Côte d'Ivoire and Kenya rising stars of global trade - Standard Chartered
JOHANNESBURG - Côte d'Ivoire and Kenya have been named rising stars in a global index which identifies markets with the greatest potential for future trade growth, international banking group Standard Chartered said on Monday.
The bank's Trade20 Index shows Côte d'Ivoire has most rapidly improved its trade growth potential over the past decade, taking first place, while Kenya came in third.
The index determines each market’s trade growth potential by analysing changes within the last decade across a wide range of variables, grouped into three equally-weighted pillars: economic dynamism, trade readiness and export diversity.
The study, which examined 66 markets around the world, found that while existing trade powers like China and India continued to rapidly improve their trade potential, African economies were making particularly strong progress from a relatively low starting point.
"Kenya is consolidating its position as the trading hub of East Africa, while Côte d'Ivoire is cementing its position as a West African trading hub. Ghana also performs well in the index, placing just outside the top 10," Standard Chartered said.
Côte d'Ivoire and Ghana fared well for economic dynamism, with the former enjoying robust gross domestic produce (GDP) and export growth while the latter saw an influx of foreign direct investment.
"Home to some of the world’s fastest-growing economies, Africa has the potential to become a much bigger player on the global trade stage," Standard Chartered regional co-head for global banking in the AME region Saif Malik said.
"Already connected with the trading powers in Asia, particularly China, through the Belt & Road Initiative, and with the launch of the African Continental Free Trade Area, we see numerous growth opportunities for trade and investment in the years ahead."
"Additionally, the growing young, digitally-savvy population and an increasing female workforce will aid in the continent’s economic transformation," Malik said.
While most traditional trade indices are based on a market’s present performance, the Trade20 index captures changes over time to reveal the markets that have seen the most improvement within the last decade, Standard Chartered said.
The bank said this enabled it to identify the economies where recent positive developments may point to an acceleration in trade growth potential.
- African News Agency (ANA)