In this episode of “No Free Lunch, host Greg Stewart engages with Garth Klintworth, the Chief Representative Officer for ABSA’s New York office, to explore the dynamics of African capital markets.
Garth, an economist with extensive experience in global markets, shares insights on the transition from Johannesburg to New York, highlighting the surprising momentum and scale of the U.S. economy.
We discuss the critical role of Africa in global trade, emphasising the continent’s rich endowment of critical minerals essential for the fourth industrial revolution. Garth Highlights the need for Africa to harness its potential by improving policy harmonisation, collateral management, and local currency markets to attract investment.
Garth also reflects on the geopolitical landscape, noting the amplified role of national interests in commercial deals, especially post-COVID. He points out the strategic importance of Africa in the U.S.’s supply chain security and the need for Africa to benefit more from its resources.
The conversation touches on the challenges and opportunities in African capital markets, with Garth advocating for a balanced approach to attract capital and foster infrastructure development. He stresses the importance of collaboration between regulators and commercial entities to create a win-win environment for investment.
Take a Listen Here:
Key Quotes from Garth Klintworth:
- “The velocity of turnover is just so surprising for me.”
- “Africa’s time must come to the fore now and is very vital for the global economies to survive.”
- “The African capital markets are still undeveloped to allow capital to really flow friction-free.”
- “FX convertibility risk is a major concern for investors.”
- “The US definitely wants to make that investment. They’re just going to be very specific around who they deal with.”
- “97% of mineral extraction out of Africa to date has been in a very raw form.”
- “A more prosperous and wealthy continent actually can contribute to world peace.”
- “The best structured deals will always win.”
