global trade – Tech | Business | Economy https://techeconomy.ng Tech | Business | Economy Mon, 04 May 2026 12:36:38 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0 https://techeconomy.ng/wp-content/uploads/2025/06/cropped-256Px-32x32.png global trade – Tech | Business | Economy https://techeconomy.ng 32 32 Amazon Launches Supply Chain Services, Opens Logistics Network to Global Businesses https://techeconomy.ng/amazon-supply-chain-services-launch-logistics-network/ https://techeconomy.ng/amazon-supply-chain-services-launch-logistics-network/#respond Mon, 04 May 2026 12:36:38 +0000 https://techeconomy.ng/?p=181008 Amazon has launched a new logistics service called Amazon Supply Chain Services, opening its freight, warehousing, and delivery network to outside companies for the first time at this scale.

The company said businesses will now be able to move, store, and deliver goods using its existing supply chain systems, including ocean freight, air transport, ground haulage, warehousing, and parcel delivery. The service is available to firms across sectors, such as retail, healthcare, automotive, and manufacturing.

Amazon Supply Chain Services

Amazon described the rollout as an expansion of tools it has already been using internally and with third-party sellers for years. It pointed to its Fulfilment by Amazon system, which has supported independent sellers since 2006. Those sellers have shipped more than 80 billion units through Amazon’s network.

Over time, Amazon added more logistics functions beyond fulfilment centres. That includes cross-border shipping, customs handling, and bulk storage. The company said it now moves billions of items annually for selling partners.

Peter Larsen, vice president of Amazon Supply Chain Services, said the system builds on long-term infrastructure investment.

Amazon is bringing the infrastructure, intelligence, and scale of its supply chain services, proven over decades, to businesses everywhere, much like Amazon Web Services did for cloud computing,” he said.

Supply chain wasn’t just a function at Amazon, it was core to providing an exceptional shopping experience. Our differentiator. The reason we could offer fast, dependable delivery that nobody else could. 

“And with the launch of ASCS, we’re confident we can give any other business access to the same cost efficiency, reliability, and speed that we’ve built for Amazon customers.”

Several large companies are already testing the service, including Procter & Gamble, using Amazon’s freight network to move raw materials and finished goods across its operations.

3M is also using the system to transport products from factories to distribution centres worldwide, while Lands’ End said it is using Amazon’s unified inventory system to manage orders across multiple sales channels.

Again, American Eagle Outfitters is using Amazon’s parcel delivery network for online orders across its brands.

Andrew McLean, chief executive of Lands’ End, said the system improves delivery timing for customers.

Amazon is one of our key ecommerce partners, and we’re excited to leverage Amazon Supply Chain Services to position inventory closer to customers so we can reach them even faster,” he said. 

This consistency is central to our solutions-based approach, enabling us to serve customers with confidence and agility, especially during peak seasons.”

Amazon said the system is built around three main services, which are freight transport, inventory distribution, and parcel delivery.

Freight covers movement by air, sea, road, and rail, with tracking and customs support included. Distribution allows companies to store stock closer to demand and fulfil orders across different sales channels. 

Parcel delivery provides nationwide shipping with two to five-day delivery windows, including weekend operations.

The company further noted that businesses will also get access to a central platform to manage services and shipments.

Amazon also highlighted early results from sellers already using its logistics tools, saying some businesses recorded higher sales after integrating supply chain services, alongside lower operating costs.

Independent sellers are a big part of Amazon’s logistics network. They now move billions of products each year through its system, supported by fulfilment centres and transport operations across regions.

Some sellers said the expansion reduces operational pressure. One business founder said:

Amazon has added value at every stage of our supply chain from cross-border logistics to warehouse storage and parcel shipping,” said Todd Bairstow, founder of Finer Form. 

We’ve been able to save money, eliminate operational complexity, and it’s given us more time to focus on what matters: building our brand. Honestly, there wouldn’t be a Finer Form without Amazon.”

Amazon said the new service builds on the same infrastructure it developed for its own retail operations, adding that it now wants to make that system available to any business, not just those selling on its marketplace.

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REPORT: The Global Economy Could Split in Very Different Directions by 2050  https://techeconomy.ng/report-the-global-economy-could-split-in-very-different-directions-by-2050/ https://techeconomy.ng/report-the-global-economy-could-split-in-very-different-directions-by-2050/#respond Tue, 21 Apr 2026 11:58:50 +0000 https://techeconomy.ng/?p=180200 The global economy could follow markedly different paths over the next 25 years. For business leaders, the challenge is how to make decisions today while preparing for a wide range of possible futures. 

