jamieharrison – Page 2 – Investor's Guide

Rwanda’s Vision

5 October 2023

jamieharrison

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Categories: Finance, Locations

Investors Guide to Africa speaks to Nick Barigye, Chief Executive Officer of Rwanda Finance Limited (RFL), the agency responsible for developing and promoting Kigali International Financial Centre (KIFC) and positioning Rwanda as a preferred financial jurisdiction for investments into Africa.

IGTA: The vision is for Kigali International Financial Centre to catalyse Rwanda’s socio-economic development by unlocking capital. To what extent is this vision being realised?

Nick Barigye: Our Vision 2050sets the long-term strategic plan for the country to become an upper middle-income country by 2035 and a high-income country by 2050. To achieve this, we need to be innovative and attractive to local, regional, and international investors. The Kigali International Financial Centre (KIFC) represents Rwanda’s aspirations andplays a crucial role in unlocking new investment to facilitate Rwanda’s economic potential.

Over the last two years, we have been working hard to develop the necessary infrastructure and regulatory framework to attract financial institutions, both domestic and international; to improve the ease of doing business in Rwanda; to diversify the financial services offered; and to strengthen the compliance framework in ensuring the stability and integrity of the financial sector. This is crucial for gaining the trust of investors and institutions.

So far, we have attracted more than 100 investment structures including holding companies, funds, and FinTechs among others, to domicile in the country. This has contributed to Rwanda’s economy growing 9.2% in the first quarter of 2023, following an 8.2% increase in 2022 (The World Bank, 2023).

IGTA: Which reforms acting to facilitate trade and investment, enhance Rwanda’s status as a transparent and compliant jurisdiction, and increase its ease of doing business credentials are you most excited about and why?

Nick Barigye: In the last two years, 19 laws have been enacted, 17 Double Tax Avoidance Agreements (DTAAs) have been signed and we have formed important strategic alliances with seven different international financial centres, including Jersey Finance, Qatar IFC, Casablanca IFC, Astana IFC, and three DFIs, including British International Investment.

The journey so far has been remarkable, and we have been ranked at the top of African nations in international surveys. In 2020, Rwanda was second in the World Bank Ease of Doing Business Index and fourth in sub-Saharan Africa by the World Economic Forum (WEF) Global Competitiveness Index. In 2021, we were recognised as the first most innovative low-income country by Global Innovation Index.

The newly established Financial Intelligence Centre (FIC) has also joined the list of established regulators mandated to ensure the integrity of Rwanda’s financial systems. Alongside the National Bank of Rwanda, Capital Markets Authority, and Rwanda Development Board, FIC will ensure effective financial monitoring and compliance with the Financial Action Task Force (FATF) requirements.

IGTA: What can you tell us about the range of incentives in place designed to stimulate foreign direct investment?

Nick Barigye: To be a unique hub, capable of facilitating international investment, cross-border transactions, and business expansion opportunities, we have provided a base conducive to the structuring of various investment vehicles.

By tightening our anti-money laundering and counter financing of terrorism laws, we have built high levels of trust among investors.

Some of the new tax laws have also provided incentives in terms of freedom to repatriate profit and capital across the region. As a result, we have seen peak interest among regional and African-based investors looking for alternative financial domiciles for their investments on the continent.

Last year, Rwanda was one of the first eight countries that started trading under the AfCFTA’s Guided Trade Initiative preferential terms. We are also members of the East Africa Stock Exchanges Association (EASEA) which enables cross-listing opportunities for regional institutional investors, across the region and beyond.

We have built a sound and vibrant financial services sector backed by fintech-led innovations which is paramount in widening and diversifying financial products and legal structures offerings, such as investors seeking to establish investment funds and special purpose vehicles to fund regional projects.

KIFC also understands that sustainability is a key driver to be competitive, which is why we are developing avenues for environmental, social, and governance (ESG)-driven investments. We are already seeing an accelerated shift towards green and sustainable financing having recently joined the Financial Centres for Sustainability. Last year, at COP27, Rwanda presented herself as an ideal destination for green investment and launched the 10-year Sustainable Finance Roadmap alongside the Government’s green investment facility “Ireme Invest”.

In recognition of our reforms for climate adaptation and mitigation, in 2022, Rwanda was one of the first three countries and the first African country to benefit from financing under the International Monetary Fund’s Resilience and Sustainability Trust (RST).

IGTA: How is Rwanda’s ongoing economic diversification best evidenced?

