Africa Trade Academy’s, Dode Seidu, facilitated a webinar on CrossBorder Trade Finance-a webinar series with GIZ Trade Hub of GIZ Ghana and the AGI Energy Service Centre under the AfCFTA Business Opportunities and Competitiveness Webinar Series
Here is 10 key takeaways presentation
1️⃣ Trade Agreements like the AfCFTA presents opportunities for importers and exporters
2️⃣ The trade opportunities created by the AfCFTA comes with some risks-the risk of non or delayed payment for goods and services sold.
3️⃣ Trade finance instruments have been developed to reduce the risk associated with internationaltrade, and ensure safe movement and arrival of goods
4️⃣ Africa’s trade finance gap is estimated to be $100bn annually.
5️⃣ About 40% of intraAfrica trade finance is accessed through commercial banks
6️⃣ About 40% of SME’s applications for trade finance facilitates are rejected
7️⃣ Commercial Banks with regional and continental reach (like Ecobank Transnational Incorporated, Bank of Africa and UBA) have been the major source of trade finance in Africa, while development finance institutions like AfDB, Afrieximbank play a significant roles in trade finance availability in Africa
8️⃣ There has been the emergence of digital payments (like MTN, Jetstream, Paystack) are addressing cross-border payments and trade finance needs of SMEs and small scale crossborder traders.
9️⃣ Export Credit Agencies (GHEXIM and NEXIM) have a significant role to play in ensuring access to trade finance for intra-Africa trade
🔟 The Pan-African Payment & Settlement System – PAPSS is an innovative payment system to facilitate cross-border payments in Africa.