New Scenarios 2050 research from the BCG Henderson Institute (BHI), Boston Consulting Group’s think tank, anticipates four distinct futures that push boundaries but remain plausible.

The report explores what each scenario could mean for businesses and how early signals may indicate which direction the world is heading.

Among the findings:

  • Global GDP growth could slow to about 1.8% or rise to 5.0% annually, with the economy reaching anywhere from 1.6 to 3.4 times today’s size.
  • Global trade could fall to about 35% of GDP – roughly Cold War–era levels – or remain near current levels of about 60%.
  • Defense spending could climb to as much as 7% of global GDP.
  • Low-carbon electricity could account for 55% to 90% of power generation. 

The report, Beyond Tomorrow: Four Scenarios for the World of 2050, is based on a century of historical data and analysis of more than 100 megatrends across technology, geopolitics, climate, society, and economics.

“The decisions made in the next 5 years will shape the next 25,” said Nikolaus Lang, global leader of the BCG Henderson Institute and a coauthor of the report. “Too often, the future is framed in extremes – either collapse or abundance. In reality, leaders need to be ready for a range of outcomes and make decisions that hold up across very different conditions.”

Four Plausible Futures Leaders Should Plan For

Each scenario presents a different operating environment for businesses, reflecting the range of conditions leaders may face.

Scenario 1: AI Abundance. Global cooperation on AI standards leads to faster productivity growth, wider access to technology, and abundant low-carbon energy:

  • Global GDP more than triples, growing by about 5% annually from 2025 to 2050 – the highest level across BHI’s four plausible scenarios.
  • Average working hours fall by about 25%, with four- or even three-day workweeks becoming common in some regions.
  • AI-supported advances in new materials and carbon removal put the world on a delayed but credible path to net zero emissions.

Scenario 2: Battling Blocs. Geopolitical tensions divide the world into competing blocs, reducing cooperation and reshaping global trade:

  • Global trade falls to about 35% of global GDP, down from 57% in 2024 – reversing decades of globalization.
  • Defense spending rises to about 7% of global GDP, the highest across BHI’s four scenarios, as countries prioritize security and self-sufficiency.
  • Global GDP growth slows to about 1.8% annually, the lowest across the four scenarios, underpinned by government spending on national security, pensions, and climate mitigation.

Scenario 3: Climate Coalition. A series of extreme weather events in the late 2020s push governments, industries, and consumers to prioritize climate resilience, accelerating the shift to low-carbon energy and infrastructure:

  • Global warming stabilizes at about 1.8°C.
  • Carbon markets expand globally, with most major economies participating by 2040.
  • The share of fossil fuels in the energy mix falls from 81% today to 35% in 2050, while electricity is generated almost entirely from low-carbon sources.
  • Global GDP growth averages about 2.5% annually, reflecting a focus on the climate transition, slower population growth, and aging societies. 

Scenario 4: Digital Darwinism. Rapid technological progress continues under limited regulation, driving strong growth while concentrating wealth and power among leading companies and tech-rich nations:

  • Global GDP grows at 4% per year, resulting in a near tripling of GDP.
  • The richest 1% holds nearly half of global wealth, while the middle class continues to shrink.
  • Gig-style and short-term contract work expands as AI and automation displace routine knowledge work.
  • Defense spending rises to about 4% of GDP, up from 2.4% in 2024, as the global order becomes more fragmented. At the same time, global trade and supply chains remain open, driven by commercial interests.

What Leaders Can Do Now 

Across all four scenarios, the report highlights “low regret” moves that make sense for business leaders today, including:

  • Enhance structural resilience.Rebalance toward resilience over efficiency to maintain operations in a more volatile environment.
  • Reimagine talent for aging populations and AI.Build strategies for intergenerational work, more flexible roles, and talent mobility—and recruit more widely, especially from emerging labor markets.
  • Build digital flexibility and trust. Take a modular approach to tech and data stacks that accounts for rapidly changing technologies.
  • Sharpen sensing and influencing capabilities.Develop sensing capacities along dimensions like regulation, geopolitics, resources, and technology. Build the capability to act on them quickly.
  • Embrace a broader societal role. Prepare to shoulder more responsibility for workers’ well-being, local resilience, crisis management, and community needs.

