Ogbonna: Banking industry critical to intra-Africa trade growth

Roosevelt Ogbonna, the Managing Director of Access Bank, emphasized the vast trade opportunities that Africa holds within the realm of intra-African trade. Speaking at the inaugural Africa Trade Conference in Cape Town, South Africa, Ogbonna highlighted the pivotal role that the banking industry plays in fostering the growth of intra-African trade. With intra-Africa trade accounting for only 16 percent of global trade, there is immense potential for expansion and collaboration among African countries. Ogbonna's insights shed light on the challenges and opportunities that lie ahead in realizing this potential. One of the key issues hindering the growth of intra-African trade, as pointed out by Ogbonna, is the lack of business intelligence among small and medium enterprises (SMEs) in the continent. Many SMEs struggle to identify and capitalize on trade opportunities within their markets and across borders. To address this, Ogbonna stressed the importance of providing access to information that enables informed decision-making and facilitates cross-border trade. Additionally, trust among trade partners and the need to modernize trade routes were identified as critical factors affecting intra-African trade. Building trust and enhancing infrastructure are essential steps towards fostering collaboration and efficiency in trade relationships. Ogbonna also underscored the role of the banking industry in addressing these challenges. By leveraging technology and payment networks like PAPs (Pan-African Payment and Settlement System), banks can streamline transactions and reduce costs, thereby promoting intra-African trade. Furthermore, digitalization plays a vital role in financial inclusion and trade facilitation within the African continent. By utilizing technology to bridge the gap between the underbanked and the formal financial system, Africa can unlock economic potential and empower individuals and businesses across the region. Ogbonna's insights shed light on the transformative power of technology and collaboration in driving the growth of intra-African trade and fostering economic development across the continent.