Cover & spine - Trade Finance

SUB-SAHARAN AFRICAIn addition to infrastructure and intra-African trade, the continent’s transformedmindset is also impacting on its trading relationships. In short, the emergence of Chinain Africa, which has increased trade with the continent by 92% in the last decade, is atthe forefront of the “new wave” oftrading partners in addition toIndia. Other non-traditionaltrading partners such as Russia,In addition to infrastructure andintra-African trade, the continent’stransformed mindset is alsoimpacting on its tradingrelationships. In short, theemergence of China in Africa,which has increased trade withthe continent by 92% in the lastdecade, is at the forefront of the“new wave” of trading partners inaddition to India.Brazil and Argentina are alsoemerging to stand along side thelikes of the U.S. and WesternEuropean countries as viablepartners.When likened to a dance star,Africa with its new clothes in theform of self-reliance and a fulldance card of willing partners willneed to be mindful of a fewpotential obstacles on its way to theball. The full slate of electionsscheduled to take place acrossAfrica in the next few years willplace into sharp focus the issue ofpolitical risk. A continued trendtowards peaceful elections such asthe one recently held in Tanzaniawill help recast the perception ofincreased risk that may be prevalentin the minds of investors. But Africa must also maintain its gains in improving itsbusiness climate – The World Bank’s recent Doing Business Report noted that theSub-Saharan region registered the most gains in terms of reducing barriers toconducting business.If it can maintain its footing, the next decade may well place Africa on the verge oftruly sustainable growth that will mean opportunities for many. ■Author:George OtienoCEOAfrican Trade Insurance Agencyinfo@ati-aca.org14 TRADE FINANCE The Guide to Global Trade Finance Markets 2011