FINANCE FORUM
THE RISING STARS
OF TRADE
Edited by Leon Louw
(Condensed from an article that first appeared in Bizcommunity)
The economies of Côte d'Ivoire and Kenya were placed first and third
respectively in the Standard Chartered Trade20 Index, which identifies the
markets with the greatest potential for future trade growth.
C
ôte d'Ivoire is the market that has most rapidly
improved its trade growth potential over the past
decade according to new research from Standard
Chartered. The Trade20 index which identifies the 20 rising
stars of trade, places African markets Côte d'Ivoire in the top
spot, and Kenya at number three.
The Trade20 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 examines 66 markets around the world. It finds that
while existing trade powers like China and India continue
to rapidly improve their trade potential, African economies
are 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.
The key findings of the Trade20 index for African markets are:
Côte d'Ivoire and Kenya have significantly improved their trade
readiness, demonstrating that investments in infrastructure and
business environment improvements are paying off.
Côte d'Ivoire and Ghana also fare well for economic dynamism,
with Côte d'Ivoire enjoying robust GDP and export growth, and
Ghana seeing an influx of FDI.
Saif Malik, regional co-head, Global Banking, AME, Standard
Chartered, said: “Home to some of the world’s fastest-growing
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economies, Africa has the potential to become a much bigger
player on the global trade stage. Already connected with the
trading powers in Asia, particularly China, through the Belt and
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.”
Trade20 examines 12 metrics across 66 global markets – the
major global economies plus the major economies in each
region – to reveal the 20 economies that are most rapidly
improving their potential for trade growth.
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. This enables them to
identify the economies where recent positive developments
may point to an acceleration in trade growth potential.
These markets are identified by measuring changes in 12
metrics under three pillars: economic dynamism (foreign
direct investment, export and GDP growth), trade readiness
(infrastructure, e-commerce, and ease of doing business) and
export diversity (the range of exports).
While most traditional trade indices are based on a market’s
present performance, the index captures changes over time to
reveal the markets that have seen the most improvement during
the last decade. A high ranking also suggests a market that is
improving as a possible outsourcing location.
African Mining
African Mining February 2020
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