“No one can predict exactly what 2050 will look like, but the forces shaping it are already visible,” said Alan Iny, a partner and director at BCG, a BCG Henderson Institute Fellow, and a coauthor of the report. “Planning for a single future is a gamble. The advantage will go to leaders who prepare for multiple futures and act to shape them before the direction of the world is clear.”

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Flutterwave Partners Payful to Simplify Global Trade Payments Across Africa https://techeconomy.ng/flutterwave-partners-payful-cross-border-payments-africa/ https://techeconomy.ng/flutterwave-partners-payful-cross-border-payments-africa/#respond Thu, 06 Nov 2025 12:17:01 +0000 https://techeconomy.ng/?p=170675 Flutterwave has partnered with global payments company Payful to simplify high-value cross-border transactions across Africa. 

The collaboration allows Payful’s merchants to collect payments locally and settle globally, powered by Flutterwave’s multi-currency and compliant infrastructure.

According to Flutterwave’s Founder and CEO, Olugbenga Agboola, “When the time came for Payful, a leading global trade company to expand its reach into Africa, there was no better partner to power that growth than Flutterwave.”

“Through our Virtual Account solution and multi-currency platform, we enabled Payful to collect payments locally, settle globally, and scale seamlessly, all within one secure and compliant infrastructure.”

The deal makes Flutterwave the backbone for Payful’s African expansion, providing localised payment collection through virtual accounts and enabling faster, cheaper settlements for merchants trading across borders. 

The integration also removes the need for Payful to encounter multiple banking systems and regulatory requirements in each country.

Africa’s payment sector is fragmented, with issues such as high transaction costs, currency fluctuations, and regulatory complexity. 

Payful faced these challenges while seeking efficient ways to process large trade payments in local currencies like the naira and cedi, and settle in international currencies such as the dollar and euro. 

Flutterwave’s established infrastructure provides a simplified solution to these limitations, ensuring compliance, liquidity management, and operational efficiency.

Through a simple API integration, Flutterwave issues virtual accounts that allow Payful’s merchants to receive local payments via bank transfers, a more reliable method than card payments for large transactions. Funds are then settled globally through regulated channels, maintaining transparency and security.

Flutterwave said the collaboration aligns with its mission to support global enterprises looking to enter or scale within Africa. The company noted that its platform removes the burden of integrating multiple financial systems, handling foreign exchange risks, and meeting diverse regulatory demands.

Payful, which operates across multiple sectors globally, sees the African market as a key growth frontier. The company’s focus, it said, is to make payments for its African merchants as “seamless and reliable as they are everywhere else in the world.”

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Trump Threatens Tariffs, Export Restrictions on Countries with Digital Taxes https://techeconomy.ng/trump-threatens-tariffs-digital-services-taxes/ https://techeconomy.ng/trump-threatens-tariffs-digital-services-taxes/#comments Tue, 26 Aug 2025 07:11:18 +0000 https://techeconomy.ng/?p=165807 U.S. President Donald Trump has issued a warning to countries that impose digital service taxes (DSTs), threatening to hit their exports with heavy tariffs and restrict access to advanced U.S. technology if they refuse to scrap the measures.

In a post on his social media page, Trump stated: “With this TRUTH, I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country’s Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips.”

Trump argues that DSTs are designed to harm American technology firms, while allowing Chinese competitors to avoid similar treatment. His position revives an old fault line between Washington and its allies. 

During his first term, he had also threatened countries such as Canada and France with tariffs for pursuing similar tax regimes. In February this year, he ordered U.S. trade officials to reopen investigations into countries levying DSTs against U.S. tech giants.

Over 20 nations, including France, Spain, Italy, India, Kenya, and the United Kingdom, have introduced DSTs ranging between 2% and 7.5% of gross revenue from digital advertising, marketplaces, and user data monetisation. These policies primarily affect firms such as Google, Meta, Apple, and Amazon, which dominate the global digital economy.

While proponents argue that DSTs ensure fair taxation of multinational platforms profiting from their markets, the U.S. government sees them as discriminatory. Officials believe they tilt the playing field against American companies while giving an advantage to rivals, particularly those from China.

