The start of a new year offers an opportunity to reflect and look ahead. There is no question that 2024 was a year of change and disruption.
Across Africa, we saw numerous elections through the course of the year. The ruction-free nature of most of the polls reflects a growing democratic maturity which can unlock growth for the continent. The outcome of the various elections and orderly transitions where power changed hands should not be taken for granted, it is a process that other parts of the world do not have.
In South Africa, our own elections yielded results that initially created some introspection but ultimately led to the formation of a unified government that encompasses most of the political parties across the country. This unified government has so far proven to be resilient and determined to address the existential challenges the country faces.
This is encouraging to a hopeful nation that has become accustomed to being resilient.
Like most countries that emerged from the pandemic, South Africa faces various challenges. The impact of Covid-19 and its associated economic consequences were substantial. According to the World Bank, the pandemic had a profoundly negative global impact on economic equality and businesses, leading to inflationary pressures. Emerging from such a significant event has not been easy.
Amid these challenges, it is important to recognise the immense opportunities that exist. We have seen infrastructure and logistics challenges in South Africa, largely exacerbated in the pandemic period. However, there has been an impressive reform agenda to counter them. With the development of policy initiatives such as Operation Vulindlela and the recently relaunched phase two of the Government-Business Partnership, we have seen tangible steps towards leveraging skills to bolster economic growth.
Often overlooked among the avenues of growth and collaboration are our vibrant African markets. The advent of the African Continental Free Trade Area (AfCFTA) in 2018 and its ratification across 48 countries has undoubtedly given impetus to additional growth paths. The World Bank estimates that the agreement could potentially increase the continent’s income by $450bn (R8.27-trillion) in just over a decade and increase intra-African exports by more than 81%. The AfCFTA also shows an estimated $3.4-trillion (R62.48-trillion) infrastructure investment opportunity if successful, with sea and air freight volumes expected to double with the implementation.
In March of this year we will host our inaugural African Markets Conference, where we will bring together a mix of policymakers, business leaders, financiers, and government representatives from the continent to chart ways of maximising our existing ties
As a bank that has economic growth on the African continent, headquartered in the most industrialised economy, this is an agreement that Standard Bank can maximise for the economic and social benefit of many.
Given our footprint across 20 African countries and 163-year heritage, we also know that bold talk must be matched with action. In March of this year we will host our inaugural African Markets Conference (AMC), where we will bring together a mix of policymakers, business leaders, financiers, and government representatives from the continent to chart ways of maximising our existing ties.
We are confident that the AMC will be a call to action to increase intracontinental trade, improve the ease of transacting on the continent and showcase the vast investment opportunities which have traditionally been areas of concern.
This is a seminal year for South Africa and the continent as the country takes on the presidency of the G20 and hosts its annual summit. As Africa's largest bank by assets, Standard Bank is taking an active role in the B20 (the business conference on the sidelines of the G20). Through our joint participation, we will work to contribute to making the presidency a resounding success.
Our reach and role make it imperative that we prioritise the strategic leveraging of facilities to continue to build this continent that we call home. We look forward to continuing to drive the journey towards sustainable growth through the course of 2025 and beyond.
• Moola is deputy head of global markets at Standard Bank Corporate and Investment Banking
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