Commodity Trading and Distribution
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Commodities are important for Africa, accounting for more than 80 per cent of exports in 35 nations on the continent. Economic growth has thus been closely correlated to resources prices and the post-millennium commodity ‘super-cycle’ strongly boosted many countries.
Few things are worthy of note, Africa’s role in most commodity markets is modest exporting less than 10 per cent – often below 5 per cent – of global trade flows. Annual revenue from such flows are also limited, with only Algeria, Angola, Cote D’Ivoire, Egypt, Ghana, Libya, Nigeria and South Africa have commodity exports exceeding USD10 billion a year, so sufficient to affect global markets. Also, many African economies are highly exposed to just one or two resources. Indeed, for most nations, a single commodity accounts for over 40 per cent of their exports.
The above guides our offering in the Commodity trading and distribution space. We offer strategic solutions across different economic configurations to ensure we eliminate bottlenecks to diversified commodity exports, increase revenue from resource bases and tighter integration into global trade flows.
As increased use cases for core resources increases, use cases like the requirement of cobalt for batteries, which the Democratic Republic of the Congo accounts for two-thirds of global output and half the world’s reserves, the need to be strategically guided regarding financing and strategic implementation commodity sourcing projects cannot be overstated.
Challenges like depleting reserves, as noticed in declined output of gold in South Africa, and poor access to capital abounds but our expertise has helped many governments and private operatives navigate the tailwinds and turn out good balance sheet figures.
We are a leading financial advisory firm whose technical advisory services has helped many African companies who operate in the Commodities trading Industry source new suppliers, execute purchases safely and venture in other value adding activities in the value chain.
Our clients receive comprehensive advice on financial planning, strategic planning, core transaction advisory and access to market strategies, providing support from inception to financial close, to help them unlock the full potential offered by varied forms of financing.
Our Trade finance services cover:
- Market assessment and development
- Project preparation
- Project procurement
- Transaction advisory
- Monitoring and assurance
- Corporate Governance Advisory
