New report highlights Covid-19 impact on African trade finance

26th Apr 2021

According to a jointly published research report by the African Export Import Bank (Afreximbank), the UN Economic Commission for Africa, and Making Finance Work for Africa, the Covid-19 pandemic has pressured central banks and market regulators to invite new faces to the trade finance table, including asset managers and private equity firms, recommending greater coordination and alignment regarding pandemic response across the continent.

During a virtual event for the report’s April 15 release, the President of Afreximbank Benedict Oramah said Africa’s trade finance contracted by 10% in 2020 as the continent entered its first recession in 25 years. Furthermore, according to the Authors of the Report, the significance of the Financial needs of Africa are likely to increase with the implementation of the Africa Free Trade Agreement (AfCFTA).