Beyond DSTs, the United States has grown more wary of the European Union’s landmark digital regulations, the Digital Services Act (DSA) and the Digital Markets Act (DMA). The DSA, enforced in 2024, compels platforms to remove illegal content, boost transparency, and share data with regulators. 

The DMA aims to curb anti-competitive behaviour by major “gatekeepers” such as Google and Apple, forcing them to open up their platforms and reduce self-preferencing.

Washington interprets these moves as non-tariff trade barriers. Reports state that Trump’s team has even considered sanctions on EU officials responsible for enforcing the laws, a step that could further strain the $1.7 trillion transatlantic trade relationship.

Trump’s latest warning goes beyond tariffs as he also threatened to restrict exports of advanced semiconductors and artificial intelligence chips, a measure that could disrupt supply chains worldwide. Companies like Nvidia, which play a central role in AI development, could be caught in the crossfire.

The U.S. and EU conduct more than $4.2 billion in trade daily, and a recent agreement capped U.S. tariffs on most European goods at 15%. Introducing new tariffs or export controls would escalate tensions and risk retaliation from allies.

Efforts to resolve the tax dispute at the multilateral level have also faltered. The OECD has been pushing for a global framework to replace DSTs with a uniform system for taxing multinational profits. However, the U.S. remains resistant, fearing it would lose its own taxation rights under the proposed arrangement.

With both sides unwilling to compromise, the digital tax fight appears set to intensify. Trump’s latest threat raises the prospect of a trade confrontation both with rivals, and with long-standing allies who see DSTs as a matter of fairness in the digital economy.

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Aftermath of US Elections: US-China Relations Will Continue to Fragment Global Trade – Report https://techeconomy.ng/aftermath-of-us-elections-us-china-relations-will-continue-to-fragment-global-trade-report/ https://techeconomy.ng/aftermath-of-us-elections-us-china-relations-will-continue-to-fragment-global-trade-report/#respond Tue, 19 Nov 2024 08:28:46 +0000 https://techeconomy.ng/?p=147847 Quick look
  • A renewed but contained trade war could bring nominal global trade growth below 5% in 2026 (-0.6pp), with USD67bn of exports at risk in Europe and China in 2025-26 (half of the global total).
  • Past tariffs on Chinese imports cost the EU USD38bn per year, compared to USD17bn per year for the US.
  • Over the past two years, bilateral trade flows between geopolitically close countries have jumped by USD620bn and now account for 60% of global trade.
  • The next generation of trade hubs is expected to grow its share of global exports by +1.6pp over the next five years (reaching USD 1 274bn).
  • In a scenario of trade policy continuity, South Africa is expected to experience export losses amounting to USD1bn over 2025-2026.

Although global trade remains strongly intertwined with the US economy, China has emerged as a new superpower, banking on its critical role in global manufacturing and its large and rising domestic market.

Against this backdrop, rising US-China tensions are reshaping global supply chains and paving the way for new trade powerhouses, according to new research from Allianz Trade, the world leader in trade credit insurance.

Potential Impacts of US Tariff Increases on South African Exports

According to the report, South Africa’s export landscape is poised for a challenging period. In a scenario where current trade policies remain unchanged, the country is projected to face export losses totaling USD1 billion over the 2025-2026 period.

Despite these anticipated losses, South Africa’s real exports of goods and services are expected to grow by 2.3% in 2025 and 1.4% in 2026, following an expected growth of 0.6% in 2024.

This indicates a gradual recovery, albeit at a slower pace, highlighting the resilience of South Africa’s export sector amidst global economic uncertainties.

However, the report also outlines a more severe scenario that could significantly impact South Africa’s export economy.

In the event of increased tariffs from the United States, coupled with retaliatory measures, South Africa could face export losses amounting to USD4 billion over the same period. Such an extreme scenario underscores the vulnerability of South Africa’s trade-dependent economy to global trade tensions and policy shifts.

This potential downturn emphasizes the need for strategic diversification and strengthening of trade partnerships to mitigate the risks associated with volatile international trade dynamics.

Allianz Trade has been operating in South Africa since 2015 through the Allianz Commercial South Africa license, underscoring its commitment to supporting local businesses amid these global trade challenges.

Additionally, Allianz provides corporate and travel insurance in the South African market, offering comprehensive solutions to safeguard businesses and individuals against evolving risks.

