Stanbic IBTC’s Sam Ocheho on efforts to improve trade finance in WA

Trade and investment in West Africa have been facing challenges due to issues such as access to trade finance and currency liquidity. CNBC Africa recently sat down with Sam Ocheho, the Head of Global Markets at Stanbic IBTC, to discuss strategies to enhance trade liquidity in the region. Ocheho pointed out that although trade among West African countries is growing, it still lags behind trade with European and American partners. He emphasized the need for policymakers to explore synergies within the sub-region to boost business activities. The conversation also delved into the impact of currency liquidity and regulatory regimes on investments, particularly in Nigeria. Ocheho noted that while currency shortages were prevalent in the past, the introduction of the Investors and Exporters (I and E) window has brought more transparency and improved currency liquidity. He acknowledged that there is still room for enhancement in this area. The regulatory environment in Nigeria has seen some positive changes, with a reduction in the volume of regulations issued by the central bank. However, regulations like the requirement for borrowers to have sufficient hard currency assets before accessing foreign currency loans have impacted lending in the market. Ocheho highlighted the importance of managing available liquidity effectively, especially in vital sectors like raw materials, agriculture, and oil and gas. The central bank's prioritization of these sectors helps ensure liquidity flows where needed. In terms of boosting liquidity and trade product bankability, Ocheho emphasized the significance of sound macroeconomic conditions and effective fiscal and monetary policies. Creating a conducive environment for investors, both portfolio and foreign direct investors, is crucial for increasing liquidity and attracting long-term investments. Overall, the success of improving trade finance and currency liquidity in West Africa hinges on robust regulatory frameworks and macroeconomic stability. By fostering a favorable investment climate, countries like Nigeria can enhance liquidity, promote trade, and stimulate economic growth in the region.