By Alex C
Standard Chartered Bank plc has committed $10.7 billion in economic value added, equivalent to 1.2 percent of sub-Saharan Africa’s Gross Domestic Product (GDP). This revelation, which is contained in its 2014 African Report, revealed that the bank has supported sub-Saharan trade worth $7.2 billion.
With a confident African middle-class emerging and trade expanding rapidly, notably with Asia, the African continent is leapfrogging old technologies and embracing the digital revolution, leading the world in innovation such as mobile payments.
According to the report, although dearth of infrastructure and barriers to intra-nation trade is hampering much bigger trade, Africa has recorded consistent growth faster than the rest of the world in the last decade.
“By measuring direct and indirect impact, our operations and financing support some 1.9 million jobs in the markets where we operate in sub-Saharan Africa. The bulk of these jobs are in advanced, high value-added sectors – the fast-growing manufacturing and service industries that are changing the face of Africa’s economies,” the report stated.
The report, which measured the impact of Standard Chartered Bank’s operations in terms of economic value added and employment supported, considered the bank’s impact on Africa’s trade, deploying a global network spanning more than 68 countries, as the only international bank with a major presence across both Africa and Asia.
It further undertook a qualitative assessment of other ways in which the bank contributes to local communities in Africa, including through financial innovation, risk management, business practices and community investments.
Rene Kim, founding Partner at Steward Redqueen, noted that Africa’s share of world trade amounts to 5 percent but records only 3 percent of intra-African trade.
“A number of reasons can be adduced for the lack of intra-African trade, part of which include lack of or dearth of infrastructure. There is also the issue of barriers which needed to be taken out for effective intra-Africa trade,” Kim stated.
He credited the emerging Africa economic success for having been built on solid foundation that is sustainable for the long time. Kim stated that despite Africa’s strong performance, poverty and income inequality continue to be significant challenges.
He further stated that job creation is not keeping pace with the continent’s rapidly growing population. Kim added that “quality jobs are essential to eradicating poverty and fostering real development in economies. Banks fuel employment by providing credit and other financial services that help businesses set up trade and expand – and by working with governments to remove barriers to economic activity.”
Standard Chartered Bank has operated in Africa for over 150 years and the region remains a core part of the bank’s group strategic intent. It re-entered Nigeria (after the 1976 nationalisation programme) in 1999. It has over 180 branches in 15 countries and over 8,000 staff.
Image Source: Wikipedia