Trade war reloaded as Trump returns to office

In his second term as US President, Donald Trump is likely to increase tariffs on Chinese and other strategic imports (to 25% for the former and to 5% for the rest of the world, excluding Mexico and Canada), which would decrease nominal global trade growth by -0.6pp in 2026 as most measures would kick-in from the second half of 2025.

China and the EU would bear most of the cost, with USD67bn of exports at risk in 2025-26, especially in automotive manufacturing, transport equipment and metals. Their retaliation measures are likely to hit US pharmaceuticals, automotive, metals, agrifood and machinery.

In the event of a full-blown trade war (60% tariffs on China and 10% on the rest of the world, including Mexico and Canada), the toll would increase to 2.4pps of nominal global trade growth and China, Mexico and Canada would be hit the hardest, with cumulated export losses totaling to close to USD217bn over 2025-26. But this scenario looks unlikely as the US would also have to face a large cost,” adds Ana Boata, Head of Economic Research at Allianz Trade.

American “godfathering” vs China’s “silk” doctrine

Global trade is increasingly being shaped by the competing geoeconomic agendas of the US and China. US imports have been breaking away from China, and China has been exporting more to its own geopolitically close partners (Russia, Singapore, Vietnam, the UAE, Saudi Arabia). In this context, bilateral trade between geopolitically aligned countries has risen by +2pps (USD620bn) to 60% of global trade in just two years.

“China’s trade-and industry-centric “silk” doctrine has mostly relied on soft power and connective influence, while American “godfathering” rests on four pillars: (i) an unwavering commitment to protect core national interests at all costs, (ii) securing loyalty within the network of historical allies, (iii) an active economic and military stance against rivals and (iv) expanding American influence and control across new domains such as space, tech, and AI. No matter who wins the US elections, this clash is here to stay,” explains Ano Kuhanathan, Head of Corporate Research at Allianz Trade.

Alignment with the US is costly for the EU

While the US and the EU share a common stance on geopolitical issues, their economic interests are not aligned. Nevertheless, the EU does tend to follow suit when the US imposes tariffs on China – usually in the following year – even though it pays a higher price, according to Allianz Trade’s calculations.

Past tariffs imposed on China cost the US USD17bn per year (4% of its Chinese imports), but they cost the EU almost USD38bn per year (6.4% of its Chinese imports).

Moreover, the EU itself is not safe from US protectionist measures, and there is a risk that the US and/or China follow a divide-and-conquer strategy by exploiting internal European divisions to seek bilateral deals that would improve their own negotiating positions against the block.

New trade hubs are emerging as winners, but making global supply chains more complex

In the years to come, global trade is likely to grow below its long-term average. At the same time, Allianz Trade’s supply-chain complexity index shows that global trade flows are becoming more intricate, with complexity levels doubling since 2017 and rising 6x compared to the pandemic years.

In this context, Allianz Trade identifies 25 economies that could benefit from this new geoeconomic order, given their relatively higher competitiveness compared to China in the context of an intensified trade war from the US.

“Beyond fast-growing economies such as India, this shift has opened doors for nations like Vietnam, Malaysia, Indonesia, and the UAE to step up as next-generation trade hubs. We expect these economies to grow their share of global exports by +1.6pp over the next five years, reaching USD 1 274bn. As these hubs grow to account for up to 21.3% of all global exports by 2029, they will also need to invest USD120bn on port infrastructure alone to maintain their momentum,” adds Françoise Huang, Senior Economist for Asia Pacific and Trade at Allianz Trade.

Choosing sides in the new geoeconomic order

By looking at the next-generation trade hubs and other major economies’ geopolitical, trade and cross-border investment links with the US and China, respectively, Allianz Trade computes geoeconomic distance scores relative to both countries.

These scores show that China’s sphere of influence includes more next-generation trade hubs from the emerging world, while most of the Western bloc remains closer to the US.

Unsurprisingly, the UK is the closest country to the US followed by Ireland and the Netherlands, with Canada in 4th place and Mexico only in 28th.

Most African and Asian nations are closer to China: on average 0.5 for African nations vs 0.7 distance with the US and 0.4 for Asian nations vs 0.6 distance with the US. But after Hong Kong, Canada is the 2nd closet economy to China – managing to remain close to both superpowers.

“Australia, South Korea, and Greece are among the other nations that have managed to maintain the same distance with both the US and China. These countries are geopolitically closer to the US but retain very strong trade and investment relations with China. This position could potentially become increasingly uncomfortable and force them to pick a side, should the new geoeconomic order centered on the US-China confrontation deteriorate significantly,” explains Françoise Huang.

