In the latest issue of Banker Africa, Vincent O’Brien – Chair of Market Intelligence at the International Chamber of Commerce (ICC) Banking Commission – elucidates the recent challenges facing Africa.
Despite the fact that the UK has not yet left the EU, Brexit is already impacting Africa. Indeed, widespread uncertainty, slow investment decisions, delays with trade agreements, and the UK currency decline has been affecting African exports.
In addition, the drop in commodity prices is also impacting the region, with ICC’s 2016 Global Survey on Trade Finance revealing that 80% of Africa’s exports based on raw, unprocessed, commodities, and 20% on processed goods. O’Brien explains how this decline, coupled with economic weakness from the EU and China – Africa’s two largest trading partners – has contributed to a trade finance gap in the region estimated at around US$120 billion.
To read the full article, please click here and turn to page 14.