African banks have proven tougher than anyone expected.
The African Development Bank's fifth Trade Finance Report, released Wednesday at the Bank Group's 2026 Annual Meetings in Brazzaville, paints a picture of resilience despite a brutal global environment.
Between 2020 and 2024, intra-African trade accounted for 34 per cent of total bank-intermediated trade. That's an 89 percentage-point jump above pre-pandemic levels.
The Gap Is Shrinking
Unmet demand for trade finance in Africa ranged from $74 billion to $92 billion in 2024. That sounds massive — because it is. But here's the good news: the gap has narrowed by nearly 10 per cent since 2019.
Without intervention from multilateral development banks, governments, and export credit agencies, the annual trade finance gap could have exceeded $100 billion during the 2020-2024 period. DFIs alone facilitated about $32 billion annually — roughly 3 per cent of Africa's total merchandise trade.
The Warning
Anthony Simpasa, Director of Macroeconomic Policy at AfDB, sounded a cautious note.
"Renewed geopolitical tensions and disruptions to global supply chains could reverse post-pandemic progress," he said. Under a moderate to severe scenario, the trade finance gap could widen to $86.6-$102.6 billion by 2027 — erasing a decade of gains.
The Real Bottleneck
Foreign exchange liquidity shortages are now the primary barrier. About 36 per cent of banks cited limited FX liquidity as their main constraint between 2020 and 2024. Before the pandemic, that figure was just 18 per cent.
Digital adoption remains painfully low. Only 28 per cent of surveyed banks have adopted digital tools for trade finance operations. The reasons: high implementation costs and inadequate tech infrastructure.
What Leaders Are Saying
Admassu Tadesse, Group President of the Trade and Development Bank, called for systemic change: "New initiatives like the New African Financial Architecture for Development (NAFAD) should multiply the impact of African capital and unlock more global capital."
Commissioner Belobe of the African Union Commission took aim at the "missing middle." SMEs are too large for microfinance, too small for corporate banking, but far too important to be left outside the trade finance system.
For African SMEs struggling to access traditional trade finance, the business funding no bank no debt guide explores alternative capital sources, while the side hustle in nigeria guide offers practical income ideas for small business owners navigating tight liquidity.
The Bottom Line
The report is clear: resilience is real, but fragile. Without continued intervention and a serious push toward digitalization, the gains of the last five years could vanish.
A Bloomberg report on African trade finance noted that correspondent banking relationships have declined by 22 per cent since 2018. The African Development Bank confirmed that its Trade Finance Program has supported over $50 billion in transactions since 2013.