Ghana International Bank (GHIB) is spearheading a plan to transform Africa’s role in global trade by moving away from raw commodity exports and focusing on value-added products.
Speaking at the GHIB CONVERGE 2025 conference in London, the bank’s Chief Executive Officer, Dean Adansi, said Africa’s low share of global trade, less than three percent, is partly due to a massive trade finance gap. This gap prevents exporters from securing the funding needed to process commodities locally, forcing them to sell raw materials instead of finished goods.
“In many African countries, interest rates are much higher than in the West, making it difficult for smaller businesses to secure financing,” Mr. Adansi explained. “Without access to affordable capital, we cannot industrialise or add value to our raw materials.”
The Cost of Lost Opportunities
The stakes are high. Research shows that for every US$1 of trade, there is a US$1.70 boost to GDP. Closing the estimated US$80 billion trade finance gap in sub-Saharan Africa could generate an extra US$133 billion every year, creating jobs, growing local savings, and strengthening capital markets.
Examples of missed opportunities abound. At the conference, delegates heard about a US$10 million onion supply contract for Senegal that was fulfilled by European suppliers, even though West Africa produces enough onions. The reason was that African producers could not secure financing to process and package their produce.
GHIB’s Role in Closing the Gap
For more than 65 years, GHIB has been a vital trade bridge between Africa and the rest of the world. In the last five years alone, the Ghana-owned bank has facilitated over US$14 billion in trade flows, including US$10.6 billion in trade collections and US$2.7 billion in primary trade finance transactions across sub-Saharan Africa. In 2024, downstream payments to West Africa exceeded US$8.5 billion.
Now, GHIB wants to go further. Mr. Adansi outlined a new commodity financing blueprint that includes:
• Pre-export financing tied to off-take agreements
• Inventory financing against stored commodities
• Equipment leasing to reduce upfront costs for processors
He noted that processing plants require large upfront investments, longer repayment terms, and tailored risk assessments, needs that traditional banking products rarely address.
Infrastructure, Policy, and Partnerships
However, finance alone will not solve the problem. Mr. Adansi stressed the need for reliable electricity, modern transport networks, skilled labour, and supportive tax and export regulations. He also pointed to the African Continental Free Trade Area (AfCFTA) as a chance to create regional processing hubs serving multiple countries.
Technology, too, can be a game-changer. “Digital platforms can connect African processors directly with buyers, and blockchain can certify products to attract premium prices,” he said.
Environmental finance could also play a role. “Sustainably processed goods earn higher prices. With regulated carbon markets, Africa can attract the capital it needs while meeting global sustainability goals,” he added.
The Bigger Picture
GHIB’s strategy relies on partnerships with local banks, development finance institutions, and governments to mobilise the resources needed. Pilot projects in selected sectors are planned to showcase the financial and development benefits.
For Mr. Adansi, success is not just about profit. “If we can build value chains that keep more processing on African soil, the gains will be felt in GDP, in jobs, and in livelihoods,” he said.