Nick Barigye: Rwanda has been one of the best performers for economic growth in the last two decades, with an annual GDP growth rate averaging 7.1% and leading sectors in energy, agriculture, trade and hospitality, and financial services.

The establishment of KIFC is part of the country’s economic diversification strategy, one of the long-term goals being to advance our financial sector by introducing new services and products.

By providing tax incentives for forward-thinking FinTechs and enacting critical laws to establish a pro-business regulatory framework, Rwanda has seen an increasing number of unicorns, such as Chipper Cash, choose Kigali as a base to consolidate their regional operations.

Earlier this year, in partnership with Elevandi, we hosted Africa’s first-ever global flagship fintech event which brought together the most important African and global decision-makers in fintech, solidifying Rwanda’s aspiration to become the ‘Home of FinTech’s in Africa.’

However, we know that individual economies can be too small to accommodate fintech unicorns or other large companies, so it is crucial that African governments work together on market integration to facilitate the growth of their fintech sector.

Through Rwanda’s five-year fintech strategy, we want to maximise the potential that fintech holds for economic growth and socio-economic transformation by 1. positioning Rwanda as a proof of concept for fintech and 2. establishing Rwanda as a launchpad for fintech.

There is a strong push by the government for Rwanda to shift to a cashless economy and to achieve nationwide financial inclusion. For this reason, KIFC is building an innovation-friendly regulatory environment that attracts investment funds and venture capital to drive the fast-growing fintech sector.

IGTA: Is Rwanda on track in its quest to transform into a pan-African financial hub?

Nick Barigye: Absolutely. Rwanda has enjoyed a period of political stability, has implemented reforms to enhance the business environment; has been investing in infrastructure development, including the construction of modern financial districts and technology hubs; has leveraged technology and innovation to drive financial inclusion; and has been actively involved in regional economic integration.

We have invested in world-class aviation infrastructures making Kigali an African air travel hub due to its geographic location and high-quality conference facilities. Today, Rwanda is regarded as a global conference hub. These factors, coupled with significant investments in ICT and innovation, as well as being part of three regional economic blocs, mean that we are on the right path to becoming a pan-African financial hub.

Growing the stature of Rwanda as a pan-African financial hub will lead to the creation of jobs in various sectors, such as banking, insurance, legal, tax, trust service provision, fund management, and regulatory fields, while also improving the skill set of the local workforce.

Recently, KIFC was ranked third in Africa and second in Sub-Saharan Africa on the Global Financial Centres Index (GFCI) and was ranked among the top 15 centres globally, likely to become more significant in the future.

IGTA: What progress has there been in increasing female representation in the fintech sector and why do you think this will help to advance financial inclusion in Rwanda?

Nick Barigye: Fintech has the potential to revolutionise Africa’s economies by increasing financial inclusion, driving economic growth, and creating new jobs and business opportunities.

In Africa, the share of fintech companies founded by women is double the global average but, unfortunately, the figure is still just 3.2% – according to Findexable, a market research company that tracks gender diversity. Moreover, while 30% of tech professionals in sub-Saharan Africa are women, the share of women in fintech remains well below the industry average. If the industry is to continue to expand and strengthen access to financial services and credit, it needs not only to serve women, but also to be shaped by them.

Rwanda is a regional leader in gender equality, and we have seen a tremendous increase in female ownership of individual enterprises in the past 5 years, showcasing the growth of women entrepreneurship in Rwanda. But, despite the progress in financial inclusion that fintech has enabled, more than three-quarters of Rwandan women still lack access to a bank account.

Rwanda is determined to close the gender gap by developing gender-inclusive financial policies and creating guidelines for banks and microfinance organisations to help design products that address women’s needs.

Financial literacy is also very important, so we are working with our partners to empower women and educate them on digital financial services such as the establishment of the pan-African fund to support tech and education sectors.

Our aim is to have equal access by 2027.

Blockchain And Trade Finance: A Marriage Made In Heaven

3 October 2023

jamieharrison

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Categories: Digitisation

Is trade finance going to come up trumps together with blockchain technology? Banks and fintech firms remain confident that blockchain technology can transform the paper-heavy industry of trade finance.

The trade finance industry is ripe for the capabilities of blockchain technology. The technology is changing everything from payments transactions to how money is raised in the private mark. Blockchain has the potential to disrupt the trade landscape – by simplifying a range of activities – including reducing disputes and fraud to offering delivery and payment assurance, facilitating transparency of trade asset movement, and assisting in the flow of trade receivables. The end goal: increased collaboration, automation, and control in trade transactions.

