As US-China-EU tensions reshape global trade, Standard Bank’s Africa Regions head says the continent’s best defence is self-reliance, the Africa Continental Free Trade Agreement (AfCFTA), and fixing the “soft infrastructure” holding intra-African commerce back. He speaks exclusively with KEABETSWE NEWEL
While trade wars and fractured supply chains rattle the global economy, Africa is being forced to look inward. And according to Andrew Mashanda, Head of Business and Commercial Banking for Africa Regions and Offshore at Standard Bank Group, that may be exactly what the continent needs.
In an exclusive interview, Mashanda argues that geopolitical volatility is no longer a distant risk for Africa. It is already reshaping investment flows, commodity prices, and value chains. The answer, he says, is not to pick sides, but to build a continent that can stand on its own.
Become Self-Reliant
“We are currently experiencing geopolitical challenges,” Mashanda says.
According to Mashanda, African countries should strategically position themselves to avoid becoming collateral damage in wars between the US, China and the EU. For Mashanda, the most important thing is for Africa to realise that it needs to become self-reliant, as a matter of principle, but also as a call to action.
“We need to trade more with ourselves,” he states.
He believes Africa must build local economies “to the strength and quality of international players we’ve been trading with,” while also tackling the governance and policy gaps that have long stifled cross-border commerce.
The numbers suggest the message is landing.
“If you look at the numbers, intra-Africa trade has moved from about 16percent, which we talked about 12 to 18 months ago, to just over 20percent,” Mashanda notes.
“We’re talking about US$230 billion, treading towards $250 billion. I mean, this is remarkable progress that we’ve made in a very short period of time.”
He points to the Africa Continental Free Trade Agreement as proof of intent.
“The fact that 47 countries across Africa have signed up to AfCFTA is a signal that we are responding very positively as an African continent.”
Fixing The Friction: From Papers to Power
Mashanda is blunt about what still holds Africa back: non-tariff barriers and infrastructure deficits.
“Do we still have challenges? The answer is absolutely yes,” he says. “We do need to continue to deal with the infrastructure deficits that make it very difficult for us to access markets, or get goods and services and people to where they need to be to do trade.”
His priority is paperwork.
“I think let me start off with the non-tariff barriers around documentation. If we can start harmonising requirements, phytosanitary certificates, certificates of origin, harmonisation of standards across markets, harmonisation of tariff regimes, and also make sure there is knowledge and access to knowledge around what’s required to move goods and services across borders. I think that’s the first key one,” Mashanda elaborates.
The second is what he calls “soft infrastructure.”
“The world is becoming digital. We need to make sure that our countries continue to invest in digital infrastructure, whether it’s subterranean cables to facilitate digital flow of information, road infrastructure, rail, power and energy. Sources need to be reliable and affordable,” he adds
That investment, he argues, is critical to value addition.
“These are all critical infrastructures that will facilitate the growth of value addition for the raw materials that we have in abundance in Africa. And us being able to add more value to our own raw materials means that we don’t have to export raw materials and import finished products onto the continent. So we can actually become a lot more self-sufficient. And then, of course, reap the demographic dividend we have from a young, active, productive population,” he proceeds.
Policy, FDI and the Balance
On the question of balancing local revenue needs with attracting foreign investment, Mashanda sees geopolitical pressure as a catalyst for unity.
“One thing that the global trade wars have created for us is we’ve reduced a lot of unnecessary tension amongst ourselves,” he says. “We’ve been forced to start looking at making sure that our economies are attractive, not only for our own local investors, but for investors from Africa and globally. So we have no choice but to move closer together.”
He credits AfCFTA for driving that alignment. “From a policy perspective, we’re seeing a lot more collaboration and harmonisation of the policy environment. That’s why 47 countries have found it worthy to sign up. That’s why we’ve seen growth from 16 percent to over 20 percent in intra-Africa trade.”
His prescription is simple: accelerate.
“We need to just continue doing what we’re doing, but accelerate. We need to start accelerating the pace at which we’re harmonising policies, our governance frameworks. Non-tariff barriers need to be removed. And we need to also make sure that we make our borders a lot more friendly to doing trade with each other,” he opines.
Transformational Projects
Looking ahead, Mashanda is optimistic, but ties that optimism to big, catalytic projects.
“With regards to economic growth across Africa, I can only speak from our own perspective. Standard Bank has been fully invested across Africa and we’ve supported the growth of key sectors,” he says.
He cites Nigerian businessman Aliko Dangote’s plans as an example.
“If you hear the level of optimism coming from Dangote talking of building another Oil Refinery in East Africa for US$20 billion, it just shows you that having another refinery of the size and scale that we already have in Nigeria is transformational,” he says, as an example.
“If you followed the story of how having a refinery in Nigeria has changed that market, which used to export crude oil and import refined products, to completely shifting that equation to actually starting to use a lot of their own raw materials, that type of infrastructure is transformational. That’s what we need to see a few more of,” he adds, saying the catalytic effect they have on the ecosystems they support and the transmission into economies is incredible in terms of multiplying growth across Africa.”
The Bottom Line
For Mashanda, the path forward is clear in a world of fragmentation: less dependence, more integration.
“US$230 billion worth of trade is nothing to frown at. And trending towards US$250 billion is also quite a credible movement. Yes, globally the numbers are still small, but these are very important steps in the right direction,” he notes.
In his view, Africa’s best hedge against global trade wars isn’t neutrality. It’s building a market big enough to matter to itself first.
