Trade Finance Demand and Supply in Africa: Evidence from Kenya and Tanzania

African Development Bank (AfDB)

2022

5Evidenc fifrenoemifdnifdnKyaaTzn fn1.v ri3n Evidence from Kenya and Tanzania This. report. presents. the. findings. of. the. fourth. study. in. a. series. of. trade. finance. surveys. in. Africa.. For. the. first. time,. we. conduct. a. deep-dive. analysis. of. the. trade. finance. market. in.Kenya.and.Tanzania..In.doing.so,.we.use.data.from.804.firms.–.that.cut.across.multiple. sectors.of.these.economies.–.and.58.commercial.banks.–.that.account.for.over.half.of.all. commercial.banks.in.both.countries.. . The. overall. objective. is. to. better. understand. the. trade. finance. market. in. Kenya. and. Tanzania. to. support. trade. related. policy.. We. shed. new. insight. on. firms’. international. activities,. how. they. finance. their. trade,. and. the. drivers. of. trade. finance. rejection. and. approval.rates..We.estimate.the.value.of.annual.trade.lost.due.to.lack.of.access.to.finance. and.the.impact.of.trade.finance.on.firm.export.activities,.particularly.for.small.and.medium- sized.enterprises.(SMEs).and.women-owned.businesses..We.also.juxtapose.findings.from. firm-level.data.with.results.from.commercial.banks.to.better.understand.the.constraints.in. the.trade.finance.market.

English

African Development Bank

Policy Report