Kaushal: Africa’s economic outlook largely positive

The CEO of Standard Chartered Africa and Middle East, Sunil Kaushal, shared his insights on the economic outlook for regions across Africa at the World Economic Forum. Kaushal emphasized that despite challenges, the outlook remains largely positive, with ongoing reforms in countries like Nigeria contributing to this positive trend. He also pointed out that Tanzania and Kenya are great places for multinationals to set up their base, while Mozambique continues to shine as a bright spot in the region. Kaushal reiterated the bank's focus on reducing stress through alternative sources of capital and risk mitigation efforts. During his chat with CNBC Africa, Kaushal discussed various themes, including climate change, geopolitics, and their impact on the economy. He expressed optimism about the future, highlighting that while challenges exist, there is no indication that the world is falling apart. He emphasized the importance of remaining constructively positive amidst the evolving global landscape. One of the key topics of discussion was the role of artificial intelligence (AI) in the banking sector. Kaushal noted the significant opportunities presented by AI in automating operations, predicting outcomes, and enhancing efficiency. However, he also highlighted the risks associated with AI, such as biases in data and algorithms, as well as the importance of a responsible AI framework to manage these risks effectively. Kaushal addressed concerns about trust and fragmentation in global business relationships, attributing the shift to factors like supply chain disruptions during COVID, tensions between major economies, and vulnerabilities exposed by geopolitical events. While acknowledging the reconfiguration of supply chains, Kaushal remained optimistic about the resilience of trade and the growth of essential industries despite potential cost implications. At the World Economic Forum, Standard Chartered prioritized networking and knowledge-sharing across key economies, focusing on topics like climate change, AI, and trade finance. Kaushal highlighted the bank's role as a super connector and thought leader in these areas, emphasizing the value of collaboration and best practice sharing. In terms of projects on the ground in Africa and the Middle East, Standard Chartered continues to focus on infrastructure development, project finance, and trade facilitation. Despite disruptions caused by COVID and the Ukraine war, the bank remains committed to addressing stress in the region through alternative sources of capital and risk mitigation strategies. Kaushal underscored the positive secular trends driving economic growth in Africa, including demographics, labor supply, consumer demand, and green investments. Looking ahead, Kaushal emphasized that the main themes driving economic growth and development in Africa and the Middle East remain unchanged. The region is poised to continue its trajectory as a fast-growing economy, a provider of labor, a destination for capital investment, and a driver of green innovation. In conclusion, Sunil Kaushal's insights underscore the enduring optimism and potential for economic growth in Africa and the Middle East despite ongoing challenges and disruptions in the global landscape.