Making Finance Work for Africa (MFW4A)’s Post

What we're reading - global trade finance snapshot: 'It’s a line committed to memory at this point, repeated to the point of numbness: the trade finance gap has risen to $2.5 trillion. But its adverse impact should be noted: trade finance is more readily available in developed regions. The World Trade Organisation’s (WTO) 2024 World Trade Report finds that the share of trade supported by trade finance in developed economies is at least 60%. In contrast, the average share of trade supported by trade finance in the African continent was 40%, despite the inclusion of economies as large as Egypt, Morocco, and South Africa. In Senegal, Nigeria, and Vietnam, around 15-20% of trade is supported by trade finance, while in Cambodia and Laos, it’s only 3%. The gap is not due to a lack of want. Rejection rates in low-income areas are staggering, reaching 25% of the value of requests in West Africa (and 12% for the continent as a whole).' #Africa #trade #tradefinance #commmodities #growth #development

Trade digitization holds a high potential of bridging the alarming Africa’s trade finance deficit-now estimated to be north of US$ 120bn, an adverse reversal of the pre-Covid gains

In this issue of our Trade Finance Insight, we lead with a feature on supply chain financing in the US market and its increasing popularity with customers and suppliers looking to boost liquidity and meet earnings expectations. Our authors also revisit the African Continental Free Trade Area (AfCFTA), provide an overview of recent developments in transition finance from both a market and regulatory perspective, and much more.

The ICC's new sustainable trade finance principles, developed with top trade banks, set a powerful standard for greener, more responsible global trade. This is a big leap towards a sustainable future in trade finance! https://lnkd.in/eQMMH69z

Is your Trade Finance programme prepared for a rise in demand?

Is your Trade Finance programme prepared for a rise in demand?

Is your Trade Finance programme prepared for a rise in demand?

Trade Digitisation – and Closing the Trade Finance Gap I am looking forward to joining my fellow panellists Chris Southworth, Dominic Broom, Sinan Ozcan and Rohini Kamath at the BAFT (Bankers Association for Finance and Trade) MENA forum next week to discuss the digitisation of trade. There are many good reasons to digitise trade as far as possible, but at Crown Agents Bank, we are focused on solving for the Trade Finance gap in Emerging Markets – leveraging the excellent work being done by TF COP, under the chairmanship of Duarte Pedreira.    During the panel discussion, I am looking forward to elaborating on how digitisation can help to solve the trade finance gap through: ·        Increasing transparency, and thus reducing the information asymmetry between Emerging Markets and creditors ·        Increasing standardisation of contracts to ease distribution of assets and thus grow the available financing for trade products globally ·        Utilising AI in transaction monitoring to reduce false positives – thus streamlining the process and enhancing efficiency. This is particularly important for trade finance in Emerging Markets.   It is exciting that we will be holding our discussion in Dubai, one of the markets that has, alongside the UK and Singapore, been at the forefront of agreeing the legal framework for digitised trade. The panel is at 15:30-16:10 on Wednesday 22nd January

Dear All, I am delighted to share this post from Kirsty Garrett, Global Head of Financial Markets Sales at Crown Agents Bank. Trade finance plays a pivotal role in driving economic growth in emerging markets. By facilitating the smooth exchange of goods and services across borders, trade finance addresses critical challenges such as liquidity constraints, payment risks, and access to working capital. These solutions enable businesses, particularly small and medium enterprises (SMEs), to participate in international trade, fostering job creation, investment, and economic diversification. Emerging markets often face unique barriers to trade, including limited access to credit, complex regulatory environments, and inefficiencies in supply chains. The global trade finance gap – defined as the shortfall between trade finance supply and demand – has been estimated at USD $2.5 trillion At Crown Agents Bank we are proud of our Trade Finance team led by Duarte Pedreira. Our team is committed to providing strategies and solutions, such as our Local Currency Solutions, to help mitigate these challenges by equipping businesses with the financial tools and risk mitigation necessary to trade with confidence. By embracing trade digitalisation, emerging markets can unlock new opportunities for growth and integration into global value chains. Please do not hesitate to contact me if you would like to discuss this further. Crown Agents Bank: Moving money where it's needed most. #Tradefinance #trade #FIs #emergingmarkets #latam

The International Finance Corporation (IFC) and HSBC have announced a $1 billion risk-sharing facility designed to boost trade financing for banks in emerging markets across Africa, Asia, Latin America, and the Middle East. The partnership, established under IFC’s Global Trade Liquidity Program, will equally distribute risk across a portfolio of trade-related assets, targeting 20 countries with critical economic development needs. Aditya Gahlaut, Co-Head of Global Trade Solutions at HSBC Asia Pacific, described trade finance as “the fuel that powers the global economic engine”, emphasising the initiative’s potential to support job creation and economic growth. The move addresses a global trade finance gap estimated at $2.5 trillion, with demand far outstripping current supply. Global trade has consistently grown by an average of 5% annually over the past three decades. Mohamed Gouled, IFC’s Vice President of Industries, highlighted the facility’s role in driving economic development, while Riccardo Puliti, IFC’s Regional Vice President for Asia Pacific, stressed the importance of improving financing access for importers and exporters. The Global Trade Liquidity Program has historically supported over $80 billion in global trade through nearly 30,000 transactions. The program has worked with more than 400 financial institutions in 74 emerging markets, including 28 IDA and seven fragile and conflict-affected countries (FCS). The majority of importers and exporters supported are small- and medium-sized enterprises (SMEs). Source: https://lnkd.in/eKbNeXPq