Standard Chartered has just published its Trade20 Index, the study that identifies the 20 global economies in
higher potential for commercial growth. Côte d'Ivoire (in the lead) and Kenya (3rd) won, while
that Ghana (13th) follows suit. Details.
First in standard Chartered's newly released trade index, Côte d'Ivoire appears
as the country with the highest potential for future trade growth in the world. Kenya comes in third
of the Trade20 Index, behind India and ahead of China. To reach these conclusions, the experts of the bank
The UK analysed 66 economies around the world, including 14 in Africa. The growth potential of br trade in each of these economies was determined on the basis of three criteria. First the
economic dynamism that takes into account GDP growth, growth in the volume of
exports, then trade readiness to assess the extent to which the local market has
a solid foundation to support future business growth. At this level, analysts have notably
looked at the quality of infrastructure, the penetration of e business. The third is specifically that of export diversification. "Trade20 reveals
whereas the main markets in the Asia-Pacific, Africa and the Middle East region are showing progress
particularly impressive in the growth potential of trade. Emerging markets plus
small ones such as Côte d'Ivoire, Kenya and Oman are on an upward trajectory, progressing from
from a relatively low starting point," comments José Vinals, President of Standard Chartered. One
GDP growth above 7% in Côte d'Ivoire Côte d'Ivoire owes its ranking to the way by
which, in the space of seven years, it has gone from an economy unbalanced by the socio the most dynamic economy in French-speaking Africa. Even if Côte d'Ivoire will have to make the effort to maintain
an upward trend in its Foreign Direct Investment (FDI), analysts at Standard Chartered
expect GDP growth in this West African country to remain above 7% during the next decade. "Compared to other African economies, Côte d'Ivoire has infrastructure
relatively developed. Abidjan, the main urban center of this market, has expanded its port and its
airport, strengthening its position as a key business hub for West Africa. The increase in
public spending has boosted the manufacturing industry of the market and the administration is also trying
to improve the overall business climate," the study's authors comment. Kenya gives pride of place to
Investment in infrastructure Kenya, meanwhile, is eating the fruits of its recent
infrastructure investments that have boosted its readiness for international trade, b the experts behind the Trade20 Index. In addition, "Big Four Agenda" also feeds optimism around
kenya's potential in global trade, according to the report. As a reminder, this vast plan of
Development announced by President Uhuru Kenyatta at the end of 2017 aims to put Kenya in the circle
emerging countries still closed by 2022. One of the main objectives of this strategy is to make
manufacturing is the main provider of wealth. On the other hand, says the Standard
Chartered, the state will have to maintain its debt at an acceptable level and the private sector will need the
a boost from banks through interest rate relief, in order to further facilitate financing
SMEs and SMIs. Just at the end of August, China babies, presented as the largest in East Africa. Ghana's rise Came 13th in the index,
behind Russia and far ahead of Singapore and Switzerland, Ghana has the merit of displaying "good
performance, progressing rapidly from a relatively low base," the report summarizes. "Africa, which
home to some of the world's fastest-growing economies, could become a player
much more important on the global trade scene. Already linked to the trading powers in
Asia, especially in China, through the New Silk Road and the launch of the CFTA [the agreement
free trade area, Editor's note], we see many growth opportunities for the
trade and investment in the coming years," said Saif Malik, Regional Co Middle East, Global Banking, AME, Standard Chartered Overall, it is at this level that the merit of these three African economies is explained. They all start from a much
less important than the majority of other countries ranked in the Trade20 Index. In addition, the entry into force
of the free trade area agreement could further boost the trade performance of countries
the best prepared, i.e. Côte d'Ivoire, Kenya and Ghana, based on the Standard
Chartered. And before being global, the trade potential of these economies could first be driven by the
trade within African borders. "Intra-African trade, which has generated a rate of
growth of more than 17%, more than three times that of extra-African trade, which increased by almost
5%," explained Hippolyte Fofack, Chief Economist & Director of Research and Cooperation
international at Afreximbank, in a recent interview with La Tribune Afrique. The others
African economies studied as part of this index are Angola, Botswana, Cameroon, Egypt,
Gambia, Nigeria, Sierra Leone, South Africa, Tanzania, Uganda and Zambia. By
Authors of the study, these economies still have a lot of work to do to improve their FDI flows
and their doing business conditions, while building strong institutions.