Commonwealth Business Communications
  • HOME
  • ABOUT
  • COUNTRIES
    • AFRICA
      • BOTSWANA
      • CAMEROON
      • GAMBIA
      • GHANA
      • KENYA
      • KINGDOM OF eSWATINI
      • LESOTHO
      • MALAWI
      • MAURITIUS
      • MOZAMBIQUE
      • NAMIBIA
      • NIGERIA
      • RWANDA
      • SEYCHELLES
      • SIERRA LEONE
      • SOUTH AFRICA
      • TANZANIA
      • UGANDA
      • ZAMBIA
    • ASIA
      • BANGLADESH
      • BRUNEI DARUSSALAM
      • INDIA
      • MALAYSIA
      • MALDIVES
      • PAKISTAN
      • SINGAPORE
      • SRI LANKA
    • CARIBBEAN AND AMERICAS
      • ANTIGUA AND BARBUDA
      • BAHAMAS
      • BARBADOS
      • BELIZE
      • CANADA
      • DOMINICA
      • GRENADA
      • GUYANA
      • JAMAICA
      • SAINT LUCIA
      • ST KITTS AND NEVIS
      • ST VINCENT AND THE GRENADINES
      • TRINIDAD AND TOBAGO
    • EUROPE
      • CYPRUS
      • MALTA
      • UNITED KINGDOM
    • PACIFIC
      • AUSTRALIA
      • FIJI
      • KIRIBATI
      • NAURU
      • NEW ZEALAND
      • PAPUA NEW GUINEA
      • SAMOA
      • SOLOMON ISLANDS
      • TONGA
      • TUVALU
      • VANUATU
  • AREAS OF WORK
    • GOVERNMENT
    • EDUCATION
    • HEALTH
    • ICT
    • INFRASTRUCTURE DEVELOPMENT
    • NATURAL RESOURCES
    • SUSTAINABLE DEVELOPMENT GOALS
    • TRADE AND INVESTMENT
  • OUR PUBLICATIONS
    • CHOGM
      • COMMONWEALTH HEADS OF GOVERNMENT INTERIM REPORT 2020
      • THE COMMONWEALTH HEADS OF GOVERNMENT MEETING 2018 REPORT
      • THE COMMONWEALTH HEADS OF GOVERNMENT MEETING 2015 REPORT
      • THE COMMONWEALTH HEADS OF GOVERNMENT MEETING 2011 REPORT
      • THE COMMONWEALTH HEADS OF GOVERNMENT MEETING 2009 REPORT
      • THE COMMONWEALTH HEADS OF GOVERNMENT MEETING 2007 REPORT
    • HEALTH
      • COMMONWEALTH HEALTH REPORT 2022
      • COMMONWEALTH HEALTH REPORT 2020
    • EDUCATION
      • COMMONWEALTH EDUCATION REPORT 2021
      • COMMONWEALTH EDUCATION REPORT 2019
    • MINISTERS
      • MINISTERS REFERENCE BOOK COMMONWEALTH 2017
      • MINISTERS REFERENCE BOOK COMMONWEALTH 2015
      • MINISTERS REFERENCE BOOK COMMONWEALTH 2014
      • COMMONWEALTH MINISTERS REFERENCE BOOK 2011
      • COMMONWEALTH MINISTERS REFERENCE BOOK 2010
      • COMMONWEALTH MINISTERS REFERENCE BOOK 2009
      • COMMONWEALTH MINISTERS REFERENCE BOOK 2008
      • COMMONWEALTH MINISTERS REFERENCE BOOK 2007
    • FINANCE
      • COMMONWEALTH FINANCE MINISTERS REPORT 2012
      • COMMONWEALTH FINANCE MINISTERS REFERENCE REPORT 2010
      • COMMONWEALTH FINANCE MINISTERS REFERENCE REPORT 2009
      • COMMONWEALTH FINANCE MINISTERS REFERENCE REPORT 2008
      • COMMONWEALTH FINANCE MINISTERS REFERENCE REPORT 2007
    • TRADE AND INVESTMENT
      • AFRICA INFRASTRUCTURE INVESTMENT REPORT 2013
    • QUEEN AND COMMONWEALTH
      • QUEEN & COMMONWEALTH: CELEBRATING HER MAJESTY’S PLATINUM JUBILEE
      • QUEEN & COMMONWEALTH: 90 GLORIOUS YEARS
      • QUEEN & COMMONWEALTH: CELEBRATING HER MAJESTY’S DIAMOND JUBILEE
  • CONTRIBUTORS
  • CONTACT US
Commonwealth Business Communications
