Abuja: Prof. Benedict Oramah, the President and Chairman of the Board of Directors of African Export-Import Bank (Afreximbank), has highlighted the significant transformation occurring in structured trade finance. He emphasized its adaptation to global economic shifts and Africa’s evolving trade patterns. Oramah shared these insights in Abuja during the unveiling of the second volume of his book, ‘Foundations and Evolutions of Structured Trade Finance.’
According to News Agency of Nigeria, the book presentation coincided with the 32nd Annual Meetings of the Afreximbank (AAM2025), held in Abuja from June 25 to June 28. Oramah noted that the global economy was still dealing with a severe sovereign debt crisis when structured trade finance began gaining traction as a vital tool for financing trade in challenging markets. He explained how this financial strategy, which facilitates risk transfer between parties, has become more sophisticated in addressing complex global trade challenges. Structured trade finance empowers practitioners to innovate by shifting risks to those better equipped to manage them.
Oramah also pointed out the dramatic changes in historical trade patterns. He explained that in the late 1990s and early 2000s, around 70 percent of trade occurred between developing economies and Organisation for Economic Co-operation and Development countries. Today, the trade landscape has transformed significantly, with recent data indicating a rise in south-south trade between Africa and other developing countries, from 40 percent to an estimated 68 percent in 2024, marking a fundamental restructuring of international economic relationships.
According to Oramah, the emergence of new manufacturing centers and resource producers is challenging traditional financing models. He highlighted the need to rethink reserve-based lending due to the increasing discovery of oil, gas, and other natural resources across African countries. He also identified intra-African trade as a promising area, currently averaging 15 to 17 percent, with expectations to double within a decade as free trade agreements are fully implemented.
The book launch underscored critical challenges and opportunities, emphasizing the need for traditional trade finance sectors to adapt to the rise of manufacturing giants in Africa. Oramah noted that changing regulatory landscapes are significantly impacting trade finance practices in developing countries. He called for innovative financing structures to navigate these complex terrains, highlighting the potential benefits for small and medium enterprises from these transformations. The growth of domestic and regional value chains presents unprecedented opportunities for emerging businesses.
Oramah stressed the importance of maintaining access to international trade finance, aiming to develop innovative financing structures that support African economic ambitions. The book, ‘The Foundations and Evolutions of Structured Treatments,’ offers a comprehensive exploration of these complex financial mechanisms, drawing from decades of practical experience in international trade finance. Published by Global and Business London, it serves as a roadmap for understanding how financial innovation can drive economic transformation.
As Africa continues its economic evolution, structured trade finance emerges as a crucial tool for navigating complex global trade landscapes, offering practical solutions for developing economies. The publication marks a new chapter in understanding financial strategies that can support sustainable economic development across the continent.
