ABSTRACT
Trade and supply chain finance is a technical and esoteric area of finance even among senior bankers. Mid-market businesses are generally in better financial state than SMEs, and generally shield their domestic operations from international ventures. Global competition, sourcing patterns and the increasing reach of international supply chains combine to create commercial scenarios where margins and profitability can be extremely thin. The more difficult the macroeconomic environment and the more precarious the situation of the financial institutions. Buyers, including large importers in excellent positions in terms of cashflow, liquidity and working capital, will look to trade and supply chain finance to support the needs of key suppliers, potentially dozens of them, in multiple markets across the globe, concurrently. Africa, like the Middle East and north Africa (MENA) region, exhibits strong post-crisis growth rates particularly in leading economies, driven partly by regional trade activity and partly by a significant influx of resource-aimed inward investment from China.
