Standard Bank sees minimal impact of Trump tariffs on Africa

Standard Bank Group Chief Executive Sim Tshabalala remains optimistic about the growth prospects for Africa, despite the impact of U.S. President Donald Trump's tariffs. In a recent interview with CNBC Africa's Godfrey Mutizwa, Tshabalala highlighted the potential minimal impact of the tariffs on the continent. The discussion took place during a special Africa Day event, where senior media leaders engaged with Standard Bank executives. Tshabalala emphasized that while there will be some repercussions from the tariffs, the overall effect is expected to be limited. He pointed out that historical data shows that such trade disputes tend to be temporary, and economies eventually stabilize. Tshabalala also underscored the importance of African countries engaging in dialogue with each other and with the U.S. individually to navigate the challenging trade environment. One key takeaway from the interview was Tshabalala's statement that it is rational to be bullish on Africa, citing the continent's need for infrastructure, capital, and its youthful population. He forecasted that Africa could become the fastest-growing region globally by 2030. Standard Bank's growth projections include a 4% growth rate for Africa by 2025, with a potential pickup in 2026. For South Africa, they anticipate a 1.3% growth rate, even under the worst-case scenario of continued tariffs. Despite concerns about the impact on specific sectors like automotive and textile exports, the bank maintains a positive outlook on Africa's long-term growth due to its underlying strengths, such as demographics and urbanization.