Emerging markets are increasingly feeling the strain from ongoing economic pressures, and Africa is no exception. A significant challenge faces the continent, an estimated $100 billion annual trade finance gap. This substantial shortfall complicates Africa’s ability to engage fully in global commerce and achieve its economic potential.

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One of the primary culprits behind this gap is the presence of trade barriers. Unfair trade agreements, coupled with high tariffs and various non-tariff barriers, create an uneven playing field. These obstacles undermine African economies’ competitiveness in the international arena, limiting their growth and prosperity. Overcoming these barriers is crucial for unlocking Africa’s trade potential and fostering sustainable economic development.

The upcoming 25th edition of the Afreximbank event (November 4-6) is ready to address the critical trade finance gap affecting African economies. This year’s event will focus on innovative financing structures designed to unlock new business opportunities, particularly for SMEs, which constitute 90% of the continent’s enterprises. With a focus on moving beyond traditional banking, the event seeks to empower these vital businesses. A specialised one-day factoring workshop will follow on November 7, 2025, offering further tools and strategies for growth according to Afreximbank.

The upcoming event will host a diverse multitude of leading African and international trade finance specialists, banking professionals, corporate representatives, and regulators. This assembly of expertise promises to foster collaborative solutions and drive impactful change in Africa’s trade finance landscape.

According to Ms. Gwen Mwaba, Managing Director of Trade Finance and Correspondent Banking, “Structured trade finance is Africa’s ticket to turning unbankable deals into viable trade.” She emphasizes that these tools empower financial leaders to unlock growth at scale, particularly in challenging conditions. However, despite such promising initiatives, Africa has struggled to adapt, facing recurring issues that persist despite ongoing efforts and discussions.

In my opinion, Africa needs to explore different strategies to turn the page and compete internationally. Leveraging the latest technologies could be a game-changer. Digital trade finance, incorporating blockchain, e-invoicing, and digital platforms, can streamline processes, reduce fraud, and improve access to finance for SMEs. These technologies can also provide valuable market data. Digital payment systems can help mitigate currency volatility and reduce reliance on the US dollar, promoting trade in local currencies. Furthermore, embracing digital fintech innovations like peer-to-peer lending platforms, which are rapidly expanding, could offer alternatives to traditional banking, enabling individuals and SMEs to transact without relying on banks, especially given the current high-interest rates.

This year’s event will feature keynote addresses, including “Unlocking Africa’s Trade Finance Potential” presented by Marc Auboin from the World Trade Organization (WTO). Sylvia Macri from S&P Global Commodity Insights will also deliver a keynote speech, and numerous workshops are scheduled to take place, offering attendees a wealth of insights and practical knowledge.

Unlocking Africa’s trade finance potential and enabling SMEs to compete internationally is indeed possible, but it relies on implementing the right approach and strategy.