Forex shortage challenging intra-African trade – Standard Bank report
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GUEST - Philip Myburg, Head of Africa Trade, Standard Bank Group
Standard Bank says intra-country trade in 10 key African markets remains difficult as currency volatility and international capital flight exacerbate the continent’s historic shortage of foreign currency, particularly US dollars, which is needed to pay for imports.
That’s the key finding in the 2023 Standard Bank Africa Trade Barometer, with the depreciation of local currencies, rampant inflation, rising sovereign debt burdens and higher global interest rates serving to lure international capital back to industrialised economies.
The annual barometer is based on a survey of about 2 600 businesses, of which 68% are considered small, in 10 countries: Angola, Ghana, Kenya, Mozambique, Namibia, Nigeria, South Africa, Tanzania, Uganda, and Zambia.
Standard Bank says intra-country trade in 10 key African markets remains difficult as currency volatility and international capital flight exacerbate the continent’s historic shortage of foreign currency, particularly US dollars, which is needed to pay for imports.
That’s the key finding in the 2023 Standard Bank Africa Trade Barometer, with the depreciation of local currencies, rampant inflation, rising sovereign debt burdens and higher global interest rates serving to lure international capital back to industrialised economies.
The annual barometer is based on a survey of about 2 600 businesses, of which 68% are considered small, in 10 countries: Angola, Ghana, Kenya, Mozambique, Namibia, Nigeria, South Africa, Tanzania, Uganda, and Zambia.
