevalent in cross-border transactions, contributing to a more secure and efficient trade environment. South Africa, although not the primary focus of the report, is experiencing stable business confidence levels. The country's government initiatives and improving power supply have been well-received, despite challenges in trade infrastructure at ports. Some trade volumes that historically went through South African ports are now shifting to neighboring countries like Mozambique. The report also emphasizes the importance of supporting youth and women entrepreneurs in driving economic growth. With millions of young people entering the job market each year, fostering entrepreneurship at the SME level is crucial for sustained growth. Technology, especially digitization and AI, plays a vital role in improving trade efficiency and customs processes, highlighting the need for youth involvement in trade digitization initiatives. The Standard Bank Africa Trade Barometer stands out for its focus on SME insights, providing a unique perspective on trade trends in Africa. By engaging with policymakers and financial institutions, the report aims to drive strategies that support inclusive trade growth and empower the continent's entrepreneurs.