Commonwealth Business Communications
  • HOME
  • ABOUT
  • COUNTRIES
    • AFRICA
      • BOTSWANA
      • CAMEROON
      • GAMBIA
      • GHANA
      • KENYA
      • KINGDOM OF eSWATINI
      • LESOTHO
      • MALAWI
      • MAURITIUS
      • MOZAMBIQUE
      • NAMIBIA
      • NIGERIA
      • RWANDA
      • SEYCHELLES
      • SIERRA LEONE
      • SOUTH AFRICA
      • TANZANIA
      • UGANDA
      • ZAMBIA
    • ASIA
      • BANGLADESH
      • BRUNEI DARUSSALAM
      • INDIA
      • MALAYSIA
      • MALDIVES
      • PAKISTAN
      • SINGAPORE
      • SRI LANKA
    • CARIBBEAN AND AMERICAS
      • ANTIGUA AND BARBUDA
      • BAHAMAS
      • BARBADOS
      • BELIZE
      • CANADA
      • DOMINICA
      • GRENADA
      • GUYANA
      • JAMAICA
      • SAINT LUCIA
      • ST KITTS AND NEVIS
      • ST VINCENT AND THE GRENADINES
      • TRINIDAD AND TOBAGO
    • EUROPE
      • CYPRUS
      • MALTA
      • UNITED KINGDOM
    • PACIFIC
      • AUSTRALIA
      • FIJI
      • KIRIBATI
      • NAURU
      • NEW ZEALAND
      • PAPUA NEW GUINEA
      • SAMOA
      • SOLOMON ISLANDS
      • TONGA
      • TUVALU
      • VANUATU
  • AREAS OF WORK
    • GOVERNMENT
    • EDUCATION
    • HEALTH
    • ICT
    • INFRASTRUCTURE DEVELOPMENT
    • NATURAL RESOURCES
    • SUSTAINABLE DEVELOPMENT GOALS
    • TRADE AND INVESTMENT
  • OUR PUBLICATIONS
    • CHOGM
      • COMMONWEALTH HEADS OF GOVERNMENT INTERIM REPORT 2020
      • THE COMMONWEALTH HEADS OF GOVERNMENT MEETING 2018 REPORT
      • THE COMMONWEALTH HEADS OF GOVERNMENT MEETING 2015 REPORT
      • THE COMMONWEALTH HEADS OF GOVERNMENT MEETING 2011 REPORT
      • THE COMMONWEALTH HEADS OF GOVERNMENT MEETING 2009 REPORT
      • THE COMMONWEALTH HEADS OF GOVERNMENT MEETING 2007 REPORT
    • HEALTH
      • COMMONWEALTH HEALTH REPORT 2022
      • COMMONWEALTH HEALTH REPORT 2020
    • EDUCATION
      • COMMONWEALTH EDUCATION REPORT 2021
      • COMMONWEALTH EDUCATION REPORT 2019
    • MINISTERS
      • MINISTERS REFERENCE BOOK COMMONWEALTH 2017
      • MINISTERS REFERENCE BOOK COMMONWEALTH 2015
      • MINISTERS REFERENCE BOOK COMMONWEALTH 2014
      • COMMONWEALTH MINISTERS REFERENCE BOOK 2011
      • COMMONWEALTH MINISTERS REFERENCE BOOK 2010
      • COMMONWEALTH MINISTERS REFERENCE BOOK 2009
      • COMMONWEALTH MINISTERS REFERENCE BOOK 2008
      • COMMONWEALTH MINISTERS REFERENCE BOOK 2007
    • FINANCE
      • COMMONWEALTH FINANCE MINISTERS REPORT 2012
      • COMMONWEALTH FINANCE MINISTERS REFERENCE REPORT 2010
      • COMMONWEALTH FINANCE MINISTERS REFERENCE REPORT 2009
      • COMMONWEALTH FINANCE MINISTERS REFERENCE REPORT 2008
      • COMMONWEALTH FINANCE MINISTERS REFERENCE REPORT 2007
    • TRADE AND INVESTMENT
      • AFRICA INFRASTRUCTURE INVESTMENT REPORT 2013
    • QUEEN AND COMMONWEALTH
      • QUEEN & COMMONWEALTH: CELEBRATING HER MAJESTY’S PLATINUM JUBILEE
      • QUEEN & COMMONWEALTH: 90 GLORIOUS YEARS
      • QUEEN & COMMONWEALTH: CELEBRATING HER MAJESTY’S DIAMOND JUBILEE
  • CONTRIBUTORS
  • CONTACT US

