MEFMI conducts a workshop on Structured Trade Finance

MEFMI conducted a regional hybrid (virtual and in-person) training workshop on Structured trade finance (STF) under the Business Development Unit (BDU) from 24 – 28 April 2023. The objective of the training was to build capacity and improve the skills of relevant professionals to be able to apply the various STF tools effectively.

The nature and complexity of international trade has changed significantly over the last decades.  Africa has become the new frontier for emerging market investors as large-scale projects and global supply chains reach deeper into the continent. This has seen the trade finance landscape in Africa evolving 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 further created the need for financing solutions that are more robust to mitigate most of the risks associated with complex trade initiatives involving riskier markets.

Recently, global trade has undergone disruption arising from global geo-political tensions. These tensions have generated consequences that have manifested into changes in areas of global trade such as trade settlement methods, payment methods, Dollar risk, trade corridors, and Global Payment platforms. In this regard, there is a need to build the capacity of relevant professionals on structured trade finance and the application of the various STF tools.

Structured trade finance has emerged to address the risks related to the performance or completion of a transaction, rather than mere reliance on the traditional financial soundness of the parties to a transaction.

There were 18 participants from six (6) countries namely Angola, Lesotho, Malawi, Rwanda, Uganda, and Zimbabwe. Of the 18 participants, 13 (72 percent) were male while 5 (28 percent) were female. These included Trade Finance and Treasury Professionals, Commercial and Investment Bankers, International Traders, Risk Managers, Legal Advisors, Credit and Risk Officers, Relationship Managers, Central Bankers, and Internal Auditors.

The workshop was facilitated by three (3) resource persons, namely Mr. Victor Mashoko a Senior Manager, AFREXIMBANK; Ms. Rania Makarem, a Senior Trade Finance Officer, TDB, and Ms. Gladys Kanyongo, an independent consultant.

Prepared by Senei Molapo