Ogbonna Tasks Banks to Close African MSMEs $120bn Trade Finance Gap

The banker also reinforced the importance of private sector involvement in regional trade, particularly for micro, small, and medium-sized enterprises (MSMEs).

According to him, “Africa’s MSMEs are the backbone of its economy, yet they face a trade finance gap of around $120 billion. Financial institutions must innovate to close this gap and provide the liquidity these businesses need to grow and scale.”

Mr Ogbonna was one of the panellists at the just-concluded Africa CEO Forum held in Abidjan, Cote d’Ivoire.

The event brought together leaders from across the continent to discuss the critical role of private sector-led growth in the development of African trade and market integration under the topic Fast-tracking African Integration: The Private Sector Imperative.

During his presentation, Mr Ogbonna said, “Years ago, if you told someone something was made in China or Taiwan, it was often seen as inferior. Fast forward 30, 40 years, and now Made in China is a symbol of quality, and Made in Taiwan commands respect globally.

“The difference? These countries built a strong domestic market that allowed them to scale, build proficiency, and innovate. Africa is no different.

“We have everything we need, from abundant raw materials and vast natural resources, to a youthful population and fertile land. There is no reason why Africa has not yet transformed itself into the powerhouse we know it can be.

“Africa has what it takes to win, and my charge remains the same as I gave during our inaugural Africa Trade Conference in South Africa: Buy Africa, it’s not inferior!”

Echoing Mr Ogbonna’s sentiment at the gathering were the Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene; and the president of Africa Finance Corporation (AFC), Samaila Zubairu, who highlighted the tangible steps taken to drive integration, such as the introduction of the e-Tariff Book and the AfCFTA Adjustment Fund, as well as the critical need for synergy between public and private investment to address Africa’s infrastructure gaps and finance its development priorities.

The discussion also focused on the barriers preventing the scaling of intra-African trade, notably the lack of adequate logistics and transport infrastructure. The Pan-African Payments and Settlement System (PAPSS) was highlighted as a potential game-changer in unlocking new cross-border trade opportunities by facilitating smoother payments and transactions.

They were all united in their belief that Africa’s transformation hinges on the development of regional value chains, the scaling of intra-African trade, and the need to build both financial and infrastructural capacities that will enable economic integration.