SA forex gateway into Africa

2012-12-10 14:00

Cape Town - South Africa is poised to be the world’s next foremost Forex industry creating the opportunity for further growth into Africa, a message clearly sent out over the weekend at the South Africa Forex Expo 2012.

The two-day conference, that took place at the Cape Town International Convention Centre, was the first ever major FX trade exhibition of its kind on the African continent.

Jeni Kostova, event organiser, said the expo attracted 24 of the top names in FX, "more than any other FX expo in the world has done this year".

It has topped the MENA Expo in Dubai, which is considered to be the most established business to business trade show that attracted 23 exhibitors, China Online Trading Expo secured eight while The London Investor Show attracted only five exhibitors, she said.

Adil Siddiqui, Institutional Forex editor at Forex Magnates, said Africa is positioning itself as the go to market for financial derivatives.

Kostova echoed this saying a 2010 survey found Africa's largest economy to have the "most sophisticated financial market" and one of the lowest and effective business tax rate from the 14 surveyed developing countries.

"South Africa's economic outlook remains positive, despite a wave of labour unrest that has swept across the mining sector. However, as a newcomer to the global FX market, the country has several challenges to overcome such as its regulatory framework," Kostova said.

Leading international brokers and service providers from the UK, Israel, Dubai, US and Switzerland participated in the Expo that aimed to provide a platform for captains of the forex industry to engage with potential business partners across the African continent including South Africa, Kenya, Ghana, Nigeria, Mozambique, Zambia and Zimbabwe.