AFRICA NEEDS URGENT TRADE FINANCE BOOST

  • CBC News Team
Total
0
Shares
0
0
0

There is an urgent need for financing to reenergize Africa’s trade in the wake of the COVID-19 pandemic, according to the latest trade finance report released jointly by the African Development Bank and the African Export-Import Bank.

According to the report, only 40% of Africa’s trade is bank-intermediated – a far lower share than the global average of 80%. The trade finance gap also remains unacceptably high at $81 billion in 2019.

The report found that these are some of the structural challenges that hinder banks’ ability to effectively intermediate Africa’s trade with the world. It also highlighted the critical role of development finance institutions in supporting the industry.

The study also found that unintended regulatory bottlenecks were one of the key constraints driving these patterns.

The report, titled Trade Finance in Africa: Trends Over the Past Decade and Opportunities Ahead, builds on two previous studies released in 2014 and 2017. It is based on a survey of over 600 unique commercial banks in 49 countries across Africa for 2011-19.

The report set out as a benchmark for trade finance in Africa before the COVID-19 crisis, and recommends policy responses to the industry in the wake of the pandemic. “With the on-going COVID-19 pandemic, the need for financing to reenergize the region’s trade is urgent.”

“The good news is that development finance institutions (DFIs), including the African Development Bank, are playing a more active role in supporting the trade finance industry in Africa,” it says.

More than half of banks engaged in trade finance activities between 2015 and 2019 received support from DFIs to expand their transactions. Yet, DFI support is skewed towards particular sub-regions and financial intermediaries – mainly foreign-owned private banks, according to the report.

The report made recommendations to boost trade finance supply in Africa, including raising awareness about the impact of stringent regulatory requirements on sector intermediaries and addressing geographical and institutional disparities in DFI support to the sector.

Stefan Nalletamby, the African Development Bank’s Director of the Financial Sector Development Department, noted that the report series had become the main reference document for the industry on the continent.

“It reflects the Bank’s increasing thought leadership role on this important subject. We hope that the findings of this report will motivate policymakers and industry experts to devise and implement strategies to make trade finance more accessible to African traders, especially SMEs in fragile states and low-income countries,” he said.

Learn More:

African Development Bank

African Export-Import Bank

Picture Credit: AfDB

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
Related Topics
  • COVID-19
  • AFRICAN TRADE
CBC News Team

Previous Article

KENYA SECURES THE FIRST HORN OF AFRICA INITIATIVE

  • CBC News Team
Read More
Next Article

RWANDA – BOOST FOR HOUSEHOLD ACCESS TO AFFORDABLE ENERGY

  • CBC News Team
Read More
You May Also Like
Nigeria banknotes. Nigeriannaira bills. 1000 NGN polymer. Business, finance background.
Read More
  • Trade & Investment
  • Finance
  • AFRICA
  • NIGERIA

Nigeria postpones deadline to exchange old notes amid political pressure

  • CBC News Team
  • 31 January 2023
Diphtheria outbreak in Nigeria, 38 dead
Read More
  • Health
  • AFRICA
  • NIGERIA

Diphtheria outbreak in Nigeria, 38 dead

  • CBC News Team
  • 26 January 2023
Namibia COVID
Read More
  • Education & Youth
  • Health
  • AFRICA
  • HEALTH
  • NAMIBIA

Namibia blames COVID for poor academic results

  • CBC News Team
  • 25 January 2023
Ghana makes progress in malaria elimination
Read More
  • Health
  • GHANA
  • HEALTH

Ghana makes progress in malaria elimination

  • CBC News Team
  • 24 January 2023
Gabon foreign minister
Read More
  • Heads of Government
  • GABON
  • AFRICA

Gabon Foreign Minister dies of cardiac arrest

  • CBC News Team
  • 23 January 2023
Measles outbreak declared as South African classrooms reopen
Read More
  • Health
  • AFRICA
  • HEALTH
  • HEALTH
  • SOUTH AFRICA

Measles outbreak declared as South African classrooms reopen

  • CBC News Team
  • 19 January 2023
Kwankwaso joins run to rescue Nigeria’s educational system
Read More
  • Education & Youth
  • AFRICA
  • NIGERIA

Kwankwaso joins run to rescue Nigeria’s educational system

  • CBC News Team
  • 17 January 2023
University of Manitoba, Africa to study mpox
Read More
  • Health
  • AFRICA
  • HEALTH
  • CANADA

University of Manitoba, INRB launch joint monkeypox study

  • CBC News Team
  • 17 January 2023
OUR LATEST PUBLICATION

Subscribe to our Newsletter

PARTNER FOCUS
Recent Posts
  • Nigeria banknotes. Nigeriannaira bills. 1000 NGN polymer. Business, finance background.
    Nigeria postpones deadline to exchange old notes amid political pressure
  • Commonwealth Year of Youth 2023
    Commonwealth Year of Youth 2023
  • Australian flag. Waving australian flag 3d illustration.
    Celebrating Australia Day
  • Diphtheria outbreak in Nigeria, 38 dead
    Diphtheria outbreak in Nigeria, 38 dead

Subscribe

Subscribe now to our newsletter

Commonwealth Business Communications
  • HOME
  • About
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2022 Commonwealth Business Communications Limited. All Rights Reserved.

Input your search keywords and press Enter.