This article was written with Access Bank Plc support
At the first Access Bank Africa Trade Conference held in Cape Town, South Africa, Seyi Kumapayi, executive director of Access Bank PLC's African subsidiary, delivered an urgent message on the challenges that will help Access Bank resolve all stakeholders involved in Africa's trade to “connect the continents with trade.”
“Access Banks are at the forefront and are a pioneering financial solution to try to grow,” he said.
In an interview prior to the start of the conference, Kumapayi lamented the fact that despite Africa's population of 1.3 billion, trade between the continent and the rest of the world is only 3%, and intra-African trade accounts for only about 16% of the continent's total trade. Access Bank is committed to changing it. We guarantee that “Africa will begin trading with itself.”
“We want to use our connections in and out of Africa and become a gateway between Africa and the world within the continental free trade agreement. We are working to bridge these obvious gaps and keep in African trade at 30-40% over the next few years.”
Give African power
The conference brought together various stakeholders in the trade ecosystem to encourage discussions on trade solutions and strategies to expand Africa's markets, with the theme of “empowering Africa through trade, innovation and sustainable growth.”
Representatives included small and medium-sized enterprises (small and medium-sized enterprises) and local businesses, industry leaders, policy makers, importers and exporters, customs and government revenue institutions, and trade lenders.
Speakers at the conference included Wamkele Mene, executive director of the African Continental Free Trade Area (AFCFTA). Kanayo Awani, Vice President of Intra-African Trade and Export Development at Afreximbank. Dr. Mark Obone, counselor for the World Trade Organization. Solomon Quaynor, Vice President of Private Sector Infrastructure and Industrialization at the African Development Bank.
Kumapayi described the event as an opportunity to create connections, share insights, solve Africa's challenges and support intra-African trade.
Three challenges
Kumapayi looked at the challenges of access to capital and said many companies on the continent are bumping into because they have no access to capital. Although the structure of capital is a hindrance, the cost of capital control is often too high for a company to be able to engage in a business competitively.
“How will Ghanaian men strengthen the finances for purchasing from Cameroonian men? This issue of access to capital is a major obstacle to trade in Africa,” he said. What you need is the financial services sector, which allows businesses to access capital and invest in growth and innovation, and the capabilities they need to bring their businesses to other countries. “It's up to the African banks to help them develop solutions.”
Regarding access to information, Kumapayi said there are many companies in Africa who do not have access to the information and business intelligence needed to make informed decisions about opportunities outside of borders. He said the financial services sector and other stakeholders should make sharing information and utilizing technology a priority so that African companies can analyze opportunities in other countries.
Kumapayi cited numerous historical challenges among many African countries, including the lack of regulatory-related interactions and the lack of uniformity of continental standards, for the deficit of trust between trading partners.
“When there is a lack of trust, people don't trade with each other. These issues need to seriously hinder collaboration and focus on building trust and creating a healthy climate for trade.”
Kumapayi said Access Bank is constantly committed to promoting economic growth and promoting sustainable development across the African continent. “Today, our existence spans 24 countries that play an important role in promoting trade, supporting both businesses and small businesses, and strengthening key person statistics such as women and young people. This broad footprint promotes cross-border trade, provides coordinated financial solutions, stimulates job creation, and therefore contributes to the wider socioeconomic development of operations.
Working internationally
He added that Access Bank works closely with many development finance institutions, including International Finance Corporation, Africa Finance Corporation and Africa Development Bank. “Today, we have raised over $2 billion to Africa for long-term loans across Africa.”
Access Bank is also committed to providing funding to enable trade benefits for African goods such as cocoa and crude oil. “Before exporting, we need to refine more and add value to African raw materials.”
Kumapayi said the meeting is important for banks now as Access Bank builds its business primarily around trade. “We wanted to reveal what we are doing and point out how it could help transform African trade.
“Access Bank has made many acquisitions over the past two years. We are at a time of integration. It has been seen as one of the most important things to realize the integration phase of our strategy.
“This conference connects people that Africa is ready to trade. Access Banks could become its powerhouse to connect Africa from a trade perspective.”
He added that the conference is an opportunity to showcase the existence of Access Banks in Africa and abroad.
“We show the world that where they want to trade and if they are our customers, we're going to make that connection happen.”
Expansion strategy
Looking at bank expansion strategies across the continent and plans for the near future, Kumapayi said, “In line with our long-term vision, Access Bank is focusing on expanding capabilities from 2025 to 2027. Our strategy is focused on integrating market leadership by strengthening our relationships with our clients. We will continue to support women and youth empowerment, which continues to be the basis of our corporate social responsibility initiatives.
“In the near future, Access Banks will continue to streamline operations, optimize resources, enhance African customers' profit from a seamless banking experience, and expand their reach to emerging markets. As they grow, we are focused on creating a positive and lasting impact for the communities we operate and contributing to economic change in Africa.”
Kumapayi said the conference is a demonstration of the bank's commitment to unlocking the massive potential of Africa's trade. “I am extremely excited about Africa's trade outlook. I cannot continue to say that there is a possibility in Africa. We must recognize that possibility. We have around 60 million customers in Africa that can lead that change due to the convening power of Access Banks.
“We need to bring everyone to the table to say that the African era is now. We need to take action, and today's meeting is part of that action. It's a meeting that not only speaks, but we agree to what we have to do and we follow up to ensure that we do that.”
