UBA Ghana optimistic for Africa despite global economic downturn

UBA Ghana optimistic for Africa despite global economic downturn In spite of the current global economic challenges, Investment Managers from UBA Group's London based affiliate, UBA Capital Europe, have made a good case for Africa, stating that African economies are in much better shape to withstand external shocks than ever before.

The UBA Managers; Alex Trotter, Head of Asset Management, and Frank Dewotor Portfolio Manager both of UBA Capital, joined a distinguished panel at the prestigious London Business School's session on Africa and the Global Credit Crisis, held by the LBS Africa Club in London, and asserted that there are good grounds, particularly given continued domestic demand, to feel optimistic about growth and investment on the continent.

Frank Senyo Dewotor led a presentation showing the great strides Africa has made in recent years in economic and political reforms, which provide a far stronger base to tackle the challenges posed by the meltdown.

Alex Trotter, on his part emphasized that Africa also has solutions to the challenges, illustrating the growing depth of local markets for financing and the recent UBA participation among other Cote d'Ivoire banks, in the US$150m syndicated loan to MTN – an example of African capital deploying to African businesses.

The optimism by the duo is also predicated on the following: Africa is not significantly exposed to global financial markets and economy given that it accounts less than 4% of world trade; Africa as a commodity story is over hyped because domestic household consumption has more than doubled in the past 20 years in real terms, thus fuelling much of Africa's growth rather than strong commodity prices, as is generally perceived. African countries are net importers of oil with the exception of a very few countries like Nigeria and Angola.

The event focussed attention on the effects of global economic events on Africa, examined root causes and solutions, given particularly the G20 summit held in London, where Africa's voice needs to be heard. There was strong participation from a large audience of investors, African entrepreneurs, students and representatives of financial services giants including Goldman Sachs and Citigroup.

The event was led by Sanmit Ahuja, CEO of ETIDynamics, a leading global research development and investment firm. The panel consisted of His Excellency Antonio Gumende, the High Commissioner of Mozambique, Her Excellency Mumtaz Kassam, Deputy High Commissioner of Uganda, Lord St. John of Bletsoe, Vice Chairman of All Party Parliamentary South Africa Group; Chairman of UK and Sierra Leone Business Forum and Sajjad Sabur, an Investments Director in HSBC's Emerging Principal Investment.

Both the representatives of Mozambique and Uganda emphasized the need for fairer trading opportunities and the importance of richer nations honoring their commitments to aid and development.