Blockchain has the power to reshape trade finance and to decrease pointless frictions and shortcomings taking over the trade finance value chain. Old and paper-based processes are in desperate need of upgrading. Blockchain plays a crucial role in this transition and in the introduction of new digitalized solutions. The main benefits of blockchain technology in trade finance can be condensed down to efficiency, traceability, auditability, transparency and security.

Benefits of a blockchain-based solution for trade finance

Follow new income streams through new financing products and alternatives to letters of credit
Offer banking services to small and medium enterprises and companies that would traditionally use open account trading
Acquire deep understandings into client financial positions and transaction histories
Lower operating costs by digitizing sluggish and cumbersome paper processes
Employ blockchain security attributes to establish greater visibility and control of transactions, thereby positively affecting the bank’s capital adequacy position
Rapid approval processes and trading cycles

To date, most processes in trade finance are manually driven, but a dramatic increase in blockchain-enabled solutions are being adopted by businesses. The World Trade Organization (WTO) published a report in 2018 declaring that blockchain would add US$3tn to international trade by 2030.

Euro Exim Bank (EEB), the best global trade finance bank, was one of the first adopters of blockchain to power international trade settlements and has gained an enviable reputation through its competitive pricing, customer relationships and fast service.

Blockchain not only enables collaboration but gives each participant autonomy over their own data, allowing them to choose how and when they plan to share it with other trading partners with a transparent and auditable data trail – without disclosing any data to irrelevant parties in the network.

Challenges facing blockchain adoption
Traditional paper-based trade finance systems:
One of the difficulties involved with trade finance is the large volume of paper documents that make up much of the information flow between trading parties. This reliance on documents has downsides, including the cost and time required to prepare, transmit, and check these documents. Paper documents may also be open to mistakes and forgery.

Lack of standardisation:
One of the main problems related to the development of digital platforms in trade finance is that each platform developer is doing something different.

Regulatory compliance:
There continues to be uncertainty over the legal status of e-documents among legal systems.

High implementation costs:
The cost of creating and maintaining a blockchain network is regarded as an barrier to the wide adoption of this technology.

Trade Finance Systems: siloed and disconnected
Trade finance involves numerous parties including a buyer, a seller, their corresponding banks as well as insurance providers and logistics companies, amongst others. However, there is not one platform where all these parties can connect between each other. Instead, they need to connect to a multitude of platforms in order to initiate business, share documents and communicate.

Benefits of blockchain technology for trade finance
The International Chamber of Commerce estimates indicate that digitising trade documents could generate £25bn in economic growth by next year, and savings of £224bn through the uptake of the Model Law on Electronic Transferable Records.

There has been widespread optimism regarding the application of blockchain in the banking industry, with claims pointing to blockchain technology disrupting business and financial services in the way the internet disrupted offline commerce. Blockchain technology holds the potential to change business processes by redefining value chain interactions, lowering operational intricacy and reducing transaction costs.

Blockchain has the potential to cut costs, speed up transactions and promote greater financial inclusion by streamlining cross-border and remittance payments. These powerful innovations can transform the payments infrastructure.

Benefits of blockchain to companies and clients:

It creates a single, shared source connecting parties. It also enables real-time exchange of data and assets between parties.
It reduces friction and cost, boosting speed and increasing the transparency of cross-border trade with digitised accounts on a distributed ledger. The technology, also called DLT, can now be used to settle a letter of credit in a few hours compared with ten days via the old system.
It can digitize, secure, streamline, and accelerate operational processes and supply chains across global markets. The benefits of blockchain are its simplicity and security. Since each new item adds to the coding and verifies the previous item the risk of forgery is eliminated.
It offers enhanced security. Blockchain solutions offer a high level of data security for banks, owing to the cryptographic operations that make them work. Their decentralized nature also helps to lower system downtime.
It provides greater transparency. Transactions and data are recorded identically in multiple locations
There is instant traceability. Blockchain creates an audit trail and reveals weaknesses in supply chains
Increased efficiency and speed: By simplifying processes with blockchain, transactions can be completed quicker and more effectively

Ripple, an enterprise blockchain services provider, is one of the most prominent players. While the company is best known for its associated cryptocurrency XRP, the venture-backed company itself is building out blockchain-based solutions for banks to use for clearance and settlement.

SWIFT messages are one-way, like emails, mean that transactions can’t be settled until each party has screened the transaction. By integrating directly with a bank’s existing databases and ledgers, Ripple provides banks with a faster, two-way communication protocol that permits real-time messaging and settlement. Ripple currently has over 300 customers in over 40 countries signed up with its blockchain network.