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How BudPay is Connecting African Businesses Beyond Borders with ‘BudPay Business’ https://techeconomy.ng/how-budpay-is-connecting-african-businesses-beyond-borders-with-budpay-business/ https://techeconomy.ng/how-budpay-is-connecting-african-businesses-beyond-borders-with-budpay-business/#respond Thu, 13 Jun 2024 10:47:07 +0000 https://techeconomy.ng/?p=133929 BudPay, a leading provider of business payment solutions for local and global enterprises in Africa, reiterated its commitment to connecting African businesses to global opportunities today.

BudPay payment infrastructure, uniquely designed to cater to the constantly evolving needs of the African market, has been instrumental in enabling corporates, SMEs, and startups to accept payments in 100-plus countries.

The features of BudPay Business were designed to cater to the payment requirements of businesses seeking to expand their reach beyond local markets.

As e-commerce and digital trade continue to expand rapidly, the demand for robust and inclusive payment solutions has significantly increased.

BudPay has impactfully but quietly seized this opportunity, securing licenses, system and security certifications, and strategic partnerships with leading providers, enabling businesses to participate in the global economy.

How BudPay is Connecting African Businesses Beyond Borders with 'BudPay Business'
Wale Hassan, CEO of BudPay

Commenting on the company’s achievements, Wale Hassan, CEO of BudPay, stated, “We are humbled and at the same time proud to have earned the trust of over 20,000 businesses across 3 markets in the last 2 years.

While the payment industry is already quite robust, we identified a distinctive opportunity to redefine the global payments landscape for African businesses. The astounding feedback from our merchants on the business impact of integrating BudPay into their payment systems has been very validating. Despite these milestones, we remain relentless. Our mission is to power global trade and drive economic growth beyond borders.”

BudPay Business boasts a suite of unique solutions that streamline payment processes and enhance business efficiency.

These include Invoicing and Payment Links, which allow businesses to generate and share digital invoices and secure URLs for customers to make payments online without needing a dedicated e-commerce website.

The platform also offers a versatile Payment Gateway/Checkout Modal with various payment options, including Cards, Bank Transfers, USSD, and Mobile Money.

Additionally, BudPay Business provides team collaboration features enabling businesses to add team members to delegate payment operations effortlessly.

BudPay is committed to global best practices for the security and compliance of its infrastructure. This has been a key factor in the success of its operations over the years.

The company is licensed by the Central Bank of Nigeria and certified by other recognized financial, payment security, and data regulatory bodies at both national and global levels.

This has enabled BudPay to earn the trust of its customers, who value the platform’s reliability and security. With its robust measures and partnerships, BudPay has demonstrated readiness to empower African enterprises to thrive in both local & international markets.

With over 20,000 businesses already benefiting from the product since its inception, BudPay continues to partner with ambitious companies across Africa, connecting them to a world of opportunities within and beyond the continent’s borders.

BudPay Business is available in web and mobile app versions, ensuring businesses can manage transactions and payments in real-time with unparalleled flexibility and ease of access.

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Boosting Global Trade Amidst Current Economic Slowdown   https://techeconomy.ng/boosting-global-trade-amidst-current-economic-slowdown/ https://techeconomy.ng/boosting-global-trade-amidst-current-economic-slowdown/#respond Tue, 25 Apr 2023 14:07:58 +0000 https://techeconomy.ng/?p=100567 Trade is crucial to bridging economic gaps and boosting infrastructural development. Countries with strong international trade portfolios tend to grow faster, innovate more, and provide higher incomes and economic opportunities for their citizens.  

Beyond the integration into the global economy through trade and global value chains that help drive economic growth, open trade also benefits low-income households by allowing consumers to access affordable goods and services.  

However, the impact of Russia’s war in Ukraine has been felt by people far beyond the country’s borders, due in part to its effects on trade-in – and the prices of – foodstuff and energy commodities.

One year since the war began, the World Trade Organisation (WTO) published a report assessing the conflict’s impact on trade and development.

Cereal exportation to Africa which is germane to food security in the region declined by almost 15% in 2022 with prices of commodities like wheat increasing by almost 17%.  

