Opportunities

Commodity Trading and Financing

GLOBAL TRADE FINANCE GAP in 2022

As we look ahead into the next 20  years, the combination of growth factors that Africa presents today will create unrivaled opportunities for investors in the long term.

Although a too-reliant approach to the export of natural resources is not solely the approach for  Africa’s growth, if managed correctly, the opportunities for your role in the continent’s trade finance activities are sure to abound in the foreseeable future.

  • A significant amount of this gap comes from emerging markets.

  • SMEs are the largest client segment to have demand for alternate financing.

  • Basel III created a major impediment for banks to enter this space.

The SMEs are at the heart of Africa’s current economy, representing significant needs for trade financing

The small business sector in Africa has the potential to make a significant contribution to economic growth and employment across the continent, and with the rich mineral resources, this is the most suitable business sector on which to spend a considerable amount of time and money.

These small and growing businesses create around 80% of the region’s employment, establishing a new middle class and fuelling demand for new goods and services. The scale of this transformation should not be underestimated, and opportunities are abound to be taken advantage of.