Africa’s ambition to significantly expand trade within the continent under the African Continental Free Trade Area (AfCFTA) could remain out of reach unless governments, financial institutions and development partners address an estimated annual trade finance gap of between US$80 billion and US$120 billion.Finance
This is according to the 2026 African Trade Report released by Afreximbank, which identifies inadequate trade finance as one of the continent’s most significant structural barriers to regional economic integration and industrialisation.
The report argues that although AfCFTA has created one of the world’s largest single markets, many African businesses continue to struggle to access the financing required to take advantage of expanding cross-border trade opportunities.Geographic Reference
According to Afreximbank, the financing deficit is limiting the ability of businesses particularly small and medium-sized enterprises (SMEs) to secure working capital, import production inputs, fulfil export contracts and expand operations into regional markets.
The report attributes the persistent financing gap to elevated sovereign risk perceptions, limited risk-bearing capacity among financial institutions, high transaction costs and weak credit infrastructure across many African economies.
Source:Mybrytfmonline.com