As one of its innovative projects, EEB was an early adopter of Ripple’s cryptocurrency-driven global payments solution On-Demand Liquidity (ODL). Ripple and EEB also investigated a new capability that embeds trade finance transactions into Ripple’s blockchain-based messaging system.

Access to fiat currencies is expensive and limiting, but with ODL a buyer or seller can pay or receive funds in local currency with lower liquidity requirements. For buyers, local currency is exchanged into the XRP digital asset and remitted to their counterparty – who is paid in local currency. This is completed all in real-time, with full audit and a guarantee of zero rate-change through the transaction.

Using xCurrent for payments and ODL solves the liquidity issue by switching from local currency to XRP and paying out in local currency at the receiver end, resolves the time issue of delivery and authenticity.

EEB has one of the fastest issuance processes because of its streamlined workflow underpinned by blockchain, AI and innovative technologies, including the prospect of issuing its own asset-backed stable coin for trade, namely EXIMCoin.

Blockchain technology presents a plethora of opportunities for enterprises that implement it, and spending on blockchain is projected to increase over the next decade. This is occurring fast across trade finance, and innovative financial institutions like EEB provide their clients with quality financial solutions and flexibility. Leaders looking to future-proof their businesses should collaborate with thought leaders in blockchain, simplifying their processes and reaping the rewards.

For more information: https://euroeximbank.com

BUSINESS ACROSS BORDERS

25 September 2023

jamieharrison

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Categories: Finance

Nations are almost always better off when they buy and sell from one another. For businesses, globalisation can open up a world of opportunities. Access to the global economy provides new markets, new trade, new routes to consumers and new revenue streams, and nations with fundamental economic, social, political and cultural advantages.

Trade and cybersecurity are increasingly intertwined. Digital trade is crucial for almost every company, but it also introduces new complications. When products or services that contain a computer or can be connected to the internet – cross borders, cybersecurity risks emerge. And for today’s CISOs, managing cyber risk is Job #1, and it’s a full-time concern.

The role of trade finance is to introduce a third party to transactions to eliminate payment and supply risks. Businesses, organisations, and citizens increasingly operate online to deliver economic, social and other benefits. A recent McKinsey survey found that the pandemic has accelerated the overall adoption of digital technologies and applications by three to seven years in just a few months.

At the same time, cybersecurity threats have been growing. Large-scale fraud, data breaches, and identity thefts are increasing. The World Economic Forum’s Global Cybersecurity Outlook report indicates that cyber-attacks increased 125% globally in 2021, with evidence suggesting a continued uptick through 2022.

There are many financial institutions focusing on international trade, and Euro Exim Bank (EEB) is the one to watch. Unlike a retail bank with counters, current accounts and holding client cash, EEB uses online 3rd party accounts with global banking counterparts and is constantly vigilant against cyber-attacks.

Government Capability in Managing Cybersecurity Risks:
According to the OECD, cybersecurity should “aim to reduce the risk to an acceptable level relative to the economic and social benefits expected from those activities, while taking into account the legitimate interests of others.”

We are highly dependent on electronic technology in the modern world, and protecting this data from cyber-attacks is a challenging issue. A government’s reactions are shaped by its capability to manage cybersecurity risks, such as: the laws and regulations on cybersecurity; the implementation of technical capabilities through national and sector-specific agencies; the organizations implementing cybersecurity; and the awareness campaigns, training, educations, and partnerships between agencies, firms, and countries.

The low cost of entry, anonymity, uncertainty of the threatening geographical area, dramatic impact and lack of public transparency, have led to strong and weak actors including governments, organized and terrorist groups and even individuals in this space, and threats such as cyber warfare, cybercrime, cyber terrorism, and cyber espionage. Governments must devise efficient systems to protect against the destructive impacts of cyber threats.

Many governments are introducing new policies to help increase their cyber security. The UK government for example has published the Government Cyber Security Strategy (2022-2030) in which is sets out the government’s approach to building a cyber resilient public sector.

What is cybersecurity compliance?
Cybersecurity compliance is the organizational risk management method aligned with pre-defined security measures & controls on how data confidentiality is ensured by its administrational procedures. IT security is made more challenging by compliance regulations, such as HIPAA, PCI DSS, Sarbanes-Oxley and global standards, such as GDPR.