This trade disruption led the World Trade Organisation (WTO) to readjust its 2023 trade growth projection downwards from 3.4% to 1% given the continuing reduced global trade demand, general inflation, and geopolitical tensions.

The United Nations Conference on Trade and Development (UNCTAD) agreed, lowering their projections for 2023 in their latest Global Trade Update, published in December.

Stanbic IBTC Boosting Nigeria Global Trade
Stanbic IBTC Boosting Nigeria Global Trade

Furthermore, Export Development Canada (EDC) published their annual year-end Trade Confidence Index, reporting that trade confidence has declined sharply for Canadian businesses over the past year and continues to decrease among concerns over rising interest rates and a looming global recession.  

In Nigeria, a similar slow-down trend in Trade is expected for 2023 considering that the global geopolitical tension and inflation hike will trickle down to the micro-economy as well as the FX illiquidity issues we have been experiencing locally for about 2 years due to revenue drop will further slowdown trade for 2023.    

However, amid the challenges militating the flow of international trade in Europe; the Americas, Asia, and Africa could be viable trading partners for the rest of the world in supplying cereals, fertilizer, energy, and manufactured goods thereby having a thriving trade business for 2023 and beyond.

The Global Trade Review is an annual event where global experts in the trade and commerce industries come together to discuss global trade as it affects the economies of each continent and country and seek solutions to  maneuver challenges that may be presented. 

This year’s event themed “A new dawn: plotting a course for West African trade” plans to bring together stakeholders and global experts to discuss how Africa as a whole and West Africa as a region can maximize the Trade opportunities that this global challenging time has thrown up.  

On the African continental stage, Stanbic IBTC Bank’s unique intra-African trade products enabled settlements of international transactions while preventing payment risks associated with the international trade business.

This was in addition to providing regional solutions such as the issuance of payment guarantees to exporters without the need for a letter of credit and its related costs to the importer.  

As global trade weathers the current challenges, the need for providing cross-border payments remains imperative. Africa is a major trade partner with Europe, China, and other Asian countries, thus, the significance of Stanbic IBTC’s Africa China Agent Proposition (ACAP), a product tailored to providing world-class financial solutions to African importers who transact with China exporters.

The payment system makes available exclusive access to approved trade agents responsible for linking African businesses to numerous suppliers and manufacturers across China.

The appointed agent provides access to over 10,000 Chinese suppliers and assesses suppliers, to ensure that their products meet global standards.  

ACAP offers a broad ecosystem of services, solutions, and support, which equips African businesses to leverage trade as well as growth opportunities and ultimately drive Africa’s economic growth.

The ecosystem services afford importers from Africa sufficient lead time to place orders for their goods before payment is made.

It also helps to ease the cash flow of African importers, by providing access to financing while also empowering importers to have end-to-end visibility of the entire importation and logistic process.  

Inter-dependencies with other countries at different levels of trade are necessary as no country is self-sufficient in the global economy. Integration into the global economy has proven to be a powerful tool for countries to promote economic growth, development and reduce poverty.

Stanbic IBTC also engaged in strategic partnerships with other multilateral and regional organizations such as the African Development Bank, African Export– Bank, ECOWAS Bank for Investment and Development, and Arab Bank for Economic Development in Africa (BADEA) in the facilitation and implementation of the African Continental Free Trade Area (AFCFTA) agreement to the benefits of its clients.

Furthermore, it has continued to provide financial guarantees and solutions to small and medium-scale enterprises in the continent, which account for more than 80 percent of the continent’s economic space.

Similarly, through Stanbic IBTC’s Trade Club solution, there is access to unlimited opportunities for business owners to meet and trade with suppliers anywhere in the world.

The Stanbic IBTC Trade Club solution provides financing solutions for domestic or cross-border trade activities.

It also provides good exposure for business owners to trade with manufacturers and suppliers worldwide, giving them the necessary exposure for their businesses to thrive.

The solution identifies businesses, empowering them with the required trade tools and expertise, while linking them with new global trade partnerships they can trust while nurturing their growth through good human relationships.  

The Stanbic IBTC Trade Club, using its trade resources, provides relevant tips and the right tools to build your business. It also provides useful information regarding business models, accounting, marketing, and legal aspects that enable businesses to achieve set goals.  

With Stanbic IBTC’s unique financial offerings, Africa remains on the part of an economic resurgence that will eventually enable the continent to compete with other economies of the world.

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