Mercore’s Post

Reliable access to trade finance liquidity is crucial for African trade, yet limited capital pools and weak connections to global banking often restrict local lender capacity. Insufficient access to global credit lines, correspondent banks, and foreign exchange reserves complicates trade finance., however increased collaboration and improved regulatory compliance may help overcome these barriers and enhance local lending capacity. This panel at #GTRAfrica in #London will consider how African banks and their global banking partners can improve trade finance capabilities and support Africa’s capacity for lending. Our expert speakers will look at bank de-risking, risk-sharing with global #FIs, #DFIs and #multilaterals, and the technical knowledge improvements that can be made across local banks. How DFI’s can further build an intra-African approach to develop technical knowledge will also be discussed, and the changes required from global financiers to unlock their risk appetite for African lending. 🎤 Natalia Andrew (Zenith Bank Plc (UK) 🎤 Enga Kameni Ph.D (African Export-Import Bank (Afreximbank)) 🎤 Clarine Stenfert (Multilateral Investment Guarantee Agency (MIGA) 🎤 Rima KALAI (ATF Finance Ltd) 🎤 Tim Bescoby (British International Investment (BII)   Connect with the key players shaping the future of African #trade and #exports on November 14. 📅 Secure your booking today to avoid missing out: https://lnkd.in/df6hRHCp #GTRAfrica #TradeFinance #ExportFinance #InfrastructureFinance #LiquidityAccess #FinancialInclusion

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

Accessible #workingcapital and trade credit liquidity is essential for African #SMEs and corporates, however with the continent’s trade finance gap growing, the supply of adequate resources is often in short supply. In a trade climate marked by volatility of currency rates, borrowing costs and hard currency, the need for quick and available credit services is key to meeting Africa’s domestic and global trade needs. This expert-led session will examine the solutions to address the trade finance gap and unlock working capital that meets African export needs, such as leveraging global capital pools to improve foreign currency access for SMEs, and developing open account products to overcome structural barriers in invoice and receivables finance. Priorities for leveraging cash flow and payment cycle solutions like supply chain finance and factoring will also be considered, as well as navigating legal and regulatory challenges and expanding digital credit solutions through collaboration between local banks and #FinTech’s, helping deliver innovation in payments and financing. Featured speakers: 📢 Florian Wicht (International Finance Corporation (IFC) 📢 George Wilson (Investec) 📢 Kuben Pillay (Absa Corporate & Investment Bank) 📢 Bob Blower (CertiQi) 📢 Nathalie Louat (International Finance Corporation (IFC) 📢 Sam West (Africa Global Trade Finance)   Join us in #London on November 14 for #GTRAfrica, the premier event in the #UK showcasing industry leading insights into the latest trends and developments in African trade and exports. 👉 Secure your place at https://lnkd.in/df6hRHCp or contact bookings@gtreview.com for more information. #GTRAfrica #TradeFinance #ExportFinance #InfrastrcutureFinance

Afreximbank Aims to Boost Intra-African Trade Financing to $40 Billion by 2026 Afreximbank has set an ambitious goal to expand its intra-African trade financing from $20 billion in 2021 to $40 billion by 2026. The move underscores the bank’s commitment to driving economic integration and fostering sustainable development across the continent. Read more here: https://lnkd.in/d2gXdQ68 #Afreximbank #Africa #trade #tradefinance #business #growth #financing Haytham ElMaayergi African Export-Import Bank (Afreximbank) African Continental Free Trade Area (AfCFTA) Secretariat African Union Commission Pan-African Payment & Settlement System - PAPSS African Medical Center of Excellence (AMCE)

What are the opportunities and developments in the African trade finance market despite its challenges? ....despite its apparent problems, the African trade finance market presents many new and exciting opportunities. With the advent of the AfCFTA, a stable economic foundation is forming which promotes the growth of intra-African trade. This increased inter-regional trade of African businesses will be carried out on platforms such as ATEX, which operate as digital networks for trading while offering helpful trade financing solutions. Afreximbank also plays a crucial role in financing international trade by mobilising and allocating vital resources for its member countries... Read more: https://lnkd.in/gJiug4H4 #AfricanTradeFinance #AfCFTA #IntraAfricanTrade #TradeFinanceSolutions #ATEXAfrica #Afreximbank #DigitalTradePlatforms #EconomicGrowthAfrica #TradeFinance #AfricanEconomy #BusinessInAfrica #ECommerceAfrica #InternationalTrade #TradeOpportunities #FinanceInAfrica #AfricanSMEs #SupplyChainOptimization #TradeInnovation #EconomicDevelopment #TradeFacilitation

