Anti-globalisation is counter productive-Stanchart boss

Brian Benza
Staff Writer | Tuesday February 16, 2010 00:00

 

Despite the benefits and opportunities that international trade has provided not just to Africa, but throughout the world, the arrival of the global economic crisis has precipitated a growing movement toward protectionism and nationalism and Globalisation has been shouldered with some of the blame for the economic crisis.

Speaking at a dinner to celebrate the Chinese new year in Gaborone, Standard Chartered bank Botswana CEO, David Cutting said that despite the world having gone through a difficult economic period, this is not the time to apply protectionism measures that could turn out to be harmful. 'Rallying against Globalisation is completely counter-productive and I believe that we all have a key role to play in advocating with our stakeholders the immense benefits that globalisation has brought to ourselves, our businesses and our communities.

'We have been saying with great conviction that this is not the time to rally against globalisation or global trade. Globalization has been of huge benefit for Botswana. Globalisation has enabled the continuous flow of skills, commodities, people, products, systems and services out of Botswana and into Botswana, along a mutually beneficial corridor,' Cutting said.

With branches in over 70 countries across the world, Standard Chartered has reaped immense benefits from globalisation and has moved to particularly take advantage of the growing China-Africa trade. Despite the financial crisis, the China-Africa trade corridor has also remained very resilient, posting trade figures exceeding $80 billion last year with trade between China and Botswana also remaining robust at about US$230 million in 2009.

'We believe that trade between the two countries will become more significant as the trade relationships and economic partnerships between China and Botswana continue to develop, strengthen and grow.

'However, I believe that as a business and trading community- can play a crucial role in reversing these potentially damaging, popularist sentiments by taking a leadership position on advocating international trade relationship and globalisation,' he said.

Standard Chartered Bank Group has been involved in many of their markets throughout the world, advising governments, regulators, clients and international institutions on how to respond successfully to the Global financial crisis.

Delivering the keynote speech at the event, Minister of Trade and Industry Dorcas Makgato-Malesu said Botswana has benefited a lot from trade with China in terms of Foreign Direct Investment flow as well as   transfer of technology and skills.'However, we still strongly believe that FDI in Africa will continue to increase from an estimated USD 1.6 billion in 2005 to a much higher level over the coming years. 'Given the trade links between the two countries, I also highly appreciate the role that Standard Chartered Bank continues to play in supporting and facilitating these trade operations,' said Makgato-Malesu.

The minister added that last year's launch of the SCB-SME-China-Africa Network whose objective is to facilitate the import and export of goods by Botswana's Small, Medium and Macro Enterprises should improve the business environment between Botswana and China and that her Ministry is committed to remove any administrative and regulatory business barriers through a comprehensive review of its various pieces of legislations.

Stanchart has vigorously tried to tap into the China-Africa trade market and recently entered into a global ATM alliance with China Unionpay (CUP).

Under the alliance China Unionpay cardholders will now be able to withdraw cash and perform account inquiries at over 2,000 Standard Chartered Bank ATMs across Africa, Asia, and the Middle East.

 In Africa, the deal covers Kenya, Zambia, Gambia, Uganda and Botswana.