A new report released over the weekend by Standard Chartered Bank titled Trade20 Index has identified Cote D’Ivoire and Kenya as some of the rising stars in global trade. The Index which examines 12 metrics across 66 global markets made up of major global economies plus the major economies in each region reveals 20 economies that are most rapidly improving their potential for trade to grow with African economies making the first and third in the Standard Chartered Trade20 Index, which identifies the markets with the greatest potential for future trade growth
According to the Report, Côte d’Ivoire is the market that has most rapidly improved its trade growth potential over the past decade. The Report 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.
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The Report which examines 66 markets around the world points out 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, it said, 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.
A breakdown of the findings of the Report show that 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
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Commenting on the findings, Saif Malik, Regional Co-Head, Global Banking, AME, Standard Chartered, said that Africa being home to some of the world’s fastest-growing economies, has the potential to become a much bigger player on the global trade stage. He noted that the continent is 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. Mr. Malik equally noted that the growing young, digitally-savvy population and an increasing female workforce will aid in the continent’s economic transformation.
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 us to identify the economies where recent positive developments may point to acceleration in trade growth potential.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.