Cybersecurity standards:
Cybersecurity standards represent a key step in the IT governance process. As a means for managing and containing risk to acceptable levels, the standards must be wholly consistent with IT governance instruments and closely aligned with and driven by the enterprise’s cybersecurity policies. Standards can build a common approach to addressing cybersecurity risks based on best practice.

The International Standards Organization (ISO) and the International Electrotechnical Commission (IEC) have developed a number of cybersecurity-related standards, including the jointly developed ISO/IEC 27000 series as well as sector specific-standards for electric utilities, healthcare, and shipping.

To address global cybersecurity challenges and improve digital trust, a new and improved version of ISO/IEC 27001 has just been published. The world’s best-known standard on information security management helps organizations secure their information assets – vital in today’s increasingly digital world.

Certification of compliance with cybersecurity standards:
Compliance certification can give business confidence in the cybersecurity of organizations and government. Under the EU Cybersecurity Act, June 2019, the European Union Agency for Cybersecurity will establish an EU-wide cybersecurity certification scheme. NIST has developed a different approach in the Baldridge Performance Excellence Program, which encourages self-assessment of compliance.

Using Trade Policy to Improve Cybersecurity:
Although digital trade increases cybersecurity risks, trade and cybersecurity policy can also work in tandem to support growth in digital trade as well as strengthen cybersecurity outcomes.

Reforms since World War II have substantially reduced government-imposed trade barriers. But policies to protect domestic industries vary. Tariffs are much higher in certain sectors and among certain country groups than in others. Many countries have substantial barriers to trade in services in areas such as transportation, communications, and, often, the financial sector, while others have policies that welcome foreign competition. Under the rules-based international trading system centred in the WTO, trade policies have become more stable, more transparent, and more open.

Access to data:
As cybersecurity defence becomes more sophisticated, use of analytics and machine learning to monitor network activity plays a growing role in the analysis of risks and anomalies. The CPTPP and USMCA commitments to information flows across borders (subject to appropriate exceptions) and to avoiding data localization requirements, advances digital trade opportunities and cybersecurity outcomes.

Information sharing:
Trade agreements can include commitments to building public and private sector information sharing mechanisms. For example, the U.S.-Mexico-Canada trade agreement includes a commitment to sharing information and best practices as a means of addressing and responding to cyberattacks.

Why a risk-based approach to cybersecurity is the right business choice:
Monitoring of trade deals needs a risk-based approach. The move from a free trade approach to a risk-based approach marks a foundational shift thinking on trade. This has prompted an urgent development of new policies, which includes a greater reliance on export controls. Cybersecurity is one of the main topics for business managers in today’s world. The approach to cyber risks has changed from “maturity based” to “risk-based” over time.

Risk-based approaches are often presented in opposition to compliance-driven approaches. A risk-based approach to cybersecurity is also proactive rather than reactive. Instead of focusing on incident response, a CIO at an organization using this approach is likely to invest heavily in testing, threat intelligence, and prevention. Finally, this approach is inherently realistic. The goal of a risk-based cybersecurity program is meaningful risk reduction, not 100% security.

New trade rules that can both support risk based effective cybersecurity regulation, build bridges between the cybersecurity policy in different countries to maximize synergies, and minimize barriers to trade are needed.

Euro Exim Bank (EEB) complies with the ever-changing policies and is a global organisation that caters to many countries with different jurisdictions, enacting end-to-end security and frequent evaluations with ongoing improvements. EEB was an early participant in the Ripple community and achieved xCurrent connectivity enabling institutions to instantly communicate and settle cross-border payments with end-to-end visibility and tracking, all in record time. EEB also participates with Ripple’s ODL service, and with expansion of crypto globally, looking to issue its own stable coin in 2023.

As the digital economy is growing, so too is the opportunity for malicious actors to exploit IT vulnerabilities. Recent high-profile cyber incidents, such as SolarWinds and Microsoft Exchange, along with the notable increase in ransomware attacks on organisations and critical national infrastructure such as the Colonial Pipeline in the US, have demonstrated the disruptive potential of these threats and the real world impacts they can bring about.

Doing nothing is no longer an option. You can protect your organisation, and your reputation, by partnering with a well-recognized financial organisation like EEB, with years of experience for effective management of risk in the facilitation of global trade.

Durban: Now is the Time for US Investors

5 September 2023

jamieharrison

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Categories: Locations

In the realm of global investment, Africa constitutes perhaps the final frontier with its untapped potential across diverse sectors. As a rapidly growing and under-served marketplace, the continent is unmatched for 21st Century opportunity. So, why haven’t more investors beaten a path to Africa’s door to date?

