Oiling the wheels of trade and growth :: Mmegi Online

At its simplest, trade finance moves goods along value and supply chains. In 2024, Afreximbank spent nearly $20 billion on trade finance, powering growth on the continent. Ahead of the historic Trade Finance Seminar in Gaborone next month, Afreximbank Executive Vice President of Global Trade Bank, Haytham El Maayergi, speaks to MBONGENI MGUNI on trends and opportunities

Mmegi: May we just start with the simplest definition that we can give our readers of what trade finance is?

El Maayergi: Trade finance is quite simple. It's the money that moves goods from one step to the next until they reach the buyer. So, take bauxite, for example. The ore is used to make aluminium and then the mining company needs money to dig it and carry it to the port. The refiner needs money to buy the ore and turn it into aluminium and then the exporter needs money to ship it and then wait for the buyer to pay, who might need also finance. At each of those steps, someone needs capital to keep going and that is what trade finance provides.

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Oiling the wheels of trade and growth

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