Crown Agents Bank’s Duarte Pedreira cited on emerging-market trade finance in Euromoney

The problem of unfinanced trade is nothing new in Africa. In an article for Euromoney, Duarte Pedreira, Head of Trade Finance at Crown Agents Bank, warns that the “real issue” underlying the African trade finance gap is that “Banks are moving more and more towards financing the same counterparties, which is creating concentration risk. Whilst banks don’t want to lend to African commodity producers or importers, they happily lend to large commodity traders, who then undertake the lending to these entities themselves.”

Yet the outlook for trade is “far from uniformly bleak”. In emerging markets, “niche players are stepping into the void created by de-risking among large banks by supporting due diligence-led financing in countries ranging – in the case of Crown Agents Bank – from Sierra Leone and Gambia to Malawi and Mozambique.”

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