With a wealth of natural resources, developing infrastructure, and improving business environment – in addition to a working population of 600 million, set to double by 2040 – Africa has emerged as an attractive investment destination and a key market for trade. The premium for investment is ripe provided an asset manager possesses the skills and experience to take advantage of this business environment, and this is exactly where Barak has positioned itself. However, post-crisis regulation and the resulting trade finance gap is halting its progress.
The African Development Bank estimates this African trade finance gap to be between US$110 – 120 billion, leaving many trade-reliant companies in Africa of all sizes in dire need. Hardest hit are the SME companies within the continent, many of whom largely contribute to the functioning of Africa’s smaller countries’ economies. Barak truly believes the rate of return on its investments in Africa, from its historic short-term activities to its looking ahead at longer-term strategies, will continue to abound and the Barak Team remains committed being the leading alternative financier in the region.