Following the release of ICC Banking Commission’s 2016 Global Survey on Trade Finance, Moneyweb – the tier-one South African publication – has reported on the latest Survey’s findings. The Survey found that SMEs bear the brunt of the global shortage of trade finance, facing 58% of rejections for trade finance proposals. In addition, the rate of rejections was highest across emerging markets, with sub-Saharan Africa registering a rejection rate of 10.3% compared with a proposal rate of 6.4%, for instance.
The article also cites the perceived higher risk of providing trade finance to companies operating in Africa, and that, in actuality, the risk profile of trade finance activities provided by African banks is more favourable than that of traditional bank lending.
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