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Ousman Gajigo

Trade finance in Africa

Trade finance is essential for international trade. This financial intermediation helps firms to manage risks inherent in international transactions, improve their liquidity and enable them to optimally invest to enhance their growth. In 2013, the African Development Bank (AfDB) approved a US $1-billion trade finance (TF) program to provide financing to underserved African-based financial institutions and enterprises. Apart from the fact that the need for financing must be acute, there is a great deal we do not know about the trade finance market in Africa due to data limitations.