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Trade Finance: An Impetus For African Economic Assimilation.

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The world Trade Organisation forum 2024 focuses on how world trade can boost inclusivity.

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For Africa , where many countries face exclusion, the world Trade Organisation offers solutions to improve trade participation in both intra -continental and International trade . Based on information from the World Trade Organisation 2024 world Trade Report , Africa's intra-regional trade is significantly more expensive than trading with stakeholders.The report's Trade Costs Index reveals that intra-regional costs are 20% higher than extra-regional trade . This inequality is aggravated by infrastructure challenges, Weak industrial policies ,reliance on raw  materials, challenges in securing trade financing . The World Trade Organisation and the International Finance Corporation reports that , only 15% of trade in Senegal and 20% in Nigeria is supported by financing compared to an average of 40% across Africa and 60% in developed countries . In West Africa 25% of financing requests are rejected, compared to 12% continent -wide. According to the World Trade Organisation, Micro ,Small and Medium-sized Enterprises account for approximately 90% of African businesses and employ 60% of the workforce.However , they remain largely excluded from international trade due to limited access to financing.Initiatives supported by institutions like Afreximbank to improve trade financing in Africa by prividing guarantees to businessess. In spite of these efforts, Small and Medium-sized Enterprises continue to face significant challenges.The World Trade Organisation  reports that around 50% of Small and Medium-sized Enterprises financing applications are rejected, compared to just 7% for multinationals.To address these challenges and boost Intra-African trade , the World Trade Organisation advocates for stronger financing support initiatives accross the African continent.The Organization adds " Adopting trade facilitation measures and improving the availability of trade finance can contribute to reducing the fixed costs of participating in international trade , which is particularly beneficial and small and medium-sized enterprises given their limited financial resources .                                                                                                 


Auteur: Christelle Koambi

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Ophelie Ada Zoa
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