African Development Bank’s 2025 Trade Finance Report Highlights Resilience of Financial Institutions Post-COVID-19 at Annual Meetings 2026
The African Development Bank (AfDB) has released its fifth edition of the Trade Finance Report, showcasing the resilience of African financial institutions in the aftermath of the COVID-19 pandemic. The report was unveiled during the Bank Group’s 2026 Annual Meetings held in Brazzaville, Republic of Congo, and provides a comprehensive assessment of Africa’s trade finance landscape from 2020 to 2024.
Key Findings of the 2025 Trade Finance Report
The report emphasizes that the demand for trade finance has seen a nearly 10% decline in unmet needs between 2019 and 2024. This positive trend is attributed to significant interventions from multilateral development banks, governments, export credit agencies, and global banks, which have been crucial in sustaining trade flows. Without the support of Development Finance Institutions (DFIs), the annual trade finance gap could have surpassed $100 billion during this period.
Anthony Simpasa, Director of the Macroeconomic Policy, Forecasting and Research Department at AfDB, highlighted the risks posed by renewed geopolitical tensions and disruptions to global supply chains. He warned that these factors could reverse the progress made in narrowing the trade finance gap, projecting that it could widen to between $86.6 billion and $102.6 billion by 2027 under moderate to severe scenarios.
Trade Finance Landscape in Africa
The report reveals that unmet demand for trade finance in Africa was estimated to be between $74 billion and $92 billion in 2024. The lower end of this estimate represents 5.4% of the region’s total merchandise trade value for that year. Furthermore, commercial banks have been found to be underperforming in this sector, mediating only 23% of Africa’s total trade over the study period, a significant drop from 40% during 2011-2019.
Intra-African trade has shown resilience, accounting for 34% of total bank-intermediated trade from 2020 to 2024, marking an 89% increase compared to pre-pandemic levels. However, foreign exchange liquidity shortages have emerged as a primary barrier to growth in trade finance, with 36% of banks citing this as a constraint, up from 18% in the previous five-year period.
Digitalization and Sustainability in Trade Finance
The report also addresses the slow adoption of digital trade finance solutions among banks, primarily due to high implementation costs and inadequate technological infrastructure. Only 28% of surveyed banks reported utilizing digital tools or platforms for their trade finance operations.
During a panel discussion following the report’s launch, industry experts discussed the opportunities and challenges in unlocking sustainable bank-intermediated trade finance in Africa. Didier Acouetey, Senior Advisor to the AfDB President for the Private Sector, emphasized the need for systemic initiatives like the New African Financial Architecture for Development (NAFAD) to enhance the impact of African capital and attract more global investment.
Addressing the ‘Missing Middle’ in Banking
Francisca Tatchouop Belobe, Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals for the African Union Commission, called attention to the ‘missing middle’ in African banking. She stated that small and medium-sized enterprises (SMEs) are often too large for microfinance yet too small for corporate banking, making it essential for commercial banks to prioritize SME trade finance as a core business line.
Mehdi Tanani, Regional Director for Central Africa at Proparco, added that building a more resilient, digital, and sustainable trade finance ecosystem is crucial for protecting SMEs from global shocks while fostering economic integration across the continent.
The Role of Development Finance Institutions
The African Development Bank and other DFIs have played a pivotal role in mitigating the trade finance gap in Africa. Between 2020 and 2024, these institutions facilitated approximately $32 billion in trade finance annually, accounting for about 3% of Africa’s total merchandise trade during this timeframe.
The AfDB’s Trade Finance Program, initiated in 2013, has produced several periodic surveys, including two country-specific reports focusing on Kenya and Tanzania, further contributing to the understanding of trade finance dynamics on the continent.
For further insights, the full report can be accessed here.
Source: www.zawya.com
Contact:
Amba Mpoke-Bigg
Communication and External Relations Department
Email: media@afdb.org
Published on 2026-05-28 20:45:00 • By the Editorial Desk
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