MEFMI conducts workshop on Structured Trade Finance

Over the decades, the nature and complexity of international trade has significantly changed across the globe, including Africa. In the case of Africa, the change is so conspicuous as the continent has become a new frontier for emerging market investors as seen in the large-scale projects and global supply chains reaching deeper into the continent. As a result, the trade finance landscape in Africa has evolved in terms of the overall size of bank-intermediated trade finance solutions, unmet demand, and the performance of banks’ trade finance portfolios. These trends have created the need for financing solutions that are robust to mitigate most of the risks associated with complex trade initiatives involving riskier markets. Structured trade finance has thus emerged to support these initiatives by addressing risks related to the performance or completion of a transaction, rather than more reliance on the traditional financial soundness of the parties to a transaction. In this regard, relevant professionals need to build their capacity and improve skills to be able to apply the various structured finance tools effectively.

In recognition of this capacity need, MEFMI conducted a regional virtual workshop on Structured Trade Finance (STF) under the Business Development Unit from 25 to 29 April 2022. The objective of the training was to build capacity and improve the skills of relevant professionals to be able to apply the various structured finance tools effectively.  It also unpacked the interplay between global trade finance product concepts, applicable supply chains and financing structures to enable participants tailor and execute bespoke structured trade finance transactions to meet the needs of their clients.

A total of 53 participants from six (6) MEFMI member countries namely Angola, Rwanda, Tanzania, Uganda, Zambia, and Zimbabwe participated in the workshop. Of the 53 participants, 44 of them (83 percent) were male while nine (9) i.e., 17 percent were female. The target audience included trade finance and treasury professionals, commercial and investment bankers, international traders, risk managers, legal advisors, credit and risk officers, relationship managers, and internal auditors.

The workshop was facilitated by two (2) resource persons, Mr. Francois Molife, a Founder and Managing Director of SEF Prospero Capital; and Ms. Mwaya Siwale, Head of Trade Finance at Trade and Development Bank (TDB).

 

Prepared by Senei Molapo