De-risking trade finance in transition states in Africa: the need to increase the utilization rate of AfDB’s risk participation agreements - Volume 15 | Issue 1

International trade is an important catalyst for economic growth and poverty reduction. It is estimated that 80% of international trade depends on some form of financing, and the global trade finance gap is of USD 2.5 trillion in 2022 (an increase of 47% from 2020). Development Finance Institutions’ role in fostering trade finance (TF) is essential: not only do they provide trade financing to institutions that may not otherwise receive funding, but they also provide technical assistance and capacity building programs to help banks in developing markets comply with international confirming banks’ requirements.