Johannesburg - Standard Bank has said that the fall in commodity prices should not deter companies from doing business in Africa as the continent still has huge investment opportunities besides mining and oil.
The bank’s head of commercial banking in Africa, Manessah Alagbaoso, said Africa had huge potential and investors needed to look beyond commodities and oil to grow the continent’s economy.
“Agriculture, (information and communication technology) and the energy sectors are the growing sectors that we haven’t fully exploited their potential,” Alagbaoso said.
The bank said it expected almost 30 000 jobs to be lost in the mining industry in South Africa because of the declining mining production and fall of commodity prices.
It said it would host a West Africa intra-regional conference in Accra, Ghana, next month to connect commercial banking across sub-Saharan Africa. “The conference is not directed to listed companies because most of them are doing business in some parts of the continent.
“This conference is targeting smaller companies so that they can network, share ideas and possibly conduct business with each other.
“We want to use these companies to create employment and drive the economy on the continent. There is little trade within the African countries, at a low 10 percent because we rather trade with other continents like Europe instead.
“We want to encourage countries and companies in the continent to trade among themselves because most of what they need is already here in the continent,” added Alagbaoso.
He said agriculture would be a key focus area in the deliberations. “Some big oil firms on the continent are also diversifying to agriculture now. We are encouraging businesses to not only focus on primary agriculture but get involved in agro-processing as well.”
Green Revolution
A report by the Alliance for the Green Revolution in Africa said agriculture accounted for a third of Africa’s gross domestic product. The AU said it would invest 10 percent of national budgets in agriculture.
Alagbaoso said the manufacturing industry would feature prominently during the conference as China had slowed down. He said Standard Bank wanted to bring together different sectors to discuss strategies to grow the continent’s economy.
“We are excited about going to West Africa because the region offers multiple avenues for investment and is home to three of the 10 fastest growing economies in Africa according to the (International Monetary Fund),” he said.
BUSINESS REPORT