If we are serious about building an ecosystem that encourages fair and sustainable trade, there has to be a recognition that trade finance and environmental, social & governance principles go hand in hand.Across the continent there is a substantial focus on assisting women, the youth and small businesses, but the ability to unlock financing for these stakeholders is an ongoing challenge.
Research out of McKinsey and shared with Global Trade Review highlights the reality that inadequate transport links are adding as much as 40% to the cost base for corporates, which is eating into the working capital of businesses that need trade finance to mitigate these inefficiencies.One has only to consider the situation in SA, where the African Rail Industry Association has estimated that inefficient rail and ports costs the economy as much as R385bn a year.