Among the continent’s vibrant cities, Durban stands out as a strategic gateway for US investors aiming to capitalise on Africa’s economic growth. With its unique blend of infrastructure, location, economic diversity, and business-friendly environment, it presents a compelling case for US investors to consider.

Durban’s geographical location plays a pivotal role in its status as a gateway to Africa. Situated on the eastern coast of South Africa, Durban serves as a key international port city with easy access to major maritime trade routes. The city boasts the largest and busiest port in Africa, facilitating efficient trade and commerce not only within the country, but also across the continent. This connectivity enables US investors to establish a strong foothold in Africa and utilise Durban as a logistical hub for their operations across multiple African markets.

Durban’s economy is characterised by its remarkable diversity, encompassing manufacturing, tourism, finance, and services. The region offers a range of investment opportunities for US investors – around logistics and logistics management, petrochemicals, automotive and allied industries, ICT and BPS, agri-processing, life sciences, financial services, energy, tourism asset development and mining, and more besides.

Additionally, Durban is a popular tourist destination with a thriving hospitality sector, further diversifying the economic landscape. This mitigates risk for US investors by reducing reliance on a single sector and providing multiple avenues for growth.

Moreover, Durban benefits from having a large and diverse talent pool equipped with a range of skills, from engineering and technology to finance and management. Coupled with its status as a major educational hub, this ensures that US investors have access to a well-trained workforce to support their ventures. It is an advantage that serves to reduce the challenges associated with finding and developing the necessary human resources for business growth.

An oft overlooked key to successful investment ventures is cultural understanding. In Durban, however, the cosmopolitan population and rich cultural diversity provide US investors with a unique opportunity to establish connections and build relationships across various communities. This understanding of local markets and cultural nuances is crucial for tailoring products and services to meet the needs of diverse consumer bases across Africa.

By leveraging Durban as a launchpad, US investors can tap into the vast opportunities that Africa offers, while also benefitting from the city’s well-established infrastructure and conducive investment climate. As Africa’s potential continues to unfold, Durban stands ready to facilitate and amplify the success of investors venturing into this dynamic continent.

Durban’s pre-eminent status really becomes apparent when investors are assessing risk, potential returns, and alignment with their strategies.

Durban is an order of magnitude better than other locations across the continent in respect of political stability and its regulatory environment, with well-defined property rights, consistent rule of law, and effective contract enforcement that would not be out of place in the developed world. Meanwhile, its stable political environment fosters investor confidence and reduces the risk of abrupt policy changes that could adversely affect investments.

US investors need to be reassured regarding economic growth and market potential, and with Durban they will be. This is because the region can demonstrate sustained economic growth, diversification, and a burgeoning middle class. What’s more its gateway status to rapidly growing consumer markets both within and beyond South Africa offer opportunities for companies to introduce and scale their products and services, potentially leading to substantial returns on investment.

The US has the largest economy in the world and within its industrial and commercial ranks boasts the titans of global energy, technology, healthcare, agriculture, and manufacturing. It is small wonder then that US investment antennae are pointing firmly towards Africa as the next big thing providing scope to sustain their position atop the summit of world commerce. Durban’s unrivalled transport links into the African interior and phenomenal port facilities add to its interest for those US investors focused on those sectors with export potential, especially those with an interest in Africa’s abundant mineral, oil, and gas reserves.

US investors essentially seek African investments that offer a combination of political stability, economic growth potential, favourable regulatory environments, infrastructure development, sectoral opportunities, access to resources, investment incentives, risk management, local partnerships, and alignment with ESG considerations.

Durban ticks every box.

Not only does it offer geographic and logistics infrastructure advantages for new-to-market companies, but its relatively transparent legal processes and widespread use of English in business add up to it being a low-entry threshold country. What’s more, with a rapidly growing tech-oriented middle class, Durban can be an incubator for innovations that can then be expanded to other Sub-Saharan markets beyond the national borders. And given the established presence of South African agencies and companies across the continent, finding the right partner for third markets is a low-risk exercise.

US companies will further find that Durban-based firms are receptive to the concept of partnering, whether via agency, licensing, joint ventures, mergers and acquisitions, or some form of reciprocal arrangement to access the US market in return. In short, the opportunities are many and the can-do attitude is strong here.

The spirit of entrepreneurship and innovation that prevails across the Durban region equates to unrivalled opportunity for US investors seeking the best gateway into Africa and the greatest new market on Earth.