Financing trade in africa: the mechanisms

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• Conventional Youth. 12 years ago

  Trade finance is the method that importers and exporters of commodities and goods use to finance their businesses. International trade, the cross-border exchange of goods and services is now widely acknowledged as an importan ...
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  Trade finance is the method that importers and exporters of commodities and goods use to finance their businesses. International trade, the cross-border exchange of goods and services is now widely acknowledged as an important engine of growth in most developing and transition economies. As Africa trades, more and more goods and commodities are bought and sold, and so, more and more banks and financiers are needed to lend money to finance the purchase and sale of these goods and commodities, right across the global supply chain. Therefore the absence of an adequate trade finance infrastructure is, in effect, equivalent to a barrier to trade. Limited access to financing, high costs, and lack of insurance or guarantees are likely to hinder the trade and export potential of an economy, and particularly that of small and medium sized enterprises.
  
  One of the most important challenges for traders involved in a transaction is to secure financing so that the transaction may actually take place. The faster and easier the process of financing an international transaction, the more trade will be facilitated. Trade finance therefore provides companies with the necessary capital and liquidity and helps them to better manage their cash flow, allowing them to expand and grow.
  
  In one form, it is quite a precise science managing the capital required for international trade to flow. Yet within this science, there are a wide range of tools at the financiers’ disposal, all of which determine how cash, credit, investments and other assets can be utilized for trade. Among the trade financing tools available are discussed below:

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• Kwadjo, London 12 years ago

  There should be systems on the ground to allow Ghana to reap the benefit of Trade Finance. Ministry of Trade, IRS,GPHA and Customs must work and sing from the same sheet. Should this happened will GIFF be a facilitator or ... ...
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  There should be systems on the ground to allow Ghana to reap the benefit of Trade Finance. Ministry of Trade, IRS,GPHA and Customs must work and sing from the same sheet. Should this happened will GIFF be a facilitator or ... Financiers are unwilling because some of our trading acitities are not transparent enough.

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• BIG - JOE -moscow/kharkov/minsk 12 years ago

  Reasonable article

  Reasonable article

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• Omanbapa Osei Oy3ade3yie 12 years ago

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