Why African Trade Still Struggles to Get Funded—And How We Fix It
Why African Trade Still Struggles to Get Funded—And How We Fix It
Despite rising export volumes, Africa still faces a serious trade finance gap. According to the International Chamber of Commerce and Afreximbank, African businesses are rejected for trade finance at a rate of nearly 40%. That’s not a typo. Most of these are good companies—mid-sized exporters, processors, and distributors—getting turned away for the wrong reasons.
The Trade Finance Gap Is Real
Across sub-Saharan Africa, the shortfall in available trade finance exceeds $120 billion annually, according to the African Development Bank. Banks cite KYC risk, currency exposure, and limited correspondent relationships. What it really comes down to is execution risk. Many banks just won’t underwrite trade credit for deals they can’t price. So the capital doesn’t flow, and the goods don’t move.
This is a problem if you’re moving containers from Lagos to Rotterdam. Or buying fertilizer into Kenya. Or shipping refined products out of Côte d’Ivoire. You’re stuck. And local credit lines aren’t designed for this type of structured flow.
Why Good Trade Deals Still Get Rejected
Most rejections come down to two things: lack of deal structure or lack of bank coverage. If you don’t have a clean LC or you can’t post collateral, you’re out. Even if the transaction is solid. Banks want to see top-tier documentation, liquidity buffers, and credit support. But for most traders and mid-sized sponsors, that’s a tough ask. Especially in dollars.
Some try to patch the problem with alternative lenders or invoice platforms—but those aren’t built for cross-border commodity trade or supply chain flows. They’re built for domestic B2B cycles. It’s not the same thing.
How Financely Closes the Gap
Financely acts as a structuring and capital access platform. We take real trade deals—backed by contracts, delivery schedules, and logistics—and underwrite them with the data and formatting private credit desks expect. That includes prepping LC terms, building the SPV, and helping clients structure performance guarantees or bring in SBLCs from our banking partners.
Once it’s structured, we match it with capital. We don’t blast your deal. We bring it to desks that fund trade, often in tranches. Some are private credit funds, others are structured note desks, commodity finance desks, or family offices with asset-backed mandates. Most want short tenors, verified shipment terms, and dollar-denominated payment chains. If the file checks out, we close.
Need Capital for a Trade Deal?
Submit the docs. We’ll underwrite it, tell you what’s fundable, and match it with live desks. No pitch decks. Just structure.
Submit a Deal Book a ConsultationThe Capital Is There. The Structure’s Not.
The money isn’t missing. The structure is. We see fundable trade deals every week that never make it past compliance because they weren’t packaged properly. Wrong banks. Wrong instruments. Wrong expectations. Our job is to fix that—fast. If your deal is real and your buyer is verified, we’ll tell you what it takes to close.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
