Improving
trade links within the African continent is opening new opportunities
for Nigerian businesses to leverage on as commercial activities among
Africans boost the airlines and banking industries.
Jibril
Aku, managing director of Ecobank Nigeria Plc, said trade, which was
formerly restricted to regional blocks, has expanded across the various
trade corridors on the continent.
“Rather
than trade with former colonial masters, we are beginning to see more
trade across regional trade blocks. More countries are trading even
outside their regions, as trade relations improve,” Mr Aku said.
Speaking
on the bank’s regional strategy, Mr Aku said its presence in major
countries on the continent is paying off, as trade between African
countries improve.
“African
economies are still commodity driven. There is a government to
government business between Nigeria and some West African countries
that own refineries. It makes sense to buy refined products from
Cameroun, Ghana, Cote d’ Ivoire, and Senegal rather than from others.
What the government has agreed is that we sell crude to them and import
refined products,” he further said.
Improving trade
He said there is also increase in tourism among African countries.
“People
now go to spend their vacation in some of these countries. But things
will begin to grow faster when raw materials from other countries can
come in as inputs into our factories here,” he said.
African
countries have struggled over the years to improve trade across the
continent and roll back several decades dominated by trade with their
former colonial masters.
The
International Monetary Fund in 1990 classified 75 per cent of countries
in sub-Saharan Africa as having “restrictive” trade policies. This
figure has improved as more African countries open up their economy for
expansion.
Over
the last six years, many Nigerian banks have established presence
across Africa, emerging as major players across sub-Saharan Africa ex
South Africa. Banks like UBA, Access Bank, Zenith Bank, and Diamond
Bank opened subsidiaries in various countries to support continental
trade.
Commodities trading
Ecobank
Transnational Incorporated (ETI), the parent company, has subsidiaries
in 30 countries across Africa. Mr Aku said as things begin to improve,
commodities trading will grow into the bedrock of African economy.
“Because
there are a lot of Africans in the diaspora within Africa, they make
money, which they send back to their families. These are things we
support from the regional trade. Today, movement within Africa is a lot
better”, he said.
Mr
Aku said while the bank works on branch expansion, it was also
exploiting mobile banking as a channel to bring banking closer to the
unbanked population.
“Ecobank
has a licence for mobile banking. So, very soon, you will do your
banking on your mobile phone.We are moving away from brick and mortar
banking,” he added.
He said many Nigerians are embracing alternative channels of banking, as shown by the increasing use of ATM cards.
