Africa’s Nedbank on accelerating African free trade

As the African Continental Free Trade Agreement (AFCA) continues to make waves as the largest trade agreement in the world and its youngest, the potential for growth in intra-African trade is evident. Currently sitting below 20 per cent, the drive to push this number higher is a focus for many institutions like Nedbank CIB. Niron Rampersad, Divisional Executive of Trade at Nedbank CIB, sat down with CNBC Africa to discuss the efforts being made to accelerate African free trade. Rampersad highlighted Nedbank CIB's deliberate trade finance strategy, showcasing their recent attendance at the GTR Conference, where the AFCA was a key topic of discussion. The institution is aiming to drive more local trade across Africa, recognizing the challenges that still need to be overcome. By reinvesting in trade and supply chain finance strategies, Nedbank CIB is actively seeking to enhance their presence and impact on intra-African trade. The focus on East Africa has been a strategic move for Nedbank CIB, with Rampersad noting the region's growth potential in industries such as agriculture, FMCG, and telecommunications. By aligning their expertise in energy, agriculture, and infrastructure with the needs of East African clients, Nedbank CIB aims to enhance trade flows in the region. Discussing the broader landscape of trade finance, Rampersad acknowledged the necessity for collaboration among various financial institutions, insurers, and ECAs to address the $2.5 trillion trade financing gap. The complexity of intra-African trade highlighted the need for joint efforts to drive growth and reduce barriers. Addressing infrastructure challenges, Rampersad emphasized the importance of improving transportation networks to facilitate the seamless movement of goods and people within Africa. Despite progress being made in reforming trade barriers, there is still much work to be done to elevate intra-African trade above the current 20 per cent mark. The AFCA Secretariat's collaborative efforts were commended by Rampersad, who stressed the need for continued investments in infrastructure and increased public-private partnerships to further drive intra-African trade. One key initiative highlighted was the digitization of trade processes, with a local consortium of South African and international banks working together to improve efficiency and transparency in trade transactions. In conclusion, Rampersad expressed optimism about the ongoing efforts to boost intra-African trade and emphasized the importance of sustained collaboration and innovation to overcome existing challenges. As Nedbank CIB continues to focus on driving inter-African trade, the institution remains committed to supporting the growth and development of trade across the continent.