SA’s presidency of the G20 this year gives Africa a rare opportunity to shape global economic priorities. While the country holds the presidency, this is a continental opportunity, a chance to advance a vision of Africa as an integrated, competitive and equal economic partner. The continent’s financial and trade systems must be recalibrated to meet the scale of what lies ahead.
This was the spirit behind the second annual Standard Bank Africa Unlocked Conference, recently held in Cape Town under the theme “Business Shaping Africa’s Tomorrow”. The platform brought together leaders from across the continent to identify the tools and partnerships required to deepen trade, scale small and medium-size enterprise (SMEs) and drive inclusive growth. These conversations are especially relevant in the G20 context, where the private sector must take a more active role in delivery.
Africa is the world’s youngest continent, with about 70% of the population under the age of 35 and a median age below 20. This demographic profile is a strategic asset, but only if we invest in financial inclusion, systems that support meaningful enterprise and trade infrastructure.
The African Continental Free Trade Area (AfCFTA) offers a continental framework to accelerate this shift. The World Bank estimates AfCFTA could grow Africa’s GDP by $450bn by 2035 and lift nearly 100-million people out of poverty. But progress will depend on closing gaps in infrastructure, cross-border finance and market access. This is especially critical for SMEs, which generate more than 80% of employment across the continent.
Consider Africa’s food systems. SMEs already move the majority of food across the continent, yet 55%-60% of rural food is bought, not grown locally. Meanwhile, Africa imports more than $50bn in food annually, including $34bn that could be produced locally. Unlocking intra-African trade in agriculture will require a rethink of how finance, logistics and policy come together to support local production.
SMEs are central to Africa’s global competitiveness. But their growth depends on deeper integration, shared digital infrastructure, trade interoperability, harmonised standards and the capital to expand beyond national borders. For Africa to move forward, its SMEs must be equipped to lead.
The G20 and B20 are the right platforms to raise this. They allow Africa to reframe the global perception of its enterprise as essential. While the opportunity is clear, the posture required from the financial sector is just as important.
Financial institutions must show up beyond borders. That means working across jurisdictions, enabling seamless trade finance, and building trust through deep local knowledge. It means funding deals while also enabling ecosystems.
This is the posture we believe financial institutions must adopt to unlock the full potential of the AfCFTA and position Africa for long-term economic sovereignty.
Technology also plays a catalytic role. AI, digital payments and cross-border platforms can expand access, reduce friction and lower costs. However, scale without safeguards is risky, thus, Africa’s digital acceleration must be matched by adequate investment in data security, cyber resilience and digital trust.
Today, just 16% of Africa’s trade is intra-continental, according to the UN Conference on Trade and Development and “more than 50% of the continent’s imports and exports are tied to just five economies, all outside Africa. Meanwhile, only 16 of 54 African nations source more than 0.5% of intermediate goods regionally, missing critical opportunities for value-added trade and manufacturing.”
These figures must improve. However, they will not rise without intentional collaboration across government, business and finance to dismantle the barriers that hold us back.
The themes of solidarity, equality and sustainability for the G20 summit align with what the continent needs now. However, it must not be lost on us that it is delivery that will determine whether this is a turning point for Africa to unlock its real economic growth potential, or yet another missed opportunity.
• Mashanda is Head of Africa Regions and Offshore at Business and Commercial Banking, Standard Bank Group
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