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Greasing the Wheels: Maximising Access to Hard Currency with Innovative Trade and Working Capital Finance
When: June 14, 2023
Location: GTR East Africa 2023
 

Nairobi, Kenya

People: Simon Cook

Simon Cook moderated a panel discussion titled "Greasing the Wheels: Maximising Access to Hard Currency with Innovative Trade and Working Capital Finance" at Global Trade Review's (GTR) East Africa 2023 event: Promoting sustainable economic growth through trade to be held in Nairobi, Kenya.

The session discussed the following: East African economies are forecast to return to pre-pandemic growth levels in 2023 with demand for imports and the dollars needed to pay for them set to grow, but manufacturers and importers already stressed by inflationary pressure and rising interest rates cite the daily struggle to secure the hard currency required to procure from overseas suppliers as a key factor dampening their growth prospects.

This session weighed the impact of hardening financial markets on the trade and financing operations of East Africa’s corporate traders, assessing availability and pricing of trade finance across the region and considering the role of DFIs, large corporates and trading houses, and the international and local banking sectors in boosting hard currency trade financing opportunities for local companies.

Further insight focused on the lesser-known and innovative applications of letters of credit, payables financing structures and fintech offerings capable of reducing or removing pressures on the importer’s balance sheet while boosting the potential to scale business volumes and mitigate counterparty risks.