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With a projected moderation in global economic growth over the next year, Africa presents a unique landscape with both challenges and opportunities. Crystal Orderson explores currency volatility, investment in key sectors, the impact of commodity prices and more in this week's episode.
Making a case for trade in supporting Africa’s sustained economic performance.
RMB Africa Focus S2: E2 | Trade in Africa
What was discussed
African countries are facing many economic challenges such as being dependent on commodity price movement for growth. It is for that reason that investment – a key ingredient for economic resilience – should be steered towards the agricultural, logistics and energy sectors.
According to the World Bank and the International Monetary Fund, potential solutions should involve trade focused initiatives like those implemented in Saudi Arabia, East and West Africa. The African Continental Free Trade Agreement also offers a chance to lower tariffs, improve customs effectiveness and promote economic growth on the continent.
“A leading bank like RMB is acting as facilitator of banks of the private sector that are saying: ‘Things are tough’. We know things are doom and gloom out there, but we can navigate the storm. There is some hope on the horizon.” - Crystal Orderson
Ghana's economic challenges and opportunities
Despite Ghana's economic challenges, exacerbated by the impact of COVID-19 and currency volatility, it has abundant natural resources, including cocoa and gold. To address the loss of trade confidence and supporting the search for innovative solutions, Ghana has turned to advisers and collaborators. RMB's launch of direct custody services in Ghana demonstrates the commitment to supporting the Ghanaian private sector, local and foreign fund managers as well as pension funds.
“All of us love Ghana. It has a big neighbour, Nigeria. And while it is much smaller in terms of the economy, Ghana has many natural resources such as cocoa and gold.” - Crystal Orderson
The fise of fonio – a potential unicorn:
The scale of Africa’s agricultural sector is well-documented. And while certain pockets enjoy healthy investment, it still shows massive growth potential. Fonio, also known as acha in Ghana, is an emerging superfood. Fonio is a gluten-free grain which has been cultivated on a small-scale in West Africa for thousands of years. Tipped as a replacement for quinoa, this member of the millet family is drought-resistant, requires minimal fertilizers and improves soil fertility. While traditionally grown in the mountainous regions of Burkina Faso, Guinea, Senegal, Mali and Nigeria; Ghanaian businesses have particularly embraced fonio’s export potential – distributing it into foreign markets as far afield as the US and EU.