Africa Newsroom’s Post

Value aligned financial products and services have been on the rise for years, and given that almost 25% of the globe is Muslim, it is no surprise that Islamic Finance has been spreading rapidly. Our latest infographic dives deeper, exploring the global evolution of Islamic finance and its core principles. It also showcases Islamic banking and insurance institutions in East and Key African markets, highlighting the growing trend and potential investment opportunities.

To support financing for importers and exporters in Africa, especially in fragile and conflict-affected states, IFC - International Finance Corporation has partnered with Deutsche Bank to establish a €215 million risk-sharing facility. In 2022, #Africa's trade in goods and services amounted to $1.1 trillion, 54% of its GDP. Yet African banks face cashflow challenges that limit trade finance availability. The facility aims to maintain #tradefinance in African countries even as many global banks reduce their involvement. IFC will share risks on Deutsche Bank's trade transactions with 40 issuing banks in 18 African countries. The project, part of the IFC Africa #Trade and #SupplyChain Recovery Initiative, is expected to encourage other financial institutions to support trade finance, promoting economic #growth and job creation across the continent. Article from Trade Finance Global (TFG). Read more at the link below. Follow GTR Ventures now for more curated insights! Borislav Ivanov-Blankenburg Mohamed Gouled https://lnkd.in/gb_pK4YK

Speaking at GTR Africa 2024 in London, Greg Fyfe was upbeat: 'The African ECA market has seen a rebound in activity, with over $23bn in new business being written last year alone, a significant increase on prior years. In addition, the modernisation of the OECD Arrangement to introduce greater flexibility has been welcomed by the industry and African sovereign and project borrowers. We believe that local and regional banks have an important role to play in ECA financing, with an increased appetite to provide ECA guaranteed and tied commercial funding in a range of currencies and across a broad spectrum of countries.' Global Trade Review (GTR) Standard Bank Corporate and Investment Banking

🏦 Correspondent banking relationships dwindle in the Pacific Islands 🌏 Pacific Island Countries (PICs) are heavily dependent on trade. The dramatic decline in correspondent banking relationships (CBRs) threatens to further isolate PIC economies. 🎙️ Trade Finance Global (TFG) spoke to the ADB Trade & Supply Chain Finance Program (TSCFP) at the Asian Development Bank (ADB), who, in collaboration with Business & Finance Consulting (BFC), laid out how declining CBRs jeopardise these countries’ ability to conduct international trade and receive vital remittances, potentially exacerbating their economic vulnerabilities. 📖 Read the article by following the link in the comments section below ⬇️ #correspondentbanking #supplychainfinance #internationaltrade

On this episode, we talk about growing trade & bank intermediated trade finance with Absa Bank Kenya & Kenya Association of Manufacturers. A deep dive into, among others, Letters of Credit, structured commodity finance arrangements & supply chain financing. https://lnkd.in/dXhJbTcQ CC: Amboko H. Julians

One of the main purpose of Correspondent banking is Remittances. Many Pacific nations rely on remittances from citizens abroad. Correspondent banking enables efficient transfer and conversion of these funds, crucial for local economies. We need to find a way to get it done for the betterment of Pacific Islanders.

The findings, detailed in the report ‘Beliefs & Business: The Shape of Islamic Finance in 2024,’ underscore a significant cultural shift, with 77% of Malaysian and 65% of Indonesian young consumers incorporating Islamic banking into their financial practices, in stark contrast to a mere 31% of their global counterparts. https://lnkd.in/gB3VswsJ

The Standard Bank Group said it has signed an agreement with the International Finance Corporation (IFC) to expand local currency lending and accelerate development projects across Africa.

African Development Bank and Trade and Development Bank (TDB) Group strengthen trade finance partnership through a Trade Finance Unfunded Risk Participation Agreement https://lnkd.in/eRe_TR4M

Is there any one who have a reflection on the below mentioned points which might be a good initial points for discussion to find way out to mitigate the request of most of businesses specially SMES: 1.    How to assess your trade finance needs and what you need to do to qualify for financial support. 2.    Can you identify short-term trade financing solutions that are available from banks and finance institutions in Africa. 3.    How to mitigate payment and currency risk. Your expertise reflection on this matter highly appreciated.