Citi Perspectives Fall 2023: Transforming Treasury

1 https://www.un.org/ohrlls/news/young-people%E2%80%99s-potential-key-africa%E2%80%99s-sustainable-development 2 https://www.unep.org/regions/africa/our-work-africa 22 | Treasury and Trade Solutions Citi Perspectives Setting course: Navigating the opportunities of the Middle East andAfrica Many multinational corporations have not realized the full potential of the Middle East and Africa, a dynamic region that is riding on a number of mega trends. Two senior bankers at Citi explain the challenges and opportunities for corporates in the region, what they need to know from a treasury perspective, and why they need a bank that brings the familiar to an unfamiliar environment. The Middle East and Africa herald many opportunities for multinationals, and for those that haven’t entered the region yet, there are dozens of questions they should ask. The first, says Nneka Enwereji, Global Network Banking Co-Head of Middle East and Africa at Citi, is, “Why not Middle East and Africa?!” She gives some of the reasons why now is a good time to look to the region: it is dynamic, has a young population, a rising middle class and a growing consumer base. Also, a rapid acceleration in digital technology and e-commerce have seen opportunities flourish, and an educated and skilled population embrace innovation. Africa has the youngest population in the world. According to figures from the United Nations (UN), 70% of the population of Sub-Saharan Africa is under 30 years old. 1 This creates an energy and dynamism unmatched in other regions and is also an opportunity for corporates seeking new markets for their production, operations, or sales. There are particular opportunities for fast-moving goods companies, notes Enwereji, as well as in agriculture, and the telecom and industrials sectors. Doing business with a positive impact Corporates have been attracted to the region for its natural resources. Africa, for example, holds a third of global mineral reserves, 12% of oil and 8% of gas, according to UN figures. 2