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Ghana, Kenya, and Cote d’Ivoire are the only African countries named in Standard Chartered’s all-new research listing the top 20 rising stars of global trade.
The index, known as Trade20, identifies 20 rising stars of trade on a global scale, highlighting the best and most dynamic emerging economies. The list places an African country, Cote d’Ivoire, in the top spot, while mentioning Kenya in third place and Ghana in 13th position.
These African markets have been found by Standard Chartered to be among the top 20 rising stars of global trade.
The Trade20 index determines each market’s trade growth potential by analysing changes within the last decade across a wide range of variables, grouped into three equally-weighted pillars: economic dynamism, trade readiness and export diversity.
The index examines 12 metrics across 66 global markets – the major global economies plus the major economies in each region – to reveal the 20 economies that are most rapidly improving their potential for trade growth.
While most traditional trade indices are based on a market’s present performance, the Trade20 index captures changes over time to reveal the markets that have seen the most improvement within the last decade.
The study does not look at the trade growth potential of each market in absolute terms but at its individual potential for trade growth in comparison to its size. In absolute terms, it follows that large economies will, of course, offer greater potential and opportunity than smaller ones overall.
The findings from Standard Chartered’s latest research suggest that Côte d’Ivoire and Kenya have significantly improved their trade readiness, demonstrated in their investments in infrastructure and improvements in the business environment. And those efforts are starting to pay off.
Another finding from the research is that Côte d’Ivoire and Ghana are taking economic dynamism very seriously, with Côte d’Ivoire enjoying robust GDP and export growth, and Ghana attracting sizeable amounts of foreign direct investment (FDI).
The general take-home from the study is that while existing trade powers like China and India continue to rapidly improve their trade potential, African economies are making a particularly strong case from a rather unfavourable starting position.
Featured Image Courtesy: The Commonwealth
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