Dean Adansi, Chief Executive Officer of Ghana International Bank (GHIB), has outlined a financing model to transform Africa’s commodity trade by shifting from raw material exports to value-added production.
He argued that the continent’s dependence on unprocessed exports is costing billions in lost earnings and limiting its share of global trade, which remains under three percent.
Speaking to the BBC during the GHIB CONVERGE 2025 conference in London, Mr. Adansi identified a persistent US$80 billion trade finance gap in sub-Saharan Africa as a major obstacle to industrialisation.
He noted that in many African countries, interest rates are significantly higher than in the West, making it difficult for smaller businesses with limited track records to access capital for export or local processing.
“For every US$1 of trade, there is a US$1.70 impact on GDP,” he said, explaining that closing the trade finance gap could add US$133 billion annually to the region’s economy.
The benefits, he stressed, extend beyond revenues to job creation, stronger domestic capital markets, and increased local savings.
GHIB, which has operated from London for 65 years, is working with West African financial institutions to strengthen their capacity and attract larger international lenders.
Over the past five years, the Ghana-owned bank has facilitated more than US$14 billion in trade flows, including US$10.6 billion in documentary collections and US$2.7 billion in primary trade finance transactions. In 2024 alone, downstream payments to West Africa exceeded US$8.5 billion.
Mr. Adansi argued that financing remains the primary bottleneck for processing plants, which require substantial upfront investment, extended repayment terms, and tailored risk assessments. “Traditional banking products are rarely designed to support multi-year investment cycles in processing,” he noted.
The conference heard examples of missed opportunities, including a US$10 million onion supply contract to Senegal that went to European exporters despite West Africa producing sufficient raw output. The deal was lost because local producers could not secure financing for processing capacity.
GHIB’s plan calls for specialised commodity finance instruments, such as pre-export financing tied to off-take agreements, inventory financing, and equipment leasing to lower capital barriers.
Research presented at the event suggested that raising Africa’s share of value-added exports from 14 to 25% could generate over US$50 billion in extra annual revenue and millions of industrial jobs.
Ghana’s progress in cocoa processing, now accounting for about 15% of local output, and investments in gold refining were cited as proof of what targeted finance can achieve.
Mr. Adansi cautioned that finance alone is not enough, highlighting the need for steady electricity supply, modern transport systems, skilled labour, and regulatory reforms.
He pointed to the African Continental Free Trade Area (AfCFTA) as a chance to develop regional processing hubs serving multiple markets. Digital platforms, blockchain technology, and environmental finance tools, he added, could help African processors secure better prices and meet sustainability standards.
“With well-regulated carbon markets, Africa can attract the capital it needs while meeting global sustainability demands,” he told delegates, emphasising that GHIB’s approach relies on partnerships between commercial banks, development finance institutions, and governments.
According to him, pilot projects in selected commodity sectors could showcase the economic and social returns of scaling up value addition. “If we can build value chains that keep more of the processing on African soil, the gains will be felt not just in GDP, but in livelihoods,” Mr. Adansi said.
