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Trade Finance

Trade finance is the sector of financial services that provides funding, guarantees and risk-mitigation instruments to facilitate the movement of goods and services across borders. It encompasses a range of products including letters of credit, documentary collections, bank guarantees, supply-chain finance and export credit insurance. Trade finance bridges the gap between the time an exporter ships goods and the moment an importer pays for them, addressing the working-capital needs and credit risks inherent in international commerce. The sector plays a critical role in enabling global trade, particularly for small and medium-sized enterprises that lack the balance-sheet strength to offer extended payment terms or absorb cross-border credit risk. In Africa, trade finance is essential to sectors such as mining, agriculture and energy, where commodity exports dominate and buyers and sellers are often separated by long distances and differing legal jurisdictions. Banks, development finance institutions and specialist trade-finance providers are the main participants, offering structured solutions tailored to the creditworthiness of counterparties and the nature of the underlying transaction. Trade finance is closely linked to treasury management, as corporates use these instruments to optimise cash flow and manage foreign-exchange exposure. Regulatory frameworks, correspondent banking relationships and the adoption of digital platforms are key drivers shaping the availability and cost of trade finance. The sector has grown in importance as African economies integrate into global supply chains and seek to diversify export markets beyond traditional partners.

Latest Articles in 60 Seconds

Afreximbank urges Africa to turn trade disruption into industrialisation gains

The African Export-Import Bank's latest trade report, 'Leveraging Geopolitics for Trade and Industrialisation in Global Africa', says geopolitical tension and trade fragmentation present opportunities for the continent if it accelerates industrialisation, intra-African trade and value-added processing. It reiterates that Africa's trade finance gap stood at about $74-billion in 2025, limiting exporters' access to financing, and calls for faster implementation of the African Continental Free Trade Area and deeper financial-sector reforms to ease credit access for small and medium-sized businesses.

UAE export credit agency backs Gerald Group with $50-million metals facility

Etihad Credit Insurance, the United Arab Emirates' federal export credit agency, has supported a three-year $50-million finance facility for Gerald Metals, a Geneva-based subsidiary of Gerald Group, with Abu Dhabi Commercial Bank as lender. The deal, Gerald Group's first ECI-backed financing, diversifies its funding platform and supports metals trade flows tied to energy transition, technology and industrial demand.

Afreximbank's $10-billion Gulf crisis facility supports fuel and food security

Afreximbank's $10-billion Gulf Crisis Response Programme, launched on March 31, 2026, continues providing foreign exchange liquidity and pre-export finance to African and Caribbean States affected by Middle East-related disruptions to oil, gas, fertiliser and food imports.

Trade Finance Updates


BSE chairperson Neo Mooki and DMCC chairperson and CEO Ahmed Bin Sulayem hold a signed document marking the partnership
DMCC, Botswana Stock Exchange Group sign MoU to expand market access for Botswana's commodity exports
15th July 2026 By: Creamer Media Reporter

International business district that drives the flow of global trade through Dubai, DMCC, has signed a memorandum of understanding (MoU) with the Botswana Stock Exchange Group (BSE), operator of... 


Zinc stacks
United Arab Emirates-based federal export credit agency inks $50m facility with metals trader Gerald Group
13th July 2026 By: Marleny Arnoldi

Gerald Metals Sàrl, the Geneva-based subsidiary of a leading independent commodity trading company, Gerald Group, has successfully closed a three-year $50-million finance facility supported by... 


A generic image of a shipping port
Africa should convert global trade disruptions into industrialisation opportunity – Afreximbank
10th July 2026 By: Lumkile Nkomfe

Africa must resposition its trade infrastructure to capture greater value from global economic shifts, with industrialisation, stronger intra-African trade and improved access to finance identified... 


A generic image of a shipping port
Africa can convert global trade disruptions into industrialisation opportunity – Afreximbank
23rd June 2026 By: Lumkile Nkomfe

Africa must resposition its trade infrastructure to capture greater value from global economic shifts, with industrialisation, stronger intra-African trade and improved access to finance identified... 


Nedbank Corporate and Investment Banking Divisional Executive of Trade Niron Rampersad
Capital to cargo and the real test of the energy transition
18th June 2026

Africa's renewable energy transition is most often framed in terms of capital: how much has been committed, how much more is needed, and what financing structures might bridge the gap. That framing... 


Representatives from the 17 partner institutions at the signing of a declaration of intent, at the Business Forum of the Africa Forward Summit in Nairobi, Kenya
Africa AgriTrade Coalition financial initiative launched at summit in Kenya
12th May 2026 By: Rebecca Campbell

French development finance institution Proparco has announced the launch of the Africa AgriTrade Coalition, to scale up agricultural value chain trade financing across the continent. In addition to... 


KfW Development Bank becomes institutional shareholder in ATIDI
29th April 2026 By: Schalk Burger

The German development bank KfW has become the latest shareholder in development insurer the African Trade and Investment Development Insurance (ATIDI), thereby further strengthening its capital... 


LNG tanks
Gas, fuel-focused funding to support economies amid Gulf crisis
24th April 2026

In an effort to support African and Caribbean economies affected by the ongoing Middle East conflict, multilateral trade finance institution African Export-Import Bank (Afreximbank) reports that it... 


Navigating oil volatility: how SA corporates can harness banking tools amid fuel market instability
17th April 2026

Kevin Ssemwogerere, Business Development Strategy Head, Treasury and Trade Solutions at RMB The pending conflict and short-term ceasefire in the Middle East has materially disrupted global oil... 


World Bank flags rising commodity prices, logistics strain amid Middle East conflict
World Bank flags rising commodity prices, logistics strain amid Middle East conflict
27th March 2026 By: Creamer Media Reporter

The World Bank Group has warned that the ongoing conflict in the Middle East is placing increasing pressure on global commodity markets and supply chains, with emerging market economies already... 


Afreximbank, DBSA partner to boost trade finance capacity for intra-Africa trade
12th February 2026 By: Schalk Burger

Multilateral finance institution the African Export‑Import Bank (Afreximbank) and development finance institution the Development Bank of Southern Africa (DBSA) have signed a Master Risk... 


 Kennedy Mbekeani, AfDB director general for Southern Africa
AfDB, Nedbank sign multi-billion-rand partnership to expand housing, boost African trade
19th December 2025 By: Creamer Media Reporter

The African Development Bank Group (AfDB) and Nedbank Group have announced a landmark financing agreement aimed at improving access to affordable housing in South Africa and expanding trade across... 


Betting big on Ecoterms
24th October 2025 By: Riaan de Lange

Yes, you read correctly; it’s not a spelling error. Were you thinking that instead of the ‘E’ there should have been an ‘In’, and therefore it should read ‘Incoterms®’? As to why ‘Ecoterms’ is... 


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