ARFICA'S TRADE FINANCE OASIS: SOUTH AFRICA

WHERE  NO TRADE FINANCE FAMINE; NO APARTHEID IN TRADE FINANCING

South Africa's Political Climate is now Trade (Finance) Friendly

Apartheid when in use hindered the country's foreign trade

Apartheid was a political barrier to economic development

No more negative economic sanctions; no more boycotts 

No Apartheid in Trade Financing

Trade finance is South Africa's opportunity

Trade is South Africa's strategy

Economic development is the country's political aim

No Trade Finance Famine Natural and financial resources

South Africa's fortune

South Africa has expertise for using its resources to its advantage

Africa is known for lack of trade finance infrastructure, for trade finance famine. But the southern tip of Africa called South Africa, is fortunate in having natural resources to tap for international trading - gold export for example; in having financial resources for financing trade; in having expertise for using its financial resources for pushing its merchandize across its borders. South Africa is developed country among African countries. South Africa is the example of favorable political climate, better infrastructure, better trade policies and strategies. Thus, South Africa is the best example of how trade can promote development, how trade finance infrastructure can promote trade.  South Africa is an example for the other African countries to learn how to develop like South Africa.      

South Africa has the political strategy of trade development for economic development. It has Department of Trade and Industry (DTI) to implement its this strategy. The one prerequisite for such strategy implementation is trade finance infrastructure. And, South Africa has it. The trade finance infrastructure well supports trade. Trade is also well supported by well developed transport system.  The trade finance infrastructure is well developed, well supported by well developed legal infrastructure. Trade finance is available from the indigenous trade finance markets, in which foreign trade finance banks also operate. The financial markets have adequate sources of finance and the sources have adequate funds for lending. The markets have suitable trade finance products and services. The markets have trade financing expertise and experience. The markets have well trained trade finance specialists. Take for example, Standard Bank of South Africa. An important constituent of South Africa’s trade finance market, with global operations. It supplies: documentary credit and collection services; electronic trade solutions; online trade consultancy and trade tools; pre-and post shipment finance; exchange control consultancy services; internet-based buyer-selling matchmaking service; country trade profiles; risk management strategies. It structures innovative trade packages. In a nutshell, the bank offers payment, financing and risk management services in the country’s international trade. The other largest bank is Amalgamated Banks of South Africa ( Absa), serving commercial customers, among other things. The Absa Group also provides products and services to selected markets  in Africa -Mozambique, Namibia, Tanzania and Zimbabwe .

The trade finance banking is regulated by the country’s central bank: South African Reserve Bank. The Bank was established by an Act of Parliament – Currency and Bank Act of 10 August 1920 – in the wake of abnormal monetary and financial conditions following the World War 1.  It has usual central banking functions, to use the country's financial resources in a right way for right purposes.