Is Afreximbank Doing Enough to Support the African Continental Free Trade Agreement? As Africa pursues economic unity through the African Continental Free Trade Agreement (AfCFTA), Afreximbank has become a pivotal player. Founded to tackle Africa’s trade barriers, Afreximbank offers innovative solutions to drive growth, foster intra-African trade, and reduce the continent’s reliance on external markets. But is the bank doing enough to support AfCFTA’s ambitious goals for a prosperous Africa? Afreximbank’s Pan-African Payment and Settlement System (PAPSS) is transforming cross-border trade. By enabling transactions in African currencies, PAPSS simplifies payments and shields Africa from U.S. dollar volatility. This not only reduces transaction costs but strengthens economies, allowing businesses to transact seamlessly across borders without high currency conversion fees. PAPSS has the potential to make trade more accessible for African small and medium-sized enterprises (SMEs) and informal businesses that often bear the burden of currency instability. The bank’s $10 billion AfCFTA Adjustment Fund supports countries and businesses facing revenue loss or competitive pressures in the shift to free trade. Such support is essential to ensure that every African country and business can thrive, promoting inclusive growth across the continent. Moreover, Afreximbank’s trade financing and risk-sharing instruments address Africa’s challenges in accessing credit and overcoming high transaction costs. With tools like market information, credit ratings, and investment guarantees, the bank empowers African businesses to expand into new markets, strengthening local industries and reducing foreign dependency. However, as AfCFTA aims to create a single market for over 1.3 billion people, some may question whether Afreximbank’s efforts are enough to overcome the continent's trade gaps. While the bank’s contributions have been vital, the journey to a truly integrated African economy remains a work in progress. Realizing AfCFTA’s vision requires Africa’s financial institutions, governments, and private sector to accelerate collaboration, reduce trade barriers, and foster innovation. Afreximbank has laid a strong foundation, but a fully integrated Africa demands sustained commitment and investment. The strides Afreximbank has made are promising, yet unlocking Africa’s market potential will be essential for both its economic resilience and global positioning. The journey ahead is challenging, but vital to realizing the promise of AfCFTA. #Afreximbank #freetrade #AfCFTA

Transforming Trade Finance Through Risk Sharing: A New Era of Stability and Growth. Introducing a Trade Finance Risk Sharing Facility is a revolutionary step for the financial sector. Here’s how this innovative mechanism can distribute risks and encourage more banks to participate in trade finance: 1. Current Challenge: Trade finance is burdened with significant risks, often discouraging banks from offering these essential services. 2. Risk Distribution: A risk-sharing facility allows banks to spread these risks more evenly across multiple institutions, reducing individual exposure. 3. Increased Participation: By sharing risks, more banks may be motivated to enter the trade finance arena, expanding the market and opportunities. 4. Enhanced Stability: Risk-sharing mechanisms fortify the financial system's stability by mitigating concentrated risks and promoting resilience. 5. Access to Finance: With more institutions offering trade finance services, businesses engaged in international trade gain better access to much-needed capital. 6. Risk Mitigation: Collaborative risk-sharing reduces the impact of defaults and economic downturns on individual banks, safeguarding the sector. 7. Innovative Solutions: A risk-sharing facility sparks innovation in trade finance products and services, driving progress and efficiency. 8. Regulatory Compliance: Shared risk mechanisms help banks meet stringent regulatory requirements more effectively and efficiently. 9. Competitive Advantage: Banks that participate in risk-sharing facilities gain a competitive edge by offering comprehensive and reliable trade finance solutions. 10. Global Trade Growth: Facilitating trade finance through risk-sharing supports the growth of global trade, boosting economic development worldwide. Creating a Trade Finance Risk Sharing Facility is crucial for distributing risks more evenly among banks and encouraging broader participation in trade finance. Embrace risk-sharing for a stronger trade finance ecosystem and a more resilient global economy. For more information on any #TradeFinance Instruments contact: https://bit.ly/3LvBXGA #UnitedUnderAfCFTA #AfricaYesWeCAN #WTO #AfricanTrade, #Tardefinance #IPO #BG #SBLC #LC #FacilityLetter #Proofoffunds #TransformingAfrica #TheAfricaWeWant #BrandAfrica #AU #GDP #Investment #Africa #SouthAfrica #AfricaMeansBusiness #ThisIsAfrica #Diaspora #IT #OneAfrica #CreatingOneAfricanMarket  #Agenda2063 #Partnerships #AfCFTATV #WB #BuildBackBetter #InvestInAfrica #AfricanUnity  #IMF #WTO #AfDB #CFTA #SAATM #AfricaOnTheMove #Infrastructure #MadeInAfrica #AfCFTASecretariat  #PanAfricanism #Investors #PAPSS #ZLECAF #AfricanSolutions #StrongerTogether #TradeFinance #RiskSharing #GlobalTrade #FinTech #Banking #EconomicGrowth #FinancialStability  #Innovation #TradeServices #CapitalAccess #TradeFinanceSolutions #FinancialInnovation #InternationalTrade #MarketExpansion #InnovativeFinance  #RegulatoryCompliance #CompetitiveAdvantage #ResilientEconomy

Interesting webinar Shylet Makumbe-Nyabeze Dr Mpafya Mutapa FZiCA, FCMA, CSCA Disseminate to trapca Alumni and other parties interested in Trade Finance who may find it beneficial.

Here is an important discourse next week Sep 10 on Trade Finance.

African Development Bank Group and @Trade and Development Bank (TDB) Group strengthen trade finance partnership through a Trade Finance Unfunded Risk Participation Agreement African Development Bank Group and the Eastern and Southern African Trade and Development Bank (TDB Group) have signed an agreement for a $150 million Trade Finance Unfunded Risk Participation Agreement (RPA) facility. The agreement was concluded on the sidelines of the African Investment Forum in Rabat, Morocco. The RPA aims at bolstering intra-Africa trade, promoting regional integration, and contributing to the reduction of the trade finance gap in Africa. The facility will provide guarantee cover of 50% and up to 75% for transactions in Low-Income Countries (LICs) and transition states. The facility is expected to support about $1.8 billion of trade over the next three years. Click here to read more: https://lnkd.in/dW3yDRks