REUTERS/Jean BizimanaCAIRO - 16 December 2018: The World Bank estimates that the cost of intra-African trade is 50% higher than that in East Asia. One of those is the Intra-African Trade Fair (ITAF) that is held every two years. New applicants compose only 15% of banks’ trade finance portfolio, although their default rate is only 3%.In 2013, AFDB launched its four-year Trade Finance Program (TFP). It crowded in global banks and worked on strengthening local African financial institutions that are critical to the promotion of trade on the continent.Afreximbank, AfDB, and insurers such as the African Trade Insurance Agency provide guarantees and credit rating backings for those looking to trade across borders. The target is covering the risk of some small African banks to expand their trade finance portfolio.

Source: Egypt Today December 16, 2018 16:41 UTC