A recap of GTR Africa 2023!

On Wednesday, 8th November ETK Group joined over 400 high-level professionals, including representatives from local and international banks, multinationals, SMEs, independent financiers, commodity brokers, traders, insurers, risk managers, lawyers, consultants, and fintech providers, at the prestigious GTR Africa - Trade and export finance conference London 2023.

We're excited to share with you some key takeaways and memorable moments from the remarkable gathering.

Bolaji Sofoluwe MBE our Group Managing Director, took the stage alongside other experts as a panellist in one of the 12 captivating panel sessions, providing insights on "steps that policymakers and financiers must take to accelerate the integration of African trade economies and the delivery of trade-enabling infrastructure."

Throughout the highly interactive sessions, speakers delved deep into debates covering African trade possibilities, trade finance, UK-Africa trade flows, ECA reforms, and the delicate balance of ESG and development criteria.

Here's a recap of the most memorable conversations at the event.

Crucial Role of Physical Infrastructure in Achieving AFCFTA Goals:

Physical infrastructure, such as good road networks, energy generation and distribution, and telecommunications systems, stands as a critical factor requiring adequate funding to realise the goals of the AfCFTA.

The AfCFTA session included informative discussions about protocol agreements and the necessary activities to facilitate cross-border trade under AfCFTA rules. Panellists emphasised the need for project finance from banks, DFIs, and ECAs to strengthen infrastructure, emphasising that digital solutions for cross-border trade payments are required.

The Crucial Role of Development Finance Institutions in African Industrialization:

The trade finance session provided insights into Sub-Saharan Africa's raw material and mining sectors. Panellists highlighted the imbalance caused by mercenary organisations in resource-rich African states, putting the supply of cobalt and other important minerals in jeopardy, according to the expert panellists during this highly interactive event.

The discussion expanded to address the significant challenges faced by African SMEs and businesses in securing finance. The panel of experts evaluated the role of regional and international development finance organisations in African industrialization, discussing the crucial responsibilities of large and local banks in supporting Africa's agriculture SMEs as well as how sovereign debt may be overcome.

Impact of Funding and Debt Forgiveness on African Industrialization:

Even if inflationary and currency pressures are expected to ease in the coming months, Africa's public, and external debt burden, combined with upcoming Eurobond and Chinese credit obligations, presents the continent with new debt and restructuring challenges.

Expert panellists in the African sovereign debt session discussed the evolving market for commercial and multilateral funding and debt forgiveness. Key topics included low foreign currency supplies, rising political risk, and their potential impact on repayments in the medium term.

Enhancing UK-Africa Trade and Economic Cooperation:

Since leaving the European Union, the UK has prioritised trade promotion and diversification, including an ambitious ￡1 trillion in yearly exports by 2030.

The panel on trade and financing ties and new opportunities for UK-Africa trade flows discussed steps UK policymakers, firms, and financiers could take to support and expand UK-Africa trade channels. The focus was on building on success stories and deepening economic cooperation through trade and export finance.

Realistic Reforms to Unlock African Infrastructure and Energy Development:

Conversations around ESG excite us, and the ECA panel session was particularly thought-provoking in terms of ESG. The panellists discussed how lenders are balancing fossil fuel and clean energy project funding, as well as how risk and loan costs may vary as ESG compliance clashes with African development objectives.

There was?also discussion about how reforms might be leveraged to reduce risk and unlock African infrastructure and energy development, as well as the future of ECA competition on the continent.

The ECA reform's potential to broaden coverage in high-risk markets, compete with longer tenors, and assess its comprehensiveness in comparison to lenders outside the OECD Arrangement were key talking points.

Thank you to the GTR Africa - Trade and export finance conference and Global Trade Review (GTR) Team for hosting such an engaging and informative session. All of the speakers deserve recognition for their lively exchanges.

?#UK-Africa #ECA #ESG #OECD #Trade